Corporate Ethics

Another day and another corruption scandal -- this time the Mayor of Baltimore. I bring this up for two reasons.

First, it was reported somewhere that Ms. Dixon primarily ran on an ethics platform. Now in politics that hardly makes her an exception of someone in conflict with their campaign rhetoric, but it does parallel the challenges faced in the business arena where corporate social responsibility has become such a big issue for most corporate executives. Reading most company websites you will be regaled with the "proactive" steps being taken by the company to address ethical practices, global warming, and any number of other social concerns. In fact, some CEOs take on personas more in line with political saviors than businesspeople. Yet, the cynic is not far away as these executives and their companies fall short of their stated ideals. It makes me wonder if all the focus on CSR has really made things better in corporate America . . . here is an article that examines this idea.

Secondly, there is a difference between the goals of politicians and those of company executives -- or there should be. While both have responsibilities for a number of stakeholders, the latter still must adhere to some clear measurables related to earning profit, attracting customers, etc. These common aims are often explicit. Political action is related to common goods -- while these may be explicitly such as remedies to poverty, they seldom have clear measures or clear actions. In fact, seeking a common good always involves compromise and will harm some interests (redistribution is one action against poverty with both intended and unintended consequences).

Perhaps Sheila Dixon will survive these corruption charges; if she was executive of company and caught stealing she would be fired. Of course, if she were an executive she would probably get a golden parachute of a few million dollars upon being fired! Rockhurst graduates will have, I trust, an appreciation for the responsibilities that come with both political and corporate power.