Lehman Brothers

Topics: Enron, Business ethics, Ethics Pages: 1 (361 words) Published: March 6, 2013
Lehman Brothers
2. What was the culture at Lehman Brothers like? How did this culture contribute to the company's downfall?
a. Excessive risks taken by employees and those risks were rewarded.
b. Questionable deals were rewarded like heroes.
c. Individuals who question risks were ignored and dismissed.
d. Company’s managers made numerous business mistakes.
The risks caused Lehman to make an enormous amount of business problems and provided a culture that produced bad judgment and poor decisions making. The culture pushed anyone that did not agree to what others were doing to the bottom of the ladder.

3. What role did Lehman's executives play in the company's collapse? Were they being responsible and ethical? Discuss The Lehman brothers did not act ethically. Executives took risks and were rewarded beyond reason when there was a good outcome. Oliver Budde who was an associate general counsel spoke up and tried fighting this but this was unsuccessful. Executives were making bad calls. The executives also wrote up misleading reports and manipulated them. If they saw an asset on a report they didn’t like, they wrote them off instead of selling them at a loss. It sounds like they didn’t want to take less money if this is being understood correctly. People have lost confidence in the market because of these executives doing wrong things, and have no regard for how their actions will affect other people. They figure if a few will do this, other companies may do the same. Then investors lose money due to the bankruptcies. The government should intervene and people who want to do the right thing should turn to attorneys for legal action to be taken. A way to go is to let these companies stay in business but the people who want to wrong others need to be dismissed, and if possible, face prison time and that way they can’t access anything.

5. After all the public uproar over Enron and then the passage of the Sarbanes-Oxley Act to protect...
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