The movie Wall Street was a hit in 1987. The main character played by Michael Douglas was Gordon Gekko:
"The new law of evolution in corporate America seems to be survival of the unfittest. Well, in my book you either do it right or you get eliminated. The point is, ladies and gentlemen, that greed - for lack of better word - is good. Greed is right. Greed works. Greed clarifies, cuts through, and captures the essence of the evolutionary spirit. Greed in all of its forms - greed for life, for money, for love, knowledge - has marked the upward surge of mankind. And greed - you mark my words - will not only save Teldar Paper but that other malfunctioning corporation called the USA."
Humans are tribal beings, xenophobic if you will, and therefore in all of us is an ability to be evil if we allow it. The good news is that our natural evolution as a species means we are also pro-social and cooperative. My opinion is that Enron and 'Gordon Gekko' are the exceptions to the rule.
President George W. Bush publicly claimed that Enron's failings was due to "a few bad apples," which happened to also be his reason for prisoner abuses at Abu Ghraib. This would be a nice if it were that easy, however, it doesn't explain what actually happened at Enron.
1986 - 1996 Enron had a highly effective managerial system including transparency of corporate governance. Richard Kinder was then the president.
1996 - 2001 under the presidency of Jeffrey Skilling, Enron changed and became secretive and almost covert regarding corporate governance.
Kinder was involved at every level of Enron's business dealings under under his stewardship revenues surged from $5.3 billion to $13.4 billion. Richard Kinder was renowned for his photographic memory and his "Bullshit Barometer." As an Enron unit leader said: "Kinder was impossible to bullshit. If managers lied to him about their numbers, Rich would eat them for lunch."
Evil often occurs in hidden places, devoid from social accountability, such as in the deep recesses of Abu Ghraib. The first line of defense against corporate evil, then, is transparency, open communication and continual management of the business systems.
As leader, managers and entrepreneurs we must accentuate trust and accountability; embrace challenges made of our opinions and assumptions; promote healthy debate around decisions; and demand transparency so as to be less susceptible to corruption, fraud and mismanagement. As leaders, managers and entrepreneurs we must foster camaraderie, cooperation and pro-social behavior. As leaders, managers and entrepreneurs we must seek respect and loyalty.
It's nothing personal, just business. But the business will prosper if the people in charge are personable.
© Ric Willmot 2008 All rights reserved.
Comments