Archive for the 'Business Ethics' Category

Executive Compensation

Published by Meg Standing on October 22, 2009 in Student Experience, Finance and Economics and Business Ethics. 0 Comments

In my Board of Directors and Corporate Governance class, taught by adjunct professor Jack Harsh, we have had a number of conversations about executive compensation and some of our guest speakers have even weighed in on the subject. Our most recent guest speaker, Bob Sledd (former CEO of Performance Food Groups), believes that most CEOs are fairly compensated and do not make anywhere near the amount of money that news outlets claim (well, those on Wall Street do). Executive compensation is clearly a hot topic given the government’s involvement with bailing out a number of large firms as well as the disparity we hear between Company X making huge layoffs this year yet still giving top executives hefty bonuses or other forms of compensation. Professor Harsh believes that this year will be a record year for compensation even if we (the general public) don’t agree with the reasons why. Professor Harsh encouraged us to not think about executive pay in an absolute value but rather focusing on that compensation is tied to the company’s strategic goals and timeframe for meeting such goals, not for (legally) manipulating their books so that their stock price goes up without actually accomplishing any exemplary results.

In light of the media focus on the subject, I found two interesting articles on CNN Money that I encourage you to check out - the 5 Most Overpaid CEOs and the Ten Highest Paid Executives. Do they really deserve what they’re getting?

Networking

Published by Meg Standing on June 26, 2009 in Professional Development, Business Ethics, On the Job Front and Uncategorized. 2 Comments

Keith Ferazzi, author and business coach, says that, “networking is the key to success in business.”

We all know that networking is important yet this loaded word often brings about emotions such as anxiousness and uncertainty. Why? Is it because we feel we don’t know how to network “properly” or that we feel it is unauthentic? Do we set expectations for ourselves too high in networking situations?

Designated networking events often do put people on edge because we know that we are expected to perform at a certain level and keep up with those to whom networking comes naturally. But truthfully, networking comes naturally to most all of us. Think about the last time that you went to a wedding or out to dinner with a group of friends you may not know too well. Did you consider those events networking events? Did you feel nervous before leaving your house? Probably not because you weren’t focused on networking – you were focused on having a nice evening and the chance for good conversation with new people. So over the course of the wedding or the dinner out you were able to relax, enjoy the moment and allow new people to get to know the real (although maybe the best behaved version of) you.

Personally I find weddings and other social events the perfect time to network. Often you are at these events with at least one other person that you know, and there is a good chance that they know at least one more person, who knows one more person, etc. Over the course of the event you may discover that the person seated across from you is in the same line of work that you are in or that you are interested in transitioning into. Because you are not concerned with networking, you ask valuable questions, make interesting comments, and leave with a new connection.

So the next time you’re at a formal networking event, just remember that these events are actually just a chance for you to meet some interesting people, have some valuable conversations and hopefully leave with a few new contacts.

Lastly, I have to add that electronic networking is huge and only likely to grow in the coming years. Sites like LinkedIn, Facebook and Twitter can be valuable networking opportunities, but we must all remember that the same rules apply online as they would in face-to-face situations: do not say anything that you would not feel comfortable saying to someone’s face; remain honest about who you are and what you have accomplished; follow-up when leads are provided to you; make sure you monitor pictures of yourself and things written on your profile very carefully as you never know who else will be able to access your pages (whether or not they are a friend/connection). And my final suggestion, do not hide behind your computer; it is fine to make an initial connection via the Internet, but there is nothing more valuable than face-to-face or phone conversations.

Some tips for creating valuable networking opportunities:
1)    Always be 100% authentic.
2)    Remember that a first impression is everything – go in with a smile, firm handshake and an optimistic view.
3)    Ask interesting, open-ended questions and say something meaningful that others will remember you by.
4)    Remember the golden rule – “do unto others as you would have others do unto you.” If you want your connections to pass your name along or help you find a new job, you must to be willing and able to reciprocate this same help to others.
5)    Realize that not all of your connections will be able to help you now, so be sure to stay in contact so that they will remember you in the future when an opportunity arises.
6)    Have your brief “elevator pitch” ready at all times so that you can quickly and concisely articulate what it is that you do/want to do when people ask. Practice this self-introduction to close friends and family and ask for constructive criticism, but always remember to remain genuine in what you say and how you say it.
7)    Practice makes perfect. If you hate formal networking, force yourself to go to as many of these events as you can so that you feel comfortable. Get involved in activities you enjoy in the community and use these as ways to practice your networking skills.
8)    Follow up on leads and be sure to thank the person who helped you make a connection. The handwritten thank-you note will always help make a good impression.

Point-Counterpoint Among MBA Bashers and Supporters

Published by Richard Coughlan on March 17, 2009 in Student Experience, Finance and Economics, Professional Development, Business Ethics and On the Job Front. 0 Comments

Among the most widely circulated articles over the last couple of days has been a New York Times piece by Kelley Holland entitled, “Is It Time to Retrain B-Schools?”  You can link to it here: http://tinyurl.com/ce5lnv. 

