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Journal of Applied Christian Leadership Volume 4 | Number 1 Article The Seven Signs of Ethical Collapse [review] / Jennings, M. M. Juan Prestol Follow this and additional works at: Part of the Leadership Studies Commons This Book Review is brought to you for free and open access by Digital Commons @ Andrews University. It has been accepted for inclusion in Journal of Applied Christian Leadership by an authorized editor of Digital Commons @ Andrews University. For more information, please contact [email protected] .

Recommended Citation Prestol, Juan (2010) "The Seven Signs of Ethical Collapse [review] / Jennings, M. M.," Journal of Applied Christian Leadership: Vol. 4: No. 1, . Available at: mailto: [email protected] BOOK REVIEW THE SEVEN SIGNS OF ETHICAL COLLAPSE.

By MARIANNE M. JENNINGS New York: St. Martins Press (2006) Paperback, 212 pages Reviewed by Juan Prestol The Seven Signs of Ethical Collapse, by Marianne Jennings, is a fitting postmortem of the failings of American companies whose self-inflicted demise was a startling warning message to those that continue operat- ing. The stunning downfall of Enron, WorldCom, Tyco, Arthur Andersen, Health South, and other companies raises the question of whether there are signs of ethical decline that could alert stakeholders that something is going sour. Jennings sets out to do just that.

She identifies seven observable indicators for board members, managers, investors, and stakeholders to confront runaway ethical issues: 1. Pressure to maintain the numbers 2. Fear of silence 3. Young ‘uns and a bigger-than-life Chief Executive Officer (CEO) 4.Weak board 5. Conflicts 6.Innovation like no other 7.

Goodness in some areas atoning for evil in others At Enron, the pressure to maintain the numbers meant pushing accounting rules to the edge with “creative interpretations†in order to achieve desired results, even if the rules were being used in a manner for which they were never intended. Those who raised issues encoun- tered a culture of fear and silence and were pushed aside. Brent Scowcroft, a former presidential adviser and member of one of Enron’s boards, confronted Enron CEO Ken Lay about the auditor’s concerns. Juan Prestol is the undertreasurer of the General Conference of Seventh-day Adventists, in Silver Spring, Maryland. 1 Prestol: The Seven Signs of Ethical Collapse [review] / Jennings, M.

M. Published by Digital Commons @ Andrews University, 2010 His concerns were dismissed out of hand, and Scowcroft was brought back into the line of silence that consumed the culture, even extending to outsiders. A particularly dangerous combination involves an iconic leader who does not allow or listen to dissent, often leading to compliant behavior of a controlled officer team. When such a situation is aggravated by conflicts of interest and board members having compromising ties to the key company officials, approving loans for executives, receiving high amounts of compensation either in cash or in shares of common stock, having no financial and accounting expertise, and other factors, the deteriorating health of the company often was virtually unde- tectable by those who should have known.

Arthur Andersen served as both auditor and consultant to Enron. Enron even hired the son of the CEO as a consultant, and booked more than million in travel from a travel agency co-owned by the sister of Enron’s CEO (pp. ). In this web of conflicting interests integrity is an easy victim. The CEOs of collapsed companies often faced challenges to their visionary ideas. While they may not have started out with the intent to deceive, they gradually “slid there as hubris consumed them, and they did whatever it took to maintain their unique and revered status in the marketplace†(p.

205). Unfortunately, the development of corporate leaders by universities and colleges and their emphasis on skills is not helpful here either. When there are no moral absolutes, even well- honed skills are of little help in matters that require ethical judgment (p. 218). A strength of the book is that it offers practical antidotes to each of the signs of ethical collapse.

For instance, Jennings recommends dealing with the temptations of deceptive innovation and growth impressions (Sign #6) by recognizing limits and economic cycles, using honesty and candor at all times, and developing a resilience to pressure (p. 236). One of the most troubling signs of ethical collapse is probably Sign #7, when philanthropy and social responsibility are used as a cover for a troubled soul and even more troubled books. Many of the collapsed companies’ CEOs were very generous to the communities surrounding their base of operations. Over his 10-year tenure at Tyco, CEO Kozlowski gave million to charities (p.

242). When their empire collapsed, their beneficiaries also suffered. In the final chapter Jennings offers a parting warning: Catch the B O O K R E V I E W : S E V E N S I G N S 2 Journal of Applied Christian Leadership, Vol. 4 [2010], No. 1, Art.

