Business Ethics – More Important Than Ever, May 31, 2002

IRA A. LIPMAN

CHAIRMAN AND PRESIDENT GUARDSMARK, INC.

SOCIETY FOR FINANCIAL SERVICE PROFESSIONALS

PITTSBURGH CHAPTER

SECOND ANNUAL AMERICAN BUSINESS ETHICS AWARDS

THE DUQUESNE CLUB PITTSBURGH, PENNSYLVANIA

THANK YOU. GOOD AFTERNOON. IT IS AN HONOR TO BE WITH YOU AND COME TO PITTSBURGH. THIS CITY’S TRANSFORMATION TO A 21ST CENTURY METROPOLIS IS TRULY AMERICA IN MICROCOSM — STRIVING TO MEET THE CHALLENGES OF AN UNCHARTERED MILLENIUM WHILE HOLDING FAST TO THE VALUES AND CULTURE THAT MADE OUR NATION GREAT. PITTSBURGH IS ONE OF AMERICA’S REAL SUCCESS STORIES. CONGRATULATIONS ON ALL YOU HAVE ACCOMPLISHED.

IT IS VERY MEANINGFUL AS WELL TO ADDRESS THIS SPECIAL GROUP ON THE OCCASION OF PITTSBURGH’S SECOND AMERICAN BUSINESS ETHICS AWARDS. THE SOCIETY OF FINANCIAL SERVICE PROFESSIONALS HAS BEEN IN THE VANGUARD OF BUSINESS ETHICS FOR YEARS IN ITS SPONSORSHIP OF THE NATIONAL AMERICAN BUSINESS ETHICS AWARDS. ONE OF THE PROUDEST MOMENTS IN THE HISTORY OF GUARDSMARK WAS WHEN WE RECEIVED THIS COVETED AWARD. WE KNOW FIRST HAND THE MEANING OF THIS DAY. IT IS A PRIVILEGE TO PAY TRIBUTE TO THIS AFTERNOON’S HONOREES. YOU BRING CREDIT TO THE AMERICAN BUSINESS COMMUNITY AT A TIME WHEN THE MEDIA IS FILLED WITH STORIES OF COMPANIES THAT HAVE SHIRKED THEIR ETHICAL RESPONSIBILITY, OFTEN FOR THE SAKE OF THEIR BOTTOM LINE.

THIS SHORT-SIGHTED APPROACH NEVER PAYS OFF IN THE LONG RUN, HOWEVER IN THE ALMOST THIRTY-NINE YEARS OF OUR COMPANY’S EXISTENCE, WE HAVE FACED MANY CHALLENGES, AND WE HAVE ALWAYS PREVAILED IN THE END BY TAKING THE HIGH ROAD, DOING WHAT’S RIGHT. SEVERAL CORPORATE GIANTS HAVE LEARNED RECENTLY THE RAMIFICATIONS OF STRAYING FROM THE ETHICAL PATH. AS THE AMERICAN PUBLIC AND GLOBAL SOCIETY WATCH IN SHOCKED DISMAY, NEW ALLEGATIONS OF QUESTIONABLE CONDUCT TAINT A GROWING NUMBER OF FIRMS, WHILE ONGOING INVESTIGATIONS EMBROIL AN EXPANDING CIRCLE OF PLAYERS IN EXISTING SCANDALS.

