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Corporate Culture Counts
When a company fosters a corporate culture of greed, and places money above all else, is it a wonder when illegal conduct emerges? The Wired GC draws the connection between corporate culture and corporate misdoing in this post:
"You have to wince when a 'leader' in internal audit invokes a moral imperative along the lines of making money. The clear implication to those listening was likely to put it above all else. When this is the orientation of the auditors, you have to wonder what things were like among line managers with direct P&L responsibility.
"By late 2004, when things were going off the rails and Mr. Raines was retiring under a looming regulatory cloud, he adopted a markedly different tone:
"That fall, he had conceded in talking points for a speech to his fellow executives that Fannie's culture had not served it well.
"'We may have believed our own PR a little too much,' Raines' talking points read. "We allowed ourselves to be arrogant. We thought we had a lot to teach and little to learn from others.
"When a compliance culture is not supported by ethical behavior from senior management, the mis-alignment provides a fertile environment for improper activity to take place. People model and follow what leaders do (or they leave)."
Posted by Carolyn Elefant on March 7, 2006 at 02:19 PM | Permalink
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