The Most Troubling Aspect
Leadership
March 29, 2010
Mike Henry
Operations and IT Consultant
Topics
bribery, Character, corrupt, corruption, Foreign Policy, Leadership, progress, qualify of life, Rio TintoRay Fisman of Foreign Policy Magazine and www.foreignpolicy.com published an article on March 24, 2010 titled The Bad Kind of Corruption. The article is about how the recent "trial of four Rio Tinto employees on bribery and corruption charges in China may not bode well for the relatively orderly and benign style of corruption that allowed China's great leap forward into economic progress."
The author begins by describing how the economies have been growing in Indonesia and China, nations known for their corrupt government practices. While I appreciate the author's courage bringing the issue to light, my challenge is with the method of judging right from wrong.
Is Bribery Wrong?
There is a tip-of-the-hat to the idea that corruption may not be good, that the people in these nations might "be richer otherwise." But then the author goes on to assert that known, stable corruption is good; at least better than unknown corruption. The idea is that if businesses and individuals know what types of bribes are required to get something done in a particular region, it "levels" the playing field. It goes on to assert that corruption in some ways "is no different from a tax, albeit one that gets deposited in the bureaucrat's pocket rather than the state treasury."
The author states, "The most troubling aspect of the recent Rio Tinto case is that it might be signaling to foreigners that they are entering a new era of uncertainty over the rules that govern their interactions with Chinese bureaucrats."
It seems from the article that the issue relating to the Rio Tinto trial in particular and corruption in government in general is simply a matter of economics. If it makes money, it's OK. If it doesn't it could be bad. Taxes are bad if they "discourage business entry and growth" and so are bribes.
Economic Growth?
As a citizen of a free nation, I'm ashamed for us. Those of us who are free, living in governments with justice as a guiding principle or rule of law should be ashamed that we can so quickly forget the people who pay for the corruption. They pay with their quality of life. They pay with their safety and security. It is not progress when a corrupt economy grows, it's corruption! It simply becomes a more powerful corrupt economy. Corrupt nations have learned that if they allow some money to trickle through to their people and if the business people in the other nations get their profit, they are free to practice any type of corruption they desire.
We have quickly traded our principles for profit. If it makes us money, we will find a way to rationalize it until we can judge the practice as acceptable. No matter that we make our profit at the expense of millions of voiceless people in those nations who have no choice but to labor under the very corrupt bureaucracy our riches finance. As long as we get our profit, we're sorry about their problem, but we've got to make our quarterly numbers.
Basis of Judgment
When every moral judgment cooks off to money, our world is in a sad state. If everyone is a consumer, taking all they can and judging results by their own profit, then our world becomes transactional and heartless. The individuals in those corrupt nations are not free to do anything about their situation. The "most troubling aspect" for me is that I live in free nation that has sacrificed freedom on the altar of profit. We have sold ourselves into slavery - a slavery to money. Not only do we cooperate with corrupt governments and bureaucracies, but our only concern is that our profits may be jeopardized when they act more corrupt than usual! (I suppose we can claim that it's not fair!)
We demonstrate our slavery to money when we judge a travesty such as this by the economic impact it may have. We sold our heart, our passion and our courage and our love for less fortunate people. There was a time when we valued another's individual freedom, justice, and economic liberty above our own profit. Will we simply argue the economic merits of something like this? When will we stop serving our greed and begin to serve the people subject to this injustice? Will we ever again stand up for character and resist the corruption?
I found it interesting that the rationale for a “good type” of bribery is attempted to be validated as justified. I remember a similar story a few years back that I read in Bill George’s book, True North. The employee attempted to use similar rationale of why he used bribes. I would agree with the assertions in that book, that being authentic as not just a leader but as an organization, means standing by a certain code regardless of where you do business. Once a rationale starts to take a shortcut from that anywhere, it is like a bad apple in a good barrel of apples — eventually the rot spreads.
Great Post!
.-= Dale ´s last blog ..The 3 Little Leaders & The Big Bad Boss =-.
Thanks for reminding me of True North. That is a great book on this whole topic. I was just amazed at how easy it is to evaluate the economics of something and rationalize the corruption because their economy had “grown.” It got my attention. In this case, I hope the good apples find a new barrel.
[…] This post was mentioned on Twitter by Mike Henry Sr., Peter Mello, Weekly Leader, Henk Sijgers, Tweeter Leader and others. Tweeter Leader said: What Kind of Corruption is Good? | Lead Change Group [del.icio.us] http://su.pr/1HAXck […]
In every human system there are some combination of the official rules and the unwritten rules (aka cultural norms) governing behavior. The more closed a system, in this case a country, the more ripe it is for abuse and corruption that goes unchecked and gets passed off (or justified away) as a “cultural norm”.
The “when in Rome” philosophy is a slippery slope indeed when it comes to ethical business practices. An “innocent” bribe leads to things like lead in the paint used on children’s toys and Chinese dry wall. We have to be careful not to blame the source of the products though, because somewhere along the line was what seemed like “good corruption” that let those products get across our borders.
A long way of saying I share your view on this Mike!
.-= Susan Mazza´s last blog ..The Urge to Lead =-.
Thanks Susan. I do think we should all have some trepidation even at the point where we buy products. I realize it’s almost impossible to avoid purchasing products from companies that have chosen to take part in the process. But we should be looking for opportunities to advance the organizations that act with character rather than simply accepting the status quo. We’ve got a lot of work to do. Mike…
Mike,
Thanks for your response to the article. Two things; I think the previous comments hit the nail on the head. As business Leaders we live by values. And if those values are that corruption is bad, (I think we all agree it is) then we cannot waiver from that conviction. Even to the point of losing a deal. I can think of a deal or two I lost because I wouldn’t play.
