CEO’s Responsible for Business Failures

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CEO’s Responsible for Business Failures

Fannie Mae and Freddie Mac collapsed because they were part of the widespread gross financial misconduct that is taking place here in the United States. Washington Mutual, a Seattle based banking institution collapsed due to taking on excessive bad debt with bad mortgages, making it the largest bank failure in U.S. History. The federal government took control of Pasadena-based IndyMac Bank, the second-largest bank failure in U.S. history; AIG recently collapsed; Lehman Bros., a global investment company collapsed; Bear Stearns, an investment banking company based in New York City collapsed; and there are more. It may be difficult to understand the reasons why all of these very large corporations are failing because they are, in fact, very large and complex. However, it happens more often on a smaller scale and even in your own back yard.

At nineteen, I went to work for a locally owned aerospace company. The owner put her trust in a great man to be the President of the company and to operate the company to be profitable. The President spent a lot of time talking with every one of the employees. He knew everyone by name. Everyone was important and had something valuable to contribute, even the janitor. He would approach us at any time and talk to us about last nights’ football game; about our families; or about our plans for the upcoming holiday weekend. Throughout the year we had plenty of company sponsored functions like pizza parties, company picnics, and bowling parties. We had golfing tournaments and we even had a company softball team. In the summer, we would participate in activities like water skiing and fishing. Nearly all of the company’s 120 employees and their families would attend these activities time after time. Morale was very high. He was one of us. He wanted the company to succeed because he knew everyone there depended on their jobs to support their families. He knew if the company did well, then everyone would be generously rewarded. The company was very profitable and showed its appreciation by sponsoring these functions and a lot more. New automated CNC (Computer Numerical Control) equipment was planned for and purchased replacing old, worn out machines like manual mills and lathes, making the machinist’s job better.

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