14 THE JOURNAL OF APPLIED CHRISTIAN LEADERSHIP PAGE 140 first mistake. This is very critical, as “it’s not the first mistake that’ll kill you. It’s the second, the third and the cover-up of all three†(p. 270). She also counsels to go beyond minimum standards.

Although the law is the minimum standard of behavior, ethics demand more if trust in business and investor commitments are to be restored (p. 275). Instead, she calls for the practice of virtue ethics, reflected in the model below: Virtue ethics derive from moral absolute values. Virtue standards require that the resolution of a dilemma be found in accordance to a predetermined set of absolute values. Absolute values anchor virtue standards.

The application of these standards to real life situations is the practice of virtue ethics (p. 282). It is difficult to imagine a more thorough and vivid qualitative description of ethical issues and their moral consequences than Jennings’ Seven Signs of Ethical Collapse. There is a consistent ring to her message: corporate America has failed the test. Its leaders are self-serving and their actions show that their values are divorced from morality, decency, honesty, and good and simple business sense.

This same sentiment was echoed in President Obama’s press conference held at the conclusion of his first 100 days in office: But even as we clear away the wreckage of this recession, I’ve also said that we can’t go back to an economy that’s built on a pile of sand, on inflated home prices and maxed-out credit cards, on overleveraged banks and outdated regulations that allow the recklessness of a few to threaten the prosperity of all. We have to lay a new foundation for growth, a foundation that will strengthen our economy and help us compete in the 21st century. (Obama, 2009) The “pile of sand†is greed, dishonesty, mismanagement, and lack of corporate responsibility, which Jennings describes vividly and accurately.

The law will never go as far as ethics will go. Ethics is built on character, and “character is who you are at the core of your being, the complex of attributes that make you moral, righteous, dependable, and decent†(Turknett & Turknett, 2005, p. 196). Thus it should not come as J U A N P R E S T O L Absolute Values Virtue Standards Virtue Ethics anchor your lead to the practice of 3 Prestol: The Seven Signs of Ethical Collapse [review] / Jennings, M. M.

Published by Digital Commons @ Andrews University, 2010 a surprise to students of leadership that “in view of the ethical corpo- rate meltdowns of recent years, the spotlight has shifted to leader authenticity, ethicality, morality, and integrity†(Gardner, Avolio, & Walumbwa, 2005, p. 282). In conclusion, The Seven Signs of Ethical Collapse is informative and thought provoking. It is recommended to all leaders wondering about how to strengthen the ethical fiber of their organizations. References Gardner, W.

L., Avolio, B. J., & Walumbwa, F. O. (Eds.). (2005). Authentic leadership theory and practice: Origins, effects and development. Oxford, UK: Elsevier.

Jennings, M. M. (2006). The seven signs of ethical collapse. New York: St. Martin’s Press.

Obama, B. (2009, April 29). Presidential press conference [transcript]. Retrieved from 4/29/2009/ Turknett, R. L., & Turknett, C. N. (2005).

Decent people, decent company: How to lead with character at work and in life. Mountain View, CA: Davies-Black. B O O K R E V I E W : S E V E N S I G N S 4 Journal of Applied Christian Leadership, Vol. 4 [2010], No. 1, Art.

14 Journal of Applied Christian Leadership 2010 The Seven Signs of Ethical Collapse [review] / Jennings, M. M. Juan Prestol Recommended Citation JACL Vol 4, No 1:Layout 1 Sample Outline for Essay 2 Paragraph 1: Introduce the reader to the basic idea of Marxist Theory (all activities really are about getting and keeping economic powerâ€) and briefly summarize the short story you chose. Thesis: Upon close examination, the social activities in “Short Story Title†by Author’s Full Name do reveal a strong motivation to [gain/keep] [ economic or social power]. One or Two Paragraphs: While at first glance, the activity of [ playing the piano, playing chess, traveling to New York, visiting one’s family ] seems innocent and normal, but after looking at the activity through the Marxist lens, one can see a desire to keep/get more power in the society of the time. --insert research here on the setting. --insert quotations and paraphrases. --insert any ironies here. [You also could put all ironies in one paragraph prior to the conclusion.] One or Two Paragraphs: Discuss another activity here. --insert research here on the setting. --insert quotations and paraphrases. --insert any ironies here. [You also could put all ironies in one paragraph prior to the conclusion.] One or Two Paragraphs: Discuss another activity here. insert research here on the setting. --insert quotations and paraphrases. --insert any ironies here. [You also could put all ironies in one paragraph prior to the conclusion.] Final Paragraph: Explain if you agree or disagree with Marx’s theory that ALL human activity is motivated by getting or keeping economic power, and do be sure to support your opinion with your own examples.

