The culture of this company encouraged not ethical practices and within the employees of the company. Question 3 Lehman executives play in company collapse was very dishonest by manipulating the balance sheet to ensure short term financial result which were beneficial to the company. (Paraphrase, Robbins 2012). They were not responsible neither ethical by balance sheet manipulation. One example of the manipulation was when Lineman’s executive wrote of an asset at the end of the year that should have been reposted as a loss. They didn’t want for the public to look like loss. They hide the truth with no care about others feelings.
All their unethical behaviors and irresponsibility lead Lineman’s company to bankruptcy. Question 5 The reason why all these things happen in accompany is simply the greed of money. When a company sees a manner a potential way to look other ways of winning, of making money, than they ignore the warning signals. Business function to make a profit but at the same time they have responsibility to the customers and their employees at the same time. When the employees of the business feel that they are being treated in ethical manner than they will be bled to act in ethical ways themselves.
Lehman Brothers field for bankruptcy because they took unnecessary risk and didn’t do their work in the right way. All inters in the money is why we still continue to see these kind of situations. For these reasons, companies need to watch all areas of the business to make sure that all employees are doing their work right from the leaders to down. It should be a constant supervision to make this occur as less as it can.