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Corporate scandal expert David Gebler says good intentions can lead to bad outcomes in business
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Seven behaviors that may lead to a corporate scam I'll let -- of course if this is an added given pulling the headlines today.
David gamblers joining us right now we're gonna discuss the GS -- David good to CF.
-- -- would now have the authors.
We have the -- yesterday of the new book on -- Penn State's scandal on the show yesterday at some sort of a good segue to today's topic.
-- good employees.
Like many of the employees at Penn State for instance many of the employees of the GSA.
Many -- plays of the Secret Service -- keep on throwing out these agencies.
If they stop their boss or their supervisors or -- co workers.
Engaging in unethical or immoral behavior why didn't they say anything what was it.
That cause them to hold back you say it's about an unhealthy culture and -- a lot of different layers of -- so let's start peeling away explain what you mean by the.
-- -- -- -- part of the challenge first of all is to really define what is the unethical or -- Inappropriate behavior if -- is easy in hindsight determined that all the behavior we saw was improper.
The part that makes it difficult sometimes is that we don't know for the in place perspective what it looks like what is actually occurring.
So for example in many instances.
If they actually see illegal behavior that's clear.
Then it's really unusual that people don't find the means to be able to report that.
The problem is that what happens what is incrementally.
-- as improper behavior so this is where the culture comes into play because.
Oftentimes what happens is that the culture says that this behavior is.
-- -- Well you can create a little bit of a group think attitude after people start to accept that it's normal and so therefore if you're in the thick of things and if your boss is engaging in this behavior.
Then it's not so easy to say well wait a minute timeout here that may -- even asking more than what you or I would be able to do ourselves.
I know that we're we're talking in what you were your book to talk about the GSA in minutes could service -- I do have to ask you what do you think cap without Penn State scandal.
I mean that was really there were several investigations.
You know people were just covering things up for years and years and years how did something like that happened.
Yeah I think what happens.
-- -- if need to be reminded that we're all human and not to justify her or defend any behavior you can't defend the actual crimes that happened.
I think it's a fascinating -- what happened to be administrators.
There is a lot of self deception that happens we have amazing blocks where at the worst case we've literally.
Don't see things that happened because we've convinced ourselves that how could we ever engage in this behavior.
And we put in these didn't denial breaks and so what happens is that.
If we don't set up mechanisms institutionally.
To do reality checks we can't do amazing things as human beings to deceive ourselves we sit here and so how.
-- -- -- Well these reality checks and really critical I -- in scandal after scandal whether it's in the government Penn State private sector.
We don't set up.
Reality checks places where leaders and employees can basically have someone hold them accountable -- -- personal basis to say what the heck are you doing.
And that doesn't happen often enough.
Well this kind of lead to just these seven behaviors that may lead to a scandal that we're gonna go through were to start a blind loyalty to -- which is kind what you're talking about.
Right what happens is that -- We hear a lot and especially with the scandal GSA well why -- these employees more dedicated to serving the taxpayer.
-- that's easy for us from the outside the city or not but the problem is that this is true for private sector companies as well as government employees.
Is that that's very broad -- what happens is that.
We tend to have loyalty to a very tight concentric circle.
And the successful organizations whether against the government the military private sector.
If they can create a broad corporate circle of people have -- to a broader.
Organization that's fantastic but most of us have loyalty to a very tight circle.
People don't necessarily have loyalty to the GSA.
That he may have loyalty to their boss or the regional director and so what happens is that that regional director of that -- of our division of our group.
That person carries a lot of informal authority.
And oftentimes is that we start to feel like -- this person is success is responsible for our success.
So therefore we want to make sure that person is happy so we can find ourselves in -- position.
Almost subconsciously where we are loyal to this person even wave beyond the norms again if we able to pull back and say well what the heck am I doing.
That's fine I read I read -- -- of -- and a lot of -- sound like really good behaviors but again these are behaviors that could lead to a scandal.
He's a commitment to meeting deadlines.
Right what happens again.
All of these are -- behavior to one of the challenges.
In -- I'm looking at these news is you just get submissive of course you have to -- deadlines that's our job the question is.
-- -- sensitive to behaviors that are looking at these.
At the expense of a reality check the -- at the expense of other criteria so for example in the private sector -- scandals like Johnson & Johnson.
What happens over the times that were under such pressure to meet a deadline that we often we'll start to discount factors that are vitally important quality.
Or other factors.
That get sidetracked because.
Our boss says we've got to meet this deadline no matter what and even though there may be live service that says you know -- of course you can't meet the deadline.
By doing something unethical -- you can't miss the deadline if you have bad quality.
But often times in the pressure it's meet that deadline to achieve the school.
Equivalent in the GSA scandal may not necessarily been a deadline.
But there was so much work being involved and in setting up this event for example the multiple trips to Las Vegas for scouting.
That people lose the forest for the trees and all of a sudden that event became a goal right and you start to lose the perspective of wait a minute this is really a goal but.
In the in the thick of things you know I'm thinking about that your boss says how's it going to be done these steps one through 25 to get the cement ready.
And you don't pull back to think about whether or not they -- that makes -- -- not -- you're in the in the thick of things.
We have a lot of information for some to -- much stuff out first of all you are on Twitter -- at David gambler GE BL ER.
You can read this article on www.
Scout group dot com SK OUTGROUP.
Dot com.
And -- a website www.
Scout group dot com.
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