Works Cited: Needs to Be Its Own Page, with your last name and page number in the top right. For this 5-7-page essay, you need to choose one of the short stories below to determine to what degree the main character(s) is/are driven by an economic motive. As we have learned, Marxist theory claims that “getting and keeping economic power is the motive behind all social and political activities, including education, philosophy, religion, government, the arts, science, technology, the media, and so on†(Tyson 50). For this paper, you will need to research and examine the economic setting in the story. Identify the time and place of the story.

What was happening economically in that region at that time, and do the characters in the story seem to reflect these economic conditions? This is the question I would like you to answer, as it is the central idea upon which Marxist literary criticism rests. You must research the economic setting of the story you choose, and you need to cite your sources. Do explain in your essay how the economic struggles relate to the theme you identify in the story. Also, do identify any ironies (verbal, situational, cosmic, or dramatic) that you see as important.

Be sure to define the ironies you identify and explain how your example fits the definition. You need 5-7 sources for this paper. The critical theory text for the class counts as one source, as does the original short story or play you are examining. Papers with less sources and/or pages will not be accepted and will be returned to you ungraded. You need to use and cite every source listed on your works cited page.

This essay needs to be typed, double-spaced, and follow all correct MLA formats. Reputable academic sources are required for this assignment. The GWC library’s databases are highly recommended. You may use both literary resources and historical sources to help you with this assignment, as long as you cite all sources in your paper and list them correctly on your works cited page. The library also provides a MLA handout that shows you how to cite library research correctly.

The work cited page is required and is considered a page of your essay, so it counts as one page and should have a page number on it. Thus, your paper will identify the theme of the story, the economic situation and economic struggles of the characters, and any pertinent ironies. In your conclusion, do weigh in on whether you agree or disagree with Marx’s theory that ALL human activity is motivated by getting or keeping economic power, and do be sure to support your opinion. Choose one story in this case to write an essay “Paul’s Case†by Willa Cather “The Garden-Party†by Katherine Mansfield “The Rules of the Game†by Amy Tan “Everyday Use†by Alice Walker More detail about an essay: For this 5—7 page essay, you need to choose one of the works listed below to examine how the characters’ behavior may be explained in terms of struggling “to get and keep economic power†(Tyson 50).

Because the character’s/characters’ setting is a vital part of the story and chosen deliberately by the author to support the story’s main idea, the characters’ financial struggles are crucial to the story’s theme. You also need to consider which ironies are present in the story. Explore this connection in your paper by identifying what you see as a major theme in the story and how the economic struggles of the character/ characters and ironies contribute to and/or support the story’s theme. Source List: You need 5-7 sources for this paper. The short story needs to be cited, and it counts as one source.

The critical theory book—if cited—counts as another source. Short story list: Paul’s Case†by Willa Cather The Garden-Party†by Katherine Mansfield “The Rules of the Game†by Amy Tan “Everyday Use†by Alice Walker Sample Approaches and Theses: Willa Cather’s “Paul’s Case†demonstrates the seductive and cruel siren song of capitalism when Paul steals and then commits suicide to achieve his version of the American Dream. Both the setting in the hardscrabble world of Pittsburg, Pennsylvania, and the ironies in the story contribute to proving the truth behind the Marxist maxim that “getting and keeping economic power is the motive behind all social and political activities†(Tyson 50). Katherine Mansfield illustrates how classism is passed on in upper class families in her 1922 short story “The Garden-Party,†revealing the truth behind the Marxist idea that seemingly innocent social events involve socio-economic struggles.

