Toxicity of Enron and Morgan Stanley Dean Witter

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The condoning or condemnation of toxic leaders may be prevalent in organizations as well as in government. Corruption, narcissism, and unethical behaviors may be cancerous for the stability and sustainability of any organization or individuals for that matter. However, a person that possesses competence, resilience, vision, and character may learn to become an effective and transformational leader. More so, the personality of a leader may be a pattern of thinking, feeling, and acting with regard to the environment, including other people. These characteristics may influence the type of leadership an individual he or she may become (Northouse , 2007).

As indicated by Hautala (2006), a relationship between personality and leadership exist, the results indicate that leadership behaviors varied with leaders’ personality based on the leaders’ own appraisals as well as subordinates’ appraisals. Nevertheless, according to Machiavelli (as cited in Kellerman, 2004), the only kind of bad leader is the weak leader. This paper will examine two toxic organizations and contributing factors influencing their toxicity. In addition, an explanation will be provided regarding the independent situations of these toxic organizations and the social impact they created. Finally, an analysis of the missing checks and balances for these two toxic organizations will be explored.

Toxic Organizational Situations

Over the last several years it has been difficult to ignore the recent abuse of power, corruption and unethical behaviors by individuals in corporate America and government. To deny bad leadership without taking corrective action may catapult others to continue exhibiting these behaviors. Based on the reading by Kellerman (2004), American...

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