THE MORAL BANKRUPTCY THAT APPEARS TO PLAGUE THE UNITED STATES HAS EVEN LARGER CONSEQUENCES IN THE INTERNATIONAL MARKET. A RESPECTED FINANCIER AND GLOBALIZATION EXPERT CAUTIONS AGAINST BLIND RELIANCE ON GLOBAL CAPITALIST MARKETS TO DISTRIBUTE WEALTH. ALTHOUGH DEMOCRACY AND CAPITALISM PROMOTE ENTREPRENEURSHIP AND INDIVIDUAL ACHIEVEMENT, THESE SYSTEMS CAN ALSO LEAVE BEHIND THOSE INDIVIDUALS AND SOCIETIES ON THE PERIPHERY. MARKETS THEMSELVES ARE AMORAL: THEY FUNCTION ACCORDING TO THE INTERESTS OF THE ENTITIES WHO DRIVE THEM. THE OVERALL SUCCESS OF GLOBAL SOCIETY, HOWEVER, REQUIRES A DEGREE OF ETHICAL GUIDANCE TO ENSURE THE WELL-BEING OF MARGINAL NATIONS. AS THE WORLD’S LARGEST ECONOMIC SUPERPOWER, THE UNITED STATES MUST TAKE A LEAD ROLE IN THIS EFFORT, BUT IT FIRST NEEDS TO ADDRESS ETHICAL WEAKNESSES WITHIN ITS OWN BOUNDARIES. IN LIGHT OF ALL THESE CHALLENGES, BUSINESS ETHICS IS MORE IMPORTANT THAN EVER.

IT IS SIGNIFICANT THAT THE AMERICAN BUSINESS ETHICS AWARD IS GIVEN IN FOUR CATEGORIES: LARGE, MEDIUM SIZE, SMALL, AND NON- PROFIT. THE NEED FOR ETHICS IS NOT LIMITED TO THOSE WITH THE BIGGEST PAYROLLS OR LARGEST CAMPUSES. ETHICS APPLIES TO EVERYONE, WHETHER IT’S THE CORNER SHOE SHINE BUSINESS, THE AUTO REPAIR SHOP, THE AUCTION HOUSE OR THE SOCIAL SERVICE PROVIDER. LIKEWISE, ETHICS IS NOT LIMITED TO COMPANIES AND NON-PROFITS. GOVERNMENT AGENCIES, SPORTS TEAMS, CLUBS, SCHOOLS, ORGANIZATIONS OF EVERY KIND AND PEOPLE OF EVERY AGE NEED A STRONG FOCUS ON ETHICS. IN EVERYONE’S LIFE, THERE COMES A TIME WHEN A TOUGH, SOMETIMES GUT-WRENCHING ETHICAL DECISION HAS TO BE MADE. WHEN THAT MOMENT COMES, WE HAVE TO BE PREPARED TO FACE IT AND DO THE RIGHT THING, EVEN IF IT IS PAINFUL. A STRONG, UNFAILING ETHICAL COMPASS AND A SERIOUS, ONGOING ETHICS PROGRAM FOR ANY ORGANIZATION ARE THE KEYS TO MEETING THAT DIFFICULT CHALLENGE.

ALTHOUGH SOME “BAD APPLES” HOLD RESPONSIBILITY IN WELL- PUBLICIZED CASES OF ETHICAL MISCONDUCT, EXPERTS POINT OUT THAT MOST ETHICAL BREACHES RESULT FROM CORPORATE CULTURE OR PRESSURE FROM MANAGEMENT, WHEN GOOD PEOPLE FEEL COMPELLED TO BEND THE RULES IN AN ATTEMPT TO LIVE UP

TO EXPECTATIONS. FOR INSTANCE, ONE TELEVISION NETWORK RECENTLY BROADCAST AN INVESTIGATIVE REPORT REVEALING THAT MANY MEAT DEPARTMENTS IN LARGE GROCERY STORE CHAINS REPLACE THE “SELL BY” DATE STICKERS ON MEAT, POULTRY AND FISH THAT HAS PASSED ITS PRIME. JOURNALISTS FOUND WIDESPREAD INCIDENCE OF THIS PRACTICE AT ALL SEVEN OF THE CHAINS INVESTIGATED, EVEN THOUGH ALL HAVE COMPANY POLICIES EXPRESSLY FORBIDDING IT. INDUSTRY REPRESENTATIVES ACKNOWLEDGED THAT THE PRACTICE WAS VERY COMMON BECAUSE OF THE INTENSE PROFIT PRESSURES AT GROCERY STORES, PARTICULARLY WITH HIGHLY PERISHABLE FOODS SUCH AS MEATS AND FISH.

