Business Ethics Research Paper Example | Topics and Well Written Essays - 1500 words

Business Ethics - Research Paper ExampleFacts that surrounded the Lehman Brothers Holdings internalizations case comprise the following first, Lehman Brothers Holdings In breadbasket frequently utilized contracts as a course of financing their activities. Second, the repurchase contracts employed by the mass are perceived as the liability and advance the corporations leverage percentage. Third, ambiguity in the standards of financial accounting permitted the contracts to be shifted off-balance sheet in case carry is met. Fourth, Lehman Brothers Holdings Incorporation would push repurchase contract liabilities off of the financial statement all through account phases so as to mislead stakeholders by reducing control. Maybe if the stakeholders were aware, it may have had a disallow impact on the Lehman Brothers Holdings Incorporation stock prices. Fifth, at that time, little or no financial corporations were using these deceiving tactics (Lubben 1). The fall of Lehman Brothers H oldings Incorporation was not as a result of a sole spillage in ethical decision performed by a single imprudent worker. It would have been almost reveal of the question for a single incident to make Lehman Brothers Holdings Incorporation collapse, particularly after the corporation had flog numerous difficulties in the past. Instead, Lehman Brothers Holdings Incorporations failure was the growing impact of several mishaps caused by a number of parties and individuals (Madsen and Shafritz 23). The unethical practices can be classified into three actions deceit declared by the corporations Chief executive director Officer, Richard Fuld cover up sanctioned by Chief Financial Officer, Erin Callan and vault in place of Ernst & Young. In 2007, the housing marketing was starting to falter, the corporations Chief Executive Officer, Richard Fuld was embedded in a highly leveraged and aggressive business model. This was similar to other Wall alley actors at the period. Whereas Lehman B rothers Holdings Incorporations rivals had the ability to forecast the impending fall and assess probable results of owe shirk, the corporations Chief Executive Officer did not change the strategy. Instead, He advanced into mortgage- support safety investments, incessantly escalating Lehman Brothers Holdings Incorporations asset range to one of unduly elevated seek given the market situation (Lubben 1). This implies Richard Fuld was adamant, but when it was an occasion to accept the issue, he did admit his failure or take responsibility. In 2007, the Chief Executive Officer had a chance to air concerns on the corporations short-term financial condition and its tremendous participation in risky loans. In contrast, he disregarded it in support of communicating to Wall Street and stakeholders that there was no existence of predictable issues (Lubben 1). Had Richard Fuld been honest, appropriate solutions would have been developed. This would have assisted to minimize or prevent the financial problems that occurred.