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Archive for the ‘Ethics in Practice’ Category
 
When Still Waters Run Shallow: Have Business Ethics Become Harmless?

Let’s do a thought experiment. Focus group moderators will often ask participants to anthropomorphize a company or brand. For example, to probe aspects of corporate character or brand personality, researchers will ask: “If BMW were a person, whom would that person be?” Many companies today have officers or functions for overseeing ethics or compliance, so for this thought experiment, I would ask: “If current business ethics functions were a person, who would that person be?” In such exercises, experts tell us to go with our first impression, trusting what immediately comes to mind as representing some kind of subconscious truth. Without too much pondering, whom do you identify as the personification of the business ethics discipline?

In my case, I began this thought experiment in response to the plethora of business ethics failures that have emerged in only the last few weeks. Facebook was caught trying to plant false stories about Google’s supposedly questionable privacy practices in newspapers, and with influential bloggers. Bad enough that the defining social media company in the world was made to blush over its indiscretions, but that it secretly hired Burson-Marsteller to do the dirty work also implicates one of the world’s largest PR companies in the intentional dissemination of unproven–and for many experts, inaccurate–information. This subterfuge about privacy was played out (more…)

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Is the Accountability Industry Accountable?

Among its many missteps in the Gulf, BP has now hired public relations executives  to pose as journalists along the beaches besmirched by its oil spill. With so much incompetence and deception on display, it is hard to believe that only recently BP earned recognition from corporate social responsibility innovators as the most accountable large corporation in the world. BP won the Account Ability Rating™ award outright in 2004 and 2005, and came in second in 2006. With such credentials we need to ask some tough questions. Is it that the corporate culture that earned kudos somehow turned 180˚ in a few short years? Or is the premise and criteria for such awards faulty and now suspect?  Oil industry experts are acknowledging that the scale of the spill in the Gulf will have a structural impact on industry assumptions and procedures. Are the corporate social responsibility experts who created the matrices for accountability – and who anointed BP as a paragon – also willing to reconsider their stance and methods for evaluation?

These are important questions for several reasons. First, the real lesson of recent corporate ethical impropriety is not that executives will overreach their legal mandate, or that companies will lose sight of their ethical responsibilities to the community, but that the sentinels intended to protect the public interest have been too easily co-opted into supporting the abuses they were intended to guard against. This is what happened when Arthur Andersen (more…)

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Three Degrees of Interconnection

In the early days of the financial crisis I managed to pull down the ethical codes of conduct from both Lehman Brothers and Bear Stearns. Having saved each on PDF, these documents are now collectibles since both websites have been wiped clean of all the postings that were in place when these companies were quintessential Wall Street players. Interestingly, even a cursory analysis of these codes suggests that they are the products of some legal boilerplate. Both documents first invoked the authority of the board to compel compliance. Both stipulated terms for avoiding conflict-of-interest and assuming personal responsibility for integrity. And – not without some irony as it turned out – both demanded that all employees pledge to not place the firm’s assets at risk in any way.

Of course, these firms did not fail so catastrophically simply because of inadequate codes, whether or not they were taken seriously. What we can discern from these genetically-twinned documents is that organizations continue to take a boilerplate approach to their ethics, regardless of the strengths and weaknesses relative to that firm, despite what pressures may be uniquely challenging for that industry, or without regard for the robustness necessary to bring a company’s ethical capacities up to the level of its risks or import to the community. Any regeneration of ethical business needs to get beyond the usual generic terms of values or codes, preparing a much more customized and responsive approach that takes ethical investigation and moral development as seriously as continuous learning.

Our great religious traditions are a potential source for learning, (more…)

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