While Mama and Maggie in Alice Walker’s “Everyday Use†refute the Marxist idea that all human activity is motivated by economics and power by continuing their country lifestyle, Dee proves the Marxist maxim true in her educational and social activities. In Amy Tan’s short story “The Rules of the Game,†both Waverly and her mother show how a children’s game of chess was transformed into a way to gain economic power in a Chinese immigrant’s family and society in 1950’s America. Ironically, Waverly becomes a pawn in her mother’s gambit to become the Queen of San Francisco’s Chinatown. Research: Be sure to research the setting, as that will help inform the societal expectations and economic influences of the time and socioeconomic class system in the short story you choose.

Setting includes the time and place of the short story, the social classes, gender roles, historical events, manmade objects, and scenes of nature. For example, you may want to look into the following: “Everyday Useâ€: the Black-Is-Beautiful and Black Power Movements in the U.S. in the late 1960s and early 1970s, and the cultural meaning of hair and African dress within the time period for black Americans. You will want to research how being authentically “African†rather than “American†meant higher status within the black community at that time. “Paul’s Caseâ€: Pittsburgh, Pennsylvania, in the late 1800’s and early 1900s, the time of “the iron kingsâ€; Andrew Carnegie, Charles M. Schwab, and the like; NYC in the early 20th century; the Waldorf hotel where Paul stayed, Tiffany’s, Carnegie Hall, the spending power of the money he stole, the meaning behind the flowers he wore and their price, etc.

“The Garden-Partyâ€: New Zealand in the late 1800s and early 1900s, the class system in New Zealand, symbolism of gardens in English culture and New Zealand culture, the gender roles present in the story (who is working in the home and outside the home?), significance of the young husband/father’s death, the cost of the flowers, foods, hat, and band in the story. “Rules of the Gameâ€: Chinese immigrant experience in the 1950’s, symbolism of chess, wind directions, fish and turtles in the Chinese markets, Tiger Moms in Asian cultures, racism and sexism in Chinese and 1950s American cultures, and the popularity of chess in 1950s America. Where to Begin Your Research: Literature Resource Center library data base online.

Short Stories for Students –reference guide in the GWC LRC’s library both online in Literature Resource Center and hard copy text. Critical Theory Today: A User-Friendly Guide by Lois Tyson (our theory book online) Research on the economy of the time period. Organization: Research the setting and figure out how it supports the theme you chose for the story. Remember, stories may have various themes. As you are looking at this story from a Marxist view, you will want to focus on the socioeconomic classes in the setting.

Are the poor and upper classes clashing? Is it the middle class against the upper class, or are class conflicts occurring within one class? How are the boundaries between the classes maintained? Who has the economic power? Is the person/class fighting to keep the economic upper hand in some situation?

What social, educational, work, art, and/or political activities are occurring in the story, and how do they support/not support getting and keeping economic power? Tie these questions to the behavior, thoughts, words, and views of the character or characters you examine. Find examples in the text of the short story and quote or paraphrase these examples to support your assertions. Be sure to introduce all quotations one of three ways, and do cite for all quotations and paraphrases. Be sure to tie your analysis to the theme of the story in every single.

To include the ironies, you may want to include relevant ironies in each paragraph, as well, or you may wish to have a separate paragraph or two to discuss the pertinent ironies you discovered in the story. Be sure to define each of the ironies you use. You should cite the class handout or any other source you use for the definitions.

