Topic > sfaf - 936

The organizational performance of companies with unethical business leaders and companies is doomed. Unethical business leaders seek to increase their personal wealth and income at the expense of organizational growth and development. Unethical business leaders do not protect the interests of shareholders, employees, investors or creditors. Instead, they earn money for themselves. They are unethical because they abuse their positions. Consider the case of Lay, Skilling, and Fastow, in the Enron scandal. These leaders deceived investors by inflating Enron's earnings. Even though the actual performance of the company was declining, it was proven that the company was doing very well. These leaders spent time and money falsifying accounts instead of making Enron more competitive in the industry. Enron's organizational performance worsened until the scandals were discovered and the company went into liquidation. In contrast, consider a company with an ethical leader. The name John Mackey was suggested. Consider Whole Foods' current organizational performance. Net income applicable to common shareholders of Whole Foods increased from $119 million in 2009 to $343 million in 2011. This increase demonstrates that the organization has functioned well and that leader John Mackey has protected the interests of his shareholders. Similarly, consider the organizational performance of another ethical leader, the late Steve Jobs. Under him, Apple Inc. recovered and grew substantially. The future of business leaders is tied in several ways to the companies they lead. If organizations led by unethical leaders fail, so do the leaders. In some cases, unethical business leaders leave the company quietly… middle of paper… Employees are motivated to work harder and perform better. Ethical leaders have great self-confidence and are therefore assertive. Joe Crosby can ensure organizational goals are achieved. Commands respect and uses his position to advance the interests of the organization. Ethical leaders are innovative. For example, Jeff Bezos, Anne Mulcahy, and Brad Smith are all innovative. Joe Crosby is also innovative. Joe Crosby is trustworthy; ignites passion and reveals his authentic personality. Howard Schultz of Starbucks and Larry Page of Google ignite the passion and also reveal their true selves. Joe Crosby inspires everyone in the organization and drives them to better performance. Joe Crosby is a great motivator and loves teaching others. Apple's Tim Cook is a great motivator and Pepsi's Indra Nooyi loves to teach her managers.