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Overcoming the Cultures Influence in Young People: A Look At How We Might Realign PostModernists Pro


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Title: Overcoming the Cultures Influence in Young People: A Look At How We Might Realign PostModernists Pro

Overcoming the Cultures Influence in Young
People A Look At How We Might Realign
Post-Modernists Progeny with the Pursuit of
Virtue Ethics
  • Professor Marianne M. Jennings
  • W.P. Carey School of Business
  • February 21, 2008

What word did the American Dialect Society name
as the word of the year for 2006?
"the quality of preferring concepts or facts one
wishes to be true, rather than concepts or facts
known to be true what feels like the right
answer as opposed to what reality will support
What word never left the top 20 most frequently
looked up words in online dictionaries in 2005
and 2006? And was number one in 2005?
Ethical Lapses
  • Student loan lenders Sallie Mae and 17
  • Adelphia
  • Boeing
  • Cendant
  • Computer Associates
  • Tyco International
  • General Electric
  • Global Crossing
  • Merrill Lynch
  • Enron
  • Qwest
  • WorldCom
  • Royal Shell
  • Nortel
  • Krispy Kreme
  • Refco
  • UnitedHealth Group
  • Merck
  • World Bank
  • ATT
  • Xerox
  • Kmart
  • Citigroup
  • Lucent
  • ImClone
  • Arthur Andersen
  • HealthSouth
  • Royal Ahold
  • Parmalat
  • Apollo Group
  • Marsh McLennan
  • AIG (Putnam)(Mercer)
  • Fannie Mae
  • KPMG
  • GM
  • Options scandals (160 companies)
  • HP
  • Universities and travel

Government Issues
  • Oil for food UN scandal
  • Post-Katrina corruption in contract awards
  • Iraq contract awards
  • Rob Reiner using his favorite companies for
    California commission contracts and political
  • Arlen Specters aides spouse gets earmarked
  • Arizona State treasurer investigation for
    conflicts Maricopa County assessor and
    conviction 400 per low-income loan to seniors
  • Mike Espy
  • Henry Cisneros
  • Taser and the law enforcement officials
  • Colorado and the 1,500 office chairs
  • Contributions for changing the no-touching rule
    at San Diego strip clubs
  • Scottsdale School District and the bids
  • New York assistant principal who gave his son the
    answers to 35 questions on the Regents exam
  • Kerik and employment of illegal immigrant
  • DMV employees who gave out licenses in exchange
    for cash
  • William Jefferson and the cold cash
  • Illinois Gov. Ryan
  • San Diego -- 1.1 billion pension fund deficit
    skimming to meet city budget
  • Connecticut Gov. Rowland
  • Chicago Mayors office and contracts
  • Embezzlement BLM
  • Former Delay aides and guilty please
  • Abramoff
  • Duke Cunnigham -- 2.4 million from defense
  • State crime labs and scandals
  • Tom DeLay
  • Clark County Commissioner and the MyTai
  • Philadelphia mayor and the pay-to-play
    contracting system
  • Darlene Druyun and Boeing
  • HR director of JeffCo County and the 32,000 in
    personal expenses on county credit card
  • Governors engaged in business relationships with
    those who receive state contracts
  • BLM chief in Monterey doctoring invoices to
  • USDA employees and the 100K for visas

Some Sample Fines
  • Boeing
  • Tenet
  • Columbia/HCA
  • AIG
  • Marsh McLennan
  • Fannie Mae
  • KPMG
  • Tyco
  • Cardinal Health
  • Pharmas
  • UnitedHealth Group
  • Siemens
  • 615 million
  • 725 million interest 900 M
  • 1.7 billion
  • 1.5 billion
  • 850 million
  • 400 million
  • 465 million
  • 750 million
  • 600 million
  • 2.4 billion
  • 600 million
  • 402 million

Colleges and Universities
  • Benjamin Ladner, former president American
  • 43,982 for dinners (13-course meals)
  • 22,345 for first-class ticket to Nigeria
  • Personal chef 220,000 for 3 years)
  • Personal development trips for chef to Paris,
    Rome and London
  • 100,000 for a social secretary
  • 44,000 in alcohol
  • Furniture expenses
  • Engagement dinner for his son
  • 54,000 for cars and drivers
  • 5,000 lunch hosted by Mrs. Ladner for her garden
  • 500,000 of personal expenses in three years
  • I do believe I have made mistakes, and I
    understand how the perception of the significance
    of these has been exaggerated in the media. In a
    few instances, I overlooked the fact that certain
    personal expenses were charged to the university.
    Because of my single-minded focus carrying out
    university business, I regret these accounting
    errors and have already reimbursed the
    university. In hindsight, I should have been more
    vigilant and precise. The amounts being leaked to
    the media are overblown and inaccurate, and will
    be shown to be wrong.

