Retrieved October 8,from Business Source Complete. Instead its demise was the cumulative effect of a number of missteps perpetrated by several individuals and parties.
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.
From hindsight, there are many aspects which could be improved on. Lehman Brothers, WorldCom, Enron, and UBS are all examples of how much of an impact the failure of a large organization can have on an economy.
Simple as it may sound, but the lack of ethical education is extremely glaring. Even the auditors from Ernst and Young knew about the use of the suspicious Repo but chose to keep quiet. Another preventive approach is the Fairness or Justice Approach to assist Lehman in weighing their ethical decision.
It is very tenable to demand businesses to act ethically. But past scandals involving questionable accounting observances, such as Enron, have demonstrated firsthand that inaction is as equally reprehensible as direct involvement in the scheme itself.
Due to egoism, Lehman executives made use of loopholes in accounting standards and used "Repo " to conceal their losses at the end of the first two quarters of