Winning Ethically

After a major victory on the gridiron this past weekend over Oregon State, the Cardinal looks
to be returning its football team back to a respectable level. 

And speaking about respect, catching the headlines is the teaching of ethics at its Business
School.  If the economic expansion from 2001-2006 taught us anything about respect, it would
have been hard to find it in the business world during this period. It was fraught with corporate
corruption.  We all received a civics lesson or in this case an ‘ethics lesson’ as we watched or
read about companies and their executives as they were called into courtrooms across the nation
to plead their cases.  The legal proceedings against companies such as Enron, MCI, Tyco, Adelphia
to mention just a few along with their corporate leadership that were paraded in and out courtrooms
in handcuffs provided a living classroom 'in real time' for ethics. 

So it must be asked why would a parent pay $$$$$$’s to send their kids to learn about this topic
‘down on the farm’ when they can simply teach this subject by disciplining them by taking away their
Playstation or Wii and force them to watch such proceedings on cable television with the precursor
of saying “do not do as those depicted have done.”

But there is more to this story.  According to a feature story in the Stanford Business Magazine
and at the Stanford Knowledgebase, many people, including students at business schools resist
discussing how the influence of a group or a situation can lead good people to do bad things.
Apparently research indicates that leaders who don’t acknowledge that group pressure exists
within their organization can create and perpetuate an environment of bad behavior if not corrupt. 
Thus, those that do can use their understanding to promote an ethical organizational culture and
appropriate controls.

The idea that ordinary, good people can end up involved in corruption is counterintuitive to some.
“We underestimate the power of a situation to control people’s actions,” says Deborah Gruenfeld,
who is Moghadam Family Professor of Leadership and Organizational Behavior at the Stanford
Graduate School of Business. “Most of us believe we’re much more autonomous than we are.”
(Great, tell that to all of the former employees from Arthur Andersen).

Stanford Business School Accounting Professor Maureen McNichols teaches an elective course
called Understanding Cheating. Among other things, the course helps students see how good
leadership and the right organizational structure can cut down on the opportunities for corruption.

While these are admirable teachings, the efforts, specifically creating the right organizational
structure would be far more valuable and appreciated by 37 million Californians if Stanford would
do research on how to create the right organizational structure needed to pass a state budget.

Time to open a satellite campus in Sacramento. 

To read the full story, go to: http://www.gsb.stanford.edu/news/knowledgebase.html. 

What do you think?  Is teaching ethics wasted on college age students.  Should ethics be taught to the
state's economic development and redevelopment professionals?  Let's hear your comments


  
   Tim Johnson
   www.CaliforniaBusinessMinute.com