This article focuses on business
ethics and ethical lapses by in-
dividuals (e.g., Bernard Madoff) and by groups of
individuals in organizations (e.g., Arthur Andersen, Enron). Examples of
ethical transgressions seem to have increased over the past decade and they
are likely to become even more common during the present economic
downturn. Why do ethical lapses occur? What are the causes of theft, fraud
and corruption in organizations? This is a complex question with causes
likely to exist at several different levels of analysis. This article proposes
that ethical lapses by individuals and by organizations are commonly fueled
by greed.
Greed, in layman's terms, is the selfish desire for or pursuit of
money, wealth, food or other possessions. It is generally considered a vice in most
religions. A simple desire to increase one's wealth is generally acceptable
in all societies and is not considered to be greed. Greed is the extreme form
of this desire.
I believe that greed underlies all acts of crime and corruption in
organizations. Willie Sutton, a notorious American bank robber was
arrested once again following another bank robbery. When asked why he
continued to rob banks he replied "That's where the money is." Crime and
corruption seem to be flourishing today in organizations because "that's
where the money is."
In 2004, the Toronto police force faced the worst scandal in its history.
Six officers on a drug squad were charged with 40 counts of
corruption ranging from perjury and theft to extortion and assault. Their case came
to light when lawyers of criminals complained to the justice system about
the treatment of their clients. |
