Friday, October 24, 2014

A634.1.6.RB - The Buck Stops and Starts With You

A634.1.6.RB - The Buck Stops and Starts With You

In the article titled, " The Buck Stops (and Starts) at Business School", author Joel Podolny's article discusses his theory on how management education has contributed to the general failure of today's leaders.  So to me the question to his theory is “do businesses schools need to change curriculum when it comes to ethics or is the business community making them the scapegoats of their failures when it comes to developing leaders? Podolny’s view takes a direct shot at business schools by stating how he believes business schools have largely ignored the teaching of values and ethics when it comes to leadership.   Some would agree notion by looking at it from historical perspective; emphasizing that values and ethics were not highly recognized subjects of traditional business school academic disciplines.

Author Podolny lists five his (not mine) actions he believes that business schools can take to best prepare future leaders to assume a holistic approach to business problems and ethical dilemmas.  These actions include: fostering greater integration, appointing teaching teams, encouraging qualitative research, stopping the practice of competing on rankings, withdrawing degrees for violating ethical codes of conduct. 

I do agree with the author and have seen changes in recent academic curriculum that tailor business programs to not only incorporate business ethics education; but to also educate students on how to making effective decisions that benefits the organizations they represent.  My personal perspective is I do not think that we can blame business schools for the wrongs of our leadership.  I think the American business community has moved away from why it is important to make good ethical decisions.   Ethical decision making does not get you rewarded with bonuses or promotions.  Business is about profit, and I feel it is hard for the average American manager or leader to compete in a global market when nobody plays by the same rules.  Employees on all levels have become concerned with the situation of ensuring that they get the farthest in their career or make the most money in life.  I don’t think this mindset is counterproductive to society, or business; it is just a very competitive world we live in.

Author John C. Maxwell made a very profound statement in his book Organizational Excellence; "There’s No Such Thing as "Business" Ethics".  Although controversial, I find this powerful statement very true to an extent.  However, I think we need to change how we see unethical behavior to fit modern day society, not living by the words of John Maxwell, “the Golden Rule.”  Maxwell, in Ethics 101: What Every Leader Needs to Know, explains that the Golden Rule boils down to treating others the way you want to be treated.  Maxwell emphasizes that ethics breaks down into unethical choices for three reasons:  People do what most convenient, they do what they must to win, and finally they rationalize their choices with relativism (Maxwell, 2003).  I am not saying Maxwell is wrong, but maybe we need to educate students about the consequences of their actions which may be viewed as unethical by society. 

I feel the drawback to implementing Podolny's recommendations at business schools around the country is consensus.  Most major universities (here and abroad) specialize their leadership programs to what they feel serves their students the best.  This is not like high schools where in a certain state where everyone must teach the same material in the same way.  Such a change movement will take an enormous effort, require an enormous financial assets, buy-in from the academic community, and various other resources.  No matter how much education you provide to students, human nature will always play a role in their actions.  Ask yourself the question, “If we had more value and ethics training in the past, would it have changed the historical events such as the housing market national financial crisis, Bernie Madoff Ponzi scheme or even the Enron scandal”.  Maybe instead of reinventing the wheel, when the value and ethics are incorporated in leadership courses, there should be a section on what really happens when you ignore values and ethics and decide to roll the dice on you going to jail. 

  

References:

Harvard Business Review. Jun2009, Vol. 87 Issue 6, p62-67. 6p. 1 Illustration, 1 Diagram

Maxwell, J. C. (2003). Ethics 101: What Every Leader Needs to Know. New York, NY: Center Street.

 

 

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