I prepared a condensed summary of business ethics issues and strategies to a class at Xavier University. If you’re interested, you can find the slides here.
In The News: Former Penn State President Spanier gets jail time in Sandusky case
This grossly under-reported story should alarm top executives of all organizations. Though the sentences were relatively short — two months in jail plus another two under house arrest — the fact that former President Graham Spanier, Athletic Director Tim Curley and Sr. VP for Finance Gary Schultz will actually be imprisoned for failing to properly address allegations that ass’t football …
COMMENTARY: The Peculiar Concept of “Ethics Laws”
Cynicism about the ethics of elected officials may be at an all-time high, continually fueled by new stories of outright corruption or bad judgment. At every level of government there are politicians who can’t seem to recognize or resist conflicts of interest, inappropriate gifts, improper use of the power or property entrusted to them, or the discrediting impact of shameful …
A Right To Do
How often do we hear someone defend against an action of wrongdoing by the claim that what they did was within the law? This defense may work n court but not at the gates of heaven. One has a right to do what is legal, that does not mean it is right to do it. The domain of ethics is …
COMMENTARY: The Greyhound Principle: Stretch Goals in Business 761.1
A common management strategy to spur achievement is to set aggressive performance objectives that, like the mechanical rabbits that pace racing greyhounds, push employees to maximum effort. Using “stretch goals” can be successful, but unreasonably high performance goals often spawn dishonesty and irresponsibility. Believing that “it’s a matter of survival,” a disturbing number of employees conclude that distortion, deception, and even …
COMMENTARY 760.2: Can Corporate Ethics Programs Do Any Good?
Lots of companies are focusing serious attention on the issues of ethics and values – and lots of people think that’s a waste of time. The skeptics argue that you can’t teach ethics to adults. By the time they’re in the workplace, they’re either ethical or not. It’s a plausible argument, but it misses the point. The purpose of a …
OBSERVATION: “Our moral obligations and the expectations people have of us do not go away just because we ignore them.” – Michael Josephson
I once saw a cartoon depicting a CEO speaking to assembled management team at a conference table: “We have some difficult issues to resolve today. Before we begin, Ms. Gladstone, will you please hand out the moral blinders?” It may make the decision easier but it doesn’t make it better. We can’t escape moral responsibility through legal loopholes — our conduct will …
QUOTE: You can dodge your responsibilities, but you can’t dodge the consequences of dodging your responsibilities.
Whether it’s in our personal lives or work lives, there are always things we need to do, and we always have to do them ethically. We fail to do so at our peril — to our relationships, our reputations, and the esteem of those we care about.
OBSERVATION: The Ethics of Numbers — Hitting the numbers without meeting the goals.
In the last decade, the ability to track and measure almost any factor of business performance on a daily, even an minute-by-minute basis, has resulted in an even greater emphasis on setting quantitative goals to assess effectiveness and drive effort. The concept of “hitting your numbers” is a dominant theme in many organizations. The problem is, sometimes without the knowledge …
QUIZ: What should you do when your best salesperson is a jerk?
You are a regional sales manager, and, despite your admonitions, your highest producing salesperson regularly verbally abuses clerical help, stretches the truth, and ignores other company policies. Business is bad and this person accounts for about 20% of your business. You feel certain that if you are too harsh, or if you fire her, she will go to work for …
QUIZ: What would you do? Do you give an honest reference?
You fired an employee for misuse of the Internet (He visited porn sites at work.), and for making inappropriate sexual remarks to a female co-worker. A month later, you receive a call from a potential new employer who wants a job reference. Do you give a candid and complete report, even though you know it will probably prevent him from …
QUIZ: What would you do? Handling an upset customer.
An important and demanding customer has just called. He is upset that his order has not been delivered. You quickly research the issue and discover that you forgot to give the order to the factory, and it will take at least two weeks to get the customer what he needs. If you tell him
WORTH READING: Get Smarter! Start the New Year With the Five Best Books I Read in 2011. What books are on your list?
Here are the best five books I’ve read this year. They are so good they are all on my top-ten of all-time list. In the comment section please share the names of the best books you’ve read this year and if you are willing add a sentence or two on what you found so good about each book. The Happiness Hypothesis by …
OBSERVATION: The Ethics of Profits and Success
In business, profits and return on investment are the dominant measures of success. Good businesses understand that profitability is indispensable to viability, but they see profits as only one measure of success. Smart executives know that a good reputation, trust, quality products and service, customer loyalty, and employee pride can make major contributions to profitability, but any success achieved will …
OBSERVATION: There is no such thing as business ethics; there’s just ethics.
There are no exemptions from basic rules of honesty, respect, caring, and fairness just because money or careers are involved. Our private lives, our relationships, and the way we make a living are governed by the same moral principles. Don’t get caught up in rationalizations and pressures. In every setting we have the opportunity and obligation to be a good …
COMMENTARY: Good Ethics Really Is Good Business 749.4
A challenge I frequently face while consulting with senior executives and boards of directors of public companies is a belief that their primary mandate is to make profits and enhance shareholder value. Thus, ethical principles like honesty, fairness, and caring are proper guides to decision making only to the extent that they can demonstrably improve profitability or incorporated into …
A Good Company and a Sharp Ax 745.3
Ben was a new lumberjack who swung his ax with such power he could fell a tree in 20 strokes. In his first few days he produced twice as much lumber as anyone else. He was making quite a reputation for himself but by week’s end, he was less productive. One friend told him he had to swing harder. Another …