Comments on: New MBAs and Their Code of Ethics http://www.compliancebuilding.com/2009/06/01/new-mbas-and-their-code-of-ethics/ Doug Cornelius on compliance and business ethics for private equity real estate Mon, 13 Feb 2012 12:20:07 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Doug Cornelius http://www.compliancebuilding.com/2009/06/01/new-mbas-and-their-code-of-ethics/comment-page-1/#comment-994 Doug Cornelius Wed, 03 Jun 2009 21:28:25 +0000 http://www.compliancebuilding.com/?p=3081#comment-994 I agree. That is why I am skeptical of something signed by an MBA at graduation will have any impact once they start working and are now in a new environment. I agree. That is why I am skeptical of something signed by an MBA at graduation will have any impact once they start working and are now in a new environment.

]]> By: Ohad Reshef http://www.compliancebuilding.com/2009/06/01/new-mbas-and-their-code-of-ethics/comment-page-1/#comment-992 Ohad Reshef Wed, 03 Jun 2009 19:54:31 +0000 http://www.compliancebuilding.com/?p=3081#comment-992 Doug, While it is important for corporations to train their employees on ethics and code of conduct (and my company has a lot of that) it is at the end of the day the company culture that drives employees to behave in a certain way. I'm sure that employees of companies such as AIG and Lehamn were signed on multiple codes of ethics etc. Yet, some employees behaved in way that endangered the company and its clients for their personal benefit. This sort of behavior was not frowned upon, for all I know. Therefore, I'm skeptical about the notion of training employees and having them sign things, without revisiting the culture and doing a reality check once in a while. Doug,

While it is important for corporations to train their employees on ethics and code of conduct (and my company has a lot of that) it is at the end of the day the company culture that drives employees to behave in a certain way. I’m sure that employees of companies such as AIG and Lehamn were signed on multiple codes of ethics etc. Yet, some employees behaved in way that endangered the company and its clients for their personal benefit. This sort of behavior was not frowned upon, for all I know. Therefore, I’m skeptical about the notion of training employees and having them sign things, without revisiting the culture and doing a reality check once in a while.

]]> By: Doug Cornelius http://www.compliancebuilding.com/2009/06/01/new-mbas-and-their-code-of-ethics/comment-page-1/#comment-983 Doug Cornelius Mon, 01 Jun 2009 18:36:15 +0000 http://www.compliancebuilding.com/?p=3081#comment-983 Ohad - Some of that is already in place. All public companies and many others realize a focus on business ethics helps reduce charges if company gets charged under the Federal Sentencing Guidelines. The Federal Acquisition Regulations were recently changed requiring an effective compliance program and attention to ethics. Employees of these companies have to sign onto the code of conduct for the company. I don't think you are being cynical, I think the MBAs taking the oath are being cynical. Ohad -

Some of that is already in place. All public companies and many others realize a focus on business ethics helps reduce charges if company gets charged under the Federal Sentencing Guidelines. The Federal Acquisition Regulations were recently changed requiring an effective compliance program and attention to ethics.

Employees of these companies have to sign onto the code of conduct for the company.

I don’t think you are being cynical, I think the MBAs taking the oath are being cynical.

]]> By: Ohad Reshef http://www.compliancebuilding.com/2009/06/01/new-mbas-and-their-code-of-ethics/comment-page-1/#comment-982 Ohad Reshef Mon, 01 Jun 2009 18:08:45 +0000 http://www.compliancebuilding.com/?p=3081#comment-982 How about adding this oath to employers? every employee (with or without an MBA) will have to sign this oath? Or maybe this should be on voluntary basis but companies will have to publish what % of their employees signed the oath? perhaps government institutions will not be allowed to conduct business with companies with less than 90% of the employees that signed up. (Yes, I'm being cynical.) How about adding this oath to employers? every employee (with or without an MBA) will have to sign this oath? Or maybe this should be on voluntary basis but companies will have to publish what % of their employees signed the oath? perhaps government institutions will not be allowed to conduct business with companies with less than 90% of the employees that signed up. (Yes, I’m being cynical.)

]]> By: Doug Cornelius http://www.compliancebuilding.com/2009/06/01/new-mbas-and-their-code-of-ethics/comment-page-1/#comment-981 Doug Cornelius Mon, 01 Jun 2009 14:09:16 +0000 http://www.compliancebuilding.com/?p=3081#comment-981 It strikes me that the items in the oath should have been taught as part of their MBA classes as good business practice. What were they taught that left them thinking that these things were not part of the requirement to succeed in business and life? The only one that jumps out at me is the sustainability statement. Therefore, I promise: * I will act with utmost integrity and pursue my work in an ethical manner. * I will safeguard the interests of my shareholders, co-workers, customers, and the society in which we operate. * I will manage my enterprise in good faith, guarding against decisions and behavior that advance my own narrow ambitions but harm the enterprise and the societies it serves. * I will understand and uphold, both in letter and in spirit, the laws and contracts governing my own conduct and that of my enterprise. * I will take responsibility for my actions, and I will represent the performance and risks of my enterprise accurately and honestly. * I will develop both myself and other managers under my supervision so that the profession continues to grow and contribute to the well-being of society. * I will strive to create sustainable economic, social, and environmental prosperity worldwide. * I will be accountable to my peers and they will be accountable to me for living by this oath. This oath I make freely, and upon my honor. It strikes me that the items in the oath should have been taught as part of their MBA classes as good business practice. What were they taught that left them thinking that these things were not part of the requirement to succeed in business and life? The only one that jumps out at me is the sustainability statement.

Therefore, I promise:

* I will act with utmost integrity and pursue my work in an ethical manner.
* I will safeguard the interests of my shareholders, co-workers, customers, and the society in which we operate.
* I will manage my enterprise in good faith, guarding against decisions and behavior that advance my own narrow ambitions but harm the enterprise and the societies it serves.
* I will understand and uphold, both in letter and in spirit, the laws and contracts governing my own conduct and that of my enterprise.
* I will take responsibility for my actions, and I will represent the performance and risks of my enterprise accurately and honestly.
* I will develop both myself and other managers under my supervision so that the profession continues to grow and contribute to the well-being of society.
* I will strive to create sustainable economic, social, and environmental prosperity worldwide.
* I will be accountable to my peers and they will be accountable to me for living by this oath.

This oath I make freely, and upon my honor.

]]> By: Jenn Steele http://www.compliancebuilding.com/2009/06/01/new-mbas-and-their-code-of-ethics/comment-page-1/#comment-980 Jenn Steele Mon, 01 Jun 2009 13:51:11 +0000 http://www.compliancebuilding.com/?p=3081#comment-980 The only issue with making an MBA oath have consequences is that the MBA (or a subsequent board exam) is not a requirement of practicing business, like in medicine or legal, where it is. So how would you impose consequences? Would those of us with MBAs be held to higher ethical standards? I have an MBA, and I think the oath is both silly and necessary. Silly because, as you said, there are no consequences. Necessary because people seem to think that they remove an MBA's soul right before graduation. As an ethical businessperson, that annoys me. The only issue with making an MBA oath have consequences is that the MBA (or a subsequent board exam) is not a requirement of practicing business, like in medicine or legal, where it is. So how would you impose consequences? Would those of us with MBAs be held to higher ethical standards?

I have an MBA, and I think the oath is both silly and necessary. Silly because, as you said, there are no consequences. Necessary because people seem to think that they remove an MBA’s soul right before graduation. As an ethical businessperson, that annoys me.

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