On June 15, 2002, BBC News reported on the prosecution of the accounting firm Arthur Andersen for its role in the collapse of Enron. The prosecution's star witness was David Duncan, who had been in charge of the Enron audit team. He testified that he had signed an agreement with his employer to present a united front, and to claim that neither he nor his employer had done anything wrong.
Oops. Bad idea.
The tornado that followed wrecked his career, wrecked Andersen, and wrecked lives. Knowing what has happened since then, it's too easy to ask, "What was he thinking?" A more interesting question: "What can I learn from this?"
When Mr. Duncan received that "united front" agreement, he received a tornado warning, but he probably didn't recognize it. Can you recognize tornado warnings? Here are a few examples. If you hear or see these things, take cover.
- I agree, but we can't actually say that
- This could be a signal that the group is convincing itself that half-truths or lies are OK. Both are toxic — it's much better to deliver the whole miserable truth in a caring way, taking responsibility for your part of the bad news.
- Don't send me memos or email. Call instead.
- When you receive an
ethical tornado warning,
- Sometimes, when people ask this, they're trying to avoid a paper (or electronic) trail. Ask yourself why.
- Shred this after reading
- This could be an attempt to erase the paper trail. Rule of thumb: if your work involves a shredder or pulverizer but not a government security clearance, you could be in a gray area or worse.
- Delete this email after reading
- This request is naïve. Erasing electronic trails takes a lot more than the delete button in Outlook.
- Go through your files and remove and shred any documents that refer to this
- Translation: (a) get an attorney, and (b) get a new job. In that order.
- What I'm about to tell you doesn't leave this room
- You know three things if the material is true. First, it came into the room from someplace, which means it's already outside the room. Second, it will continue to propagate from wherever it is. Third, you're now on the list of possible leakers.
- You don't want to know
- You're in charge of deciding whether you want to know. One alternative to knowing or not knowing is putting some distance between you and this mess.
- I'd like it to come from you
- When this request comes from someone who would be the normal deliverer of "it," ask yourself if you really are the most eloquent, compassionate, or articulate person around. If not, it's possible that delivering "it" could be dangerous.
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More articles on Ethics at Work:
- It Might Be Legal, but It's Unethical
- Now that CEOs will be held personally accountable for statements they make about their organizations,
we can all expect to be held to higher standards of professional ethics. Some professions have formal
codes of ethics, but most don't. What ethical principles guide you?
- Dubious Dealings
- Negotiating contracts with outsourcing suppliers can present ethical dilemmas, even when we try to be
as fair as possible. The negotiation itself can present conflicts of interest. What are those conflicts?
- Managing Personal Risk Management
- When we bias organizational decisions to manage our personal risks, we're sometimes acting ethically
— and sometimes not. What can we do to limit personal risk management?
- More Things I've Learned Along the Way
- Some entries from my personal collection of useful insights.
- Appearance Antipatterns: I
- Appearances can be deceiving. Just as we can misinterpret the actions and motivations of others, others
can misinterpret our own actions and motivations. But we can take steps to limit these effects.
See also Ethics at Work for more related articles.
Forthcoming issues of Point Lookout
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- And on July 15: Disjoint Concept Vocabularies
- In disputes or in problem solving sessions, when we can't seem to come to agreement, we often attribute the difficulty to miscommunication, histories of disagreements, hidden agendas, or "personality clashes." Sometimes the cause is much simpler. Sometimes the concept vocabularies of the parties don't overlap. Available here and by RSS on July 15.
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Many people who possess real organizational power have a characteristic demeanor. It's the way they project their presence. I call this the power affect. Some people — call them power pretenders — adopt the power affect well before they attain significant organizational power. Unfortunately for their colleagues, and for their organizations, power pretenders can attain organizational power out of proportion to their merit or abilities. Understanding the power affect is therefore important for anyone who aims to attain power, or anyone who works with power pretenders. Read more about this program.
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Decision-makers in modern organizations commonly demand briefings in the form of bullet points or a series of series of bullet points. But this form of presentation has limited value for complex decisions. We need something more. We actually need to think. Briefers who combine the bullet-point format with a variety of persuasion techniques can mislead decision-makers, guiding them into making poor decisions. Read more about this program.