The recent experience of the near calamitous meltdown of the financial system was a clear indication of what can happen when unbridled greed and inadequate regulation are given free rein. The controversies swirling around News Corp are another ugly example of what happens when an ethical values system isn't in place in the boardroom and powerful, intimidating personalities are given permission to create a culture that prizes "scooping" their competitors over serving the public good.
The question is: what can these debacles teach us about the role of ethics and morality in the marketplace and, perhaps more importantly, are we ready to learn?
As the director of the Faith Consistent Investment ministry of my congregation, I have been engaged in shareholder advocacy and corporate social responsibility since the early 70s. Recognizing the enormous influence global corporations have to impact the "common good", my colleagues and I press CEOs and management to scrutinize their business practices on a myriad of issues from policies on lending and executive compensation, to water use in drought-prone areas and to human rights abuses in the supply chain wherever they source products or services. In the early 90's I began to notice that corporate management referred quite often to the unique culture of their particular company and the values and practices that flowed from that culture. It became clear to me that there was a concerted effort on the part of responsible management to codify these values within the context of an identity statement that was part of the organizational DNA that would govern both its internal and external behavior.
An ethical values system has proven to be an important ingredient in the delivery of quality services and products, and the key to building customer loyalty, employee satisfaction and long term viability. But where do these values systems come from?
Historically, it can be demonstrated that the impact of faith on the social responsibility of any given corporation can be traced directly to the religion and character of the owner or CEO and how he/she integrated their value system into the corporation's identity and operations. It was generally assumed that the decisions and actions of the business leader directing the corporation were significantly influenced by the religious principles at the foundation of their personal lives.
Religion's impact is also seen through debate in the legislative and rule making processes whereby societies regulate businesses. As corporations are granted a license to operate they are expected to comply with the principles and constraints that are included. Basic values such as honesty, transparency, responsibility, fairness and integrity that are common to most faith traditions are included in this social contract.
A number of things that have changed over the last 75 years have profoundly impacted the intersection of religion and corporations. Let me briefly identify four of these changes and the consequences that flow from them.
But for too many of us, corporate behavior is an abstraction and disconnected from our daily lives and so, the Banking and News Corp headlines are just that: headlines that produce momentary outrage but no meaningful change in corporate behavior. We must demand that corporations behave ethically and in service of the common good and bring values back to the boardroom.
Follow Rev. Seamus P. Finn, OMI on Twitter: www.twitter.com/Seamus Finn@San
Paul Brandeis Raushenbush: Debt Crisis, Violence And The Wars
Corporate social responsibility - Wikipedia, the free encyclopedia
Business Ethics | The Magazine of Corporate Responsibility
Religion and money: The price of faith - May. 13, 2009
2008: Religion and Money - NYTimes.com
Religion, Not Money, Often Motivates Corporate Whistleblowers - CNBC
They do what they have to because of regulations and profit pressure.
Time and again, they have show irresponsible behavior in the way they treat employees and in the way they treat our environment.
To many times, the government has to go in and clean up the mess left behind by corporate America.
- Superfund sites still exist
- To many Americans have lost pensions and healthcare benefits do to the their actions.
I am thinking about how corporations abandoned Ohio and Michigan for cheaper wages and lower taxes elsewhere. The stockholders won out over the stakeholders. There was a decision to drop the complex, symbiotic, mutually-supportive relationship in favor of higher return on investment.
Who can blame management of a company if they feel that by moving across the ocean they can maximize "efficiency." We are, on the other hand, realizing more these days that in doing this the corporation lost supports that it needs, since the community in the new country has no vested interest in seeing the success or demise of that corporation: only that they get payment. They are willing to sacrifice mountains and rain forests in the process. The rape of the Earth was continued big time in the 70s, 80s and through today. That is unbridled corporations. That is the effect...and the people on both sides of the ocean will finally have to pay for their lack of understanding about corporations.
All currencies fluctuate, up and down, in value – however “ethics†has been relegated to a hallmark card in value: you receive one, you smile, and it is quickly put to the side.
And do we not see that in every front? Politician campaign on ethics and change – never deliver; fidelity in marriage – a thing on the past; “we’re a family here†(at the office) - I’m ready to vomit on that one; wars fought for American ideals – sorry only for oil! An America that is noble and divine – a good pitch to intoxicate the naive to sacrifice life and limbs!
Why is ethics in America so devalued? What use to make America noble and divine, the words in “America the Beautiful†was a heartfelt love of God. Without God in the equation of life “The Golden Rule†that too is relegated to a hallmark currency!â€
Do you honestly think that all you have to do is say you love God, and then more rational people will instantly call you a positive influence on the world?
My reply!
My words were precise “A heart felt love of God†in the equation is needed – otherwise “lip service love of God†is a hallmark card currency: read today, a smile, and quickly discarded!
It is easier for a camel to go through the eye of a needle than for a rich man to enter the kingdom of God.
kinda the opposite of Grover's beliefs....
maybe it is the no meaning and purpose to their lives so why not be an immoral corporation and go for the greed.
here is what we may all agree upon. religion is not going to even slow down capitalism and its agenda. it is an agenda of profits over people even profits over sick people and even if those profits means having illegal wars causing harm and hardship to millions, even if it means finding ways to control the gov, even finding ways to control the supreme court, and of course everyone knows or should know finding ways to control the mass media.
control the media control the masses. every politician has known that for a very long time.
All currencies fluctuate, up and down, in value – however “ethics†has been relegated to a hallmark card in value: you receive one, you smile, and it is quickly put to the side.
And do we not see that in every front? Politician campaign on ethics and change – never deliver; fidelity in marriage – a thing on the past; “we’re a family here†(at the office) - I’m ready to vomit on that one; wars fought for American ideals – sorry only for oil! An America that is noble and divine – a good pitch to intoxicate the niece to sacrifice life and limbs!
Why is ethics in America so devalued? What use to makes America noble and divine, the words in “America the Beautiful†was a heartfelt love of God. Without God in the equation of life “The Golden Rule†that too is relegated to a hallmark currency!
Do you honestly think that all you have to do is say you love God, and then more rational people will instantly call you a positive influence on the world?
If you say you love God, and then you keep voting for politicians who make life miserable for those who don't believe as you do, that does NOT make you ethical.
The USA is a mature economy. The Robber Barons are going to suck what is left of this country dry if their power is not curtailed soon.
Currently, I think we could do better if we just drafted our legislators by lottery, and forced them to be tested to prove that their IQ was 100 or greater,that they had no identifiable psychological disorders, and no criminal history.
greed leads to materialism and then materialism leads to more greed. it is a win win for the 2%ers and corp america and wall street.
the greatest open road for greed is capitalism. americans will learn the price of capitalism when the middle class is gone.
just visited a gated community today and this home owners association demands that all the third world cheap help must be gone by 6pm and no sat or sun work. out of sight out of mind.
visit a third world nation in latin america and see how the rich treat the poor. these are religious rich now. church going folks. religion and capitalism go hand in hand. find out why and you will have a whole new opinion of the religious folks.
Most here despise corporations and businesses...I'm just wondering where you all work, or is everyone retired or a business owner or independently wealthy or what? I don't think anyone in this country likes what mega corporations are doing tot his country.