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Dublin: 9 °C Saturday 18 May, 2013

Column: We need a revolution in business, and these scandals prove it

Doing business ethically must become a priority – and done right it will make us more prosperous, writes Brian F Smyth.

Brian F Smyth

IT MAY SEEM fairly obvious to many that being ethical in how we manage our businesses makes good sense from a business viewpoint.

With all the abuses and scandals of recent times, it is easy to see that good practice and good ethics contribute to safer and more sustainable companies and so are inherently good for business. There is a general surge of public opinion in support of this, which would seem to augur well for the future conducting of business along more ethical lines. However, this is not and will not be enough.

The introduction of new and tighter regulatory stipulations – either at the overall political level or as legislated by independent nation states – are likely to fail just as they failed before. We know that there were ample regulations in the past to keep everyone on the straight and narrow, but that there were equal numbers of clever mechanisms and experts hired and expected to find quasi-legitimate ways of deviating from or getting around what were regarded as unnecessary fetters holding back the growth of companies and, of course, jobs, jobs, jobs.

But this is only part of my reason for saying that this belief in and support for ethical management is not and will not be enough.

Such a belief will get blown away very quickly if the tide turns and opportunities for growth − and jobs – re-arise. Only the real conviction that managing in a good and ethical way is the best way to manage will suffice and work. This conviction will come from a clear awareness that business is NOT ‘just business’. As long as human beings are involved, it is governed by the laws of what being human means. There is no escape from this. And these laws are stronger, more effective, more penetrating and more rewarding than any institutional laws we can up with.

‘We will police ourselves’

If we can respect these laws and reach the understanding that some things are good in themselves and will always remain so irrespective of how supported in general they are – or how apparently beneficial to business they may be – we won’t need regulatory stipulations or regulatory authorities. We will police ourselves, because we will realise that doing the right thing feels good and is good – for us, for others, for business and, perchance, for the world.

This of course calls for really hard work to find out what is right in every situation, but nothing less is expected from us and nothing less will suffice. This is so because the success of any business or enterprise is never and can never be ultimately what is most important.

I recently listened to a business programme on the radio where two experts were being interviewed by the presenter about handling emotions in the workplace. The basic message, as I understood it, from these two experts, was that emotions need to be controlled in the workplace. One of them, the female, recounted an incident where she did become emotional and regretted it.

Quite apart from the fact that emotions were being given a very bad name and neither of the experts talked about the importance of emotions such as passion and courage – not to mention love of course – the one criterion they were using in giving their advice was what works in the workplace and what doesn’t. There was nothing deeper, nothing more fundamental and nothing about the importance of being truly human, emotions and all.

‘We have no choice’

All of this can still sound as if we are putting the brakes on managers and businesses and that sticking to what is good and right, while lovely things to do, will hold them back. But this is the greatest sadness and the biggest lie. Far from holding us back, doing what is right will enable all those with whom we work and deal to be truly themselves and to give of their best.

I consistently show companies and organisations with whom I work that by thinking and operating in this way they become significantly more powerful and effective and, as a result, more successful. Managing our businesses in an ethical way is actually better for business, too.

And, while it is better to operate in an ethical way for the health of our businesses, it is equally necessary to do so for the overall health and welfare of those around us, for the world and for ourselves. We have no choice but to go this route. It need not be a straight and narrow route, but an exciting, rich and fulfilling one for ourselves and for everyone around us.

We won’t know ourselves if we can begin to think and work in this way and we can do it right now and reap the fruits immediately. Our customers will trust us, our suppliers will want to be partners in our success and our people will be committed and give their all to a cause that is worthwhile and to a management that is credible. Yes, it pays to be ethical.

A former NASA and General Motors employee, Brian F Smyth has over twenty years’ experience helping organisations in different parts of the world to achieve new levels of performance and success.

His new book Managing To Be Human, published by Orpen Press, is about how to manage staff and workload within an organisation while retaining your humanity and consideration for others.

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Comments (22 Comments)

  • You only have to look at Ireland’s grossly non performing Competition Authority that has stood idly by for 21 years, while on its own estimate, big business is stealing circa €4billion per year through Competition Law abuses; that’s €2,400 per household per year.
    The new Competition Bill amounts to yet another three card trick that can only preserve the status quo. What good is law if our culture precludes us from enforcing it.
    The same applies to the Office of Director of Corporate Enforcement that has since its inception allowed big business to drive a coach and horses through Company law at the expense of small business and consumers / taxpayers.
    The fact is that Fine Gael and senior civil servants appear to work on the premise that big business must be protected at all cost, no matter what the effect on taxpayers e.g. the banking sector. It’s the old story – zero accountability for incompetent / corrupt politicians / senior civil servants / rogue business leaders despite Taoiseach Kenny’s commitment to radical reform. Until we radically change the culture and ethos of government / business, we will continue to live in the mire that we have systematically turned our country into.

