LAIZER EDWIN N
BAPRM 42691

Ethics and the corporate communicator

What is understood by the word ethics? Critically, what contribution does a corporate communicator make to the ethical debate within today’s company boardrooms? Here, the author charts the historical role of corporate communicators in ‘creating a soul’ for the company; and the specific role played by corporate communication officials in the financial reporting of companies. The events of Enron and other high profile scandals have raised the spectre of corporate greed and the lack of corporate governance as primary reasons for the collapse of organizations, with much of the criticism directed at accounting firms and their procedures for monitoring business. Whilst the accounting world is now actively addressing financial issues derived from these scandals, there are nevertheless clear lessons to be learned by corporate communication professionals, both in-house and outsourced.

A consideration of ethics based upon the definitions below requires some consideration of conduct and morality. (Ethics1. the study of standards of conduct and moral judgement; moral philosophy. 2. A treatise on this study; book about morals. 3. The system or code of morals of a particular philosopher, religion, group profession, etc.) It is a concept that is difficult to discuss and while there is immediate understanding of when it is lacking, its presence is often viewed as naive or weak. While much of the trust upon which transactional business is based relies upon its existence it does not occupy a significant place in the business school’s focus. It would appear that perhaps more attention should be paid to incorporating ethics into our everyday business activity.

 The fall of the dot. Communication industries and such giants as Enron, WorldCom, Global Crossings, Quest Communications International, Inc. Tyco and so many other firms, during the years 2000 and 2001, has brought forth a plethora of disclosures of corporate wrong doing. Much of this is attributed to the failure of accounting firms and corporate boards to exercise appropriate governance. During this time much discussion has centred on the accounting procedures being used and how the greed of corporate officers has led to the downfall of companies and the subsequent loss of millions of dollars. These millions are represented in jobs cut or lost by business failures, the pension losses affecting thousands of employees and the huge losses in the stock market.

 For a time there was some outcry as to who would be punished for these failures and violations of principles. There was castigation of accounting firms and of the investment bankers whose analysts failed to disclose the irregularities and fallacious reporting. The press was on hand to point out the inequities and every politician from local to state to federal was involved in some form of investigation.

A Gallup poll, done in late 2001, showed in its annual gauge of the honesty and ethics of different professions that people placed business executives at a 25 per cent level while firefighters ranked 90 percent, nurses at 83 percent, US military at 81 per cent, stockbrokers were at 19 per cent, and advertising practitioners were at 11 percent. These percentages were a measure of those who indicated that these professions were very high or high in ethical practices. (Gibson D., 2002) Data Source: Gallup News Service. Such polls and information can be significantly biased and if individually reviewed can be found wanting; however in view of the need for trust in the capital markets to ensure a stable environment for business growth and development the position of accountants and business executives is disturbing. Certainly, the accounting profession has reacted to the unfavourable publicity with new guidelines and there have been many articles written about how certain practices have been changed to ensure that proper accounting procedures are followed.