The Ethical CEO - Oxymoron Lessons from Business School to the Board Room

Online, May 7, 2010 (Newswire.com) - Bernie Madoff is the poster child for the unethical CEO. He ran a $50 billion Ponzi scheme that has ruined thousands of peoples' life savings. It is equally amazing that so many people either colluded with Bernie or choose to believe his story because they wanted to receive the high percentage returns he claimed his funds were producing. It took years before he was found out.
Ethics as a discussion in business is nothing new. Ethics as a course is taught in many undergraduate and graduate business programs for decades now. Albers School of Business at Seattle University, for example, has their whole business education program framed by the idea that doing right is part of the core of belief of doing business.
"Ethics and social responsibility are incorporated into the curriculum, and you will participate in community service projects and volunteerism. We are committed to helping you graduate as an engaged, responsible citizen of the community, the country, and the world." -Albers School of Business and Finance, Seattle University
With these increased ethical breeches and the impact of the subprime mortgage debacle and other investment practices that contributed to the financial meltdown more CEOs are considering their ethics, legacy, and public opinion. Consulting Psychologist and Executive Coach, Carl Robinson, Ph.D, consults with some of these people. One co-founded a very successful company made a conscious decision to not accept a buyout offer of $350 million, in part, because he and his board did not agree with how the buyer intended to handle potential layoffs. Not many people would turn down $350m because it might negatively impact people that would have gotten laid off.
After seeing the recent interest in the Ethics of his executive clients, Carl Robinson wrote the article "The Ethical CEO" published in CEO Chief Executive Officer magazine. In it Dr. Robinson looks at recent research that indicates that contrary to the media perception, most CEOs do care how history will judge them. The article can be found at http://www.the-chiefexecutive.com/features/feature77331/
"On the whole, CEOs diligently try to make business decisions and take actions that are guided by their values or moral code."
Dr. Robinson outlines three key steps that CEOs can follow if they want to ensure that they and their companies are viewed as good corporate citizens.
The three steps to being more ethical:
1. You must develop and embrace your own set of guiding principles or values.
2. Develop a few close relationships with like-minded people with whom you can commiserate and offer mutual encouragement, advice and support.
3. Corporate Responsibility must become part of the fiber of the organization.
As Dr. Robinson wrote in the Ethical CEO, "Being successful and creating a legacy you can be proud of are not mutually exclusive." Most organizations and investors only judge a business success by the ROI. Dr Robinson offers a new additional metric for business success: ROR, Return on Respect. "It takes thoughtfulness and courage to follow the 'right' road, but the ROR is immeasurable."
For additional information on Ethics and business management (or for a quote, article, or interview), contact Carl Robinson or visit www.leadershipconsulting.com. He is available for teleconference interview nationwide, or in Seattle in person.