Lehman Brothers Ethical Reasoning Essay Example

Lehman Brothers Ethical Reasoning Essay Example Lehman Brothers Ethical Reasoning Essay Lehman Brothers Ethical Reasoning Essay Describe the situation at Lehman Brothers from an ethics perspective. What’s your opinion of what happened there? The ethical issue here was that Lehman’s executives exploited loopholes in the accounting standards to manipulate their balance sheet in order to mislead the investing public. Using â€Å"Repo 105†, Lehman was able to clear huge amount unprofitable assets off its balance sheet instead of selling at loss. Evidence pointed out that the chief executive, Richard Ruld, knew about the use of it but faked ignorance in defence. Even the auditors from Ernst and Young knew about the use of the suspicious Repo 105 but chose to keep quiet. I believe that the prime motivation behind the act was to retain investors’ confidence by preventing a plummet in stock price. Hence, the implication was that Lehman was projecting a false image of its strong financial position, meaning that its stock price was overvalued. Through falsified accounting reports, investors were tricked into believing that their investments were safe, incurring huge losses when Lehman defaulted. Investors lost faith. The consequences were devastating as it created a systemic crisis of confidence in the banking industry as all other banks froze lending to reduce their exposure of Lehman’s undesirable Repo 105. Lehman’s employees suffered too as they lost their jobs overnight. Could anything be done differently at Lehman Brothers to prevent what happened? Explain. After extensive research, it was apparent that a written â€Å"Code of Ethics† was present at Lehman Brothers. However, for an ethics code to be effective, the tone at the top executives needs to be set right so that the entire organisation can feel connected to the firm’s ethical values and beliefs. The obvious failure we witness in Lehman’s case was that the top management, led by Ruld (CEO) and Erin Callan (CFO), were guilty of unethical negligence and wrongdoing. Therefore, it is vital for the Shareholders to screen through their selection of the Board of Directors extremely stringently to ensure the appointment of the right leaders. As the top management was already corrupted, the Ethics Programs at Lehman had limited use in ensuring the upholding of the Ethics Code, as these top executives can wield their axe down on any whistleblowers that puts their power in jeopardy. This was the exactly what happened at Lehman, when whistleblower Matthew Lee, was axed. Therefore, Lehman needs to ensure that ethical leaders are at helm for this control mechanism to work, so that the Ethics Code can be reinforced through compliance-based ethics programmes to serve as deterrence. Simultaneously, integrity-based ethics programmes must come into play to instill and influence an individual responsibility for upholding ethical behaviour, with compliance continuously playing the role of monitoring, to prevent any future reoccurrences. On top of this, Lehman could have adopted the Moral Rights Approach to base their decision on whether their behaviour was ethical or unethical. Using this approach, they would not have committed fraudulent accounting, as it violates the fundamental rights that investors deserve from the use of their accounting report – which is to provide a faithful and accurate representation of the company for investors to evaluate investing decisions. Another preventive approach is the Fairness or Justice Approach to assist Lehman in weighing their ethical decision. The top executives’ decisions impact many groups of stakeholders, and the fraudulent acts only brought about harm to all stakeholders involved, as could be seen from the negative repercussions of the bank’s default – shareholders losing money, employees losing jobs, other banks’ losses due to lending to Lehman, public’s loss of confidence and stock markets crashing. If they did go about reporting their losses honestly, perhaps their stock price and profitability will fall, but at least the negative impacts would be localised within the firm, instead of triggering a banking shockwave. After all the public uproar over Enron and then the passage of the Sarbanes-Oxley Act to protect shareholders, why do you think we still continue to see these types of situation? Is it unreasonable to expect that businesses can and should act ethically? Analysing from the concept of Organisational Code of Ethics, it can be easily deduced that ethical failures from organisations usually stems from the individual ethics component. Unlike societal ethics and professional ethics which are based on established social norm and a certain set of standards, individual ethics is the only component that is not conformed to a certain enchmark. Every individual’s ethics differ from one another as it is shaped from the influence of their upbringing. While honesty can be one’s core value, it can also be the most neglected value of another. As seen from the case studies of Lehman and WorldCom, personal interest and greed of the top executives to remain in power motivated them to trampl e on ethics, resulting in their obstructionist approach. Managers must first understand that ethical decision making is dynamic and every element must be carefully weighed to prevent unethical issues. In applying the five ethical notions, it can be argued in Lehman’s case that manipulation brings about apparent utilitarianism for everyone (higher stock price for shareholders, more bonuses for employees, stronger creditors’ faith and higher management’s bonuses) in the short run. However, it is not justified for the stakeholders to be denied their fundamental rights of having accurate information of the bank, nor is it fair and justifiable that it brings about harm for all stakeholders in the long run when it went bust. It is very reasonable to expect businesses to act ethically. This could possibly be achieved through a two pronged approach. The first, which aims to resolve unethical issues in the long run, requires the need for a stronger emphasis on education. Simple as it may sound, but the lack of ethical education is extremely glaring. In this profit driven world, where money speaks louder than anything else, there seems to be a shift towards higher reward and recognition for profits rather than ethical behaviour. Education serves as the most effective and fundamental way to resolve and prevent unethical issues altogether as it tackles the root of the problem to instill the right mindset. The second, perhaps shorter term measure, deals with governance. To prevent the evil temptation of dishonesty, there needs to be much harsher consequences and deterrence, such that temptation will vanish upon thought of the possible sentences that potential manipulators will face. Currently, the punishments of fines and jail terms are simply not severe enough to deter off such seduction of greed. With a softer but more effective measure through education to correct mentalities in the long run, and a harsher deterrence factor in the short term, ethical behaviour can be definitely be achieved.

