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When No One’s Minding the Store

September 18, 2008 at 6:39 am by: John Phillips

The ongoing scandal in the Interior Department demonstrates what happens when accountability gives way to whatever.  (Click here for more.)  When an agency collects $10 billion in royalties annually and is one of the government’s largest sources of revenue other than taxes, it’s the perfect place for mischief at best, unethical activity at worst, to occur.

In the increasingly corrupt culture that took over Interior’s Minerals Management Service, a lucrative consulting contract was steered to a former employee immediately after he retired.  Illegal drugs were bought and sold in the office.  Employees had sex with each other and with oil industry representatives.  Employees accepted gifts from energy companies whose value exceeded limits set by ethics rules.

Your company or organization no doubt has ethics rules.  Who monitors compliance?  Some companies have a compliance officer.  Others rely on internal audit or on the head of each department to make sure ethics are taken seriously.  The Interior Department scandal is a reminder that if no one is paying attention, things can get out of hand in the worst sort of way.

You may be saying, “We probably don’t run as tight a ship as we always should, but no one is selling drugs, having sex, or steering contracts to friends.”  OK.  Maybe you’re right.  But as noted above, Interior officials accepted gifts that exceeded the limits established by the agency’s ethics rules.  Like what?  Golf, ski and paintball outings.  Meals and drinks.  Concert tickets.  Tickets to sports events.

Anyone at your company or organization accept gifts like that?  Are there ethics rules governing those gifts?  If not, should there be?  If there are, who keeps up with the gifts to make sure they’re not over the top?

The subject of ethics is a hot topic in the business and human resources world these days.  I’m sure we’d all agree it’s a subject that should be taken seriously.  We’d also agree that the Interior scandal is deplorable, but people who live in glass houses shouldn’t throw stones.  This might be a good time to examine the kind of house you live–or work–in.

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2 Responses to “When No One’s Minding the Store”

  1. Roundup: Taking responsibility | Managing Leadership Says:

    [...] please take a moment to view this article by John Phillips at his eponymous blog which he uses to address legal issues in the workplace. It [...]

  2. John Phillips Says:

    Thanks for the link. You’ve had another good week of thoughtful posts about leadership.

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