Tuesday, October 29, 2013

Absolute Power Corrupts Absolutely

This is a brief essay on absolute power, and the positive and negative transformational effects it can have in the business world as well as education.  I will discuss in detail the overwhelming greed that is taking place in businesses today, which includes “over the top” and unnecessary perks that are usually reserved for the upper echelon of various fortune 500 companies.  I will also identify and define what is called the “One-Man Problem.”  This deals with giving too much control and power to one person and how that can negatively affect morale and productivity.






I will show why the self-destructing, unethical behavior displayed by these companies are relevant to the educational field and should be studied to prevent this conduct from taking a stronghold in our schools.  In addition, I will attempt to share with the reader numerous ways on how to avoid these aforementioned “pitfalls” that permeate through various companies, include a short video to further illustrate these strategies, and offer my own opinion on whether absolute power by one person or a group of figureheads bare sole responsibility for the unethical behavior of the entire company or educational institution.
I draw on that experience that I have gained as a teacher and the knowledge I gained from the selected articles in which I will refer to throughout this blog to conclude that absolute power does corrupt absolutely unless effective preventative measures have been in place and been well established long before any unethical behavior by one man, woman, or group of people can permanently affect the corporate culture of their workforce.
Establishing a quality corporate culture that fosters production across the board, one must of course examine the leader, or leaders, and the behavior they display.  In looking at leaders, it is necessary to understand the role they play in the overall growth of the company or school they are entrusted with.  Staff must be made to feel valued and respected.  This is turn will create “buy-in,” and yield results that are beneficial to everyone involved.   The benefits that this shared productivity creates must be distributed throughout the company or school. This creates an even greater issue.  How does one accomplish the task of distributing these benefits fairly?  Who gets what?  This leads me to discuss the value and sometimes-unethical distribution of  “perks.”

In essence, this is one of the biggest ethical decisions companies or educational institutions can make.  “Wise decision-making also, inevitably, involves moral/ethical choices and this occurs every time we take a decision.” (Lloyd, 2009, p. 1) Perks are gifts or privileges offered to “high value” employees.  These usually consist of board members and Chief Executive Officers (CEO’s).  The unfair and often times unethical distribution of perks can have a negative effect on the culture of a company.  CEO’s and other organizational leaders are paid handsomely and rightly so.  However, having access to company cars, private jets, and country club access, all at the shareholders expense is unethical behavior.  This unethical behavior is emboldened by the need to compete with rival companies who are offering the same perks, if not more. 
 Where does one draw the line between necessary competiveness and ethical behavior?  Perks must be distributed proportionately and fit the exact needs of each employee.  By doing that, one is showing that they value each employee on a personal level, separate from the group.  The leader shows a keen awareness of each person’s individual needs.  This can go a long way in maintaining a culture that is productive.
Another potential pitfall companies must be sure not engage in is the “One-Man Problem.”  This is when the leader of the company is given too much autonomy over employees and shareholders she or he has been entrusted to lead.  In situations like this, creating a positive and ethical work environment takes a back seat to impressing and catering to the leader or head of the company.  “Despite fine-sounding mission statements, the internal reality was that no value outranked pleasing the all-powerful and invulnerable boss, an environment that generally produces trouble.” (Kehoe, 2011, p. 59) The “One-Man Problem,” can lead to all types of unethical behavior such as nepotism, a destruction of the company’s reputation, and last but certainly not least, an absorbent amount of unethical spending and pay on the part of the leader.
In comparison, the principal of a school is much like the CEO of fortune 500 companies.  Education is big business.  Funds are dispersed based on productivity.  Teachers feel the pressure to produce high student standardized test scores for fear of being moved or replaced. 

This uneasiness creates a culture of fear.  This culture of fear makes any climate conducive for misconduct and unethical behavior.  It is the leader’s responsibility, whether in the business or in education, to develop a proper ethics-training program that establishes a code on conduct that is modeled by the leader, reinforced through incentives and consequences, as well as making the desired ethical expectations easy to comprehend.
An ethics training program that is easy and fun, as well as taking into consideration character and diversity when hiring, are essential steps to avoiding the pitfalls of unethical behavior and stagnant productivity. “There is less conflict when the work environment is perceived as relatively ethical. (Tsai & Shih, 2005).  In reading William J. Kehoe’s book titled “Business Ethics,” I came across an article that discusses how Warren Buffett hires integrity over ability.  This article talks about how Buffett and his business partner Charlie Munger hire people they can trust and treat them the way they would wish to be treated if the roles were reversed.  This type of ethical behavior and business savvy has made Warren Buffett, chairman of Brookshire Hathaway Inc., one of the richest and most successful men in the world.  Buffett looks for ethics when hiring.  Schools should implement this hiring strategy more often.
In today’s educational world, which focuses almost completely on standardized test results, one should take a step back and re-evaluate its hiring process.  When hiring educators, there should be just as big of an emphasis placed on past pier and pupil responsiveness as well as past student performance levels.  Previous behavior is a good predictor of future behavior.  Learning how to coexist with others as well as not succumb to the pressures of today’s “test crazy” society can go a long way in establishing a culture that is honest, and productive.
In addition to integrity, employee diversity has also been noted to produce positive results in the business world.  This hold true in education as well.  Diversity will create an environment that eliminates or reduces the likelihood of “groupthink,” taking place.  Groupthink is when there is not enough diverse viewpoint on a certain matter.  One train of thought permeates throughout the group.  There is no room of dissent or constructive discourse.  This can prove to be problematic, especially when it comes to education.  The students that educators are entrusted to lead often come from diverse backgrounds.  I believe the staff should adequately reflect its student population.  This in turn would help to create a better rapport amongst the staff and students as well as the community.
In conclusion, I believe that absolute power does corrupt absolutely.  The leader sets the tone for the culture of the company or institution.  This can be done through the establishment of a corporate culture system that places a value on ethical behavior.  It is up to the leader to model this ethical behavior, demand it from his or her subordinates, and hold accountable those who do not adhere to the ethical standards that have been set. 


“Company leaders must be actively involved in building a corporate values system by developing the ethical framework, aligning the organization to that framework, leading by example and addressing external challenges that pose ethical dilemmas to employees’ behaviour. (Sims, 2000) As stated earlier, I have included a video to help illustrate key initiatives that could help foster ethical behavior in an any workplace environment.   




 References:
Kehoe, W. J.  (2013).  Business Ethics.
            New York, NY:  McGraw-Hill

Lloyd, B.  (2009). Power, responsibility & wisdom:  exploring the issues at the core of
ethical decision-making and leadership.  The Journal of Values-Based Leadership, 2(6), 1-16.  Retrieved from http://www.wisdompage.com/bloyd03.html

Sims, R. R. (2000). Changing an organisation’s culture under new leadership.  Journal of
Business Ethics, 25, 65-78.

Thoms, J. C. (2008). Ethical integrity in Leadership and organizational moral culture. 
Leadership, 4, 419-441.
doi: 10.1177/1742715008095189

Tsai, M. T., & Shin, C. M. (2005). The influences of organisatinal and personal ethics on
role conflict among marketing managers:  an empirical investigation, International Journal of Management, 22(1), 54-61








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