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Will Enron scandal awaken the corporate conscience? by Kay Gilley, M.S., PHR

   

The Enron debacle has proven to be a wake-up call, arousing financial markets and nearly every other segment of American society from its naivete about not only what could but what actually has happened in our increasingly complex and interconnected economy.  

That a group of arrogant executives at a single company could manipulate the system for personal gain in such a perverse and pervasive manner is shocking to most of us.  But, the rumblings from other publicly-traded corporations signal that we may have just seen the tip of the iceberg.  

Almost a year ago a client described to me a situation at another mega-corporation for which he had served as vice president. It was as if the company had “lost its conscience,” he lamented. 

The truth is that a company does not have a conscience except as the aggregate of the individuals that it employs.  Columnist Tom Ehrich has written, “For something obviously wrong to proceed, multiple consciences must stop working.  Entire communities must grow numb and choose not to see any connection between abusive behavior and oneself.” 

Losing consciousness 

I have been accused of being overly optimistic, but I believe that most individuals bring high standards into their careers and the companies for whom they work.  Yet in workplaces upon which our livelihoods depend, we struggle to put those principles to work in day-to-day, hour-to-hour, rubber-grips-the-road decisions.  

Individuals rarely lose their integrity at work in the blatant goings-on demonstrated so flagrantly at Enron. More commonly virtue erodes in what I call “pinpricks”--the seemingly trivial or insignificant acts that we perform which don’t feel quite right. Over time, and often a very short period of time, we find ourselves doing things, that if we really thought about them, we would not do.   We seem to shelve our values for use in other places and convince ourselves it doesn’t matter. 

In the 1960s Stanley Milgram conducted ground-breaking psychological research in which participants believed they were administering electric shocks which could kill or seriously injure a subject in another room.    When they believed the action had been sanctioned by authority, and when the amount of shock they were asked to deliver increased incrementally, participants consistently inflicted the life-threatening jolts.     

Like participants in Milgram’s experiments, we dismiss culpability in our workplaces if the system endorses activities that our consciences reject.  For several years I analyzed client companies by interviewing employees at all levels.  I observed that often within a month of the onset of employment, an individual, who we might otherwise be characterized as being of both high intellect and character, was anesthetized  into “don’t rock the boat” mentality by subtle corporate “programming.”  Although company officials often suggested that it would be a waste of my time to talk to newcomers, I often found that those were the only individuals who had not yet succumbed to what I referred to as “the corporate trance” in The Alchemy of Fear. 

Although attempts at organizational transformation over the past 20 years have sought otherwise, ask an employee in most any company why they are doing what they are doing, and more likely than not, they will not have an answer, or even have given it much thought, since they were newcomers.  “It’s just the way we do it,” they will say.  Such automated responses in even the most mundane of situations signal the first low-grade violations of individual Truth.  Each time we fail to listen to our conscience allows the next lapse to be easier. 

For most, the failure to speak the Truth over time has extracted both our acuity and our vitality, robbing us of the energy and commitment to make a difference.  We excuse the negligence because our jobs or maybe even our lives, are at stake. 

Whistleblowers give witness to the reality of these fears.  Movies such as Silkwood, The Insider, and A Civil Action demonstrate how hard it is to fight the corporate power structure, but perhaps leave us believing that these cases are rare publicized exceptions.  Yet bring up the subject in almost any group, and one or more will be able to relate stories in which either their livelihood or that of someone they personally knew was threatened because they refused to yield to pressure to cover-up wrongdoing, inefficiencies or incomplete decision-making processes.   Such is the way we have rewarded “right action” in our culture. 

As I have travelled the book signing circuit, individuals of virtually every faith tradition have confided to me that while their places of worship have taught them principles, they have no survival skills for implementing their values at work.  Fatigued and fragmented, my readers seek courage and insight about how to reflect their Truth at work.  For them, it is a daily battle to avoid succumbing. 

Righting the corporate ship  

Great moral courage is demanded to speak up in environments of such threat.  Every corporation has their Sherron Watkinses and Jordan Mintzes.  The question is how do we right a system that is badly listing to encourage them, to value what they have to share, and to use it to improve our companies.  We can write tighter accounting rules and SEC reporting requirements. We can exercise more oversight.  Yet as long as short-term, opportunistic thinking and action are rewarded, creative minds will figure out how to beat the system. 

The very stockholders who force corporations to live or die on quarterly reports are the ones, such as those at Enron, who stand to lose most as the consequence of their demands get further and further out of whack.  Almost every executive makes decisions that he or she knows are not in the best long-term interest of the company because they have to make the numbers look good this quarter.  The pressure to get the stock price up isn’t unique to either Enron or its accounting escapades. Quarterly-thinking penetrates nearly every function of most companies.  In many ways, it has been the investors who have let the unwritten rules of the market evolve to the extreme and are now screaming at the results. 

If we are to right this corporate ship, stockholders must first accept responsibility for tipping it in the first place and begin to reward honesty and candor at least as much as accounting and management tricks which produce the illusion of profitability.  Imagine a market that adds a few points to a stock’s value when the CEO announces that returns are down this quarter because of prudent planning and action or that a new product release will be delayed to ensure safety to the consumer. 

