Professional Responsibility
Written for University of Oregon's Master of Business Administration application.
photo credit: http://www2.lcb.uoregon.edu/App_themes/Content/Docs/mba/MBA-viewbook2010.pdf
As an aspiring business leader, how will you prevent financial manipulation, improper accounting, and fraud in your company?
Financial manipulation, improper accounting, and fraud within companies are by-products of an era in which contemporary thought supported the illusion that “business” and “personal” were distinct. In fact, they are intimately tied. The best way to mitigate the negative outcomes of this misconception is to nurture a professional environment that values integrity and long-term profit, rather than allowing short-term profit to be the sole measure of success. This seems like an obvious point. However, as companies have exploded in scale, clear communication between all parties has become increasingly cumbersome. This ultimately leads to a breakdown in sense of ownership, loyalty, and responsibility between the individual, the company, and the community, culminating in corporate fiscal dishonesty.
To safeguard against future financial collapse, business infrastructures must avoid unnecessary organizational complexity. One pathway is the implementation of appropriately scaled working units, which foster integrity by tapping into an innate characteristic of the human psyche, the bond between group members. In his book, The Tipping Point, Malcolm Gladwell compares this phenomenon, deemed the “Social Channel Capacity,” with the concept of peer pressure in the corporate environment: that in a small group, “knowing people well enough that what they think of you matters” allows for “unruly behavior [to be] controlled on the basis of personal loyalties and direct man-to-man contacts.” Accountability is found within close communities, be it the internal community of an individual company, or the community at large.
During the 20th century, most technological advancements served to insulate people from one another. With the advent of social networking and its subsequent transformative impact on our society, technology has finally started to bring people back together. Social networks have brought down the barriers between the company and the consumer by making the conversation dynamic and multidirectional. Access to, and clear communication with, the customer make reputation and accountability a primary concern for any company focused on longevity. The ultimate goal of these organizational and communication strategies is to demonstrate and facilitate accountability to the customer through a transparent business model. This approach defines the avenue towards a successful, fiscally responsible future.



