Who was Jeannette Rankin and why do we celebrate her
today in the context of ethics and compliance? She was the first female to be
elected to Congress, as a Representative from Montana in the 1916 elections. In
1917 she was one of 50 votes opposing America's entrance into World War I. She
had the courage to vote with the conviction of her conscience. Her reason for
opposing entry into the War, how could Congress support a war to "make the
world safe for democracy" yet still refuse "the small measure of democracy to
the women of our country" by denying them the right to vote? Vilified after
this vote, she was not returned to Congress in the next election.
History is filled with ironies and in one of the most
ironic twists that could be imagined, Jeannette Rankin was returned to Congress
from Montana in 1940. In 1941 she was the sole vote, of 389, against America
entering World War II against Japan, declaring "As a woman, I can't go to war
and I refuse to send anyone else." As noted in the November 2011 issue of the
ABA Journal, "She told her constituents, that she'd voted her convictions."
I thought about Jeannette Rankin's story as I was reading
an article in the November issue of the Harvard Business Review
(HBR), entitled "Why
Don't We Try To Be India's Most Respected Company?" which was an
interview by HBR's Anand Raman with N. R. Narayana Murthy who was a founder of
the Indian company Infosys and its most recent Chairman of the Board. I often
write about "Tone at the Top", noting that not only does the US Department of
Justice (DOJ) mandate it as one of the requirements for a best practices compliance
program, but in reality it is the only way to set the tone for a corporation's
ethics and compliance program.
Murthy said that he was one of the original founders of
Infosys and his vision of the company included the question "Why don't we aim
to be India's most respected company?" To obtain the respect of governments,
this meant to "never violate any laws". To help to achieve this goal, the
founders agreed to create a "values-based organization." Murthy said that he
believed that business would come if the company was respected.
He said that while it took some time for this ethical
corporate reputation to take hold, eventually it did. One of the results was
that corrupt government officials stopped asking the company for 'favors'. This
ethical reputation also led to the generation of greater and greater business
because "our clients entrusted us with increasingly bigger projects." He said
that "you have to learn to stand by your principles; it's wrong to believe that
you have to bribe your way to success."
Murthy said that Infosys managers are expected to lead by
example, explaining that "Leaders have to be careful not to create dissonance
between what they say and do." One example he discussed was the consistency of
discipline. He cited the examples of board members, who paid "heavy fines for
what could be considered minor infractions." Murthy believes that "Setting an
example at the top is the best way to instill confidence throughout the
company."
So what do Jeannette Rankin's two votes against America
entering two World Wars have to do with Murthy's interview? They both laid down
their beliefs in the most transparent manner possible. I wondered what would be
the effect if a US company Chief Executive Officer gave such an interview. Even
if his or her company was a values-based organization, would they have the
courage of their conviction to speak about it in such an open manner? (We will
leave aside the question of whether the Law Department would allow them to do
so.) Nevertheless imagine the effect it would have on employees and the
commitment to doing business in an ethical manner if they did so.
---------------------------------
This
Week in FCPA, Episode 22 is up. Howard Sklar and I debate of the use of
DPAs in the UK; Freeport-McMoRan, United Steelworkers, and paying for
police protection; Embraer; Tognum resignation; Dadeleh; Allianz; plus a
Breakout on Training.
Visit the FCPA Compliance
and Ethics Blog, hosted by
Thomas Fox, for more commentary on FCPA compliance, indemnities and other forms
of risk management for a worldwide energy practice, tax issues faced by
multi-national US companies, insurance coverage issues and protection of trade
secrets.
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© Thomas R. Fox, 2011
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