There are some organizations that don’t need any further explanation as to what they do, other than the mere mention of their company. If we search our collective minds for a one-name organization whose mere mention evokes ethics and 
trust, I can think of no better example than Gallup – as in Gallup Poll.
As it turns out, Gallup, Inc. is in the poll business as sort of a loss leader; like going out of your way to shop in a supermarket that has advertised smelly cheese at the incredible price of five pounds for a dollar, while the supermarket’s price on room deodorizer is a dollar more than the competitor down the street.
Gallup makes its money on high powered management consulting contracts to government and industry. Gallup, as it turns out, also has an ethics and compliance practice. In total, Gallup has more than 2,000 employees in 40 offices and in 20 countries. Their contracts run into the millions of dollars.
Unfortunately, Gallup has just settled a $10.5 million lawsuit for an intentional over-billing fraud while doing work for the U.S. Mint, the State Department and FEMA – business ethics violation. Despite their consulting expertise and obvious experience, someone, somewhere along the line intentionally over-billed the government – and they got caught. Apparently someone else tried to hire away a FEMA employee to gain a huge stepping stone into the organization.
Tough Talk at Gallup
Barbara Soderlin, writing for the Omaha World-Herald (August 11, 2013), detailed a set of conditions that Gallup must adhere to in their ethics and compliance practices. This agreement was arrived at between Gallup and the Department of Homeland Security. Among the changes Gallup agreed to:
- Tough measures to make sure managers and supervisors adhere to the ethics programs put into place; if they don’t, it will be grounds for termination.
- There were three employees specifically named who were involved with unethical practices and it was made clear that if Gallup tries to hire them back, it could lead to dire consequences for the entire organization.
- In addition to updating the ethics code, Gallup was ordered to “create an ‘internal controls system’ to uncover improper conduct in connection with government contracts and to ensure corrective measures are carried out.”
- Gallup was ordered to install an “Ethics Officer.”
- Senior Gallup managers will be required to report, twice yearly on measures its taking to improve their ethical stance and each employee is required to review the ethical code. In fact, senior managers must have an hour of ethics training each year.
There are other, rather typical measures in the action plan as well; a toll-free, ethical hotline and neither the taking nor the giving of gifts.
All Well and Good, But –
Why did it happen, and who is going to train the trainers who will be training the consultants?
As to the “why,” I can answer with the simplest of answers: Why not? Something happens to unethical people in any organization when opportunities arise, especially when dealing with the government. I have seen this pattern repeated on many occasions where boards, groups and consultancies have very long-term relationships with government entities. It can sometimes lead to exorbitant dinners, sometimes to bureaucrats essentially sitting in place year after year “feather-bedding,” sometimes to very severe ethical violations.
Whatever happened at Gallup has happened many times before. Is it embarrassing? Yes, of course it’s embarrassing. This most noble of pollsters had people running around in other divisions taking advantage of the customer – in this case, the customer was our government; the very organization sometimes the subject of Gallup polls.
However, the much larger issue is this: if an organization is given a huge slap on the wrist there is initially a huge commotion and the troops snap into shape. “Czars” are appointed within the organization and reports are carefully written and everyone is marching in formation. Oh, and it’s impressive, I’ll have you know.
Over time, the reports become rote; the forms become rote; the big shot in charge of ethics starts getting pressure sometimes from above, sometimes from below. Everyone will initially say the right thing and I am here to say, that over time, people will be asked to keep their opinions to themselves.
I am not saying it could happen at Gallup, mind you, but it could happen to another organization in a similar situation.
Consequences. Yes, a huge fine is serious, but it will eventually become a drop in the bucket. New employees will enter the dance and old ones will leave. Someone, somewhere, needs to come in after six months, a year and every year to watch for the unmistakable signs of the train slipping off the track.
Opportunity will call out to some employees like the fabled Syrenes calling to the crew of a boat about to crash on shore. It sometimes takes an outsider to smack them upside the head and to tell them to immediately change course.
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