why ‘good’ managers make bad ethical

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  • 1. WHY GOOD MANAGERS MAKE BAD ETHICAL CHOICES Author : SAUL W. GELLERMAN

2. AUTHOR : INTRODUCTION Mr. Gellerman is dean of the university of Dallas Graduate school of management . He is the authorof 8 books on management and he also written an article on Supervision : Substance and Style in Harvard Business Review . 3. WHEN IN DOUBT , DONT This question is answered by three cases which slightly differ from each other : the three cases are as follows : 4. MANVILLE CORPORATION How could top executives at the Manville corporation have suppressed evidence for decades that proved that asbestos inhalation was killing their own employees ? 5. CONTINENTAL ILLINOIS BANK What could have driven the managers of continental Illinois bank to pursue a course of action that threatened to bankrupt the institution , ruined its reputation , and cost of thousands of innocentemployees and investors their jobs and their savings ? 6. E.F.HUTTON Why did managers at E.F.HUTTON find themselves pleading guilty to 2,000 counts of mail and wire fraud , accepting a fine of $2 million , and putting up an $8 million fund for restitution to the 400banks that the company had systematically bilked ? 7. FOUR RATIONALIZATION When we look more closely at these cases , we can delineate four commonly held rationalizations that can lead to misconduct : 1. A belief that the activity is within reasonable ethical and legallimits- that is , that it is not really illegal or immoral 2.A belief that the activity is in the individuals or the corporations best interests- that the individual would somehow be expected to undertake the activity . 8. 3. A belief that the activity is safe because it will never be found out or publicized ; the classic crime and-punishment issue of discovery 4. A belief that because the activity helps the company thecompany will condone it and even protect the person who engages in it . 9. THANK YOU

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