Bad Examples
Investors and non-investors alike have heaped scorn on executives of American companies shown to have committed various acts of fraud. These were well-regarded (and well-rewarded) businessmen. In some cases they were regarded as fine examples of successful American capitalists, as the best the system could produce. I suppose interested observers could have seen that these men were cutting corners but I don't think anyone imagined how bad it was. Investors lost huge amounts of money, the executives will lose something, but we all lost something because of these frauds.
I think this misbehavior causes problems for all of us, whether we lost money as a result or not. First, it produces a loss of confidence in the entire business system, it makes us wonder about investing in businesses. If these guys can behave so badly, maybe others will misbehave also, maybe the entire investment world is based on fraud. If people feel this way in a broad sense, it has terrible effects on the economy, on jobs, on our whole lives.
Second, it continues a trend toward mistrusting those in authority. When I watch television or movies, when I read cartoons or news stores, wherever I go I see mistrust toward those in authority. I see business executives, political leaders, policemen, people we should and must trust portrayed in a bad light. When we see that senior, apparently successful businessmen are the perpetrators of frauds it makes it easy for people to say that all those in authority in our society are corrupt; It enables people to argue that resisting authority is the correct way to proceed, that we should and must mistrust those in authority. In the long term, this will also have bad effects on us. Leadership includes authority and without leadership most of our activities will be less successful.
Perhaps most damaging, though, is the bad example these men have set. Young people, indeed all those who aspire to improve themselves, look for examples to inspire them, to help form their life plans, to model their own behavior on. When visible examples misbehave, it makes people wonder whether honesty and hard work and other virtues pay off. In fact, it may make people think they must misbehave to succeed. Then we're really in trouble.
If you're in a position of leadership, don't let the prizes available to you cause you to misbehave. If you aspire to leadership, remember that after achieving whatever success you have you will still have to face yourself and judge yourself against the virtues you value. At that time, you'll be glad you adhered to a virtuous path, an honest path, whatever short-term disadvantage you may have created.
7-7-03
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