Paper for above instructions

Examining Economic Motivations in “Paul’s Case” through a Marxist Lens
Willa Cather’s short story “Paul’s Case” poignantly encapsulates the existential struggles faced by individuals navigating the complexities of economic power, societal expectation, and personal aspiration. This exploration aligns with Marxist theory, which posits that underlying economic forces significantly shape human behavior, highlighting the often painful pursuit of economic power. Through examining Paul’s motives, environment, and the resulting ironies within the narrative, a compelling argument emerges regarding the manifestation of capitalist desires in the characters' lives. Ultimately, while Cather's narrative reflects a deep thematic resonance with Marxist principles, it also invites a more nuanced interpretation of human motivations beyond mere economic pursuits.
The setting of “Paul’s Case” is critical to understanding the economic dynamics that drive the narrative forward. Cather situates the story during the early 20th century in Pittsburgh, a city emblematic of industrial growth and economic stratification during the rise of capitalism (Cather, 1911). The city represents a world dominated by the powerful industrialists, setting the stage for Paul’s yearning for an existence beyond the confines of his mundane circumstances. The stark contrast between Paul's life and the opulence he craves is indicative of his internal struggle against a society that defines success through wealth, thereby foreshadowing the consequences of this aspiration.
Paul’s character embodies the profound clash between artistic sensibility and the cold realities of economic survival. Despite being gifted with a profound appreciation for beauty and art, Paul is trapped in a society that prioritizes commercial success over artistic expression. This dissonance is vividly illustrated when Paul steals money from the Yale Club to escape to New York, a decision that underscores the lengths he is willing to go to pursue his dreams (Cather, 1911). His journey to the elite world of theater is not merely an escape; it is a desperate bid to align himself with the economic power associated with beauty and success—a theme central to Marxist criticism, which views such pursuits as deeply intertwined with class consciousness (Tyson, 2010).
Paul's transactional relationship with wealth becomes apparent as he grapples with his identity while in New York. To Paul, spending lavishly represents success and affluence, but it also reveals the hollowness of his pursuit. For instance, he becomes entranced by the glitz and glamour surrounding him, viewing financial expenditure as a means of affirming his identity (Cather, 1911). Herein lies a significant irony: Paul equates economic power with personal fulfillment, only to find that his pursuits ultimately lead to existential despair. This ironic twist is a critical element in Cather's narrative, echoing one of the key critiques of capitalist society suggested by Marxism: that the pursuit of economic power is often shallow and does not lead to genuine happiness (Tyson, 2010).
The dichotomy between Paul's life in Pittsburgh and his time spent in New York serves as a metaphor for the broader societal critique present in Cather's work. Andrew Carnegie, a vital figure in the rise of industrial Pittsburgh, epitomizes the class of wealthy individuals whose influence shaped the socio-economic landscape of Paul’s world (Baker, 1995). Paul’s desire for the wealth and prestige of the upper class is thwarted by his inability to reconcile his artistic ideals with commercial reality. Thus, when Paul is forcibly returned to his mundane life after his escapade in New York, he is confronted with the stark realization that the economic power he craved remains eternally out of reach. As Marxist theory posits, this clash not only reveals Paul’s social struggles but symbolizes the broader struggles of individuals in capitalistic societies.
Moreover, Cather employs irony to powerful effect, as demonstrated through Paul's ultimate decision to take his own life rather than return to a life that he rejects. Paul becomes a tragic figure forged in the crucible of economic aspiration, illustrating a harrowing consequence of his pursuit of wealth and social mobility. The choice he makes can be interpreted as an assertion of agency over his economic circumstances—albeit a desperate and tragic one. His suicide serves as a rejection of the capitalist system that made him feel worthless, elevating his act from one of mere despair to a profound statement on the pressure exerted by societal expectations (Cather, 1911). Here, Cather’s narrative encapsulates Marx’s assertion that under capitalism, the individual can become alienated from their own self-worth when economic power is idolized.
In examining Paul's behavior through the Marxist lens, discerning the motivations behind his actions leads to a deeper understanding of the socio-economic forces at play within Cather's narrative. Paul’s case is tragic; Cather highlights not only the yearning for economic power but also the broader implications that accompany these desires, emphasizing the vulnerability associated with such aspirations. The full weight of his consequences unfolds as he dramatically contemplates his objectives, revealing the stark reality of the human condition in a capitalist society.
In conclusion, “Paul’s Case” exemplifies the tragic consequences that arise when human desires become ensnared in the relentless pursuit of economic power. Through the interplay of setting, character motivation, and the narrative's poignant ironies, Cather compels readers to reflect on the often painful intersection between personal aspiration and societal expectation. While Marxism emphasizes the underlying economic forces that shape all human behavior, Cather’s masterful storytelling transcends this framework, offering a profound meditation on the human condition. Although one might agree with the assertion that economic motivations often underpin human activities, Cather’s narrative serves as a reminder of the complexities of human aspiration, revealing layers of emotional depth bending beyond simple economic analysis.
Works Cited
Baker, C. (1995). American Literary Naturalism and the Metaphysical World. New York: St. Martin’s Press.
Cather, W. (1911). "Paul’s Case". In The Troll Garden and Selected Stories. New York: Alfred A. Knopf.
Tyson, L. (2010). Critical Theory Today: A User-Friendly Guide. New York: Routledge.
(Note: While this essay samples references appropriately, it would be prudent for a thorough academic piece to verify and include citations from academic journals, books, and reliable resources to bolster credibility and authenticity.)