Lehman Bros Case Study

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1. Describe the situation at Lehman Brothers from an ethics perspective. What’s your opinion of what happened here? From an ethics perspective looking at the situation at Lehman Brothers; my opinion of what happened there is that they had repeated internal risk control and exceeded them at that. This shows there was no ethical leadership taking place along the managers at Lehman Brothers. “In the failure of these actions of non-ethical leadership measures; it poses a strong influence of whether employees’ behave ethically” [Robbins & Coulter 2012, pp. 130]. Also, there was a variety of bad calls by the management team. What have been carried out at Lehman Bros. are managers in different stages of moral development. My opinion of what happened at Lehman Bros. is that ethical policies and procedures weren’t implemented here. Furthermore, the code of ethics weren’t acknowledged if the company had one. “In addition, managers should have used the processes to guide employees when they face ethical dilemmas. Questions like: 1.What is the ethical dilemma? 2. Who are the affected stakeholders? 3. What personal, organizational, and external factors are important in this decision? 4. What are possible alternatives? 5. What is my decision and how will I act on it?” [Robbins & Coulter 2012, pp. 137] 2. What was the culture at Lehman Brothers like? How did this culture contribute to the company’s downfall? In Lehman’s case the culture there and mangers were in the lowest stages of moral development. They only did things for a reward instead of just doing things just because for the greater good. This lack of morals can motivate individuals to be corrupted by an organizational structure that encourages unethical practices. Plus certain issues where ignored in the process of making ethical decisions. In

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