Spring Break
Symposium looks to leadership
Former Medtronic CEO discusses ethics in business at annual Olafson event.
Brandi Jewett
Issue date: 11/6/09 Section: News
Bent on solving the crisis of confidence currently being experienced in the American business world, Harvard professor and former CEO of the medical supply company Medtronic Bill George spoke at the fifth annual Olafson Ethics Symposium.
"I want to influence those in my generation to be ethical in their business practices," began George. "Business leaders of today focus on personal gains and instant gratification."
The ethics of current business leaders have been called into question by the American people as a result of the economic recession. George says the current financial turmoil is a consequence of "failure of leadership at all levels." Citing survey statistics, George revealed that 66 percent of the people interviewed believed there is a leadership crisis in the United States. The leadership sectors they ranked highly were military, medical, and nonprofit organization. The lowest ranked sectors reflected the American peoples' distrust of the current market and included Wall Street, media, Congress, and business leaders.
In order to fix this doubt in leaders, George explained, "We need to go back to basics. Over the past 25 years, 75 percent of the jobs created were by small businesses."
Introducing an idea he refers to as short-termism, George believes big business leaders are focusing only three to five years into the future.
"We need to get away from instant gratification and build something that will last," he urged.
A few of the successful divisions he suggested building small businesses around were healthcare, education, and informational technology.
George maintains that the business philosophy of short-termism is destroying enterprises. He cited the example of the Ford and General Motors car companies' reactions to the present recession. Ford CEO Alan Mulally "got out in front of the problem" and borrowed $23.6 billion to keep in the company afloat in case of a recession or other unforeseen event. This loan, deemed desperate at the time, kept the company from declaring bankruptcy alongside other automobile manufacturers earlier this year. Mulally made the right choice in utilizing the crisis because as George reminded the audience, "A crisis may define the rest of your career."
"I want to influence those in my generation to be ethical in their business practices," began George. "Business leaders of today focus on personal gains and instant gratification."
The ethics of current business leaders have been called into question by the American people as a result of the economic recession. George says the current financial turmoil is a consequence of "failure of leadership at all levels." Citing survey statistics, George revealed that 66 percent of the people interviewed believed there is a leadership crisis in the United States. The leadership sectors they ranked highly were military, medical, and nonprofit organization. The lowest ranked sectors reflected the American peoples' distrust of the current market and included Wall Street, media, Congress, and business leaders.
In order to fix this doubt in leaders, George explained, "We need to go back to basics. Over the past 25 years, 75 percent of the jobs created were by small businesses."
Introducing an idea he refers to as short-termism, George believes big business leaders are focusing only three to five years into the future.
"We need to get away from instant gratification and build something that will last," he urged.
A few of the successful divisions he suggested building small businesses around were healthcare, education, and informational technology.
George maintains that the business philosophy of short-termism is destroying enterprises. He cited the example of the Ford and General Motors car companies' reactions to the present recession. Ford CEO Alan Mulally "got out in front of the problem" and borrowed $23.6 billion to keep in the company afloat in case of a recession or other unforeseen event. This loan, deemed desperate at the time, kept the company from declaring bankruptcy alongside other automobile manufacturers earlier this year. Mulally made the right choice in utilizing the crisis because as George reminded the audience, "A crisis may define the rest of your career."
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