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Posts Tagged ‘Corporate Reporting and Accountability Programs’

Corporate Ethos from the Top-Down

Uber CEO Travis Kalanick issued an apology and stepped down from his position as Chief Executive Officer after a video surfaced of him getting in an argument with his personal Uber driver and then shortly telling the man that some people don’t like to take individual responsibility.

This incident represented yet another stain on the company in a trail of sexual harrassment, discrimination, and pushing the envelope in legal and ethical boundaries. It also raises the question of how much the individual morality or personal ethics of a leader affects the corporate ethos or environment of the business culture. The ethos, or corporate climate, also winded up having an impact on the entire tech start-up industry itself, as evidenced by the avalanche of sexual harrassment revelations this week. Uber has also been found in violation of intellectual property laws and local/international driving regulations. My college mentor always mentioned that it’s naturally much easier to bring people down (e.g. from a chair) than to hoist them up. So it is with individual morality in an environment of corporate depravity.

 

Say it isn’t, Joe.

Ten years after the Enron Corporation was exposed for its massively systemic and cleverly-planned ongoing accounting fraud, the moral structure of college football is being shaken to its core at Penn State University.

Prospective institutional cover-up for act(s) of sexual abuse allegedly committed by head football coach Joe Paterno’s former defensive coordinator and charges of multiple subsequent infractions have already brought down Penn’s State organizational leadership and storied football program. Will the Nittany Lion’s devotion to a winning culture and Paterno’s subscription to resilience and ‘enduring adversity’ eventually parallel Enron’s obsession with profit at any cost and adherence to their former CEO’s ‘survival of the fittest’ principles?

The developing scandal emits conflicting emotions: I am torn by the outpouring of support for an 84-year-old legend who has earnestly dedicated himself to building a long tradition of winning with integrity without the infamous scandals often associated with a major college program. I am sad for these young, innocent boys who would not have experienced further horrors if someone in power had pushed the issue. Properly evaluating a rapidly developing news story is difficult; determining the relevant ethical considerations may represent the best next step i.e., the distinction between law and ethics, and the connection of responsibility to leadership.

Corporations like Enron were familiar with the law; they knew how to exploit and profit from it. University President Graham Spanier and Head Football Coach Joe Paterno met all legal requirements and will not be tried in a criminal court. The ethical question is whether they failed to meet their moral duties and obligations as human persons. Even more so—in their de facto roles as leaders, figureheads, and guardians in their community—greater responsibility is often associated with greater privilege. What personal responsibilities do individuals have beyond their specific job descriptions? Is an act of omission as heinous as the sin of commission?

The university has decided in the best interest of ‘business’ to relieve Spanier and Paterno of their responsibilities. Further clarity is needed before passing judgment on whether Penn State shares a similar aura of hubris with Enron. Even without the pride, their indecision produces greater consequences than even the dissolution of a major corporation.

In the business of uncovering the truth in the digital age, this game will have no winners. Prayers, comfort, and support to the victims and their families.

Does BP = Beyond the Pale?

The Center for Public Integrity reported that two refineries owned by BP accounted for “97 percent of all flagrant violations found in the refining industry by government safety inspectors over the past three years.” The Occupational Safety and Health Administration classified most of BP’s citations as “egregious willful” reflecting rule violations designed to prevent catastrophic refinery events.

Consider the 582-page application that BP submitted for its Deepwater Horizon well that never once discusses how to stop a blowout. Granted, the Minerals Management Service does not require a plan. Instead, amid lax regulation and/or a sloppy corporate cut and paste job, BP pledged that cold water mammals including sea otters, walruses, and sea lions would be protected in the Mexican Gulf. They also provided a Japanese home-shopping network Web address for its primary spill response provider. Not to be outdone, BP attempted to contain the public’s outrage by paying big bucks to fill top search items like “oil spill” with their own video material.

As a practical outlet for the philosophy of morality, ethics gives structure and boundaries. BP’s actions could be considered beyond the pale (unacceptable) for its loss of human life, underestimating the environmental impact, or social gaffes from its CEO. Some counter these unfortunate occurrences with the corporate behemoth as a victim of bad moral luck, regulators unable to keep up with complex rig technology, or managers pressured by the continued drive to hold down costs and make money for shareholders. Do these nuanced qualifications deserve further consideration before making final judgment or does BP’s systematic stench of unethical behavior run outside agreed standards of decency?