Fast Talk

"Power corrupts; absolute power corrupts absolutely" -- actually I think the original quotation was: "Power tends to corrupt, and absolute power corrupts absolutely. Great men are almost always bad men." Lord Acton (1887)

If you mean great leaders, like Hitler, Stalin and Chairman Mao, history provides the answer to your question. Unethical behavior, in which people deliberately intend to harm themselves or others, springs from, and is reinforced by, destructive and painful mind states such as fear, greed, anger and jealously. Ethical behavior, on the other hand, enhances the well-being of everyone because it comes from, and reinforces, motives and emotions such as love, joy, generosity and compassion. Ethical cultures are the result of diligent effort--frequent conversations between leaders and employees about what's expected business ethical behavior. Of 462 executives who were asked, "What characteristics are needed to be an effective leader today?" 56 percent ranked ethical behavior as an important characteristic, followed by sound judgment (51%) and being adaptable/flexible (47%).---Source: American Management Association, New York, NY How ethically vulnerable is your organization? Just go around and ask people what the core values are that define your company. You may be surprised at the variety of the answers. As a leader, you have to set the standard yourself, constantly keeping your actions above reproach. Talk through hypothetical scenarios with the staff so that they'll know what to do when they come up against an ethical dilemma and you're not around. Knowing what is right is absolutely critical to personal and business ethics. Yet, ethics only happen when good beliefs lead to good behaviors. Without the action part, all you have are good intentions.

Because they feel they deserve it (money, travel, perks, etc). I believe that those leaders should start their own company, and not fool around with a public company - if they want all the perks. Bill Covert www.billcovert.com

Truly great business leaders are not corrupt. "Apparently great" business leaders may be, and these days, too often are. Why? Because during their growing-up years, they were subjected to "entertainment" messages such as that of The Simpsons and Beavis and Butthead, wherein loser attitudes are promoted, not decried. They were subjected to Gerald Ford pardoning Richard Nixon instead of letting get what he had coming and so richly deserved. In short, honor and honesty became concepts but not lifestyles, so today we see so much corruption among the supposed leadership. I know this because I am a contemporary of several of them and I have steadfastly refused to "go along to get along". If that means honr before millions of dollars in the bank, then it does. I notice I'm not starving, AND I can look myself in the eye anytime. They can't..

I find it interesting that you use the terminology "great leaders" to describe industry titans who have been found guilty of corruption. When I think of a great leader I think of people who have taken their companies or organizations to new heights of profitability, innovation or direction; e.g. Steve Jobs at Apple, Elizabeth Dole when she was a the Red Cross, Bill Gates of Microsoft, Sergi & Brin with Google, Michael Bloomberg of his namesake. These are people where the lexicon of great leader should be applied. Where as Conrad Black formerly of Hollinger International, Dennis Kozlowski formerly of Tyco, Kenneth Lay formerly of Enron and others like them are mere embarrassments of themselves, their companies and stockholders.

When great leaders forget that leadership is fundamentally servitude to a greater constituency, they tend to assume they're entitled to reward themselves at the cost of the constituents.

"With power comes great responsibility." Spider Man I would counter the proposed question by submitting that it is not "great" business leaders whom are found guilty of corruption but the ones on the low end of the evolutionary scale-these immature people do not grasp the meaning of social or moral responsibility. They are more interested in hoarding all the toys no matter the cost. Kim/avenstar.net

Because we have come to the intersection point of greed and loss of separate-from-the-company identity. These executives derail themselves and their companies because they come to think of it as "their" company, not ours. Combine that with insatiable hunger for growth-at-any-cost and you get......guilty.

current challenges facing project managers; challenges which have always posed problems for project managers

It is the drive to succeed at all costs which distorts a leader's moral and truthful existence. The urge to cut corners is a bedeviling quagmire which can lead to a spiral of continued misdeeds until the truth is finally revealed. The many contributing factors are elegantly described in David Callahan's 2004 book "Why More Americans are Doing Wrong to Get Ahead." Our society has been so perverted that success is generously rewarded and admired even when it is known that foul play was employed to achieve it. Many of the 'watchdpgs" have been held back or eliminated; the SEC enforcement arm has lost funding and support... white collar criminals often beat the rap, pay fines and move on. Some do go to jail...

You try getting 20% ROI without breaking the law!

They succumb to temptation. It may come in the form of one of the seven deadly sins such as greed, or it may come in the form of a Tom Sawyer lie. There is so much pressure to inflate results that they participate in commission or omission.

When the competition gets away with corruption and wins it may be the only way you can avoid being wiped out. That is one reason why.

It's a challenge to continually balance the demands of a "for profit" environment with ideals that do not always serve the life of the business. You have to step out of your leadership role to "self correct" and avoid corrupting influences. It's not always an easy move to make. You have to "feed the beast" first, and appease the masses second. What seems corrupt and outrageous usually happens slowly and by increments. Each small move away from an ethical stance, in itself, does not seem so corrupt to the person doing it.