Sublimation Definition (Phase Transition in Chemistry)

Sublimation Definition (Phase Transition in Chemistry) Sublimation Definition Sublimation is the transition from the solid phase to the gas phase without passing through an intermediate liquid phase. This endothermic phase transition occurs at temperatures and pressures below the triple point. The term only applies to physical changes of state and not to the transformation of a solid into a gas during a chemical reaction. For example, when candle wax undergoes combustion, the paraffin is vaporized and reacts with oxygen to produce carbon dioxide and water. This is not sublimation. The opposite process of sublimation, where a gas undergoes a phase change into solid form, is called deposition or desublimation. Sublimation Examples Dry ice is solid carbon dioxide. At room temperature and pressure, it sublimates into carbon dioxide vapor.Freezer burn results from sublimation of ice into water vapor.At the right temperature, the elements iodine and arsenic will sublimate from solid into gaseous form.Naphthalene, a chemical commonly used in mothballs, readily sublimates at room temperature and pressure.Water ice will sublimate, although more slowly than dry ice. The effect may be seen sometimes over snowfields when the sun is out, yet the temperature is cold. Practical Applications of Sublimation Sublimation and erosion cause ablation, a process which wears down glaciers.Sublimation of iodine may be used to reveal latent fingerprints on paper.Sublimation is used to purify compounds. It is especially useful for organic compounds.Because dry ice sublimates so readily, the compound is used to produce fog effects.

Aberdour Coursework Example | Topics and Well Written Essays - 250 words

Aberdour - Coursework Example In the first two figures (provided that those two were from the same shore) the zonation pattern of the species varies a lot in the same species. So it is an interesting point to note as well as to research. Comparison between the Zonation Pattern of transects from Site A and B:- Transects from site A and Site B were from the same shore, although they have a lot of difference in their zonation pattern. Looking at both the figures given, Ascophyllum nodosum has totally different represented structure in the second figure as compared to first. Max scale level in the first figure is in C group, but in the second figure, it is only included in F group. Limpets also have different represented structure in the second figure as compared to first. Max scale level in the first figure is in C group, but in the second figure, it is only included in O group. Difference between Exposed Shore and Sheltered Shore Sheltered rocky shore is one where on earth the tide/waves cannot crash onto it; such as one where within a bay offering is some protection. Exposed rocky shore is a short time ago the opposite, nil to stop waves crashing onto it. Exposed can be worse for deep-sea life as the pounding of the top can damage some organisms e.g. could construct them lose their grip on the rocks. Further, organisms that can withstand the exposed shore are prone to less predatory effects and as a consequence can survive longer.

Global companies operating in Qatar Coursework Example | Topics and Well Written Essays - 250 words

Global companies operating in Qatar - Coursework Example Hence, multinational firms are eager to operate in the market. But due to political uncertainties, they fear for losses (Desai, 2009) and have adopted business strategies such as purchasing of licenses or franchising. Hence, the global firm’s leases out their trading licenses at the company inception. However, during that period, they monitor the business situation and understand the market more as they prepare for a takeover. Qatar comprises of many culture that majorly originate from the Middle East. Hence, the global firms that wish to operate in the market are more suitable to apply the franchising way rather than the trade licenses. The essential component of any business is to influence customers. Hence, by use of franchising, they use the local persons who understand the environment better (Schwab & Martin, 2011). Hence, they can implement strategies that influence persons making the business to grow faster. The global firms like MacDonald’s are majorly operating in food staffs. Hence, they need to study the locals’ culture first and see where to improve. Thus, the firms do itself in Dubai due to franchising since this has been the only way to enter the market and

Huckleberry Finn Learns He Must Grow Up Fast If He Wants To Survive Li :: essays research papers