THE BEST DEFENSE AGAINST SUCH BEHAVIOR LIES IN A STRONG ETHICS PROGRAM, ONE THAT HOLDS ALL LEVELS OF EMPLOYEES ACCOUNTABLE FOR THEIR ACTIONS. DURING THE EARLY AND MID 1990s, IN THE WAKE OF THE U.S. SENTENCING GUIDELINES FOR ORGANIZATIONS AND THE SCANDALS OF THE PREVIOUS TWO DECADES, THE BUSINESS ETHICS MOVEMENT TOOK HOLD. IT APPEARED THAT ETHICS WOULD HAVE A PERMANENT PLACE AT THE TABLE. BUT THAT WAS A TIME OF PLENTY. AND THOSE WHO WONDERED WHETHER ETHICS PROGRAMS WERE A LUXURY OF ECONOMIC GOOD TIMES HAD VALID REASON FOR CONCERN.

INEVITABLY, THERE CAME THE ECONOMIC DOWNTURN. MANY COMPANIES HAVE HAD TO LAY OFF PEOPLE. MANAGING LAYOFFS WITH DIGNITY AND SENSITIVITY IS ITSELF AN ETHICAL CHALLENGE. BUT ECONOMIC HARD TIMES ALSO CREATE GREATER TEMPTATION TO CUT CORNERS. IN SUCH TIMES STRONG ETHICS PROGRAMS ARE EVEN MORE CRITICAL.

YET, HOW HAVE SOME COMPANIES RESPONDED TO ECONOMIC PRESSURE?
• BY CUTTING BACK ON THEIR ETHICS PROGRAMS.
• BY REDUCING ETHICS STAFF.
• BY DISBANDING THEIR ETHICS OFFICES.

IN TIME OF GREATEST NEED:
• NO ONE IS THERE TO GIVE ETHICAL GUIDANCE.
• NO ONE IS THERE TO LISTEN TO THE WHISTLEBLOWER.
• NO ONE IS THERE TO ALERT THE COMPANY TO A PROBLEM WITH POTENTIALLY GRAVE LEGAL CONSEQUENCES.

A COMMITMENT TO BUSINESS ETHICS MUST BE IRONCLAD. WHEN THE ETHICS PROGRAM IS REDUCED OR DISBANDED BECAUSE THE NUMBERS DIDN’T COME OUT AS WELL THIS YEAR, THE EMPLOYEES GET THE MESSAGE: THE COMPANY WASN’T SERIOUS

ABOUT ETHICS —ONLY PROFITS. THAT MESSAGE ENGENDERS CYNICISM AND DESTROYS MORALE. IT LEADS TO A DISCONTENTED WORK FORCE AND AN UNHAPPY WORKPLACE. AND SOONER OR LATER IT HAS BOTTOM LINE IMPACT.

WE AT GUARDSMARK KNOW THAT ETHICS PROGRAMS POSITIVELY IMPACT THE BOTTOM LINE. OUR DOUBLE-DIGIT, COMPOUNDED ORGANIC GROWTH ON AN ANNUAL BASIS FOR TWENTY-FOUR CONSECUTIVE YEARS WITHOUT A SINGLE ACQUISITION COINCIDES CLOSELY WITH THE ADOPTION OF OUR FIRST CODE OF ETHICS AND FORMALIZATION OF OUR ETHICS PROGRAM. OUR FINANCIAL SUCCESS AND OUR ETHICS COMMITMENT ARE DIRECTLY RELATED TO EACH OTHER WE ARE PROUD OF THAT. OUR BUSINESS SUCCESS HAS OCCURRED DESPITE:
• WALKING AWAY FROM PROSPECTIVE CUSTOMERS WHO DIDN’T WANT WOMEN OR NON-WHITES WORKING AT THEIR ACCOUNTS, LONG BEFORE FEDERAL CIVIL RIGHTS LEGISLATION CAME ABOUT.
• TERMINATING CUSTOMERS THAT INSISTED ON UNNECESSARILY ARMED SECURITY WHEN WE REALIZED THAT THE RISK TO THE PUBLIC POSED BY WEAPONS FAR OUTWEIGHED ANY POSSIBLE BENEFIT. THAT MOVE COST US TEN PERCENT OF OUR BUSINESS AT A TIME WHEN OUR COMPANY WAS MUCH SMALLER THAN IT IS TODAY. BUT WE WON EDITORIAL PRAISE FROM THE NEW YORK TIMES FOR OUR LEADERSHIP IN TAKING THIS STAND.
• PRICING OUR SERVICES HIGHER SO WE CAN GIVE THE CUSTOMER A BETTER EDUCATED, BETTER PAID, HAPPIER SECURITY PROFESSIONAL WITH THE BEST BENEFITS PACKAGE IN OUR INDUSTRY. IN FACT, WE BELIEVE OUR BUSINESS SUCCESS HAS OCCURRED IN LARGE MEASURE BECAUSE OF THESE ACTIONS. GOOD ETHICS IS ALWAYS GOOD BUSINESS.