I think it was J.C. Watts (or perhaps he was quoting someone) that said: "A person's character is determined by the things he does when no one is watching." I agree with that statement. I would add that any leader that is so corrupt, is of so poor character that they shouldn't be considered great, or a leader at all -- just someone who happened to be in a position of power and control. The reasons for corruption are undoubtedly many, but one would have to be a lack of good strong role models -- which creates a vicious circle, one in which our society currently seems to be caught up. Many of those who have been found guilty of corruption, probably started out with good intentions -- but, as is often said, power corrupts -- and rising to power leaves even the best of people vulnerable to the corrupting influence of power. So, good intentions aren't enough; having a strong sense of what is right, is essential. And hewing closely to that moral sense, is elemental. Could it be that a certain amount of sociopathy is required to rise to such levels of power and control? I would hate to think so, but maybe it is.

Engaging in straight talk with those who lead Corporate America is a rare occurrence. C-level executives tend to be isolated from their corporate stakeholders because most of the information they receive is filtered by subordinates, suppliers, and consultants. "CEO disease" is a term used to describe the isolation that envelops a leader when subordinates become reluctant to disclose bad news or worst-case scenarios that might trigger a shoot-the-messenger response. There is an old Yiddish proverb that applies to every organizational leader: "The fish always sinks at the head." Most leaders with CEO Disease don't recognize the smell that he or she is spreading throughout the organization. To cure this disease, be sure to put on your bullet-proof vest before passing along this prescription to your CEO and the head of HR where you work.

There are three reasons why so many great business leaders are found guilty of corruption and these are Ego, Ego and Ego. Bottom Line? Leader who are found guilty of corruption are individuals whose egos have run amok. They are self-righteous and arrogant, which goes hand-in-hand with making self-serving decisions that are great for them but not that great for others and the organization. Leaders who do not know when their egos need to be reigned in and managed are extremely dangerous to any team or organization. These kind of leaders are a liability. On a daily basis ego-driven leaders represent an operating cost that research estimates to be between six and 15% of annual revenue; 63% of businesspeople say that ego negatively impacts work performance on an hourly or daily basis. And then there is the danger of corruption because ego-driven leaders have a sense of entitlement that has nothing to do with reality. Their ego is capable of telling them lies and offering them rationalizations as to why what they are doing is okay. Every one of us has ego. It is not a bad thing as long as we recognize how it shows up for us, when it shows up for us and how to keep it in check. The question is, why do some leaders have such huge and unmanaged egos. The answer may surprise you. The people with the strongest egos are those with the greatest insecurities, who have the least authentic self-assurance and who have little true self-confidence. This is why they need their ego to defend and protect them. The problem is that everyone – including the leader – believes that having a big ego means being confident and self-assured. They do not know that this is pseudo confidence played out by the ego; and that this pseudo confidence causes them to be driven by fear and greed. True self confidence and self-assurance is the product of our Spirited Self, which is the part of us that is completely authentic, courageous and humble. When we are spirited, we are who we are, and will not need the ego to protect us. Spirited leaders will not be capable of corruption. There are ways in which companies protect themselves from this? First – recruit and retain leaders who know how to manage their ego. There is an assessment that can help you know this. Second you can identify the leaders whose egos are a liability and provide leadership development and coaching to manage ego and liberate their true spirit of integrity.

In one of my favorite books, "Fooled By Randomness" the author makes a sharp observation that "leaders" simply tend to be non-blinking sociopaths that are self-confident, and insensitive whose main talent is influencing people. Car salesman can influence people, but it doesn't make them leaders, and simply gravitating to the top of a corporate ladder doesn't make a person a great business leader. Great business leaders are most often found in small businesses where the goal is not an insanely handsome golden parachute, but the immediate success of a focused business in a competitive market (local/regional or what have you). As it is, the media tends to judge a business leader on their ability to influence them - the media - along with financial analysts and the like, and hopefully their stock price in the short term. It should also be noted that this website is part of that media, and is maintained, not by business people but by journalists waiting for their shot at the NY Times. Hence the context of questions like this.

Ego, greed and too much self confidence can bring out the very worst in people in any level of an organization. People are capable of behaving in a dishonest manner to protect their ego which is fueled by self confidence that makes them beleive that they cannot or will not be caught. You see it in all areas of business, from the retail sales floor to the CEO's office, the only difference as mentioned previously is the media attention is not quite the same for a kid making minimum wage on a shop floor.

In all activities in the world exist bad people,unfortunately is part of human race.

Business leaders who are corrupt are not great leaders. Today there is so much pressure from stockholders or customers to earn a profit that business leaders feel they must do what is necessary to achieve it. Customers must insist on integrity in all business dealings and communicate that to a company. If this is done business leaders would not find it in their best interest to be corrupt in their business dealings. A company who displays integrity in their business dealings are more profitable than those who are not. Companies with corrupt leaders when they are discovered lose customers and have reduced profit. Those companies who operate with integrity and it is communicated in everything they do they will be rewarded with increased customers who are happy. Happy customers tell their friends.

