Transcript Ethics for non-CPAs

College and University Auditors of
Virginia
ETHICS
(And Why Good Leaders Go Bad)
Craig Anderson
Deputy Director, University Audit and
Health System Audit
Virginia Commonwealth University
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OUTLINE
1.
2.
3.
4.
Introduction / Background
General Thoughts & Principles
“Slippery Slope” Model
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:
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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 ?
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Most of “It” is Gray
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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 ?
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Lack of Knowledge of the
Expectations or Requirements
Lack of Understanding
Intent
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WHY IS IT HARD
TO DO THE RIGHT THING ?
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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.
2.
3.
4.
5.
The Early Years
Entitlement
Arrogance
Greed
The Fall from Grace
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SLIPPERY SLOPE MODEL
STAGE 1 - THE EARLY YEARS
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“He was impressive, young and
aggressive, saving the world on his own”
(Jimmy Buffett)
Talent, Hard Work, Well-intentioned
Knows & Respects “the rules”
Usually rises rapidly in the organization
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Good people do not need laws to
tell them to act responsibly, while
bad people will find a way around
the laws.
PLATO ~ 400 BC
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Morality, like art, means drawing
a line somewhere
OSCAR WILDE
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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.
WILLIAM J H BOETCKER
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SLIPPERY SLOPE MODEL
STAGE 2 - ENTITLEMENT
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I Earned It
I Deserve This
It Comes with the Territory
It’s No Big Deal
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Relativity applies to physics,
Not ethics.
ALBERT EINSTEIN
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SLIPPERY SLOPE MODEL
RELATIVITY
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Even if You Win the Rat Race,
You’re Still a Rat.
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SLIPPERY SLOPE MODEL
STAGE 3 - ARROGANCE
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They Start to Believe the Press Clippings
All the Successes are due to My Efforts
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
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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
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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.
NATIVE AMERICAN PROVERB
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SLIPPERY SLOPE MODEL
DENIAL
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Don’t Listen when the
Foundation is Crumbling
This is a Short-Term Problem
I Know Better than They Do;
I Built this Place
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SLIPPERY SLOPE MODEL
STAGE 5 - THE FALL
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Cumulative Effect of
 Entitlement
 Arrogance
 Greed
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Ethics is knowing the difference
between what you have a right to
do and what is right to do.
POTTER STEWART
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SO WHERE DO WE
GO FROM HERE ?
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YOUR RESPONSIBILITY
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Educate yourself –understand the
relevant policies and procedures
Ask for Help when you don’t understand
Lead By Example !!!
Speak up when you see something
wrong
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SUMMARY
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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 WHILE SHAVING
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2 CLOSING THOUGHTS
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Across our Organizations, Thousands
of Good, Sound, Ethical Decisions are
Made Every Day.
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One Person CAN Make a Difference !
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Always do right;
This will gratify some
And astonish the rest.
MARK TWAIN
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Case Studies:
Case Study 1 – Pcard Misuse
Case Study 2 – Grant Fraud
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CLOSING
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Questions
Comments
Thank You !
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The path of least resistance is
what makes rivers run crooked.
ELBERT HUBBARD
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