Friday, Jul. 21, 1961

Confessional

What do executives themselves think of the ethical climate of U.S. business these days? The answer, as reported in a soul-baring survey of 1,700 businessmen by the Rev. Raymond C. Baumhart, S.J., a doctoral student at the Harvard Business School: Not much.

When ethical questions were put to them, Father Baumhart reports in the current Harvard Business Review, an overwhelming majority of the executives gave proper answers for themselves but, when asked if they thought the other fellow would follow the same high standards, were profoundly skeptical.

The executives contend that the "average" businessman would countenance padding of expense accounts, taking advantage of inside information to make stock market killings, and raiding other companies' employees to learn top secrets. Four out of five in the survey said that one or more unethical practices are "common" in their fields of business. Among the practices that they cited: price fixing, bribery, and the supplying of call girls to supplicate customers.

Asked who is to blame, most executives pointed to top management. Their general feeling is that personal ethics have become sublimated to the ethics of the corporation. Thus, many otherwise ethical employees in lesser jobs find it difficult to defy company policies that violate civil laws or moral codes.

"In America," concluded Father Baumhart, "there is widespread acceptance among businessmen of the handful of general ethical principles which are the foundation of Judeo-Christian civilization. But between these general principles (such as 'Thou shalt not steal') and the concrete problems of the businessman (such as whether or not price-fixing is stealing from customers), a wide gap appears."

Father Baumhart's advice to business men: "If you want to act ethically, find yourself an ethical boss."

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