Who won the "Customers First" award?

The sure sign that a country is on the outs is when its leadership is corrupt, caught in lascivious activities and disregards the populace. I suggest everyone read "Where Have All the Leaders Gone?" by Lee Iacocca Many believe they have come to power because the are brilliant. What they forget, is it took others to vote them there.

The ability to knowlingly commit a dishonest or unethical act and rely on an anticipated legal defense to "make it all good in the end" is an idication of dishonesty. The boards of directors and other members of management that choose not to speak out are equally to blame. Together, they create the evironment where a dishonest and/or unethical director can operate. Unfortunately, these companies will only police themselves when huge monetary fines may result from illegal actions.

This brings to mind a perceptive thought from Lord John Emerich Edward Dalberg Acton, first Baron Acton (1834–1902): "Power tends to corrupt, and absolute power corrupts absolutely. Great men are almost always bad men."

Sounds like you have struck a nerve with the reading audience! Clash of the (Values) Titans, all over again. I wonder whether corruption could ever be good, as being corrupted with character, honesty, and integrity. I am always in awe of those who seem to be characterized as great (whatever that means) in business and usually it means they've had their hands in the till too many times! They get corrupted with greed (which is good, according to Michael Douglas's character in "Wall Street") and yet so we love their meteoric rise to greatness. So what does that say about Bill and Melinda Gates, Warren Buffet, and those on the Forbes Top Ten List? Corrupt? Maybe. Great business leaders? Absolutely. Pehaps it may be in the way we characterize great business leaders that we find them guilty of corruption. No one would dare accuse or allege our President and Vice President of corruption. Does that mean they were not great business leaders? My point is this - if you are going on a witch hunt, you'll find a witch. I wonder whether I could pose the question differently and discover some parallel answers. Why is it that so many great business leaders are also great philanthropists? Sound off readers, this is your chance.

Why are so many great business leaders also great philanthropists?

Jay Tatum - No one would dare accuse the President or Vice-President of corruption? What galaxy do you live in? The purpose of impeachment is to deter "misdemeanors and high crimes in office" while elected. It is this nation's misfortune that those who have followed the crooks often haven't had the cahoneys to follow through with impeachment - my guess is because they figure 'there but for the grace of the Great Holy go they'. Dick Nixon should have been impeached. Bill Clinton should have been impeached. George W. Bush is definitely corrupt, AS WELL AS stupid, ignorant, and its nasty twin - arrogant; and he and his cohorts stole the first election for his Presidency. Dick Cheney is unconscionably rude, arrogant, and crooked as a dog's hind leg; Karl Rove - the supposed brains behind GWB and Dick Cheney's evil twin - should be staked on a fire ant hill.. And I - the CEO of both a for-profit and of a not-for-profit corporation - am dead serious about everything I've said. You need to join the real world, Jay. Your statement indicates that you have been living under a bush - as well as a Bush. Tch, tch. Or maybe, the one put you under the other.

Carel Two-Eagle, you make me laugh! I appreciate your kind and edifying words to me and about me. Clearly I am a space cadet and you are Captain Kirk. I have much to learn about your world. In my travels here on Earth I have found the human species to be an odd lot on the evolutionary scale, particularly business people who are in the know. It's amazing to me the number of good people out there doing good work for others in organizations like yours and those who just can't help but turning to the dark side. I remember when a young Jedi I once knew turned to the dark side. It was murder to say the least but he was able to redeem himself in the end. It didn't make up for all the bad he had done, but it did bring resolution with his son, and in that story, that was enough. But that was in a galaxy far, far away. I have to say I didn't quite understand the comment about impeachment and cahoney's and all those others you mentioned that should have been impreached. Is there no one, no one person in your world who is able and willing to stand up to the kind of corruption you describe? Regula 7 had that problem and eventually they imploded on themselves. As an alien to this topic and planet I guess it is a strange phenomenon when good people go bad in business. How naive and studid on my part. I guess I really have had the bush pulled down over my eyes by the Big Bush afterall. And Praise the Lord, you have delivered me into the light! Thank you, thank you, thank you.

You said it, Jay - you are a space cadet. The day I need someone to deliver me will be the day the sun rises someplace other than in the east. You need to fix both your attitude and your perspective. You have tons to learn, and your overweening arrogance prevents you from doing it. First you need to learn about 'respect' - having it and showing it. Get to work.

Flame on, Dude! Regrettably, the Fast Company question is not about me, my heritage, or my attidude. The question is about why so many great business leaders are found guilty of corruption. If the question provokes this kind of response from you that you would take it out on me, what's going on with you that taking it out on me is warranted? Too close to home? If my response to the question provokes this kind of response from you to disagree with me, okay, I can agree to disagree. That's respect!

Indulgence

man I get into these conversations too late Space Cadet Tatum, Space Recruit Tym asking you to go for a beer and accuse the American government of being stupid