This website uses cookies to ensure you have the best experience. Learn more

Ethical Dilemma In Business Essay

1665 words - 7 pages

Ethical Dilemma In Business
Ethical wrongdoing is a problem in the real world wherein the rules can be bent to manipulate financial standing. In some organizations such as Lehman Brothers, we will take a look at how they were able to alter real information that was damaging to the company in such a way to make it look more secure. Before these things can happen the upper management must discontinue listening to their employees and even punish the ones that speak up about issues in the workplace. Slowly an organization can slip into a level of deception and manipulation that can only be alleviated by the eventual bankruptcy of the organization.
Mr. Lee's Concerns
Ethical concerns of how business is performed can cause uncomfortable feelings when the people reported to are the ones that are involved in the process or processes being reported. This can create an uncomfortable situation in the workplace and in the case of Lee, loss of employment. On May 18th 2008 Lee wrote to the CFO of Lehman brothers expressing concerns over breach of the code by senior officers (Jennings, 2012, p. 289).Within this letter he expressed the issues that 10s of billions of dollars were unsubstantiated and the use of Repo 105 to remove $50 billion of debt from Lehman's books (Jennings, 2012, pp. 289-290). Having worked with the company since 1994 he felt comfortable bringing these concerns to the CFO. However after this letter was received, Lee lost his job (Jennings, 2012, p. 290). This is but one very real reason that issues of conduct continue to exist in the workplace.
Repo 105. Repo 105 was a company that in conjunction with Repo 108 were used to offload Lehman Brothers' debt from their books (Jones, & Presley, 2013, p. 56). The only difference in Repo 105 and Repo 108 was in the type of debt moved, For Repo 105 fixed income bonds securities were used and for Repo 108, equities were used (Jones, & Presley, 2013, p. 56). A common tool used by banks is a repo, however the way in which repo 105 and 108 were used was not how they were meant to be used. Repos were supposed to be used as a way to get a short term collateralized loan in which the borrowing party carries the collateralized asset and obligation to pay on their balance sheet (Hines, Kreuze, & Langsam, 2011).This was not the case in respect to Lehman's use of Repo 105 and 108. The Lehman brothers would count Repo 105 and 108 as short term sales, thus excluding the collateralized assets and related liabilities from their balance sheet (Hines, Kreuze, & Langsam, 2011). They would then use the liquid assets from the sale to Repo 105 and 108 to decrease liabilities therefore creating an even lower leverage ratios (Hines, Kreuze, & Langsam, 2011). By using their Repo transitions instead of sales they were able to hide the reality of being in financial trouble. On September 15th, 2008 Lee was proven correct and Lehman Brothers filed for bankruptcy (Jennings, 2012, p. 290). If the company had spent more time...

Find Another Essay On Ethical Dilemma In Business

Current Ethical Issues In Business PHL 323

1320 words - 5 pages maximum amount of consulting fees possible. Unfortunately, most patients are unaware that such conflicts of interests and unethical business practices exist. Patients may be unnecessarily treated by unethical doctors because of these financial incentives offered by the medical device manufacturers (Weintraub, 2008).The personal leadership of Dr. Rosen has contributed to the success that has been achieved to-date through ethical reforms in the

Varying Global Ethical Standards in Business

2241 words - 9 pages “When in Rome, Do As The Romans Do.” This proverb is generally accepted by many people all around the world. Should this idea of “cultural relativism” be applied in the formation of ethical standards of international business? Or, there is a single list of truths that require exactly the same behavior across the different cultures, as the theory of “ethical imperialism” claim? (Donaldson, P. 477) Here I am presenting some cases related to core

Current Ethical Issue in Business-World Bank

2158 words - 9 pages Current Ethical Issues in Business PAGE 1 Running head: Current Ethical Issue in BusinessCurrent Ethical Issue in BusinessLearning Team DDawn SpenceUniversity of PhoenixPHL323Ethics in ManagementVickie Sims, Ph.D.May 5, 2007AbstractMost people involved in business, whether functioning as a small business owner, employee, or chief executive officer of a multinational company, eventually face ethical or moral dilemmas in the workplace. Such

Ethical difficulties faced by multinational companies in today's business world

3988 words - 16 pages . Hence, MNCs are often under a dilemma with ethical difficulties when operating in different countries. Successful MNCs require stability for development, and to resolve ethical difficulties is one of the key issues that could affect such stability, this is the focus of this assignment: first, it will explain the ethical difficulties multinational business encounter while operating in several countries; followed by the general principles required to

