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College and University Auditors of Virginia

ETHICS(And Why Good Leaders Go Bad)

Craig Anderson Deputy Director, University Audit

Virginia Commonwealth University

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OUTLINE

1. Introduction / Background

2. General Thoughts & Principles

3. “Slippery Slope” Model

4. Closing Comments & Questions

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INTRODUCTION

My Background / Biases VCU Experience Prior Experiences

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WHAT IS ETHICS ?

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WHAT IS ETHICS ?

Merriam-Webster:

Discipline dealing with what is Good & Bad, with Moral Duty & Obligation

Set or System of Moral Values and Principles

A Guiding Philosophy

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WHAT ARE THE OBSTACLES TO ETHICAL BEHAVIOR &

DECISION-MAKING ? How much Gray exists? What kind of “Gray” have you

encountered?

And Many Times: It’s Easy to Do the Wrong Thing It’s Hard to Do the Right Thing

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WHY IS IT EASY TO DO THE WRONG THING ?

Lack of Knowledge of the Expectations or Requirements

Lack of training in the “right way to do things”

Lack of Accountability Intent

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SLIPPERY SLOPE MODEL

Even if You Win the Rat Race, You’re Still a Rat.

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WHY IS IT HARD TO DO THE RIGHT THING ?

Frustration with Policies or Procedures (without understanding the reason for those P&P)

Time or Departmental Pressures Competing Priorities Short-Term Impacts

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SO WHY DO GOOD LEADERS GO BAD ?

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SLIPPERY SLOPE MODEL

1. The Early Years

2. Entitlement

3. Arrogance

4. Greed

5. The Fall from Grace

OSCAR WILDE

Morality, like art, means drawing a line somewhere

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SLIPPERY SLOPE MODEL

STAGE 1 - THE EARLY YEARS

“He was impressive, young and aggressive, saving the world on his own” (Jimmy Buffett)

Talent, Hard Work, Very aggressive Knows & Respects “the rules” Usually rises rapidly in the organization What other characteristics do you see?

WILLIAM J H BOETCKER

That you may retain your self respect, it is better to displease people by doing what is right than to temporarily please them by doing what you know is wrong.

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SLIPPERY SLOPE MODEL

STAGE 2 - ENTITLEMENT I Earned It – “You don’t look smart

enough to find it if I did” I Deserve This – “If I can’t get a raise

I will get it another way” It Comes with the Territory – “How

will my kids go to college?” It’s No Big Deal – “I’m not the only

one doing this”

ALBERT EINSTEIN

Relativity applies to physics,

Not ethics.

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SLIPPERY SLOPE MODEL

STAGE 3 - ARROGANCE

They Start to Believe the Press Clippings All the Successes are due to My Efforts This Department couldn’t survive without

me and my Grants Better to Ask Forgiveness than

Permission

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SLIPPERY SLOPE MODEL

Don’t get down in the Mud

with a Pig; You Both get Dirty

but Only the Pig Enjoys It.

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SLIPPERY SLOPE MODEL

STAGE 4 - GREED

Earth provides Enough to Satisfy Every Man’s Needs, but

Not Every Man’s Greeds

GANDHI

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SLIPPERY SLOPE MODEL

STAGE 4 - GREED At this point, the Leader’s Greeds take

precedence over the Organization’s Needs The Leader’s Priorities drive the Organization’s

Priorities The Leader’s Actions no longer support the

Organization’s Mission What can we do to prevent some of these very

real issues?

NATIVE AMERICAN PROVERB

A Native American grandfather talking to his young grandson tells the boy he has two wolves inside of him struggling with each other. The first is the wolf of peace, love and kindness. The other wolf is fear, greed and hatred. "Which wolf will win, grandfather?" asks the young boy. "Whichever one I feed," is the reply.

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SLIPPERY SLOPE MODEL

DENIAL

Don’t Listen/Watch when the Foundation is Crumbling

“This is a Short-Term Problem”

“I Know Better than They Do; I Built this Place”

PLATO ~ 400 BC

Good people do not need laws to tell them to act responsibly, while bad people will find a way around the laws.

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SLIPPERY SLOPE MODEL

STAGE 5 - THE FALL

Cumulative Effect of: Entitlement Arrogance Greed

POTTER STEWART

Ethics is knowing the difference between what you have a right to do and what is right to do.

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SO WHERE DO WE GO FROM HERE ?

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YOUR RESPONSIBILITY Educate yourself –understand the relevant

policies and procedures Establish strong relationships with your

Deans/AVPs/Chairs Ask for Help when you don’t understand Lead By Example – if you mess up they will

remember and throw it back at you!!! Speak up when you see something wrong – it

doesn’t have to be in a report

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SUMMARY

Power is the Common Denominator in the most damaging cases I’ve worked on

Absolute Power Corrupts, Absolutely There is no Reset Button in Life

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EVERYTHING I NEED TO KNOW ABOUT ETHICS I

LEARNED IN KINDERGARTEN

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CLOSING THOUGHTS

Across our Organizations, Thousands of Good, Sound, Ethical Decisions are Made Every Day.

One Person CAN Make a Difference !

MARK TWAIN

Always do right;

This will gratify some

And astonish the rest.

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ELBERT HUBBARD

The path of least resistance is what makes rivers run crooked.

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Case Studies:

Case Study 1 – Pcard Misuse

Case Study 2 – Grant Fraud

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CLOSING

Questions Comments Thank You !