To Tell The Truth - Barry Bonds - Ethical Choices and Consequences

So just how important is it to tell the truth?

As a motivational speaker, I was recently speaking to a group of high school students about the importance of telling the truth and making the right choices. What qualified me to make this presentation - personal experience…perhaps one of the best teachers in life. Having spent time in Federal prison for making unethical decisions, I know first hand the impact that choices have in our life. I am not proud of those decisions, but, likewise, refuse to hide the fact that I made them and that the impact they had on my life were - well - life changing.

As reported in the Wall Street Journal law blog, MLB’s home run hitter Barry Bonds has been indicted for - well simply put - “lying!” http://blogs.wsj.com/law/

The post in the WSJ Blog states: “Bonds joins a line of individuals stretching from Alger Hiss to Martha Stewart to Scooter Libby to who were indicted not for commiting an underlying crime, but for lying to investigators. Each time this happens, critics argue that a perjury prosecution is nothing more than an excuse for overzealous prosecutors to bring a headline-grabbing case against a boldfaced name. On the other hand, in pursuing such well-known figures, the feds hope to send a message to the meek and mighty alike: Don’t lie.”

I couldn’t agree more. Whether Bonds is convicted like Martha Stewart or not…the fact remains that the consequences of lying can have dramatic, life-changing effects. Take it from one who knows, “Club Fed” isn’t all it’s cracked up to be. It’s prison and no one I know wants to be there.

I routinely speak to business groups and associations on ethics, choices, consequences and their total effect. Every choice has a consequence - and the sooner we recognize that telling the truth is a choice the quicker we control the type of consequences we face. I personally perfer ”positive results” from the choices I make.

What about you? Comments?

Barry Bonds Image from the Wall Street Journal Law Blog

There's No Such Thing As Business Ethics - Yea Right!

I’ve heard that statement, “There’s no such thing as business ethics!” said way too many times. The arguement is that businesses don’t have ethics - people do. Therefore, there is no such thing as business ethics.

As a motivational speaker addressing corporations and associations on business ethics from coast to coast - my response is - Bull!

If that is true (there is no such thing as business ethics) then the appeal by Enron CEO Jeffrey Skilling of his 24+ year prison sentence is doomed. Seems that Skilling and his legal team are relying (in part) on the Fifth Circuit’s decision in U.S. v. Brown that limited the “right of honest services” theory when the defendant believes he or she is acting in the corporation’s best interest as defined by management. In simple terms, if the corporate employee is acting in the corporations best interest or under the direction of management, then they can’t be guilt of “fraud”.

According the the White Collar Crime Prof Blog (http://lawprofessors.typepad.com/whitecollarcrime_blog/) ”The government argues that Brown does not apply because it is limited to lower-level employees and not a CEO who it describes as the leader of the fraud. The problem with that argument, however, is that Brown does not seem to create a “CEO exception” to its analysis of the applicability of honest services fraud theory in a private setting in which the company is the victim of the fraud.”

There are numerous legal issues at play and not the prime subject of this blog. Rather, in laymans terms…Skilling was found guilty of (simply put) unethical conduct - fraud, consispracy, etc. Skilling was guilty because, as CEO, he acted in a manner that was unethical and costly to those who placed there confidence in he and Enron senior management.

Personal ethics only…? No such thing as business ethics?

Simply stated, looking at the complex legal arguements in Skilling’s appeal and the governments response - the arguement seems to strongly indicate that businesses have a legal existence and “soul.” If I’m acting at the direction of management then the “honest services fraud theory” would apply. Business ethics 101 as far as I can see.

After each Business Ethics keynote speech I give…there is at least one who just has to say that business ethics doesn’t exist. I do understand where they are coming from. Yet, most every business I encounter has a culture - a spirit if you will. And, that spirit, soul or corporate culture is the foundation of that enterprises - business ethics.

Not only is there business ethics - but it is now, as best as I can see, becoming part of legal defense against fraud, etc.

