Interview with George G Brenkert on Building Ethical Organizations
August 2009
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By Dr. Nagendra V Chowdary
DR. George G Brenkert Professor of Business Ethics at the McDonough School of Business, George town University.
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For the benefit of our readers and
business ethics teachers across the
globe, can you please share your
delivery approach to business ethics /
honesty and fairness in organizations
course? Is there a bestway to sensitize
and sterilize the managers and
would-be managers on corrupt
business ethics practices? In the classroom, the best way is,
first, to get them to see the fact that
others engage in such corrupt
practices does not justify them doing
so, and then, second, to challenge
them to find creative and imaginative
ways to work around the “easy”
corrupt path. Finally, the benefits of
taking themore challenging path need
to be driven home to them. Within
businesses, the leaders of the
organization must set the tone not
only through their own
pronouncements but also actions.
The business must be clear as to what
kinds of actions are acceptable and
which are not. This cannot be done
simply by general rules and
guidelines, but requires specific
training, stories, and examples that
are spread throughout the
organization. The measures by
which employees are measured and
rewarded must be in line with the
kinds of actions employees must take
in ethically problematic situations.
And then those who break the rules,
who engage in corrupt or unethical
actions, must be called to account.
Within limits of privacy and
confidentiality, these actions must be
known throughout the organization.
In short, ethics is not something that
is simply “added on” to what is
already being done within an organization. It is not the “frosting on
the cake.” It must be embedded
within the organization so that it
becomes part of its DNA. -
Recently, Jon M Huntsman wrote
an interesting book, Winners Never
Cheat: Everyday Values We Learned
as Children (But May Have
Forgotten), wherein he chronicles the
story of Huntsman Corp’s
extraordinary perseverance in doing
the business the ethical way. Why
don’t we see more of such companies
and what, according to you should be
done to see more of such companies? It is too easy to do things the ways
they have always been done as well
as simply to assume that in business
you must cheat. Unless and until we
can challenge these assumptions that
many people have we will not be able
to create more ethical organizations.
Of course, eliminating perverse
incentives created by regulations may
also greatly help here. That is
something that ethical businesses
might also seek to do. -
Every aspect of a business is being
ranked – Fortune 500, Most Admired
Companies, Most Innovative
Companies, Best Companies To Work
For, Highest Paid CEOs, Most
Influential Business Leaders, Best
Corporate Governance Practices, Best
Global Brands, etc. Why not ranking
for Business Ethics Practices?
(Although Transparency
International’s ratings serve a limited
purpose of assessing least corrupt
countries, and not companies) There are rankings for companies that
are the best for employees, whose
environmental records are best, etc. I
suspect it is more meaningful to have
these particular rankings rather than
the more global ranking of “Best
Ethical Companies.” The danger with
such a ranking is that if one
employee, who was a member of a
“Best Ethical Company,” did
something really wrong, it might
seem that the designation of that company was compromised and so
too that kind of designation. HBS has pioneered the case
method and became highly
successful in exporting it to rest of the
world. Any updates on this? Do you
think it has over lived its life? It may well have over lived its life for
some topics, but for business ethics it
remains an excellent way of raising
and resolving problems in the
classroom. I try to use current cases
and to conjoin them with more
general readings on the underlying
ethical issues that arise in the case.
My aim is to use the particular
circumstances of a specific case not
only to lend the issues students will
face in business a greater sense of
reality, but also to portray the real
pressures and dilemmas they will
face. However, their solutions to the
problems that arise in the case should
also reflect some deeper thinking
about the underlying ethical issues
the case raises. The classroom is not
the same as a business in which some
issue must be decided, perhaps,
within a very narrow time period.
This is sometimes derided as not
providing a “real situation” in which
“real answers” have to be arrived at.
On the other hand, the great thing
about the classroom is that students
have time to reflect on issues they
don’t have time to consider in “the
real world” and hence they can go
back to their businesses with a better
understanding of the issues they face
there.
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