Holland offers a thoughtful piece on the state of the MBA today, with a particular emphasis on ethics and values in the curriculum.  She also includes quotes from several of the most vocal critics of MBA programs.  I encourage you to read through it and offer your comments below.

On the same day it was published, Financial Times published a column by Stefan Stern called, “Why MBA Bashing is Unfair.”  You can link to it here: http://tinyurl.com/dj29kb.  I think his piece has a great deal of merit.  Among other things, he touches on the topic of humility, which was the subject of a recent post here.

I am inclined to distribute these two readings to our incoming class as a means of starting a discussion during our Opening Residency.  We certainly have work to do on the curriculum and in structuring our cocurricular activites, especially in the area of personal assessments and career guidance.  We shouldn’t need major financial crises to prompt us to make changes.

I look forward to your feedback.

Does Humility Have a Place in Business?

Published by Richard Coughlan on March 13, 2009 in Finance and Economics, Professional Development, Business Ethics and On the Job Front. 1 Comment

A recent study conducted by faculty at Audencia Nantes School of Management (France) examined the skills desired by firms in identifying the managers of tomorrow.  In interviews with recruiters from 15 major international companies and in an e-mail questionnaire sent to alumni, several behavioral competencies were cited considerably more often than technical skills.  (I read a summary of the study that was published in Global Focus, an outstanding periodical published by the European Foundation for Management Development.)

The most striking finding to me was this one: Three out of four recruiters spoke of the need for humility.

Over the last twelve years I have certainly received numerous phone calls from former students who, a year or two after graduation, were seeking advice about how to charge forward more rapidly in their organization.  I should be clear that I am referring to undergraduates I have taught.  Most had grown frustrated and were convinced that they were smarter, wiser and better than those around them.  In every case, I counseled them to be patient and humble, and to be appreciative of life near the bottom of the hierarchy.  (By the way, the origin of the word humility can be tied to the Latin word for “earth.”)

Those phone calls and my own conversations with recruiters have made me aware that humility is not something taught in the typical business school curriculum.  To the contrary, many programs in business (undergraduate and MBA) enroll very proud students who leave business school with additional pride related to the completion of a rigorous course of study.

I believe the secret to instilling humility in our students might be found in courses related to decision-making.  My own approach to teaching this topic includes a section on overconfidence, which tends to be an eye-opener for students.  Through exercises, case studies and rich discussion about the reasons why we suffer from overconfidence and the consequences associated with a lack of humility, I hope to ground these students and encourage them to be more deliberate.

While I don’t anticipate us creating a semester-long course on humility, I do think that many former professionals in the banking and finance arena could provide powerful guest lectures on the dangers of pride to today’s MBA students.

Aligning Values

Published by Richard Coughlan on December 5, 2008 in Professional Development, Business Ethics and On the Job Front. 0 Comments

I spent part of one morning this week with 75 area professionals drawn from the fields of accounting and human resources.  We discussed the state of ethical decision-making in organizations today, with a focus on what values really mean and how they get applied in day-to-day decision-making. 

Near the end of the session, one of the participants asked a question that I hear much more frequently these days: “What if I discover that my own values are not aligned with my organization’s values?  What should I do?”

We spent some time talking about options.  As I began to describe the process an individual might use to sort through the various loyalties that come into play, I sensed that many in the room had been wrestling with the question of what to do in this very case.  It has become clear to me that this is not an uncommon situation for folks in the middle of their careers. 

As I responded, I realized that this was exactly the situation I’d faced 16 years ago, at the time that I decided to leave the hospitality industry.  Although I enjoyed the company of my colleagues and the friendships I’d built (not to mention the view of the Pacific Ocean I enjoyed every day!), I realized that what was important to those around me was no longer important to me.  In short, the driving forces in their lives and their careers were not motivating me.

I don’t mean to suggest that there was anything immoral or unethical about their behavior.  Like Etzioni and Keeney, I see values as decision-making criteria, so I only mean to convey that I had begun to operate from a different set of criteria.  My value set was not better or worse in an ethical sense, but it had become out of place in that context.

Although I opted to leave, many others do not.  In reality, some simply cannot give up a well-paying position without a solid alternative that will provide income.  I acknowledged that in my response to the audience a few days ago. In such a case, however, I believe the individual has an obligation to begin constructing alternatives.  The first step is to spend considerable time reflecting on one’s own values and to think about how those values map to career options that will provide enduring satisfaction. 

In other words, if you come to realize that there is a lack of alignment between your values and your organization’s values, act on that information by thinking about how you and the firm grew apart and then do your best to ensure that you find a better fit next time around.  As I said to the participants a couple of days ago, it is unhealthy to remain in an environment in which you constantly struggle to determine what is right. 

Career management professionals can provide considerable advice on this topic.  For now, I’ll recommend two books: What Color is Your Parachute? by Richard Nelson Bolles and Value-Focused Thinking by Ralph Keeney.