Colleges and Universities
  • Apollo and the University of Phoenix
  • DOE audit on recruiting and advising
  • Stock options back-dating investigation
  • The student loan scandals
  • Maricopa County CCD loses three presidents
  • Maricopa County Community College
  • Bond issue
  • Funding for campaign materials
  • Relationships with builders and others who stood
    to benefit from the approval

The Presidents
  • Texas Southern University and former president
    Priscilla Slade (plus VP for senior
    administration and senior safety engineer) for
    280,000 in expenses for presidents home
  • Hung jury
  • Wrongful termination suit dismissed
  • Vanderbilt and Gordon Gee (700,000 on parties,
    including personal chef)
  • Vanderbilt defended him in WSJ article

The Vice President (Vice Chancellor)
  • 2,112.00 reimbursed long-distance charges
  • Calls were to counsel for one of the Texas AM
  • 1,804 calls were after- or before-hour calls or
    during holidays and weekends
  • Resigned following anonymous letter to internal
    audit about an affair between the two

Colleges and Universities Issues
  • Cloning fraud
  • Research conflicts of interest
  • Funding conflicts of interest
  • Relationships with students
  • Double-dipping by faculty on pay systems
  • Text book conflicts
  • Grade inflation
  • College athletics
  • College contracting
  • College financial aid

Colleges and Universities
  • UT Austin
  • Vanderbilt
  • American University
  • Shoreline Community College
  • Texas Southern University
  • Maricopa Community Colleges
  • Johns Hopkins
  • Syracuse
  • NYU
  • Columbia
  • USC
  • Penn
  • Oral Roberts Univ.
  • Average fine 2 mil

I. What makes good and smart people at great
colleges, universities, organizations and
companies do really ethically dumb things?
A. Never an issue of not seeing the issues
  • We see the issue.
  • We feel the pressure.
  • We find ways to comfort ourselves.
  • We hope it resolves itself.
  • We ignore it.
  • We allow others to decide for us.

UT Austin
  • "Larry loves tequila and wine. Since becoming
    director at UT Austin, he has not had to buy any
    tequila or wine. Lenders provide this to him on a
    regular basis."
  • Senate Report on Financial Aid Offices and
    Student Lender Relationships

Leadership Failures on Social Issues
  • Duke and the Lacrosse Team
  • Virginia Tech and the Cho case
  • Disruptive Students A Liability, Policy, and
    Ethical Overview, Journal of Legal Studies
    Education, with Heidi L. Noonan-Day. 24(2)
    291-324 (2007).

So, if they see it, what happens?
  • 65 DIDNT REPORT (1999)
  • 37 DIDNT REPORT (2003)
  • 41-50 DIDNT REPORT (2005)
  • 50 DIDNT REPORT (2006)
  • 50 DIDNT REPORT (2007)
  • Industry Surveys and SHRM

In the academic world
  • Only 44 of faculty members pursue academic
    integrity cases
  • Feeling that there is a lack of administrative

So, how come they said nothing?
  • 96 feared being accused of not being a team
    player (same 1999 and 2003)(80 2006)
  • 81 feared corrective action would not be taken
  • 75-88 (2006)
  • 68 feared retribution from their supervisors
  • 49-64 feared retaliatory action (2006)
  • (SHRM and industry surveys)

Merck and Vioxx Revelations
  • I just cant wait to be the one to present those
    results to senior management.
  • Dr. Alise Reicin
  • In a 1997 e-mail on C.V. events (cardiovascular
    effects of Vioxx)
  • Merck had not yet begun selling Vioxx

  • How does Ron Ron DeLia, Boston PI get cell and
    home phone records? Is it all above board?
  • H-P senior counsel and ethics officer, Kevin
  • We are comfortable there are no Federal sic
    laws prohibiting the practice.
  • Anthony Gentilucci, H-P global security officer
  • I shouldnt have asked.
  • Hunsaker in response

KPMG Internal Culture During Tax Shelter Years
  • 1.2 billion of the firms 3.2 billion in annual
  • Mandatory weekly conference calls for 500 tax
  • Youre either on the team or off the team.
  • Jeffrey M. Stein, head of KPMG Tax Department
  • to senior manager who raised concerns about
  • tax shelters during a call

B. High Ethical Self-Esteem
  • Living in Denial and Slipping Into Complacency

We all think we are ethical.
  • None thought their ethical standards were lower
    than those of their peers in their organization
  • Society of Human Resource Managers

Why do we fancy ourselves so ethical?
  • We are not talking about it with others.
  • We have rationalized, labeled, and defended
    ourselves into believing we are ethical.

