Lehman Brother's Code Of Ethics Case Study

1466 Words 6 Pages
Register to read the introduction… Effective corporate ethical codes communicates major values and ethical standards embraced by an organization. Organizations with codes of conduct may receive a break under Federal Sentencing guidelines, so there is an incentive to create for that purpose alone. Codes have emerged as one of the major CSR (corporate social responsibility) instruments by which companies align their actions and values with those of their customers, enacting a concept known as ethical consumerism (Castaldo, Perrini, Misani & Tencati, 2009). CSR plays a critical role to develop organizational culture that shapes and produces a positive public image of the firm. According to Stevens, Effective ethical codes have visionary and transformational aspects which provide guidance in difficult circumstances (Stevens, 2008). According to experts, Lehman brother’s code of ethics emphasized more on being technically accurate over their vision & sustainability of the company. Perhaps the internal codes hindered creativity among its employees as they knew the company drew its ethical line just above the law. The 5 page document of “Lehman Brother’s Code of ethics” basically outlays the basic job of protecting the organization against illegal actions by employees. Unfortunately little was written to enforce the ethical culture that might have sustained them. The question that needs to be addressed is whether the employees and managers adhere to its ethical standards? Matthew Lee, a Lehman Brother’s senior vice president, warned in May 2008 letter that he believed “senior management” may have violated Lehman’s internal code of …show more content…
The New York Times, 11 Mar. 2010.

Castaldo, S., F. Perrini, N. Misani, and A. Tencati (2009). The missing link between corporate social responsibility and consumer trust: The case of fair trade products. , Journal of Business Ethics, 84,

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