This article is highly representative of both our class focus on different types of leaders, as well as the topic of our blog.
http://boss.blogs.nytimes.com/2011/02/02/there-are-two-kinds-of-c-e-o/?scp=2&sq=enron&st=cse
After reading this blog, it had me wondering if what the writer, Jay Goltz, was saying was true. I think it is wrong to stereotype CEO's as good or bad based on the size of the company, but then again it makes perfect sense. Almost everyone would agree that small business owners do invest more in their companies than the CEO's of large corporations. However, I think we may just hear more about large corporate scandals than we do about small business scandals. A scandal involving a CEO of a small/mid sized company is much less likely to make the news than a large corporate scandal is.
How do you feel? Do you think CEO's of smaller companies tend to be more ethical since they do have so much more invested? Or, do you think it doesn't matter the size of the company, or how much a CEO has invested? One thing is clear though: the good, the bad, and the ugly exist in any sized company.
Posted by: Kelly Moran
I definitely agree with the author on this issue. I know numerous small business owners that have invested all of their time and use a lot of their assets as collateral. They are the most ethical people I know, seeing as if their business fails, their well-being is at stake.
ReplyDeleteWhat are the CEOs of huge corporations losing? A job? They then can use their severance package how they want, and if they were smart they would invest it and be set for the rest of their lives. Small business owners don't receive a severance package by any means.
Also, most small business owners are extremely passionate about what they are doing with their business. It is more than likely what they have dreamed about doing most of their adult lives, and to jeopardize this by acting unethically would put everything they worked for so passionately to waste.
I am not saying every CEO of a large corporation out there is bad, but I do feel that most of them are not as monetarily tied to or have put as much time and effort into the business they are running. Overall, I do think that they are more prone to acting unethically and that is why we see them in the news more than any small business owner.
-Melissa Beechy
I like what Melissa had to say on this issue regarding small business owners. I personally know some small business owners and you are correct in the sense of how passionate they are for their business. To act in a way that could potentially end that business seems out of the question.
ReplyDeleteHowever, to answer Kelly's question, I don't think it matters the size of the company but rather the people in charge and the regulations in place to prevent any illegal activity from developing. And you are right, I agree, larger companies are exposed more to media attention versus a smaller companies which could be a reason for looking past some of these mid sized companies who are scandalous as well.
Has anyone ever heard of or read about a small company CEO or Owner acting unethically?
-Kyle Turner
At the most, I agree with the author on this issue too. I think CEO's of smaller companies tend to be more ethical since they often have invest their whole life. They have more to lose. As Melissa argu, the CEOs of huge corporations lose only their jobs.
ReplyDeleteYou can follow another line too. The CEO´s of smaller companies HAVE more to lose and can in that case be forced to use some non-ethical methods. They also have the advantage, that kelly argu, that CEO of a small/mid sized company is much less likely to make the news than a large corporate scandal is. Maybe they can act unethically without any large crowd know about it. At the same time, I try to answer Kyle´s question but I haven´t heard about any small company CEO acting unethically. The stereotype about the CEO´s of smaller companies acting good can be true.
- Eva-Lena Juhlin
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ReplyDeleteI believe that we hear more about large corporate scandals because they have a much higher chance of being in the media rather than a smaller company. On the other side, I do believe that smaller companies do invest more of their time, energy, and money into the business. I believe that smaller business owners have a personal connection with their employees to the point where they would not want to let them down by making unethical decisions. To answer Kyle's question, I also have not heard of any small company CEO acting unethically, but I also believe this is because the media is not focusing on smaller stories.
ReplyDelete-Lauren Mowers