Organizational Lessons Learned from the Penn State Scandal

Introduction

Most organizations have some type of ethical issues. However, ignoring them can be problematic.  Ask Penn State administrators. On July 12th, former FBI Director Louis Freeh requested a blistering report about the cover-up associated with the Jerry Sandusky case. Freeh’s firm, which was hired by Penn State trustees, found Coach Jerry Paterno (deceased), President Graham Spanier (fired), Athletic Director Tim Curley, and Vice President Gary Schultz “repeatedly concealed critical facts about Sandusky’s child abuses.” The reviewers found handwritten notes and e-mails in a decision to hide information from child welfare and police authorities. Sandusky is awaiting sentencing after being convicted on 45 criminal counts of abusing 10 boys.

“The most saddening findings by the Special Investigative Counsel are the total and consistent disregard by the most senior leaders at Penn State for the safety and welfare of Sandusky’s child victims. The most powerful men at Penn State failed to take any steps, for 14 years, to protect the children who Sandusky victimized.” Reports showed Paterno and administrators knew about Sandusky’s child abuse activities as far back as 1998. They attempted to conceal this information for the school’s reputation, as well as Coach Paterno’s legacy as a dynamic leader. The blanket cover-up went beyond the school.

The local district attorney, when provided with evidence of Sandusky’s child abuse, did not prosecute. Many people in the community were in denial, because Coach Paterno was a national icon and a local legend.

For many organizations, management lives by the proverbial “do as I say, and not as I do.” Most managers can get away with this philosophy. As businesses continue to falter and competition bears down on the economy, workers are looking for leadership. However, it is impossible for an unethical person to lead an organization Followers will not respect a front-runner with low integrity. A leader can’t trick followers with monetary bribes or promotional campaigns. A leader’s character influences the entire group’s morale.

Like individuals, organizations have a responsibility to behave in an honorable manner. Ethics play a critical role in good leadership. Charles Hill, author of International Business, defines ethics as “accepted principles of right or wrong that govern the conduct of a person, the members of a profession, or the actions of an organization.” It is an unfortunate situation when an individual makes an immoral decision. It is a very complex matter when an institution, or group of leaders, acts in an unethical manner.

Sadly, some managers believe they are bigger than their organizations; they are above group’s codes and values.  In this double-standard scenario, resentment spreads throughout the organization. It is no surprise when selfish and immoral leaders bring about their own demise, while shaming their organization. Unfortunately, it only takes one bad leader to destroy the core values of an entire institution.

In today’s society, organizations must be proactive in addressing internal or external ethical situations. The Penn State scandal demonstrates how a few key leaders can damage the reputation of the whole group. American workers are already cynical of their leaders. They have lost trust in how organizations govern themselves when moral questions arise. Without any controls or limits, unethical leaders can ruin an institution. Organizations must establish a host of systems for addressing issues of integrity.

© 2012 by Daryl D. Green

About Dr. Daryl Green: Dr. Daryl Green provides motivation, guidance, and training for leaders at critical stages in their development. He has over 20 years of management experience and has been noted by USA Today, Ebony Magazine, and Associated Press. For more information, please visit nuleadership.com or Workshops Leadership

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