Corporate Ethics All Start with CEOs

http://web.ebscohost.com.proxy.lib.ilstu.edu/ehost/pdfviewer/pdfviewer?hid=107&sid=05669493-6db5-46de-8eb6-587f6def2f95%40sessionmgr114&vid=2

Staying with the CEO theme on our blog, I found a great article that gives a first hand experience of corporate ethics from the CEO of SPL World Group. His thoughts on the issue are consistent with Robert Greenleaf's "servant leadership" and using utilitarianism values in leadership.

The author stresses the tendencies in today's business environment for CEO's to treat each market issue as a chance for market advantage for the business to fulfill duty to maximize shareholder's profits, rather than fulfilling their duty to their employees and the community as well. He believes that as CEO HE is responsible for making sure that the firm is always a good citizen, respectful of laws and values, supportive of the markets to which they profit from, and most importantly supportive of the communities to which they operate in. This is where the utilitarianism values come from, the welfare of helping out the communities to where businesses operate. He then goes on to mention the importance of treating employees with respect. A great quote from the article, that is spot on with servant leadership says, "i cannot create enduring value from my investors, unless i create real value for my employees." The author really recognizes that his employees are the driving force of the company, and by creating long-term benefits and rewards for them it not only gives them a reason to stay, but keeps the organization in a positive light among the employees as well.

It is not always cost efficient for a organization to help out the community, however it is always a good idea. Social irresponsibility is a sure way to weaken public image, lower profits, and most importantly hurt the surrounding communities who buy your products or services. I agree wholeheartedly with the author, that ethics start with the CEO. Making speeches and changing ethical guidelines can only do so much, the CEO needs to model the way. When employees in the organization see their leader practicing the ethical responsibilities required of the them, the organization will follow.

Please respond with your agreements or disagreements with the topic!!


-Ryan Schaumburg