AT THE SAME TIME, POOR ETHICS IS NEVER GOOD BUSINESS. THIS TRUTH IS NOWHERE BETTER DEMONSTRATED THAN IN THE ENRON CASE.

ENRON HAD A CODE OF ETHICS BUT PROBABLY NOT AN ETHICAL CULTURE. TWICE IT WAIVED ITS CONFLICT OF INTEREST RULES. THIS ALLOWED CREATION OF SEPARATE PARTNERSHIPS TO ENGAGE IN SELF-DEALING WITH ENRON. THOSE PARTNERSHIPS ALSO HID ENRON’S ENORMOUS LOSSES. WHILE PROFESSING THE VALUES OF “COMMUNICATION” AND “INTEGRITY”,ENRON WITHHELD CRUCIAL FINANCIAL INFORMATION. IT URGED EMPLOYEES TO BUY ITS STOCK. MEANWHILE, ITS EXECUTIVES SOLD THEIRS, REAPING HUGE GAINS. THE EMPLOYEES NOW FACE FINANCIAL RUIN, THEIR RETIREMENT FUNDS AND SAVINGS GONE.

IF ENRON HAD AN ETHICAL CULTURE AND A STRONG SERIOUS ETHICS PROGRAM, THIS DEBACLE MIGHT HAVE BEEN A VOIDED. OR THE SITUATION MIGHT HAVE BEEN ADDRESSED AND REMEDIED BEFORE THE COMPANY WENT DOWN. IMAGINE: THOUSANDS OF LIVES SPARED DESTRUCTION. MILLIONS IN RETIREMENT FUNDS AND INVESTMENTS SAVED. MAYBE AN EXECUTIVE WHO TOOK HIS LIFE STILL WITH HIS FAMILY. AND THOSE WHO SUFFER SLEEPLESS NIGHTS, CONTRIBUTING INSTEAD PRODUCTIVE DAYS.

SADLY, ALL TOO OFTEN ORGANIZATIONS DO NOT THINK ABOUT CREATING AN ETHICAL CULTURE AND A MEANINGFUL ETHICS PROGRAM UNTIL A CRISIS OCCURS. THEY DO NOT LOOK UPON A CODE OF ETHICS AS A LIVING DOCUMENT. RATHER IT IS A PIECE OF PAPER RELEGATED TO A DUSTY SHELF OR TROTTED OUT FOR PUBLIC DISPLAY.

FOR AN ETHICS CODE TO BE EFFECTIVE IT HAS TO BE REAL. IT HAS TO HAVE SUPPORT AND CREDIBILITY AT ALL LEVELS OF THE ORGANIZATION. IT HAS TO BE BACKED BY A CULTURE THAT PROMOTES IT, MANAGEMENT THAT BELIEVES IN IT, AND A PROGRAM THAT SUSTAINS IT. OUR EXPERIENCES WITHIN GUARDSMARK AND AT UNITED WAY OF AMERICA ILLUSTRATE THIS POINT. WE CREATED OUR FIRST ETHICS CODE AT GUARDSMARK IN 1980. WE DIDN’T ESTABLISH THE CODE BECAUSE OF ANY EXTERNAL COMPULSION. WE DID IT BECAUSE WE WANTED EVERYONE TO BE ON THE SAME SHEET OF MUSIC. WE DID IT BECAUSE IT WAS THE RIGHT THING TO DO.

