A634.3.4.RB
The
Harder They Fall
Timber! This is the call of the Lumberjack as the
tree falls and make its rustling and thudding sound. And the bigger the tree is, the harder it
falls. Just like trees are felled by the
axe swing of the Lumberjack, so are Executives, CEOs, Business Leaders, and
Politicians by their own folly. And the
bigger they are, the harder they fall.
So,
why does this happen? According to
Roderick M. Kramer (Kramer, pg. 58, 2003), “Throughout the 1990s, our society
seemed to have a fetish for aggressive chiefs like Enron’s Kenneth Lay, Tyco’s
Dennis Kozlowski, and WorldCom’s Bernard Ebbers…Scandal set in, and these once
feted and envied leaders found themselves falling hard and fast…Yet just when
they appear to have it all, these A-list performers demonstrate
uncharacteristic lapses in professional judgement or personal conduct.” A definite “fall from grace”.
After
a little internet research, I came across an article on Time Magazines (Time,
2016) online site listing the “Top 10 Crooked CEOs”. They are:
- Bernard Madoff, Bernard L. Madoff Investment Securities, LLS. Plead guilty on March 12, 2009 to eleven charges of fraud.
- Kenneth Lay and Jeffrey Skilling, ENRON. Convicted on May 25, 2006 of fraud.
- Dennis Kozlowski, Tyco International, LTD. Convicted on June 17, 2005 of misappropriation of corporate funds.
- John Rigas, Adelphia Communications Corporation. Convicted July 8, 2004 of bank, wire, and security fraud.
- Joe Nacchio, Qwest International. Convicted on April 19, 2007 of insider trading. Appeal pending.
- James McDermott, Jr., Keefe, Bruyette, and Woods. Convicted April 27, 2010 of insider trading.
- Sam Waksal, ImClone. Convicted October 15, 2002 of security fraud, bank fraud, obstruction of justice, and perjury.
- Sam Israel, Bayou Group Hedge Fund. Convicted of fraud in April 2008.
- Bernie Ebbers, WorldCom. Convicted on March 15, 2005 of nine counts of conspiracy, securities fraud, and making false regulatory filings.
All of
these men were shining stars that rose to the top and then fell…and fell
hard. There seems to be an underlying
theme with these ten…GREED. With greater
responsibility comes greater income. The
boys in their custom-made suits let money control them just like drugs control a
drug addict.
Greed
affects many. The once moral pastor
stealing from his own congregation. The
dedicated employ embezzling from his or her company. The investment banker stealing from his
clients. The mechanic performing unnecessary
work on a car to pad the bill. According to LaFollette (LaFollette, pg. 36,
2007), “The idea that inappropriate maxims are self-contradictory seems to work
well for promises and lies. It is
doubtful that this could explain all moral judgments. Moreover, although his [Kant] view capture
the common idea that we must be leery of inclinations – since they often lead
us to make exceptions in our own case – it is unclear why acting from
inclinations is always devoid of moral worth.”
The
top jobs and positions are few as Kramer describes. Rising to the top takes a lot of hard work
and dedication. In some instances, there
is only one winner who makes it.
According to Kramer (Kramer, pg. 60, 2003), “Researchers Robert Frank
and Philip Cook have characterized such tournaments (vying for that one
position) as ‘winner-take-all markets’ – a very few star performers generate
most value and end up enjoying the lion’s share of the spoils…these
winner-take-all markets creates players who suffer from a ‘winner-wants-all’
mind-set. These elite performers expect
everything – but often end up with nothing.”
This speaks directly to my “greed” comment.
So,
what about those leaders who do not fall from grace? According to Kramer (Kramer, pg. 64, 2003), “They
had different personalities and management styles, but they all seemed to
retain a remarkable sense of proportion and displayed a high degree of
self-awareness…I learned that each had developed a certain combination pf
psychological and behavioral habits that helped them stay grounded.” Some of these habits and traits were:
- Keep your life simple.
- Hang a lantern on your foibles.
- Float trial balloons.
- Sweat the small stuff.
- Reflect more, not less.
(Kramer, pgs. 64, 66, 2003)
As
far of these type of dilemmas occurring in my life, I do my best to avoid
them. In all of my occupations (Army, Private
Industry, and School Teaching), I was one of many. Maybe that is what kept me out of hot water.
References
Kramer, R. M. (2003). THE HARDER THEY FALL. (cover
story). Harvard Business Review, 81(10), 58-66.
LaFollette, H. (2007). The practice of ethics.
Malden, MA: Blackwell Publishing
Time. (2016). Top
10 crooked CEOs. Retrieved from http://content.time.com/time/specials/packages/article/0,28804,1903155_1903156_1903160,00.html
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