Reference no: EM133213354

Ethics is a term that has been used in business for decades.   However, in recent years, the moral compass of organizations has become a part of the daily conversation in the workplace. Traditionally, ethics is defined at the individual level, including terms such as "integrity" and "rules of doing business".  Recently, this definition has evolved to one similar to Dictionary.com, which defines ethics as "the set of moral rules that govern how businesses operate, how business decisions are made and how people are treated" (properly cite). The common factor in any definition of ethics in business is that these are the moral rules and are typically set by management.  Since businesses are accountable to customers, employees, and shareholders, ethical dilemmas can quickly alter how managers ethics and morals are perceived.  Some ethical values are imposed by law while others are based on bias or opinion.

There are numerous unethical behaviors among organizations' leaders; Bernie Madoff with Bernard Madoff, Ken Lay with Enron, and Richard Scrushy with HealthSouth are notable violators. There are also many examples of highly ethical leaders that lead healthy and innovative businesses (give some instances).  When the ethics and morals are known to the organization and followed consistently, employees have a higher level of trust with each other and in the market. Businesses thrive in high-trust environments because the culture is known to employees and customers and stakeholders.

For this essay, you will research the ethical issues surrounding Richard Scrushy's leadership at HealthSouth, an outpatient rehabilitation service based in Birmingham, Alabama.  Scrushy was a former bricklayer who became the billionaire CEO of HealthSouth.

• Analyze and then elaborate on the impact of the leadership's unethical behavior on the employees of HealthSouth and the business relationships outside of the organization.
• Identify at least two changes made to HealthSouth's culture because of unethical leadership behavior.
• Discuss how you believe HealthSouth recovered from the unethical behavior of their former leader.