OVER THE YEARS THE CODE AND OUR ETHICS PROGRAM HAVE EVOLVED AS OUR COMPANY HAS GROWN. ONE OF THE THINGS WE’VE LEARNED IS THAT TOPSIDE COMMITMENT IS ONLY THE BEGINNING. FOR AN ETHICS CODE TO HAVE ONGOING SUPPORT THROUGHOUT THE COMPANY THERE MUST BE BOTTOM-UP INVOLVEMENT, ALL-INCLUSIVE PARTICIPATION AND ANNUAL REVIEW. AT GUARDSMARK, OUR CODE OF ETHICS HAS A SUNSET CLAUSE, MANDATING ITS ANNUAL RENEWAL. THIS PROCESS KEEPS THE CODE FRESH AND DYNAMIC — A LIVING DOCUMENT.

WE SOLICIT THE INPUT OF ALL OUR EMPLOYEES EVERY YEAR FOR CHANGES TO THE CODE. THE IDEAS, SUGGESTIONS AND COMMENTS COME TO OUR ETHICS COMMITTEE, WHICH REVIEWS THEM AND RECOMMENDS A SLATE OF REVISIONS. EACH RECOMMENDATION IS DISCUSSED AND WE VOTE ON EVERY ITEM. WE PRODUCE A CODE REFLECTING THE BEST OF THAT YEAR’S SUGGESTIONS.

WE PRESENT THE RECOMMENDED CODE AT THE END OF OUR ANNUAL COMPANY AWARD CEREMONIES ATTENDED BY REPRESENTATIVES OF MANAGEMENT AS WELL AS HOURLY EMPLOYEES. FORMAL ADOPTION AND SIGNING OF THE NEW ETHICS CODE BY ALL ATTENDEES CONCLUDES THOSE CEREMONIES. MY SIGNATURE IS THE FIRST TO APPEAR ON THE DOCUMENT EVERY YEAR.

WHY DO WE DO THIS? TO DEMONSTRATE THAT OUR BUSINESS SUCCESS AND OUR ETHICAL COMMITMENT ARE INDIVISIBLE AND THAT THE CODE APPLIES TO EVERYONE IN THE COMPANY WITHOUT EXCEPTION.

THAT DYNAMIC PROCESS WORKS. EACH YEAR WE IMPROVE THE CODE. AND EACH YEAR WE HAVE SEEN INCREASED EMPLOYEE PARTICIPATION. IN OUR 2001 REVISION, 439 GUARDSMARK TEAM MEMBERS PARTICIPATED, ABOUT TWO AND A HALF PERCENT OF OUR WORKFORCE. THAT’S A RECORD WE’RE PROUD OF — AND HOPE TO BETTER THIS YEAR.

OF THOSE 439 TEAM MEMBERS, 288 WERE HOURLY EMPLOYEES — SECURITY OFFICERS AND FIELD SUPERVISORS. THAT FACT GIVES US SPECIAL PRIDE. IT MEANS PARTICIPATION, BUY-IN, OWNERSHIP — NOT ONLY FROM THE CHIEF EXECUTIVE OFFICER AND CORPORATE STAFF BUT FROM THOSE WHO PERFORM OUR SERVICES DAILY, ON THE FRONT LINES OF ETHICAL DILEMMAS, DEALING WITH CUSTOMERS, MANAGING A SITE, RESPONDING TO EMERGENCIES. THE CODE MUST MEET THEIR NEEDS.

WE PUBLISH THE CODE IN MANY PLACES. IT APPEARS IN OUR EMPLOYMENT APPLICATION WHERE EVERY PERSON APPLYING FOR A JOB WITH GUARDSMARK SIGNS IT. IT IS PUBLISHED AS A STAND- ALONE POLICY, IN OUR ORIENTATION HANDBOOK, IN EDUCATIONAL MANUALS, ON FREE STANDING PLACARDS IN ALL OF OUR OFFICES, AND AS A SIX FOOT HIGH POSTER IN THE LOBBY OF OUR COMPANY HEADQUARTERS. EVERY EMPLOYEE, VISITOR AND VENDOR UNDERSTANDS THE IMPORTANCE OF THESE VALUES TO OUR COMPANY.

