Away From Misconduct?
Many in business are focusing on behavior these days — from how financial industry executives acted and were rewarded to the role markets and business schools played in creating them. With this in mind, HOW Online asked leaders: “Has there been a noticeable change in the behavior of executives and businesses since the economic crisis began? Or has it been business-as-usual for conduct and integrity?”
Janine Armin is the deputy editor of Corporate Secretary magazine, where she writes and edits articles on governance and compliance.
“From interviews I have done with corporate secretaries who help manage the relationship between executives and their boards I’d have to say that, yes, behavior at the board level has changed. Directors are more on notice than ever about how important their role is as overseers. But I would hesitate to say that it guarantees positive change in the long run. They need help from the rank and file.
In my reporting, I have also found that some compliance professionals still worry their position is not senior enough to make an impact. By raising the status of compliance, companies can better defend against problems.
More regulation won’t necessarily improve corporations either; there has to be a business case for good governance. On the plus side, we are seeing a lot more attention to risk management. We also know many groups have formed over the past year to brainstorm corporate governance solutions. Hopefully, companies will take the thoughtful advice they may generate and incorporate it going forward.”
Maribeth Kuzmeski is the president of Red Zone Marketing, a financial services industry marketing and consulting firm based in Libertyville, Ill. She is the author of “Red Zone Marketing: A Playbook for Winning all the Business You Want”.
“The conduct of executives is under the microscope right now. And because of this, whether reality or perception, businesses are not operating ‘as usual.’ However a majority continue to operate with high integrity.
I consult with firms in the financial services industry, and everything — I mean, everything — has changed. But not their ethics. Most executives are on their best behavior — or at least they are trying — by watching some others make mistakes left and right.
But contrary to popular belief, most in the financial services industry are now, and have been, extremely principled and operate with integrity. The behavior of a few is tainting the entire industry of smart, high-integrity executives.”
John Knapp is the director of the Frances Marlin Mann Center for Ethics and Leadership, Samford University, in Birmingham, Ala. He is an author and a featured speaker and seminar leader for business and professional organizations.
“It is difficult to gauge the short-term effects of the crisis on individual and corporate integrity, but there is every reason to expect that growing pressure to meet financial goals will lead some to cut corners or make ethical compromises.
In the National Survey of CEOs on Business Ethics, with I co-directed last year with Dan Wueste (Clemson University), a majority of large-company CEOs agreed with the statement, “Business executives are more likely to make ethical compromises during economic downturns.”
The CEOs also cited excessive financial pressure as a leading cause of misconduct within corporations. In today’s economy, it is more important than ever for leaders to pay close attention to how their organizations respond to difficulty and pursue profitability.”
Anthony R. Hendrickson is dean of the College of Business Administration at Creighton University, in Omaha, Neb. He has published extensively in the areas of e-commerce, virtual teamwork, virtual collaboration and virtual organizations.
“As the dean of a business school within a Jesuit University, our main goal is to not only provide our students with a world-class business education but we also strive to assist students to identify their values and incorporate their value systems into their daily decision-making. In addition to delivering a sound technical understanding of business concepts, we help our students develop their leadership skills and integrate their values into business decisions and personal decisions with the same ease and comfort. A basic premise of Jesuit education is that decisions can’t be compartmentalized. We want holistic decision makers because the world is an integrated, interconnected place.
One of the Jesuit charisms [divine gifts or mission] is “men and women for and with others.” We emphasize the need to be people who are focused on the world around them. This is often a concept that is in direct conflict with the narcissistic society that we live in today. The challenge of thinking of others along with, if not before, ourselves is difficult for each of us. But it is this focus on the world around us that allows us to tap into that part of our being that is searching for a deeper meaning to our activities and lives. Research indicates that people who focus on others outside themselves typically lead happier, more content lives. This seems so obvious, but our culture constantly encourages us to think of ourselves often first, foremost and only.
The concepts of transparency, building trust, teamwork and helping others, mutual gain, thriving through collaboration, informed belief are all consistent with many of the concepts and values we strive to instill and foster with our educational practice.”
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