Business Failure

Business Failure

Chris Dorch

Organizational Leadership/531

July 24, 2010

Corruption

When corruption affect the leadership within an organization the loss of trust creates a negative climate within the company. The observation of flagrant violations legal, ethical, and moral issues concerning business is a selfish act, which ensures the lack of confidence in the decision-making of organizational leaders. The responsibility to conduct business in an acceptable way is the leadership role. Trust is universal because it plays a role in different parts of life: infidelity in an intimate relationship; a business partnership that ends suddenly for embezzlement, or government agencies that fail to intercept a threat for the fear of releasing critical information about the country’s security.

The United States has three governing bodies that ensure an equal and fair balance of power to maintain order. In history some corruption acts plague the idea of the Western society functioning in a righteous manner. A disbelief in national leadership depicts scandals that under mind the thought of how a democracy should work. An understanding of what is at stake for alleviating stress for the right to know information is best using a respectable third party to administer the transference of information that will lessen the trust between parties. “Management enables a party to trust a credential (and its content) issued by

a stranger through a chain of other “proving” credentials” (Peng & Chetal, 2005, p. 285).

Iniquity occurs within corporate businesses in the same way this appears in matters concerning government officials. The Enron scandal brought about doubt in agencies overseeing the financial activities of the organization. The Sarbanes-Oxley Act requires public companies to report economic data so the shareholders, employees, and the public are aware the accounting practices of the business “the Sarbanes-Oxley Act of 2002 has had a positive and significant impact...