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Posts Tagged ‘Ethics’

ADM and “The Informant”

Tuesday, September 22nd, 2009

In the 80s and 90s, I was actively involved in the agribusiness arena, and ADM was a big name in the marketplace. They were respected and always, just a little bit mysterious. Their footprint was worldwide; everything from grain origination, to grain processing, to global merchandising activities. Plus, the Andreas family was powerful, with political connections around the globe. ADM was a powerhouse for a multitude of reasons.

One of the reasons they became so powerful was the way they played the game we refer to as business, which is the basis for the just released movie, “The Informant.” I have to admit, its a little scary to say I knew many of the participants in the movie. I met them at tradeshows and I helped sell their products into the marketplace, willingly. What a story and quite an education. Yes, ADM at the time was an organization built on silent problems.

Today, ADM has recovered from their silent problem missteps of 2-decades ago. And possibly more interesting, ADM was supportive in the making of the film, “The Informant.” Here is one of the answers ( FAQ )about the movie.

How does the Company feel about “The Informant!” movie?
When we learned that Steven Soderbergh would be making the film, we met with him and his team.  We gave them tours of our facilities and allowed them to do some filming on our property. We understand that “The Informant!” is a movie, and while it isn’t pleasant to see ADM associated with past illegal activity — however much the events and people depicted may reflect only a very narrow part of the past — we are confident that our customers, colleagues and communities understand that ADM, then and today, is made up of ethical, hardworking people.

Due to their past, ADM understands and has lived inside the chaos and harm silent problems can create. They understand how silent problems can disrupt anything and everything. They know the impact silent problems have on everything from corporate culture to business performance. So what have they done about it? ADM has implemented a comprehensive plan to bring silent problems out into the open. And here it is

We rely on you to help us by speaking up whenever any situation threatens our values and our reputation. When you do, you provide us with the information necessary to remedy the situation. Such situations may pertain to:
Ethics and compliance issues, such as financial reporting, insider trading or antitrust regulations.

  • Employee relations and human resources, such as harassment, discrimination, scheduling/time abuse or disciplinary action.
  • Loss prevention and asset protection, such as threats and violence, alcohol/drug abuse, workers’ compensation fraud or internal theft.
  • Environmental, quality, health and safety, such as OSHA violations, hazardous waste disposal or product tampering.

When it comes to any of those issues, silence doesn’t help. It hurts. Select from below to submit a report, follow up on a report that has already been submitted or read our Business Code of Conduct and Ethics, “The ADM Way.” Be assured that you will never be retaliated against or punished in any way for reporting your concerns in good faith.

Bottom Line: Silent problems destroy companies! Read my book, Without Warning, it provides the critical overview of silent problems, and how they impact organizations. ADM’s missteps should be a lesson to everyone and what can happen if silent problems aren’t dealt with proactively, and eventually escape.

A MBA CAP Initiative At Work

Sunday, May 31st, 2009

“The CAP Iniative resets the silent problem, resets the questions, and begins to reset the behaviors and actins of the participants.

When an organization or possibly a segment of society faces a silent problem (a problem that is being avoided, neglected or going unnoticed), they can be difficult to solve. In recent months, MBA programs and their role in the financial collapse of 2008 has become an intense discussion (I discussed it here). What role did they play? Should graduates embrace a code of ethics? How should MBA programs change to prevent such situations in the future?

In my book Without Warning, I state that silent problems are different and the most effective means to solving these problems is by creating a CAP Initiative. This is where the solution is formulated and embraced by those closest to the problem. So in the case of MBA programs and their students, the solution should come from the students, not from the institution. Interestingly, this is exactly what is underway at Harvard, and is reported in The New York Times. The oath states:

Welcome to the MBA Oath. The oath is a voluntary pledge for graduating MBAs to “create value responsibly and ethically.” Our goal is to begin a widespread movement of MBAs who aim to lead in the interests of the greater good and who have committed to living out the principles articulated in the oath.

Our near-term goal is to get at least 100 graduating Harvard Business School students to sign the oath. We hope this will a) make a difference in the lives of the students who take the oath b) challenge other classmates to work with a higher professional standard, whether they sign the oath or not and c) create a public conversation in the press about professionalizing and improving management.

Our long-term goal is to transform the field of management into a true profession, one in which MBAs are respected for their integrity, professionalism, and leadership. We hope to see hundreds of thousands of MBAs take the MBA oath, or something like it, as a step towards realizing this vision.

On this website, you can read, download and sign the MBA oath. You can read about us, the history of the MBA degree, and articles about how people think business schools need to change. You can also volunteer to get involved. We hope you do.

The Columbia School of Business has a similar but different code in place along with a website to address issues related to ethics, and be can viewed here. In the Honor Code FAQ section, here is an example:

What does “not tolerate” actually mean?

“Not tolerating” those who have violated the Honor Code means that you feel an obligation to take action on behalf of the School, the alumni, current students and yourself to protect the integrity of the School.  Your individual judgment will need to be applied to the unique circumstances you may face.  Taking action can mean having a one-on-one conversation with those you observe violating some aspect of the Honor Code, notifying cluster leadership, or formally bringing disciplinary action by notifying the MBA assistant dean of student academic affairs or EMBA assistant dean. 

The initiatives now underway represent the starting point, not the end point. Now the wave needs to be spread, and similar initiatives need to be implemented across every MBA program around the globe. However I must state, if it is going to stick, its the students that must be leaders in this initiative. Not the School. Not the professors. Its the students that must lead, embrace and enforce. It will only then have a major impact on the current status of the MBA and its perception. The Harvard MBA group sums up the how and why of a CAP Initiative well. They state:

Who We Are

We are a group of second-year students from Harvard Business School. We aren’t from the administration. We aren’t from the student government. We aren’t part of any formal group. Yet. We are a group of MBA candidates who want our degree to mean something more than it currently does. This oath is our way of laying out the principles of what we think an MBA ought to stand for.

Well stated. Your thoughts?

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