Leaders as Moral Role Models: The Case of John Gutfreund at Salomon Brothers

The paper describes and discusses unethical behavior in organizations, as a result of (interacting) disputable leadership and ethical climate. This paper presents and analyzes the well-known bond trading scandal at Salomon Brother to demonstrate the development of an unethical organizational culture...

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Bibliographic Details
Authors: Sims, Ronald R. (Author) ; Brinkman, Johannes (Author)
Format: Electronic Article
Language:English
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Published: Springer Science + Business Media B. V 2002
In: Journal of business ethics
Year: 2002, Volume: 35, Issue: 4, Pages: 327-339
Further subjects:B Unethical Behavior
B Ethical Climate
B Organizational Culture
B leadeship
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Description
Summary:The paper describes and discusses unethical behavior in organizations, as a result of (interacting) disputable leadership and ethical climate. This paper presents and analyzes the well-known bond trading scandal at Salomon Brother to demonstrate the development of an unethical organizational culture under the leadership of John Gutfreund. The paper argues that leaders shape and reinforce an ethical or unethical organizational climate by what they pay attention to, how they react to crises, how they behave, how they allocate rewards, and how they hire and fire individuals.
ISSN:1573-0697
Contains:Enthalten in: Journal of business ethics
Persistent identifiers:DOI: 10.1023/A:1013826126058