The unethical conduct of tax evasion among corporate leaders: a case of Carlos Ghosn
When Carlos Ghosn joined Nissan in 1999, the company was on the verge of collapse, and new blood of leadership was needed to turn around the giant Asian carmaker. Nissan tapped on Carlos Ghosn, a man who haCost d earned the title of “Le Killer” at Renault as a result of his cost-cutting strategies that resuscitated the French carmaker (Dooley,2019). True to the imagination and expectation of the shareholders of Nissan, Carlos Ghosn initiated turnaround strategies that revived the company’s dwindling fortunes. The achievements of Carlos Ghosn made him a hero in Japan. He was a darling of the media, and he achieved celebrity status. It is also important to note that Carlos played a critical role in the creation of collaborative engagement among Renault, Nissan, and Mitsubishi. The alliance was critical in improving the performance of the three carmakers in the market.
After decades of enjoying celebrity status in Japan, tables turned on him, and he became a man wanted by the state. The Japanese authorities accused Ghosn of irregularly paying himself huge amounts of money when he was at the helm of Nissan without declaring the earnings in his tax returns. In 2018, Carlos Ghosn was arrested and locked up by the prosecutors. He was released on bail. Towards the end of December of 2019, Carlos Ghosn escaped from Japan in circumstances that can only be found in Hollywood movie scripts(Dooley, 2019). The story of Ghosn is no isolated. There are many corporate leaders who have been accused of violating accounting policies of their organizations as well as the international financial reporting standards so that they may evade paying tax.
Power bases used by the leader
Carlos Ghosn used reward power to perpetuate this unethical action. It is alleged that Carlos Ghosn got help from Greg Kelly, one of the executives at the company. Carlos Ghosn is said to have allowed this official to also reap massively from the loot. In this regard, it is evident that Carlos Ghosn promised Kelly financial rewards for his participation in the saga. Thus, Ghosn’s utilization of reward power enabled him to execute the crime.
The influence tactics used by Ghosn
The influence tactic that Ghosn used to achieve his goal was legitimizing. When Ghosn made arrangements to get paid such huge sums irregularly, he presented such payments as legitimate. He argued that such payments were legitimate bonuses that he had earned. The legitimizing tactic allowed him to convince other professionals in the organization to give him access to the resources.
Carlos Ghosn’s leadership style
Throughout his leadership, Ghosn has demonstrated strategic leadership. In his leadership, it is notable that Ghosn has always desired to make tale actions that are aimed at meeting the needs and goals of the organization. Part of the reason why Ghosn has been so successful in his leadership is his ability to focus on the goals of the organization without caring about the casualties. At Renault, Ghosn came up with cost-cutting strategies that led to the loss of many jobs, but that did not deter him since they were on course to achieving organizational goals.
The outcome of the situation
One of the outcomes of the situation is that Ghosn has destroyed his reputation, which he had built in his entire career. Today, the tag of a fugitive is hanging on the neck of Ghosn. He is a wanted man, and sooner or later, he will be charged before a competent court of law.
In conclusion, while it is evident that the leadership style of Ghosn is effective in giving the desired commercial results, there is a question on his ethical behavior in this case. As a leader, it was expected that Ghosn would protect the resources of the organization, but he decided to steal from it. That was highly unethical.
Leadership plays an important role in any society. The quality of leadership in society reflects the level of social, economic, and political development of society. On personal levels, there are certain factors that play a significant role in the development of leadership styles. For example, the level of self-awareness in an individual will play an important role in the determination of the leadership qualities of an individual. Issues such as personal abilities, motivation, and goals play a critical role in the determination of the direction of the leadership traits of an individual (Kreitner&Kinicki, 2013). It is also important to note that not all leadership traits are applicable in all situations and circumstances. While some leadership approaches may succeed in one environment, the same leadership approach may not be suitable in another environment. The implication of this is that leaders must make sure that they develop the most suitable leadership that will work best in their environments.
Personal values play an important role in influencing the leadership style of an individual. Without values, it is difficult to predict the leadership approaches of individuals. Personally, there are leadership values that determine my leadership. One of these values is honest. In all the aspects of my life, I try to be as honest as possible. When I am dealing with people, I try to make sure that I address them as honestly as possible. Additionally, as a leader, I have learned to listen to all the people, even when I do not like what they are saying. Most importantly, I do not discriminate against any person irrespective of their social and cultural backgrounds.
When I am working with other people, I make efforts to set some goals both for myself and for them. Firstly, I usually demand a high level of discipline for myself. I am always determined to complete the tasks that I have set out to execute. While there are individuals who usually have the habit of abandoning tasks midway, it is always my desire to make sure that I complete all the tasks that I have started. My leadership style is democratic. I tend to listen to all the people with whom I work and give appropriate weight to their concerns. On the other hand, my influence tactic is legitimization. I always want to prove to people that whatever I want from them is legitimate.
Dooley, B. (2019). Carlos Ghosn Arrested in Tokyo over New Accusations. The New York Times. Retrieved from com/2019/04/03/business/carlos-ghosn-arrest.html”>https://www.nytimes.com/2019/04/03/business/carlos-ghosn-arrest.html
Kreitner, R., &Kinicki, A. (2013). Organizational behavior. New York, NY: McGraw-Hill/Irwin.
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