A Return to Ethics?
Lately, it seems that a popular topic of conversation in and out of the business world is the concept of ethical business behavior. I guess this can be expected after the Enron and WorldCom incidents have been burned into our memories along with all the poor people that were so tragically affected. Unfortunately, I feel that many feel that a simply checklist of good ethical behavior suffices when it takes years for people to develop their own personal concept of righteous behavior. Also, it should be acknowledged that some people enter the world of business, as with any other profession, with less than noble ideals. Although I never had the chance to talk with him personally, I am pretty certain that Ken Lay knew what he was doing was taking place outside of the realm of ethical behavior. He knew there was the chance that he could eventually reap what he had sown, and eventually he did.
In my opinion, the focus should be on the chains of command, the supposed checks and balances that broke down so tragically in the case of Enron which led to the eventual catastrophic collapse. It was not the actions of a misaligned group that deceived the rest. The corruption spread far and wide in the case of Enron; from the halls of our government, to the ledgers of Arthur Andersen, back to the phony companies set up my employees at Enron. I would suggest that anybody interested in the specific example of Enron see the movie, “Enron: The Smartest Guys in the Room,” for the full overview of how far the corruption spread. It is an eye-opening experience.
No one can control the actions or another. Nor can we ensure that all business professionals behave ethically. While it is appropriate to provide the proper environment in which students of business are educated about proper ethical behavior, it cannot just stop there. There also has to be a renewed focus on the function of business as it relates to government, society, and other regulatory bodies. In this way, the effects of a few or even many deviants will be lessened. It’s no easy task and I am in no position to dictate how businesses can return to a focus on ethics. But it is my opinion that focusing on the individual is worthwhile, but it is not the whole picture. We need to look at the larger picture as well.
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