Interesting. Your opinion?

Ministry Accountability - What Do Benny Hinn, Kenneth Copeland and Eddie Long Have In Common?

In an age of increased corporate accountability under the Sarbanes-Oxley rules, it seems that Senator Chuck Grassley, ranking member of the p0werful Senate Finance Committee, is seeking detailed information from six major ministries concerning the application and use of their members contributions.

From his news release on November 6th the following is stated: “Grassley has reviewed a wide range of non-profit issues over the last five years, first as Finance Committee chairman and now as ranking member. The committee has exclusive Senate jurisdiction over federal tax policy, including the policy governing the billions of dollars donated to and controlled by the nation’s tax-exempt groups.”

He goes further to say, “I’m following up on complaints from the public and news coverage regarding certain practices at six ministries,” Grassley said. “The allegations involve governing boards that aren’t independent and allow generous salaries and housing allowances and amenities such as private jets and Rolls Royces. I don’t want to conclude that there’s a problem, but I have an obligation to donors and the taxpayers to find out more. People who donated should have their money spent as intended and in adherence with the tax code.”

What do you think about Senator Grassley’s request? Do you feel that prosperity enjoyed by church leaders is unethical? Should the Government be involved in the affairs of the Church? Are these individuals being singled out or is there a broader issue at play?

Every choice has a consequence. Is it possible that opulent prosperity can go too far?
To read the news release see:

http://www.senate.gov/~finance/press/Gpress/2007/prg110607.pdf

What do you think?

Working and Ethics in America

From a recent blog I read I share the following and ask you to comment on your perception of “work ethics”:

I recently read a newspaper article on attitudes towards work.

America: The more you worked, the more you billed, and more the profit you generated for yourself and your company.

France: The fewer hours you work, the more vacation you take, more the time you get to grumble about the state of the universe, and smarter you feel.

Australia: On Mondays, they would talk on how they enjoyed the just-ended weekend; on Thursdays, the talk would be on what one would do on the coming weekend; on Friday afternoons they would not be any talk as they are already driving off to the nearest beach or hill ranges.

Urban India: When I meet software professionals, I see that the talk is like as in America – billings and profits. While attitudes of work are seen in some other areas of businesses, most others exude a chalta hai attitude; anything will do; performance and good work be damned !

The question for this blog is not about other countries, but more about what you think.

What does “work ethics” mean to you?

Is it more “ethically” sound to achieve your personal goals or to achieve the goals of the employer?

Is it possible to meet both?

Has the strong focus on business performance in America helped or hurt our country?

Feel free to respond- the commentary should be interesting!

Earnings Pressure - Business Ethics - Consequences

According to the US Attorney for the Southern District of NY - Paul Humphreys, former CFO for Safety-Kleen, was sentenced to 70 months in prison for securities and bank fraud.

It seems that Mr. Humphreys was convicted for his role in manipulating Safety-Kleen’s financial statements. The indictment alleges that this was a fraud designed to help Safety-Kleen meet earnings targets projected for the completion of a merger with Rollins Environmental Services.

“Approximately eight to ten business days following the close of each quarter, senior management held operations conference calls with representatives of various field offices to discuss the quarterly results and compare them with budgeted and/or prior year results. Thereafter, HUMPHREYS met with one or more co-conspirators, informed them of a higher “target” earnings number which HUMPHREYS wanted the company to publicly report.”

70 months!

He’ll serve a 60 month active sentence in Federal Prison - almost 10% of his life will be spent there. And all done in order to make a company meet projections. Wonder if today he would say that was a good investment of his time and energy?

As a motivational speaker on Business Ethics I hear people say so often, “There’s no such thing as business ethics.” Frankly I want to look them in the eye and ask them what planet they’re from. “No. NO,” they’ll say. “People have ethics not businesses.”

