Daniels Fund Ethics Initiative University of New Mexico http://danielsethics.mgt.unm.edu Coping with Financial and Ethical Risks at American International Group (AIG) INTRODUCTION When American International Group (AIG) collapsed in September 2008 and was subsequently saved by a government bailout, it became one of the most controversial players in the 2008–2009 financial crisis. The corporate culture at AIG had been involved in a high-stakes risk-taking scheme supported by managers and employees
Words: 6173 - Pages: 25
the United States was an advantage the Lehman Brothers were able to utilize and led the company to serve as financial advisors and underwriters for the railroad companies. In 1920, Robert Lehman became a partner and moved into a leadership role. He centered his leadership role on the belief that consumption was the key versus production. Because of this firm belief, Lehman Brothers prospered with financing for airline and motion picture companies. The age of electric in the 1950’s, capital market
Words: 1481 - Pages: 6
Corporate governance is a broad term that has to do with the manner in which the rights and responsibilities are shared among owners, managers and shareholders of a given company. In essence, the exact structure of the corporate governance will determine what rights, responsibilities, and privileges are extended to each of the corporate participants, and to what degree each participant may enjoy those rights. Generally, the foundation for any system of corporate governance will be determined by several
Words: 2609 - Pages: 11
managerial ethics and corporate social responsibility, sources of ethical principles. The second portion pursues to explain the relationship between business ethics and organizational design and how managers shape ethics through use of value-based leadership and formal structure systems. The third portion pursues to review the importance of ethics to organizational design and the structures that support or enforce ethical behavior in organizations. The fourth portion links literature reviewed and
Words: 5201 - Pages: 21
1.0 Introduction Managers often have to endure intense pressure from their employers with regard to the management of the business. Similarly, more pressure often comes from the surrounding people such as the employees, suppliers, competitors or even the surrounding community. Stakeholder and shareholder theories have been discussed intensely with each being viewed and exhibited as having both its merits and demerits. While some argue that the stakeholder theory is crucial in management, others
Words: 3493 - Pages: 14
Managing Business Ethics Ask business managers how to manage business ethics and they are bound to receive many answers or quizzical looks. How can managers educate employees about the importance of business ethics in the company? Integrating business ethics into an organization, one must first be able to understand business ethics. Trevino and Nelson’s textbook, “Managing Business Ethics Straight Talk About How To Do It Right” (2011), introduces students to this topic. As a result of many
Words: 3131 - Pages: 13
power will take time in that development of trust in management from employees will not be an easy task. Likely a change in management or significant leadership training would be most helpful to implement this type of power within Paradigm Toys. In essence, the concept of referent power would be to ensure that employees respect and trust their leadership structure to ensure that when leaders are not available to make decisions, the same types of decisions will be made by employees. Decisions that will
Words: 3959 - Pages: 16
of attitudes, perceptions, values, standards of conduct, pressures to commit misconduct, communications, risks and vulnerabilities. Pay particular attention to your corporate values and how well they have been internalized by your Board, senior leadership, employees at all levels and key stakeholders. 2. Don't just print, post and pray. If you have a Code of Conduct or an Ethics Code, printing copies, posting them on the wall and on bulletin boards is not enough. Codes of conduct are an outgrowth
Words: 2232 - Pages: 9
| |BUS 586 – Summer 2012 Term | Abstract Hughes, Ginnet & Curphy define Leadership as “the process of influencing an organized group toward accomplishing its goals”. But what if you were not given the power to properly influence others? I am not talking about power to make others do things against their will, but the power
Words: 2420 - Pages: 10
Lum April 26, 2013 Business Ethics Reform There have been many, increasingly significant business scandals and failures over the past forty years. There were the bribery scandals of the 1970s, the defense industry scandals of the 1980s, and the Savings & Loan scandals of the 1908s and 1990s. After that came the dot-com collapse, the accounting scandals involving Enron and WorldCom, and most recently the financial scandals and crisis of 2006-2009, whose effects have been the most damaging
Words: 2882 - Pages: 12
