The state of ethics today is skewed by news headlines about insider trading and the millions of dollars involved in these crimes. What does that mean for the state of business ethics in American business? I'm willing to bet that it does not mean good morals are on the rise.
From the minute we sat down in our Ethics and Corporate Responsibility class, we heard countless instances of investment advisers involved in sweeping unsuspecting investors' accounts and putting the funds into their own pockets. Lucky for us, we have been granted an opportunity to hear first hand why some of these people made such bad decisions. The background of these stories revealed troubled childhoods, undiagnosed personality disorders or a need for recognition. Whether these were excuses or real contributing factors, the ethical breach was obvious.
If you want to have the American dream then you do whatever it takes to come out on top. Unfortunately, this also means that there are many instances where ethical, or unethical, decisions will have to be made. We heard a story of a young man who became a stockbroker because it reminded him of a competitive sport he played in his youth. Looking for a spot in the limelight led him to make questionable choices that put his investors right into a Ponzi scheme. Recongition and "winning at all cost" won over protecting the best interests of his clients. Personal gain won over morals. Shortcuts won over searching for a worthwhile solution. Such stories made me wonder if there is not on single ethical person left in corporate America.
Even some of the solutions to fighting unethical behavior brought up more question for me. The idea of "whistleblowing", with all of its monetary rewards, seemed to offer the same incentives offered in business to come out on top. In 2013, a record $14 million was paid out to one whistleblower for telling about unethical behavior in his/her company. Is that not similar to the incentive of a bonus of job promotion that corporations pay its employees? The bottom line is that individuals are not reporting white-collar crimes because they cannot accept the immoral deeds; it is because they have their own personal gain in mind. The same is true among those involved in a criminal enterprise. When one is caught red-handed, they try to save themselves by cooperating with the FBI to get a more lenient prison sentence. My conclusion is that these incentives are just another way of getting ahead.
As a young, eager person working towards getting my MBA, I am more concerned with the escalating consequences of making poor ethical decisions. If I were to "get it wrong, then there is much more publicity and press coverage occurring than ever before. I’m sure the goal of this coverage is to serve as a deterrent, to set an example, or to prevent further threats to business / investors. However, I don't believe that will actually happen.
I am concerned that MBAs, like myself, will find new ways to embezzle, insider trade, and commit crimes to further our own careers. Sadly, applications like Snapchat, which deletes text messages once they are read, would be an excellent tool for insider trading. We are keen to adopt new technologies, finding faster short cuts and hidden pathways that older generations will be blind to for some time. Even I can’t say that I wouldn’t commit these types of crimes if I were in a fast-paced, financial job.
We all want to be successful; I am not exempt from the idea of making as much money as possible in a shortest amount of time. However, I am more interested in finding solutions to ethical dilemmas rather than crossing an ethical line to better any corporation. At the end of the day, my perception of the state of ethics in American business is that it is trucking along in the same fashion as it has for decades and we MBAs are eager to slip into it. While reducing crimes associated with unethical behavior is a worthwhile goal, I'm not sure that I will see it reached in my time. Get ready white-collar defense attorneys, you're bound to have your hands full.