Well that’s true. People do have ethics. But, I’ll submit to anyone reading that most people are, in fact, ethical. We know right from wrong and how to apply ethical principles. Yet, I went to prison. (Not something that I’m proud of, but a fact none-the-less). I was not inherently unethical. And, I would bet neither was Mr. Humphreys. Rather, we both fell into similar traps. We had a need. We had an opportunity. And we could rationalize our behavior. Perfect circumstances for bad choices and even worse consequences.

Every choice has a consequence! Mr. Humphreys is soon to experience the continuation of his - and he won’t like it - not one little bit.

I speak to groups all over the US about business ethics - choices and consequences. I know first hand what Mr. Humphrey’s will face. I also know how to break the chains that can bid us.
What prison are you in? How have your choices brought about life changing consequences? And what do you think about business ethics?

Choices, Consequences, Humor (?) and E-mail

There are some folks you just can please. Makes no difference what you do or how you do it, it seems you just can win. And those are often the folks that provide the greatest lesson. Often those are lessons we need but least desire!

Take for example a customer I recently had the opportunity to work with. Seems that nothing the folks in our sales and service department did, could provide satisfaction. Every time I would hear this customers name I kept hearing in my head the old Rolling Stones song, “I can’t get no satisfaction!”

No one could please him and as one might expect…the less he was satisfied the more he wanted to take his request to higher authorities. Well the buck’s gotta stop with someone…and in this case it was me. So I did what any good sales executive would do…I listened - and listened - and listened. And no matter what solutions were offered - it wasn’t good enough.

Demanding - probably a minor understatement, but at least the communication was via e-mail (at least most of it). I was the conduit between our customer and our supplier and it seemed with the completion of each request - more demands were made. Either I couldn’t give him what he wanted when he wanted it or the supplier could get his requests done correctly or timely enough.

The frustration was increasing with each passing day. More importantly, I thought, I’m spending way to much time on someone who doesn’t seem to appreciate my service or effort. And more demands!

Lesson: Watch what you put in an e-mail - because Every choice has a consequence!

I was frustrated with the customer, he with me and the supplier with both - and yet the supplier still hadn’t complied with the customer’s last request.

So out of a moment of anguish…I e-mailed the supplier and stated the following:

Guys…I know it seems I’m bugging you, but this guy (referring to the customer) would drive Jesus crazy. Can you please send me what he’s requested so I can get him off my back?

You have no idea how happy I was to find an e-mail in my in box with the customers request met from the supplier. “Finally!” I thought. “Now I can get him off my back!” And then I did what seemed to make perfect sense at the time.

Any readers want to guess what that might have been? What choice did ole Chuck make? Yep, you’re right - I forwarded the response to the customer. I was so pleased to provide him what he wanted…I just sent the response forward.

Think about it. Absorb it. Let it really sink in. Then please…feel complete permission to laugh. Although, I can assure you it was no laughing matter.

Keep in mind, every choice has a consequence.

As I traveled home that day I was alerted to a message on my cell phone. Not being able to take the call when it came in…I retrieved the message only to find my entire demeanor change.

“This is (name deleted to protect the innocent customer) and, Mr. Gallagher, I wanted to call and let you know that I just got off the phone with your boss explaining to him my dissatisfaction with the service I’ve received - especially your comment that I would ‘drive Jesus crazy’!”

The rest of the story - well that isn’t relevant to this blog. What is relevant is the use of e-mail and the consequences that can follow from unintended thoughts sealed in fate when you hit the “send” button. In the White Collar Crime Prof Blog the following is stated: “The ’send’ button — together with its evil cousins, ‘forward’ and ‘reply all’ — are causing a world of trouble for corporations as they connect to evidence in legal proceedings and create a new mess for in-house lawyers to clean up.”

Fortunately, for all involved, my mess was cleaned up by profuse apologies and extraordinary service to follow. It was not a legal issue, but e-mails certainly can be.