Managing for Ethical Conduct in a Global Business Environment

540 words - 2 pages needs to develop guidelines and policies for their employees. Some of these guidelines "ban the use of child labor. Others limit working hours, and mandate safe working conditions and environmental responsibility."(pg.330) it is also important that expatriate managers explain the code of conduct of their own country to the company they are doing business with for this will help them avoid misunderstandings. In addition a company's own ethical

Managing for ethical conduct in a global business environment

540 words - 2 pages needs to develop guidelines and policies for their employees. Some of these guidelines "ban the use of child labor. Others limit working hours, and mandate safe working conditions and environmental responsibility."(pg.330) it is also important that expatriate managers explain the code of conduct of their own country to the company they are doing business with for this will help them avoid misunderstandings. In addition a company's own ethical

"How would you define business ethics, and why are ethical standards necessary in professional selling"

1467 words - 6 pages IntroductionEthics is the study of the general nature of morals and of specific moral choices; moral philosophy; and the rules of standards governing the conduct of the members of a profession. Business ethics is the application of ethical values in a business' behavior and even its salespersons to how the company conducts its business in order to make profit (Institute of Business Ethics n.d.). "It applies to any and all aspects of business

Current Ethical Issues in Business for University of Phoenix course PHL/323

1309 words - 5 pages be detrimental for someone to experience. However, it can make a difference when the company does everything that it can to keep the employee. If a business makes a conscious effort to keep the employee and a suitable position is not available, then lay off is inevitable. When a company takes into consideration the potential internal effects in the company, fewer repercussions are likely to occur when ethical boundaries are respected.Whenever an

Ethical Dilemma

2173 words - 9 pages to a certain situation before the situation actually happens. Ethical action involves both internal and external dimensions. Internally, one wants to decide towards certain moral goals. Externally, one bases his or her action on what is right in God’s eyes. According to the Merriam-Webster Dictionary, dilemma is defined as an argument presenting two or more equally conclusive alternatives against an opponent. An ethical dilemma is

Ethical Dilemma

867 words - 4 pages Ethical Dilemma Is blood really thicker than water when it comes to ethical decisions? In this paper I will explain why I sacrificed an almost non-existent relationship with my brother to do the right thing. My dilemma occurred when brother announced he was getting a divorce. His wife alleged unfaithfulness on his part; however, he convinced my parents there were no outside parties involved. I was aware the allegations were true along with a

Ethical Dilemma

990 words - 4 pages Running head: ETHICAL DILEMMA PAGE \* MERGEFORMAT 1 ETHICAL DILLEMA PAGE \* MERGEFORMAT 5 Ethical DilemmaJody RichardsUniversity of PhoenixEthics in Criminal JusticeCJA 413Juan CephasApril 15, 2010Ethical DilemmaEthics as defined by is the rules of conduct recognized in respect to a particular class of human actions or a particular group, culture, etc… Ethical dilemmas in the workplace are nothing new. Situations arise

Similar Essays

Mandatory Vaccination In Children – An Ethical Dilemma

2280 words - 10 pages Vaccination was first introduced globally for small pox and later on extended to other communicable diseases which are now known as vaccine preventable disease. Vaccination is beneficial both for individuals and community. This bring us to the ethical dilemma - Vaccination of a healthy child with the intention of protecting both the individual child and the community at the same time exposing the child to the theoretical risk of exposure to

Ethical Dilemma Of Partner Disclosure In Hiv/Aids

698 words - 3 pages patient refuses to disclose their status to their primary partner, it becomes an ethical dilemma. In a lecture during our second block this year called “Ethical and legal problems in HIV/AIDS” by Yolande Guidozzi, we discussed this dilemma. It was concluded that it is often a choice the healthcare worker has to undertake, given the circumstances. The Health Professional Counsel South Africa (HPCSA) also advises that own discretion is used. This made

Current Ethical Issue In Business Essay

1447 words - 6 pages IntroductionIn any environment, people can be influenced to go against his or her better judgment or succumb to pressures in order to advance themselves to a higher position. This appears to be typical in the area of politics. Recent elections have brought the ethical issues to the forefront of the American mind. In this paper, the corruption involving business men and women in which both President-elect Barack Obama and Senator John McCain have

Ethical And Moral Issues In Business

650 words - 3 pages , corporate ethics can be conflicting from country to country. In many third world countries, the use of child labor is considered ethically correct.A major problem that occurs between personal and business ethics is referred to as ethical dilemma. An ethical dilemma can occur when a person's personal ethics conflicts with the ethics of the business he or she works. An example of this type of problem can be seen in the following example:A person is