Last year in the U.S. alone 257 public companies with $258 billion in assets declared bankruptcy. This was a huge increase over the previous year’s record of 176 companies with $95 billion. Big Fortune 500 companies aren’t supposed to collapse, yet this year is expected to be worse.

Taking a look at what went wrong and why these companies failed reveals moral and ethical shortcomings. Many negative factors contribute to a company’s demise: a bad economy, financial risks that don’t pay off, accounting manipulations that seem smart at the time, loss of competitive advantage, breakdowns in execution, growing too fast, and rapidly changing market preferences. But to understand truly, one must look deeper, into the very hearts and souls of the leaders who guide corporate responsibility. One must look at the moral and ethical stance of an organization and the role of leadership in creating a culture of values.