The second thing is that i find it encouraging to see that this kind of thinking is catching on in the marketplace and that people are talking about values and their role in business and that there is a new consciousness coming to play in business.
Mike thanks for your work,
John
.-= John Gies´s last blog ..Intent is More Important Than Capabilities =-.
It is encouraging that the thinking is catching on, but we have a long road to go. For example, if you have money in a mutual fund, how do you know you’re not funding this very behavior? The mutual fund makes ownership transactional and most mutual funds are judged by their stock price growth. So in my own 401k, I find myself a big part of the exact problem I’m decrying.
There is much to do. Thanks for the great comment.
Hi Mike, thanks for this thought-provoking and heartening post! Being born and raised in Asia, and having worked with US companies (and lately in the US) for several years, I’ve witnessed both sides of this issue. I love that this post takes a stand against being corporate slaves to the dollar, and urges leaders to question how their bottom-line approach impacts fundamental global liberties. Wonderful post! Cheers, Maya.
.-= Maya Mathias´s last blog ..Being a flexible leader =-.
Thanks for the comment. Nothing is without consequences. Generally our pursuit of money has negative ones…
Mike, thanks for your thoughtful opinion on this issue. I have worked for global companies who have stringent domestic guidelines for ethical behavior relative to bribery and price fixing. If they do condone this conduct internationally, as I am sure some do, it calls to question their ethical position overall. You are correct, they are selling out their values and participating in lining the pockets of a few by enslaving many.
.-= Scott Pearson´s last blog ..The Shoe Salesman =-.
I was just amazed by the point of the article: corruption is changing and for businesses that participate in it, things could get more difficult. So I felt like I had to write something. I also wrote SmartBrief but they haven’t responded yet.
Thanks for checking it out. Mike…
Well it looks like I may be the odd man out on this subject. I have witnessed Christian workers in other countries paying bribes just so they don’t spend a day in jail because they didn’t have their papers with them. So is a dollar to us worth the time and hassle it would take spending time in the local city hall working through things. Then in other countries I have seen people give Bibles and other Christian literature as “payment” for traffic stops etc. (technically a bribe).
Isn’t a hint of a better tip in this culture a bribe for better service?
I have seen people pay the “going rate” when it comes to bribes, but not an excessive amount. Holding the line at what seems the acceptable practice in that country.
So, I do believe it’s more gray than we may want to think.
Just the other side of things to keep us thinking that’s all.
Blessings,
Dave
.-= Dave Baldwin´s last blog ..Sunday Evening Reflections: =-.
Dave, Thanks for the comment. I understand that there are multiple sides to every story. I agree there are times when we all do certain things to accomplish higher goals. The article that prompted my response was a purely economic judgment and rationale for an economically motivated behavior. No one is trying to do anything more “noble” than make money, and no one seems to judge the right or wrong of the practice by any method other than the pragmatism of achieving the monetary goals. When money is our only measure, I think you’d agree, we have a bad ruler.
Mike…
(I just wrote a reply that seems to have evaporated… if this is a repeat, my apologies.)
I think it’s important to know your ethics and make a stand… and also important to accept the imperfect nature of our world and the grayness of said ethics.
There’s a lot to what Dave B says.
My favorite example of how gray ethics can be: imagine you want to clean up your society, which is corrupt, and so you run for office. Your choice:
-run a dirty campaign (it’s the only way you can win)
-lose
-smash the system from the outside.
The last option may seem the “cleanest” ethically, but only until you consider how many lives will probably be lost in the ensuing battle for power.
Losing may seem the next “cleanest,” but now you face a situation where your society remains under the thumb of the corrupt—and you had the power to stop them!
Finally, the dirty campaign. Let’s say you win. Your moral code will never quite fit you again… and yet if you do good deeds, and generations that follow evolve to a more perfect set of ethic standards, then can we claim the ends justified the means?
Definitely a subtle issue without an easy answer…
…that deserves more attention and discussion than it gets.
.-= Jason Seiden´s last blog ..Cybersmear =-.
Jason, thanks for the comment (and the persistence). I agree the “end justifies means” discussion is very complex. Key for anyone, like you stated, is to “know your ethics and make a stand.” My stand regarding this practice is that money is the only measure of right and wrong. I guess I didn’t make the point very well, but when money is our only measure, we are hooked. Too many atrocities have been committed under the guise of “end justifies means” when the end is money. And if our only measure of the benefit of a practice is money, we can expect more atrocities to follow.
To link this back to your example, at the precise moment we decide that a dirty campaign is the only way to win, we lose. It’s like Global Thermonuclear War in the movie War Games. The only way to win is not to play.
Mike…
Great thought-provoking article Mike, thank you.
I also like the way Jon Gies approached it (in his comment above) by looking at corruption as a values issue.
Personally – I don’t have a problem with chasing profit – I think that’s healthy for companies. However I believe that it becomes a problem if the pursuit of profit causes you to lose your integrity or to break the law.
I see some companies playing in the “gray areas” – doing things that don’t technically break the law but are clearly out of integrity. I believe that this is a slippery-slope and that these companies typically plunge further into unethical behavior.
I always ask my teams a simple question: Look into your heart and ask “Is this the RIGHT thing to do?” If not – don’t do it!
Thanks for the great discussion Mike,
Tim
.-= Tim´s last blog ..Advice For A Woman – From A Man?! =-.
…on ethics, from CNN (today): http://www.cnn.com/2010/CRIME/04/01/daimler.bribery/index.html?hpt=T2
…on the politics/nuclear war analogy (scroll down to #17): http://jasonseiden.com/20-great-movies-for-leaders-5/
.-= Jason Seiden´s last blog ..Actions Speak Louder than Words… Unless I Find You Attractive =-.