Somewhere along the timeline of organizational change, the roles and responsibilities of executives in for-profit and non-profit organizations became more fragmented. A complexity has taken over, a sense of matrixed management where groups come 
together and then split apart. The “man at the top” of 1950s and 1960s thinking has dissolved into interconnected workgroups. And somewhere in this changing workplace is the crack that can be the beginnings of an ethical fall.
Making matters just a bit more complex, is the insistence of some organizations in making up clever titles. The former Vice President of Transportation might be called “Head People Mover,” or the Chief Marketing Officer might now be known as “Creative Wizard of All Things.” As cute as these titles might be, it reinforces and indeed further negates the seriousness of unethical workplace failures.
Despite organizational change, fragmentation of responsibility, remote offices, contract workers and even ingenious titles, when outside agencies, governmental, law enforcement or otherwise, discover fraud within an organization there will be consequences. Excuses will not compensate for a lack of oversight. And ethical falls demand action – just ask the CEO of CBS.
Ethical Fall excuse – “I didn’t know”
Using the above discussion of “fragmentation,” it is possible that the person in charge – knowingly or unknowingly – signed off on a policy or procedure that might have had negative ethical ramifications in a remote part of the organization. The signing off might have been totally unintended or more likely, ignored in the clutter of transient workgroups and programs.
For example, someone in international sales may have announced a feel-good program where the company sends out fun New Year’s greetings to customers around the world.
“Oh sure,” said the person presumably in charge, “sounds like a nice thing to do.” The person in charge signs off on it and then rushes off to another meeting. Eight months later, the person in charge might get a call from the corporation’s legal counsel. The legal counsel, also known as the “Chief of Laws,” tells the corporate head that they are apparently being investigated for passing out bribes. It would appear that some of the New Year’s greetings contained rather expensive gift cards.
“I didn’t know they would be doing that,” says the “Head Honcho” to the “Chief of Laws.” When the head of international sales, also known as the “Global Yokel” is called on the carpet, she might say, “Well, it’s customary in certain countries to give a New Year’s gift along with the card. I remember telling the “Director of Money Making” about our idea give out a few gift cards.
When questioned, the “Director of Money Making” might say, “Don’t blame me, I told her to clear it with the “Legal Chief.”
Yes, I am being light-hearted with the titles and perhaps with the circular finger pointing, but many of the audiences I talk to about unethical behavior heartily agree that there is an increasing lack of accountability.
Who’s in charge? You are!
Despite fragmentation, “matrix management,” shifting work groups and remote work locations, the core basics of unethical behaviors have not changed. For an ethical fall or fraud to occur, now as always, there must be a need, an opportunity and rationalization.
All of the fun and games aside, when a manager decides to offer cash bribes or “gifts” in foreign markets, it constitutes an unfair trade advantage that can have serious ramifications. The manager who took it upon herself to offer those gifts did so without the permission of the chief executive. While the stated intention might have been to spread a little holiday joy, against the highly charged backdrop of bribery, it constituted a major violation.
In the scenario, at least three managers were culpable and all three could be facing serious consequences. “Multi-tasking,” shifting areas of responsibility, remote work groups or inaccurate titles might serve the executives to believe they are a dynamic organization but in reality, they are all unethical in their business practices. No matter what the chief executive, sales director or international sales directors call themselves, the fact that no clear-cut policies were in place with an expressed prohibition bribes of any kind is a major flaw. The finger pointing must start with themselves.
In the new dynamic of corporate life, ethical behavior and ethical training are more important than ever before. To ignore ethics because some think it “may not be cool,” is to invite major consequences. Ultimately, we are all in charge of our ethical behavior and effective training is the foundation to avoid an ethical fall.
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