The second thing that we must do if we are to right the corporate ship is to build cultures where revelations like those of Watkins and Mintz are encouraged and valued--where serious concerns are strenuously investigated.  Unlike what happens now in too many cases in which purveyors of such revelations are charged with not being team players, receive poor evaluations, and see careers dead ended, cultures which value honesty and integrity might actually reward those disclosing problems.  They may even be described as team leaders because of their courage to risk action which fosters the long-term health of the enterprise. 

In the years since my books were first released, many brave individuals from around the world have confided in me the challenges of the upstream battle for principled employee performance.  Hungering for support and encouragement, they have given rise to a rapidly expanding spirituality at work movement that cultivates workplaces which advocate personal values and wholeness. 

Third, we need to recognize how interconnected our world really is and to act as if we truly can’t injure others without hurting ourselves.  Nonchalance about what is going on in someone else’s backyard or quid pro quo locker room wink and pat on the backside,  “I won’t tell on you if you don’t tell on me” must be exposed. 

If we are ever to expect a higher standard of conduct in society at large, we are all responsible for ensuring integrity everywhere, including in the companies with whom we do business. The coffee vendor who saw half of his annual revenue evaporate, the hospital or arts organization that lost a valued contributor with the demise of Enron, or the CEO of any corporation should be just as concerned about keeping companies honest as should be the auditors and SEC.  As we shed more collective light, there will be fewer shadows in which the unscrupulous and unthinking can hide.   And, such vigilance shouldn’t stop with bookkeeping and operations.  It is time to honestly admit the long-term impact of short-term driven decisions on the environment, our communities, and the moral fiber of our society.  We are all in the same boat in this world, and as we have seen with Enron, the ripple effects of corporate action or inaction extend far beyond what we could have imagined. 

Chief Consciousness Officer 

If we believe that values and principles are important to us as a global community, a strong statement is needed which makes it clear to all inside and outside the corporation that its values will drive it from the highest level. For many years, I have contemplated what that would look like. 

I envision a “wise elder” with most senior status who would have no personal or functional agenda or vested interests. Charged with awakening in each member of the organization what is right and true for the individual, this executive will be obligated to expose norms which undermine honesty and integrity while encouraging those which support it.  The name I have given the position is Chief Consciousness Officer (CCO.) 

The solitary responsibility of the CCO would be to increase the company’s exploration of its values in every decision.  Fostering openness, faith, and trust among and between stakeholder groups, this executive will listen deeply and expand learning-oriented dialogue.  Rather than exercising the overworked habit of using neatly prepared answers, the CCO will ask questions that others have been reticent to raise, provide a safe harbor for the likes of Watkins and Mintz who want to help grow the organization through truth and virtue, and supply various resources to assist people throughout the corporation to access their own individual Truth. 

Where our money and power lies inevitably determines what motivates us.  Our corporations have Chief Executive, Financial, Operating, Information, Technology, and in the case of Enron, Accounting Officers, but no senior role has been designated which is devoted exclusively to the integrity of the company.  Should we be surprised that greed and money have driven decisions?  Yet, as Enron has so graphically shown us, a company which has lost its integrity has lost everything. 

Enough? 

As strongly as I believe a Chief Consciousness Officer is an essential bridge, it is just that--a step toward a more conscious organization.  Just as accounting rules and SEC reporting requirements and oversight will never guarantee credible corporations, a single officer of any rank can never ensure that our individual consciences are awake, alert, alive, and active.  That’s an inside job, and it happens inside each and every one of us--the stockholder, the mutual fund manager, the broker, the senior executive, the accounting clerk, the middle manager, the production line worker, the coffee vendor. 

Can we assure that something terribly wrong will not occur if all of us are not vigilant and courageous?  The true Chief Consciousness Officer resides in each of us and always has.  Most of us just haven’t ever been given guidance or direction about how to acknowledge our conscience at work. 

Desert Storm commander General H. Norman Schwarzkopf advises young leadership students to act, “Not so much doing what the policy wants, but doing what you feel is right in your heart and what’s right in your mind.”  I wonder how many of us stop during the day to think, “What is right in my heart?  What is right in my mind?” 

I have been a business person for over 35 years in a career that started early and I hope continues much longer.  In every fiber of my being, I believe in business and its potential to positively impact the world in ways which cut across race, region, and religion as other institutions simply cannot.  For business to realize the moral imperative with which globalization has gifted us, we must reflect the highest standards of character and interaction. 

Perhaps we should be grateful to Enron for providing a much needed wake-up call.  We now have the opportunity to rebuild corporate cultures into ones in which integrity is the bottom line, enabling business to successfully step into its potential as responsible global citizen. Who will be courageous enough to shed light on a situation that they have been ignoring or avoiding?  Who will open a dialogue about bringing life to the values on the plaque in the lobby? What corporation will be the courageous first to install a Chief Consciousness Officer?  Will stockholders accept their responsibility to support that decision in escalated stock value? 

There is much to be done, and there is something that every single person reading this article can do. What will you personally choose?    

Kay Gilley is author, speaker, spiritual teacher for executives and professionals, and founder of Intentional Leadership Systems®.  She may be reached at (919)572-2879 or http://www.intentional-leadership.com.

Copyright Pending Kay Gilley – Use With Permission  

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