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  • I’m afraid modern Ireland would not be capable of implementing humane policies, it’s all about profit now, not about people, emotions show weakness in modern managements eyes.

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  • The capitalist system is broken and the powers that be just dont want to believe it. They would rather continue down the road they are on because the alternative is going to have to be completely radical and untried. The money has gone full circle and all we are left with is debt. The financial institutions are now in charge. Countries are now owned by them. We are heaping debt on our nations to pay for their reckless lending and this has to stop. We have to take back our sovernity and bring them down. We have to burn the elite in order to survive. When its done we can then start to rebuild but we have to learn from the mistakes of the past and make sure people and not institutions come first.

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  • This is an extremely poorly disguised effort calling on the further deregulation of business. Ireland was not well regulated in the past the nor indeed in the present. This state is an international tax haven operated by so called ‘light touch’ regulation. ‘We will police ourselves’ states the article, I’m sure you will and business as always will put the short term interests of a tiny minority ahead of society and expect bailouts after the inevitable bust.

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    • If my article was a ´disguised effort’ or disguised anything, then I was not being very ethical in writing about ethics! I hope this was not so!

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    • I think the market system is structurally flawed ,the unhealthy distribution of the wealth created means the system is destined towards commodity and credit bubbles. Unfortunately the uneven wealth distribution means political power (thus far) concentrates on protecting the status quo. My original point (not clearly made) was to make the point that if you had written an article on the need for more intervention, regulation or even a move away from privately owned enterprise would it have been published? In other words the article fits neatly within the overarching ideology which frankly has changed little. Markets ‘with a human face’ if you will.

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  • Totally agree, this is a very timely piece of writing for the vast majority of ethical business people who struggle against the odds with other businesses who ignore – or as they say “manage” the moral and legal issues. The result as you say of some businesses flouting the law? More regulation more cost of compliance on regular businesses and guess what? – the cowboys ride again!

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  • Henry I think the article is more about the ethics applied to business than the greed factor.

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    • I read it as an argument against regulation, if business was ethical why would they fear regulation? The very nature of the exploitation of the majority by a tiny minority in unethical in itself.

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    • Maybe disguised is harsh, however the conclusions you come too differ very little from the ‘markets will regulate themselves’ rhetoric of Neo liberal ideology and in practice less regulation ends in less ethics.

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    • That’s fair of you Henry. Well I am 100% with you around neo liberalism and the foolhardiness of simply trusting the markets to regulate themselves. But, neither do I think that regulation is the answer in any sphere of life. I am looking for and putting forward a different solution which is based on the gnawing feeling we all have around what is not right, and around the great feeling, success and well-being that comes from doing what is right.

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  • All this came about because of Wallace so called scandal and the tax man wants to be paid first the taxman wants to be paid before the business owner even eats to sustain himself let alone the business. The taxmans bully boys, sheriffs and enforcers are the most aggressive and dangerous operating without fear of the law or anything else

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  • We need an all-out Revolution, Government is sucking the life out of Ireland. These parasites have to be removed and a new Country re-born, but the sheep in this country are afraid of the toothless wolves!

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  • Company ethics dont make me laugh. Legislation is one of the reasons I closed my company. Its killing Irish business. Its political ethics that has got us where we are. Mick Wallace got it badly wrong & he has a lot to answer but he is so typical of what has happened to Irish businesses removing him is removing the only person in the dail that most normal everyday people can relate to. After the likes of Wallace will be gone we will just have the elite. Nearly all my friends from the business community are in trouble with the revenue it is a product of the crash & its getting worse. If we want these type of ethics here be prepared for more unemployment. Its the governments passed & present that need ethics change not business it needs a big break.

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  • Money, money, money! Ireland is all about the money and we are completely addicted to it! The needs of the people of Ireland will always be second to money, to politicians and to business! Even after all the fiascos of the past 4 years it is still all about the money, will we ever learn? We have been presented with numerous opportunities to re-invent ourselves but have always fallen back to our addiction with money. I despair!

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