Decline in Business Ethics linked to Decline in Personal Ethics

As I approach 60 I reflect back over the years and am appalled by the decline in business ethics. Scandals such as Enron, the Exxon Valdese, and others are just high profile examples that link to an insidious decline in personal ethics. This can be seen at every level from the Mc Donald’s clerk up through the ranks to corporate CEO’s. Incompetence, dishonesty, greed and self-indulgence are pervasive at all levels. Pride in workmanship, craftsmanship and personal integrity have declined. If you look at the people in the scandals you will often see parelell scandals in their personal lives.

Big corporations can no longer be trusted either by the employees or the general public. Pension funds are wiped out in mergers and hostile takeovers. Just about any day you will see news articles about another corporate scandal. Are these events limited to business, or a reflection of society ethics? I believe they are merely a reflection of a general decline in personal ethics.

Ever since the 60’s there has been an increasing trend toward instant gratification, self indulgence, lack of personal respect and respect for others. The same trends that are responsible for social decline influence the decline in business ethics. Corporate leaders are rewarded with big bonuses for short-term gains that may not be the best policy for long-term stability. Some companies yield to pressure and “cook the books" in an effort to appear more desirable to investors. Dollars, too often, win out over ethical practices and this can only be linked back to societies ethics which reward short-term success over honesty and long-term stability. Look around at your peers and at yourself. How many would pass up a chance to get rich if it involved a violation of personal ethics?

So where does it start and what can we as a society do about it. I think it starts in infancy.
Lets get rid of the ideas that everyone is equal and deserve the same as anyone else. Equality under the law is often misinterpreted, as “everyone is equal." We clearly have different talents and abilities. Equality under the law doesn’t even bear up under scrutiny. We need to begin by rewarding excellence and recognize that there will be many who will not be stars. The current idea that every child is a star is ludicrous. Quit penalizing individuals and companies that clearly standout over others. An example that immediately comes to mind is Microsoft. Bill Gates was a geek with limited financial resources when he started. When his products and company achieved superstar status, he and the company were penalized because others who had not produced a product as popular or as usable claimed unfair competition. Microsoft was forced to share with others who did not have products that were as desirable. There is a book by Ian Rand, “Atlas Shrugged" which closely parallels much of what is happening in business and society today. If a company cannot produce a product as good or superior to another, let it be penalized by the market place.

Parents need to impress on their children the benefits of long-term gains over self-indulgent instant gratification. Children need to be taught to weigh long-term risks and gains. In the short haul, it may be more profitable to become a drug dealer or produce porn. In the long haul it is more desirable to get a good education and prepare for a financially rewarding career. As these ethics trickle up through companies as the young people mature and become corporate executives, corporate and society ethics will improve also. Companies are nothing more than a collection of people. Corporate ethics reflect the personal ethics of those in leadership positions. If we can reverse the trends in personal ethics there will be a corresponding reversal in the trends in business ethics.