Issues related to frustration with employees can rear their ugly head in a wrongful dismissal suit. Or, e-mails between employees who (for a time) are fond with each other can become the foundation for a sexual harassment suit. Name it and an e-mail can be either wonderful evidence to prove an issue or become a disaster upon discovery.

Morale to the story: Keep your personal thoughts personal…cause anything you say can and will be used against you in a court of law. Don’t forget - Every Choice Has A Consequence.

Genarlow Wilson - Choices and Consequences!

Every CHOICE has a consequence! Just ask Genarlow Wilson. Freed on October 26, 2007 after spending more than two years in Georgia State prison for a teen sex conviction, Genarlow became a "lighting rod" for Choices, Change and Consequences on many fronts.

According to CNN, "Wilson was an honor student, a football star and his high school's homecoming king before his conviction. At the time of Wilson's conviction, Georgia law made the crime punishable by 10 years in prison. Changes in the law made such conduct "punishable by no more than a year in prison and no sex offender registration," the Georgia high court noted. But those changes were not made retroactive, so they did not apply to Wilson."

But, beyond the inequity of Genarlow's sentence, a larger question exists: What will Genarlow Wilson do to benefit others from his experience?

Genarlow stated upon release, "I got a new life."

Certainly, his sentence and incarceration has caused a law to be changed in Georgia. One could say that is good. But beyond that, Genarlow is an example of a simple, yet profound, principle: Every choice has a consequence.

As a motivational keynote speaker, I make presentations to young people frequently about Choices and their consequences. The responses I receive are sometimes troubling.

The formal part of the presentation I was making to young people at a high school had just finished, when I asked the group if they had any questions. One girl lifted her hand nervously and then asked, “What did your children think about their daddy going to prison?” That question caused me to pause. The consequences of my choices were devastating. My marriage was destroyed. My career was over. My assets were gone. Facing prison – well that was rock bottom. The “somebody” that I was once known as had changed to being the “somebody” that few wanted to know. All that said, the one thing that did survive, by the grace of God, was the love of my two sons. They were both old enough to understand what I had done and what was happening. And, I made a commitment that I would tell them the whole truth. I may have made serious mistakes, but I was not a mistake and had no intention to continue that process. If any good would come from this, my sons would understand that every choice has a consequence. I was living proof.

As soon as I finished my answer, out of the back of the room a young man blurted out, “You're not dishonest, if you don’t get caught!”

I was stunned.

As a motivational speaker and founder of the Choices Foundation, a non-profit organization dedicated to bringing the message of choices and consequences to young people, I had just finished a presentation that clearly and unequivocally said there is a consequence. Wobbled, stunned, I’m not really sure what I felt. What I do recall is the reaction that I saw and heard from the kids. A few looked shocked by this young man’s statement – a look of disbelief at what they had just heard. Others, although a small number, just giggled. It was as if this small, yet vocal, minority were testing me and the message I had just delivered. One thing was for sure, there was silence that followed as the group awaited a response.

The opinion that this young man had the courage to share is not that uncommon among adult audiences. The only difference is – they don’t state it out loud – they demonstrate it through their actions. And, since every choice has a consequence, they will reap what they sow. It’s the law of reciprocity in action – a universal law that we all must live by – and one many think does not exist.

No one is exempt from the law and the law does not discriminate based on age. Yet, young people are often misguided into believing that they can get by without getting caught. In fact, recent studies, concerning the ethical attitudes of youth, indicates that the majority of young people would make unethical choices if they felt they could “get ahead” as a result. Success at all costs seems to be a common theme.

As former inmate from Federal prison, today I share with business executives and young people that simple message: Every choice has a consequence.

I am pleased beyond belief that Genarlow is now getting the taste of freedom again. Genarlow's plight, has helped other young people evaluate the power of their seemingly simple choices. As the founder of the Choices Foundation, perhaps Genarlow would consider stepping up and helping others understand the power of choice.

After all...Every Choice has a Consequence.