Huckleberry Finn Learns He Must Grow Up Fast If He Wants to Survive Life   Ã‚  Ã‚  Ã‚  Ã‚  Huckleberry Finn, the main character, learns he must grow up fast if he wants to survive life. Huck Finn has a drunkard as a father, a hogshead as a home, and a mother (dead ) of which he never knew. He is a congenital liar, a thief, and someone who has no respect for the rules of society. He will use every technicality to get off with doing something completely wrong, but is ok by him. Huck is not all evil as one would think by this introduction. He in fact believes in personal freedom, something which he never really has had.   Ã‚  Ã‚  Ã‚  Ã‚  Jim, a supporting character, also has to deal with many problems of society. The greatest one in fact is, the fact that he is a slave. Jim is a very modest person, he will sacrifice anything to help his fellow man. Huck sees this and begins to think of Jim as a human being also, and will â€Å"go to hell † for Jim. Although Jim is a slave, he does not think of people based on their skin color, but in fact believes that everyone is equal regardless of skin, and even age. One may ever say that Jim is Huck's true father.   Ã‚  Ã‚  Ã‚  Ã‚  Both Jim and Huck have experienced life at a tedious level. They have their highs and lows, but mainly life is not all it is cracked up to be. For Huck, he must experience having a horrendous father who beats Huck to a pulp any time he is sober. And for Jim, the fact that his family is not considered human by society but rather chattel that can be bought, sold or even traded at the slightest whim. Together Huck and Jim must work together to escape the society which has allowed them to live the vile life they had, and move to a place where society will let them start a brand new life. When Pap , was not around, Huck felt better about himself. He enjoyed life a little more, did not have to worry about coming home on time, only to get beat up by his own pap. He kept me with him all the time, and I never got a chance to run off. We lived in that old cabin, and he always locked the door and put the key under his head nights. He had a gun which he had stole, I reckon, and we fished and hunter, and that was what we lived on

Plea Bargaining

Plea bargaining is defined as the process of negotiating an agreement among the defendant, the prosecutor, and the court as to an appropriate plea and associated sentence in a given case. The advantage for the defense is that less work is required on their part and they typically receive the same amount of money in return. An advantage for the prosecutor is they get a conviction and can alter the sentence any way they see fit as well as maintain an acceptable conviction rate. The court system heavily relied on the use of pleas to keep the system moving. In cases involving a plea the judge is able to dispose of a case quickly and move on to the next. In terms of jails and prisons plea-bargaining can also reduce the amount of inmate entering the facilities as jail time may have been suspended as a condition of a plea bargain. For a guilty defendant, the advantages to a plea bargain are clear; either reduced charges or a reduced sentence. Sometimes a plea deal can reduce a felony charge to a misdemeanor, but thats only a advantage to the defendant. Many plea deals have resulted in a reduction of sentence for the defendant. One gain in the plea bargain system is the fact that the judge in the case does not have to accept it. The prosecution can only recommend the agreement to the judge, but he cannot guarantee that the judge will follow it. As far as the victim goes, plea bargaining can give them closure to go on with their life and receive the justice they seek. Some states have victims' rights law that require a prosecutor to discuss the terms of any plea deal with the victim of the crime before making the offer to the defendant. In my opinion, plea bargaining is acceptable because it saves the system a great amount of time, money and resources only if it was entered with full knowledge and willingness. Even though the defendant in the end may not get a sentence agreed upon by others, they still have to serve time for their acts of crime. Plea bargaining is simply accepted because it’s a quick alternative.

intro to business chapter 5 Essay - 895 Words

Read Chapter 5 and answer the following questions and watch you tube video below: 1. What are the 6 main barriers to effective communication? Which barriers are easiest to surmount? Why? 1. The six barriers of effective communication are, 1)Physical barriers 2)Language barriers 3)Body language barriers 4)Perceptual barriers 5)Organizational barriers 6)Cultural barriers. In my opinion I believe that the easiest barriers to surmount are the physical barrier. Often people act as if nothing is bothering them, and the can hide their physical discomforts. 2. Why is nonverbal communication so important? How can you tell when non-verbal communication is effective? 1. Nonverbal communication is important because, in the text it stated†¦show more content†¦There are many communication channels which include emails, voicemails, and face to face meetings, when deciding which channel should be implemented all depends on the three factors mentioned above. If you can to bring awareness to work place safety an email can be sent out to an entire organization rather than face to face which each individual. 5. When you develop messages, what factors should you consider as you choose your words? Which considerations do you think are most important? Why? 1. When developing a message THE RIGHT WORDS are important. There are many factors in choice of word that should be considered they include the audience and intent, expectations, educational level, and profession. These are all key elements in developing a presentation. In my opinion I think that there are two important factors that must always be taken into consideration which are the expectation of the presentation as well as the education of the audience. Which these two this helps the presented to develop accurate means of communication with the audience. 6. How should the needs and expectations of your reader affect the structure of your writing? Why does it matter? 1. 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