he executives were accused of “gross negligence” in their duty of disclosure

This also sheds light on unethical practices that were either directly exercised by top

managers or were supervised under their watch. Also, many blame accounting standards

and techniques and how they are used to portray financial statements as not what they

are, but how management wants them to portray. These practices leave open windows

of opportunities for those whose intentions are to misuse their position, whether it is for

personal reasons or short-term gains of the organization

Lehman failed to disclose various transactions in the notes to their financial statements

by using an accounting gimmick Repo 105. This may be due to negligence of accountants

and auditors that leads many to argue for the reexamination of Generally Accepted

Accounting Standards

Observation:

Before the day of the bankruptcy happen, Lehman Brothers went hiatus after their real

estate investment have lost billions of dollar. Since there is no government bailout, they

seek help to Merrill Lynch and Bank of America. But they decline buying their company

due to increased accumulated bad debts (toxic assets). Having one option left, the

Barclays, they too said no deal because they still need to get financial services to the Uk’s

Financial Servuces Authority.

Reaction:

It is sad to see a company failing especially as the CEO who handles all of his substituents

who are hardworking and goal-oriented but in the end of they day they’re cleaning there

desk, leaving, and carrying out boxes out from work.

Judgement:

As what on I see on the movie, the should pay attention more to security especially on

Ezzy’s naration (Zach’s sister) who explain how she got her house by getting a mortgage

from a boker who did not heck her financial papers, and used free software downloaded

off the internet to alter her paychecks.

INTERVENTION:

They should be more careful on checking their customers account with kanang kuti na

pagsusuri.

Teamwork pud since sige silag ga shagitanay making the employees feel pressured and

might lead to kanang dili sya magtarbaho kay mawad.an og gana.

Namention pud to sa movie sa last na ang ceo nag spend too much og kwarta sa

decoration sa room which kanang dili unta dapat kay daghan pa unta og magamit ana na

kwarta.

Then dapat united silang tanan para efficient ilang pag work og ganado sila mag work

and then dili jud tanan kasaligan kay even tho daghan kag tawo na adtoan mangayo og

tabang they still not ambat you something ganun.

ntervention:

Failure is an opportunity to learn.

Start by getting some facts , taking a hard look at the little things you may be
overlooking and do not make emotional decisions. These actions and how you react to
the information you get may make the difference and actually save your business.
To understand success, it is important to understand failure.

the investing public would likely consider an individual (or institution) of integrity as one who
provides full and transparent disclosures.

The primary virtues that are probably most relevant (e.g., lacking) to this case are
integrity, compassion, prudence, and self-discipline
Overall, after considering the relevant moral community to determine what a person of
integrity would do, Lehman should not have exploited the accounting standard’s
loopholes and misled the investing public. Utilizing a virtue ethics framework, we can
conclude that Lehman’s actions are unethical because a virtuous person would not
have done the same. An alternative solution for Lehman would have been to fully
disclose the transactions in their filings.
Modifying accounting practices and adding new methods of predicting the disaster are
two are two lessons to be named

Avoiding Unachievable
Business Strategy