However, Bernard’s preference to only some of the Executives in his company as he gave loans on personal basis to purchase stocks indicated that he did not operate ethically and paved way for destruction. Moreover, he preferred his responses not be documented, not responding to email and preferred …show more content…
He believed that being open and honest was not a safe option. Therefore, the culture of secrecy in World Com allowed for reporting false profits. His leadership style was also selfish, he believed in gaining fame, worth and wealth for the company of which he had pledged stocks off.
The major flaw in Ebbers’s leadership style was his non-compliance. He was running a company without having any formal policies and procedures that would ensure no check and balance. He had an obsession to show growth and achievement without achieving it, giving way to people to be unethical and be appreciated. A 2002 Economist article points out that the entire leadership was involved in faking the account books and mis-interpreting profits.
4) Ebbers as the CEO, invented the culture of bad decision making in his organization. He constantly made his top executives buy stock to increase the company’s apparent worth and also insisted on cost cutting to an extreme level which included replacing a coffee machine with a vending machine and personally adjusting thermostat temperatures, which proved that it is more important to show the numbers than to achieve. This is what made the company culture adopt in the long run. With his dedication to reporting great numbers, his managers would never risk the reports that showed lesser numbers. (Kemper, 1966) Had he appreciated those raised voices over un ethical practices and followed principles by establishing …show more content…
A quick notice of actions that are unethical and ensures to punish them and rewards employees who are compliant even when the business and their own jobs are at stake will give more importance to be ethical than to be always achieving and also ensures the message of intolerance for wrong behaviors is prevalent in an organization. All the above-mentioned qualities of an ethical leader can lead to organizations growing socially and gaining more respect than just the perceived ones.
Had Ebbers done all of this to achieve his goal of reaching ultimate achievement of running a successful business that showed amazing performance, it would have been achievable in a way that would have saved him from future repercussions. If Ebbers had encouraged his managers on by emphasizing not on the results they delivered but also on the rightful methods they had used, the message would have been felt across the organization and people would have strived to get the results in a much fair and transparent way without restoring to deviant