What do Glaxo, Penn State, and Mitt Romney have in common? Apparently muddled notions of responsibility and leadership. There seems to be a growing belief that "bad things sometimes happen" but no one is responsible. A discouraging trend. I don't like it. Thought experiment and poll after the jump.
Three recent news stories gave me pause:
1) GlaxoSmithKline
2) Penn State
3) Romney and Bain Capitol SEC Filings
GSK thought experiment
Corporations are amoral creatures. They have relatively simple goals: survive and maximize profit. We rely upon their leadership to give them a moral compass.
GSK has acknowledged breaking the law and is paying a huge fine. Who is responsible? It doesn't appear that any individual is taking responsibility for the illegal acts, or being held accountable for breaking the law and potentially, knowingly, endangering the lives of GSK customers.
From a criminal perspective, this may be a complex question. I'm not a lawyer, but it would seem we might determine who made certain decisions or engaged in certain acts. That person might be criminally liable for the acts.
From an ethical perspective, I think the question is more straightforward. I think we look to the leadership of GSK. They are responsible for establishing and maintaining the ethical standards of the organization. I would argue from an ethical perspective that the CEO is responsible for everything that his organization does or fails to do on his or her watch. This might not prevent isolated acts of renegades, but should make clear that systemic immoral or illegal behavior will not be tolerated and substantially reduce the likelihood they occur.
The unfortunate moral I derive from this example is that corporations should not break the law and harm their customers because it is expensive (not because it is wrong).
The horror of Penn State
It is hard to imagine the human being who could weigh
* Prosecuting someone for sexually assaulting a child and potentially preventing harm to future victims and
* PR damage to a football program
And choose to protect the program, but the emerging evidence suggests this is what happened.
Several children were irreparably harmed as a consequence of the inaction of "Leaders" in this institution, but no one is apparently "responsible". I guess the school is embarrassed and the NCAA is contemplating punishing the football program with a suspension - would that be consolation to you, or your children, or your grandchildren if they had been victims? In civil society, pitch forks and torches may not be the appropriate response - but shouldn't the consequences for allowing harm by one's action or inaction be assigned to someone responsible? I know the perpetrator has been found guilty... what about those who allowed the abuse to continue? Where are the leaders taking responsibility?
Bain: To Lead or Not to Lead
I think the original Bain episode is somewhat relevant to the current presidential campaign (If you want to run on your record then your record is subject to scrutiny), but it would be more of a tempest in a teapot to me if Romney were taking responsibility for what transpired from 1999-2002 at Bain.
If we believe Mr. Romney, that he had no involvement after he left to lead the Winter Olympics, we must wonder what it meant to him to be the President and CEO? If Bain caused harm 1999-2002, did Romney's signature on the SEC filings mean that he was willing to take moral responsibility for that harm... or would he plead that he had no "true" responsibility (he can't disclaim authority because as CEO he had the authority to bind the organization in contracts).
As an officer of a small corporation, I don't take my signature lightly. I am responsible for what the organization does, from a business AND moral perspective - for better or worse - because I'm part of the senior management team. I set the goals. I help establish the behavioral norms. I am responsible for assuring that processes are in place to assure that the decisions that are made are something I can live with.
I don't think corporations are inherently bad, but they are NOT PEOPLE. I disagree with Mr. Romney and the Supreme Court on this point. Organizations (public and private) have no more moral compass than the culture and values their leaders are willing to impart and enforce. When the corporate veil shields leaders from responsibility, we have gone too far.