TO MAKE THE CODE ACCESSIBLE TO EACH TEAM MEMBER, WE PUBLISH OUR TOLL-FREE NUMBER AND THE NAMES OF OUR ETHICS COMMITTEE MEMBERS IN BOLD AS PART OF THE CODE. ANYONE IN OUR COMPANY CAN CALL A COMMITTEE MEMBER WITH AN ETHICS QUESTION OR CONCERN. WE TAKE THOSE CALLS SERIOUSLY AND WE INVESTIGATE ISSUES RIGHT AWAY. WE TRY HARD TO ENSURE FAIRNESS IN OUR WORKPLACES.

WE EMPLOYED THE SAME BOTTOM-UP PROCESS IN DEVELOPING THE CODE OF ETHICS FOR UNITED WAY OF AMERICA AFTER THE DIFFICULTIES UNITED WAY SUSTAINED IN THE EARLY 1990s. IN MY SERVICE AS THE FIRST CHAIRMAN OF THE ETHICS COMMITTEE OF THE BOARD OF GOVERNORS, WE WENT TO THE EMPLOYEES AND ASKED FOR THEIR INPUT AND SUPPORT. THIS WAS NOT EASY. SOME OF THE STAFF FELT THEY WERE BEING SCRUTINIZED INSTEAD OF THE ORGANIZATION. BUT OVER TIME AND THROUGH ANNUAL REVISION, THE CODE WON WIDE ACCEPTANCE WITHIN UNITED WAY AND WAS ADOPTED BY MANY LOCAL UNITED WAYS. IT BECAME A MODEL FOR OTHER NON-PROFITS WHO WANTED TO DEVELOP CODES OF ETHICS. IT HELPED RESTORE PUBLIC CREDIBILITY TO UNITED WAY.

THE VALUE OF ONGOING REVIEW AND UPDATING OF ETHICS POLICIES CANNOT BE UNDERESTIMATED. GOOD ETHICS CODES ARE ALWAYS WORKS IN PROGRESS. THIS TRUTH IS ILLUSTRATED BY THE CURRENT INVESTMENT BANKING SCANDAL. AS ONE OF THE NATION’S LEADING NEWSPAPERS POINTED OUT LAST WEEK, RE-ESTABLISHING THE WALL THAT IS SUPPOSED TO SEPARATE INVESTMENT BANKERS AND RESEARCH ANALYSTS WILL TAKE MORE THAN THE $100 MILLION FINE MERRILL LYNCH AGREED TO PAY. ALREADY SOLOMON SMITH BARNEY HAS ADOPTED REFORMS OF ITS CONFLICT OF INTEREST RULES LIKE THOSE MERRILL LYNCH ACCEPTED.

SUPPOSE THESE FIRMS TOOK A HARD LOOK AT THEIR ETHICS POLICIES EVERY YEAR TO SEE HOW THEY COULD BE IMPROVED. DO YOU THINK IT’S POSSIBLE THESE PROBLEMS WOULD HAVE BEEN ACTED UPON BEFORE THIS SCANDAL BROKE? PERHAPS EARLIER REFORMS COULD HAVE PREVENTED PROSECUTION. INSTEAD WE HAVE A CRISIS THAT MAY IMPACT THE INTEGRITY OF FINANCIAL INSTITUTIONS ON WHICH OUR ECONOMY DEPENDS.

ENRON AND THE BANKING SCANDAL HAVE SHOWN THAT OUR CAPITALIST SYSTEM, STRONG AS IT IS, RESTS ON THE PRECIOUS, FRAGILE INTANGIBLES OF TRUST AND CONFIDENCE. EVERY AMERICAN BUSINESS — EVERY ORGANIZATION — IS A STEWARD OF OUR SYSTEM. ALL OF US WHO RELY UPON IT FOR OUR VERY WAY OF LIFE HAVE AN OBLIGATION TO SUSTAIN IT AND NOT TO HARM IT.

