As I approach 60 I reflect back over the years and am
appalled by the decline in business ethics. Scandals such as Enron, the Exxon
Valdese, and others are just high profile examples that link to an insidious
decline in personal ethics. This can be seen at every level from the Mc
Donald’s clerk up through the ranks to corporate CEO’s. Incompetence,
dishonesty, greed and self-indulgence are pervasive at all levels. Pride in workmanship, craftsmanship and personal integrity
have declined. If you look at the people in the scandals you will often see parelell scandals in their personal lives.
Big corporations can no longer be trusted either by the
employees or the general public. Pension funds are wiped out in mergers and
hostile takeovers. Just about any day you will see news articles about another
corporate scandal. Are these events limited to business, or a reflection of
society ethics? I believe they are merely a reflection of a general decline in
personal ethics.
Ever since the 60’s there has been an increasing trend
toward instant gratification, self indulgence, lack of personal respect and
respect for others. The same trends that are responsible for social decline
influence the decline in business ethics. Corporate leaders are rewarded with
big bonuses for short-term gains that may not be the best policy for long-term
stability. Some companies yield to pressure and “cook the books" in an effort
to appear more desirable to investors. Dollars, too often, win out over ethical
practices and this can only be linked back to societies ethics which reward
short-term success over honesty and long-term stability. Look around at your
peers and at yourself. How many would pass up a chance to get rich if it
involved a violation of personal ethics?
So where does it start and what can we as a society do about
it. I think it starts in infancy.
Lets get rid of the ideas that everyone is equal and deserve
the same as anyone else. Equality under the law is often misinterpreted, as
“everyone is equal." We clearly have different talents and abilities. Equality
under the law doesn’t even bear up under scrutiny. We need to begin by rewarding
excellence and recognize that there will be many who will not be stars. The
current idea that every child is a star is ludicrous. Quit penalizing
individuals and companies that clearly standout over others. An example that
immediately comes to mind is Microsoft. Bill Gates was a geek with limited
financial resources when he started. When his products and company achieved
superstar status, he and the company were penalized because others who had not
produced a product as popular or as usable claimed unfair competition.
Microsoft was forced to share with others who did not have products that were
as desirable. There is a book by Ian Rand, “Atlas Shrugged" which closely
parallels much of what is happening in business and society today. If a company
cannot produce a product as good or superior to another, let it be penalized by
the market place.
Parents need to impress on their children the benefits of
long-term gains over self-indulgent instant gratification. Children need to be
taught to weigh long-term risks and gains. In the short haul, it may be more
profitable to become a drug dealer or produce porn. In the long haul it is more
desirable to get a good education and prepare for a financially rewarding
career. As these ethics trickle up through companies as the young people mature
and become corporate executives, corporate and society ethics will improve
also. Companies are nothing more than a collection of people. Corporate ethics
reflect the personal ethics of those in leadership positions. If we can reverse
the trends in personal ethics there will be a corresponding reversal in the
trends in business ethics.
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