Moreover, Salomons survival is probably owing entirely to its subsequent leadership under Warren Buffett. Buffett, who was on the Salomon Brother board of directors at the time of the scandal, was brought in to save the beleaguered company. His success in keeping it afloat at all can be directly tied to his sterling ethical reputation in the international business community at the time. Buffetts reputation restored at least some lost confidence among clients and investors, and probably prompted some employees to reconsider their decisions to leave the company.
While not every case of unethical leadership is quite so public or devastating as these, they do illustrate an important point. In any business, once corruption at the top becomes known, the predictable outcome will be damaged reputation, lower worker morale, and, along with them, lost productivity.
In conclusion, unethical conduct at the leadership level in a company might go unnoticed and serve ones interests in the short-term. However, in the long run it will work against ones effectiveness and may even prove ruinous.
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