How to Achieve Profit With Honor
by Scott Bittle
There's nothing like an 11-hour Senate hearing about Wall Street scandal to put business ethics in the public eye. Senators compared Goldman Sachs executives to bookies, as the investment bankers maintained they'd done nothing wrong. The bitter hearings may well have pushed the Senate to begin debating new financial regulations, and even the mention of "Wall Street" affects the results of surveys.
All this puts us in mind of a point that Public Agenda's founder, Dan Yankelovich, made during the last round of business scandals: obeying the law and "passing the smell test" are only the most basic levels of ethical behavior. To really restore public trust, the business world needs to change its social norms and embrace a new sense of "stewardship ethics," in which both profit and integrity are valued.
You can read his essay on these ideas here, and Yankelovich laid out this theme extensively in his 2006 book, Profit With Honor: The New Stage of Market Capitalism. Drawing on his experience as both a social scientist and corporate director, he examines the state of business ethics that led to scandals like Enron and Worldcom, and how an attitude of "stewardship" could make a difference. Based on this week's news, his analysis is as relevant as ever.