3. Complacency
  • One additional possibility

The Survey on Lying
  • 52 said lying was never justified
  • 66 said lying could be justified
  • 65 would lie to save someones feelings
  • 40 said theyd never lied or cheated
  • 10 of the 40 said they had told a lie in the
    past week
  • 40 said it is okay to exaggerate a story to
    make it more interesting
  • 33 said it is okay to lie about your age (only
    to make yourself younger, though, not for
    purposes of drinking age)
  • 33 said it is okay to lie about being sick to
    take a day off
  • AP Poll, June 23-27, 2006

We have ethics here.
Ellen Frishberg
  • Former head of student financial aid office at
    Johns Hopkins
  • Accepted 160,000 in consulting fees and tuition
    reimbursement from student lenders

"Appearance of impropriety is as important as
impropriety itself."
A thought on conflicts
  • "I do serve on . . . some advisory boards -- kind
    of like the medical junkets the pharma companies
    offer -- we go to a resort for 3 days, and pay a
    nominal fee. But I still insist on best pricing
    and good service before I bring a loan to my
    students. The new generation of administrators
    just don't have the same moral center."

Ellen Frishberg, former head of financial aid at
Johns Hopkins, in an address in 2000 to the
National Association of Student Financial Aid
Do more with less!
Holly L. Moore former President, Shoreline
Community College, WA to employees following her
25,000 raise awarded in violation of open
meeting laws
Guess who said it!
  • I have the highest ethical standards.

Dr. William McGuire
  • Former CEO UnitedHealthGroup, to his board when
    confronted by it with an investigation that
    revealed backdating on one-half billion in his
    stock options
  • In Dec. 2007 agreed to repay 600 million

Guess Who Said It!
  • The things he did to that company are horrible.
    I dont understand the mindset of a man who would
    do what he did to that company.

Richard Scrushy, former CEO of HealthSouth, while
sitting in on the Jeffrey Skilling trial on March
6, 2006. Mr. Scrushy is now serving 7 years for
bribery. HealthSouth took 4 years to decipher its
real earnings once Scrushy was ousted. Revenue
restatement totaled 2.5 billion
Guess Who Said it?
  • Its only illegal if you get caught.

Another CEO
  • Greg Reyes
  • Former CEO of Brocade, a Silicon Valley company
  • Nephew of Googles CFO
  • Convicted in 2007 of backdating options (fraud)
    facing 7 years

Guess who said it!
  • I did not do anything wrong.

Lawrence Burt, VP of student affairs and director
of the office of student financial services at UT
Austin, who owns 1,500 shares and 500 warrants in
Educational Lending Group, a preferred lender at
UT Austin.
II. Our Students
The State of Ethics Is Not So Great
  • 60 of high school students cheated on an exam in
    the last year
  • 62 of high school students lied to a teacher in
    the past year
  • 82 of high school students lied to their parents
    in the past year
  • 33 copied something from the Internet
  • 28 stole from a store in the past year
  • 23 stole from a parent or relative
  • Josephson Institute 2006

Thoughts from a high school principal
  • Theyre not bad kids. They only cheat because
    they are under pressure.

Thoughts on cheating from high school students
  • Students who cheat do so on their own terms. Of
    course there has been no penalty, but they know
    there is a risk, and apparently it seems like
    its worth taking.
  • Just about everyone is cheating in some way or
    another. It is a common thing among society that
    is seemingly accepted.

Thoughts on cheating from a high school teacher
  • Cheating is done on a daily basis and there is
    little effort to curb it. Kids will ditch class
    by having their parents excuse them during the
    period they are to take a test, and then the kids
    find out from their friends what is on the test.
    Kids can then take the test the next day. . . .
    The new camera cell phones are now being used to
    take pictures of tests and also they are using
    instant messaging to cheat.

Cheating in College
11 reported cheating in 1963
49 reported cheating in 1993
75 reported cheating in 2003/2005/2006/2007 50
graduate students reported cheating (2006)
Schools that discovered cheating scandals
  • Duke
  • San Diego State
  • Naval Academy Annapolis
  • Air Force Academy Colorado Springs
  • West Point
  • UNLV
  • Berkeley
  • Dartmouth
  • Columbia
  • ASU

What happens when your 75 figure on cheating
reaches 100?
Do I have some fixes?
1. Thoughts on Truth It Exists
  • I never lied to you. I always told you some
    version of the truth.
  • Jack Nicholson to Diane Keaton in Somethings
    Gotta Give
  • Truth doesnt have versions.
  • Diane Keaton to Jack Nicholson in Somethings
    Gotta Give

Truth and Its Percolating Quality
  • The laws of probability do not apply when it
    comes to the surfacing of unethical or illegal
  • 1. Three people can keep a secret if two are
  • - Hells Angels motto
    (courtesy B. Franklin)
  • 2. Lying is good. Its the only way we ever get
    at the truth.
  • - Dostoevsky
  • 3. Circumstances beyond your control will cause
    bad acts to be discovered.
  • - Anonymous