THIS APPLIES TO EVERY ASPECT OF BUSINESS. IT INVOLVES NOT ONLY RELATIONS BETWEEN A COMPANY AND ITS EMPLOYEES BUT RELATIONS BETWEEN BUSINESSES. WE PROPERLY FOCUS ON EMPLOYEE ISSUES BECAUSE OUR EMPLOYEES ARE OUR LIFEBLOOD. BUT LET US NOT FORGET THAT OVERREACHING BY ONE BUSINESS AGAINST ANOTHER IS ALSO WRONG. IT IS NOT GOOD STEWARDSHIP OF OUR SYSTEM.

ASK YOURSELF, FOR EXAMPLE: IS IT ETHICAL FOR A CUSTOMER TO ABSOLVE ITSELF OF RESPONSIBILITY FOR ITS OWN NEGLIGENCE BY EXPECTING A VENDOR TO PAY WHEN THE VENDOR’S EMPLOYEE IS INJURED THROUGH THE CUSTOMER’S FAULT? IS IT FAIR TO ASK THE VENDOR TO WAIVE SUBROGATION RIGHTS? IS IT PROPER TO DEMAND TO BE NAMED AS AN INSURED ON THE VENDOR’S POLICY AS A HEDGE AGAINST THE CUSTOMER’S OWN POOR SAFETY PRACTICES? WE HAVE ENCOUNTERED SUCH SITUATIONS. OUR CODE OF ETHICS REQUIRES THAT WE PRICE OUR SERVICES CONSISTENTLY AND FAIRLY AND THAT WE ACT RESPONSIBLY IN OUR BUSINESS RELATIONSHIPS. ISN’T IT ONLY FAIR THAT WE ALL ABIDE BY THOSE SIMPLE PRECEPTS? DOESN’T IT HURT ALL OF US WHEN ONLY SOME OF US DO SO? ETHICS MUST BE AT THE CORE OF OUR DEMOCRACY AND OUR INSTITUTIONS. THE DESPICABLE ATTACKS OF SEPTEMBER 11 REFLECTED A FALSE VIEW OF AMERICA AS A RAPACIOUS SOCIETY – ONE WITHOUT VIRTUE. WE AS AMERICANS KNOW HOW ABSURD THAT VIEW IS. BUT UNETHICAL BUSINESS PRACTICES AND SCANDALS LIKE ENRON FEED THAT UGLY FALSEHOOD. IT IS UP TO EACH OF US TO DO OUR PART TO DISCREDIT IT. ETHICS MUST BE THE OBLIGATION OF EACH CITIZEN AND EACH ORGANIZATION. EVERY ETHICAL ACTION WE TAKE IS NOW AN ACT OF PATRIOTISM.

WE NEED A NATIONAL CALL TO ACTION FOR ETHICS. ETHICS SHOULD BE TAUGHT IN EVERY SCHOOL, STARTING AT LEAST WITH JUNIOR HIGH. IT SHOULD BE AT THE TOP OF EVERY BUSINESS SCHOOL CURRICULUM. IT SHOULD OCCUPY A LEADING ROLE IN EVERY COMPANY, EVERY INSTITUTION, EVERY GOVERNMENT AGENCY, EVERY NON-PROFIT, EVERY CLUB. THE CALL TO ACTION SHOULD BEGIN WITH EACH OF US. ASK A FRIEND IF HIS OR HER COMPANY HAS AN ETHICS PROGRAM. IF THE ANSWER IS “NO”, URGE THAT FRIEND TO HAVE THE COMPANY ESTABLISH ONE. LET ALL OF US ACT TO IMPROVE OUR OWN PROGRAMS – ON AN ONGOING BASIS. THIS IS A MATTER OF THE UTMOST URGENCY. OUR COMMITMENT TO THIS MISSION WILL STRENGTHEN OUR ORGANIZATIONS AND OUR DEMOCRACY. THANK YOU FOR MAKING ETHICS PROMINENT AND VISIBLE. THE AMERICAN BUSINESS ETHICS AWARD HAS NEVER MEANT AS MUCH AS IT DOES TODAY. WE CONGRATULATE THE WINNERS AND SALUTE ALL OF YOU.

THANK YOU.