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Unformatted text preview: laws and regulations. The assertion at issue is that business people who uphold the highest ethical standards are the most effective leader. I strongly agree with this statement. For a while, unethical behavior might seem effective. But a few examples from the investment banking industry keenly illustrate how dishonesty and corruption in leadership can bring a business to its knees, shattering the trust of its employees and ruining its reputation with clients.
Consider the cases of Michael Milken, former head of junk bond trading at Drexel Burnham Lambert, and Paul Mozer, formerly in charge of Salomon Brothers’ government bonds trading. Each of these men engaged in doubledealing and other illegal acts, reaping tremendous profits for their companies, and winning the admiration of subordinates and superiors alike. However, their successes were relatively shortlived. Securities Exchange Commission (SEC) investigations in each case revealed massive wrongdoing. As a result, Drexel went out of business. And Salomon Brothers barely recovered, after suffering the forced resignations of its top executives, a financially devastating loss of reputation, and the exodus o...
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- Spring '09