The Role of Unethical Leadership and Culture in FTX Collapse
Abstract: The leadership of a company plays a significant role in influencing its culture. It determines the long-term success or failure of the organization. Ethical leadership is crucial in establishing a healthy organizational culture. Unethical leadership may lead to the downfall of promising or even successful businesses. This paper examines the case of Sam Bankman-Fried, whose unethical leader-ship and Machiavellian behavior contributed to the collapse of FTX and Alameda Research, leading to bankruptcy and legal conse-quences. The study also highlights the importance of fostering an ethical culture through strong leadership, a robust ethics and com-pliance program, and sound business practices by analyzing the culture and leadership failures in these companies. The insights from this study can guide business leaders to avoid legal and reputational damage caused by unethical leadership and ensure sus-tainable success for their organizations.
Keywords: Unethical Leadership, FTX, Sam Bankman-Fried, Unethical Culture, Organizational Failure
How to Cite?: Kaushik Dutta-Bhowmik, "The Role of Unethical Leadership and Culture in FTX Collapse", Volume 13 Issue 9, September 2024, International Journal of Science and Research (IJSR), Pages: 951-954, https://www.ijsr.net/getabstract.php?paperid=SR24915075320, DOI: https://dx.doi.org/10.21275/SR24915075320