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.

A tornado. Photo courtesy U.S. National Weather Service.
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,
take cover - 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.
The survivors of tornados are the people who got out of the tornado's path. Listen for tornado warnings, and be prepared to move out of the way. Top
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Related articles
More articles on Ethics at Work:
Budget Shenanigans: Swaps
- When projects run over budget, managers face a temptation to use creative accounting to address the
problem. The budget swap is one technique for making ends meet. It distorts organizational data, and
it's just plain unethical.
Virtual Termination with Real Respect
- When we have to terminate someone who works at a remote site, sometimes there's a temptation to avoid
travel — to use email, phone, fax, or something else. They're all bad ideas. Terminating people
in person is not only a gesture of respect. It's good business.
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?
The Attributes of Political Opportunity: The Basics
- Opportunities come along even in tough times. But in tough times, it's especially important to distinguish
between true opportunities and high-risk adventures. Here are some of the attributes of desirable political
opportunities.
Personnel-Sensitive Risks: I
- Some risks and the plans for managing them are personnel-sensitive in the sense that disclosure can
harm the enterprise or its people. Since most risk management plans are available to a broad internal
audience, personnel-sensitive risks cannot be managed in the customary way. Why not?
See also Ethics at Work for more related articles.
Forthcoming issues of Point Lookout
Coming March 29: Time Slot Recycling: The Risks
- When we can't begin a meeting because some people haven't arrived, we sometimes cancel the meeting and hold a different one, with the people who are in attendance. It might seem like a good way to avoid wasting time, but there are risks. Available here and by RSS on March 29.
And on April 5: The Fallacy of Division
- Errors of reasoning are pervasive in everyday thought in most organizations. One of the more common errors is called the Fallacy of Division, in which we assume that attributes of a class apply to all members of that class. It leads to ridiculous results. Available here and by RSS on April 5.
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