Remember . . .
  • Its not the first mistake the gets you. Its
    the second, the cover-up, that will.
  • M. M. Jennings
  • Its not the first step it is the turn of the
  • M.M. Jennings grandmother

Public trust and the long haul
  • Once betrayed . . .
  • You really dont understand. This story will be
    filed. It will be pulled up every time I am in
    the news. These stories never die.
  • Actress Anna Scott (Julia Roberts)
  • Notting Hill
  • Assumptions about corruption and the resulting

The Attitude Survives Stanford
  • We took a beating. It was sufficiently bad that
    after the hearings and during the summer of 1991,
    it became clear to me that there was so much
    faculty concern about the ruckus and whether
    Stanford would continue to be a target for this
    kind of thing that I decided that if you're part
    of a problem, you can't be part of a solution and
    so I resigned. I think that steadied things down
    considerably. It wasn't any fun to do that. It
    was not any fun to take a certain amount of
    newspaper abuse in connection with it. Stanford's
    recovered nicely. We're still not paid the
    indirect cost rate I think we are entitled to
    under articulated government policies, but the
    sequelae to the whole furor, I think, made it
    plain to everybody that Stanford hadn't engaged
    in any wrongdoing.
  • Donald Kennedy, former President, in interview
    in 2000, on the federal grants issues

2. Think Marathon, Not Sprint!
Remember . . .
  • A management team distracted by a series of
    short-term targets is as pointless as a dieter
    stepping on a scale every half-hour.
  • Larry Page and Sergey Brin
  • Google Owners Manual
  • Letter to investors

The Story of Sandler ONeill
  • Fifteen years from now, my son will meet the son
    or daughter of one of our people who died that
    day, and I will be judged on what that kid tells
    my son about what Sandler ONeill did for his
  • Jimmy Dunne III
  • Sole surviving senior partner from 9/11/01 WTC
  • One of 17 survivors out of a firm of 83

3. Ethics and Leadership
  • Leadership is the ability to see around corners
  • Leadership is the ability to see the problem
    before others
  • Leadership is the ability to fix the problem
    before it becomes a headline


Social/Regulatory/Litigation Cycle
  • Public
  • Moves
  • the
  • Cycle

Latency Awareness Activism
Options over Time

4. Dont fall victim to Lack of Enforcement
  • What you are thunders so loudly that I cannot
    hear what you say to the contrary.
  • - Ralph Waldo Emerson

Absolute, Unequivocal, and Egalitarian
  • If the janitor had taken the liquor, he would
    have been fired.
  • Students observation on discussion of tolerance
    for a manager who borrowed three bottles of
    vodka on a Friday night for her birthday party
    after work and brought in replacements on Monday

5. Watch the Rationalizing Its a gray area.
  • Why is it important that it be gray to you?
  • Is it legally gray?
  • Is it ethically gray?
  • Is it a good-faith disagreement?
  • Interpretation vs. loophole vs. nondisclosure of
    relevant information
  • Descriptors Aggressive opinion
  • Aggressive accounting
  • Financial engineering

6. Develop standards
  • Personal integrity
  • Unit, division, college, university
  • Think of and list the lines you will not cross to
    be successful
  • The role of a personal credo

7. Define Dilemmas by Values, Not Circumstances
  • Avoid the either/or conundrum and its false
    security Use value-based decision making
  • The ease of resolution vs. the long-term
  • Failure to define the issue properly
  • Interferes with creative and strategic thinking
  • Solve the problem dont compromise values

A Scenario
  • Joe, a student taking a stats course, was injured
    by a hit-and-run driver. The injuries were
    serious. Joe was on a ventilator. While Joe did
    recover, he required therapy for restoring his
    cognitive skills. He asked for more time to
    complete his course work. The prof denied the
    request. Joe would have to reimburse his
    employer for the tuition if he did not complete
    the course with a passing grade. Joes father
    works with stats a great deal. Joes father went
    and took the course final for Joe. Joe earned an
    A in the course. Any problems?

8. Watch the Slipping . . .
  • You slip-slide into evil, he thought. You cross
    the line for just one moment. You cross back.
    You feel safe. You change things, you believe,
    for the better. The line is still intact. Okay,
    maybe theres a smudge there now, but you can
    still see it clearly. And the next time you
    cross, maybe that line smudges a little more.
    But you have your bearings. No matter what
    happens to that line, you remember where it is.
  • Dont you?
  • Harlan Coben, Chapter 32

Organizational Issues
Individual Action Organizational
Regulations Government and Systems Regulations
  • Who is responsible?

Layers of Ethical Development
Ethical Leadership Ethical Courage Ethical
  • Evolution
  • Dean Ned Hill
  • BYU Marriott
  • School of
  • Business

9. Keep It Simple!
  • The Pack of Gum
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