Corporate redemption
14 Apr 09
Maybe it’s because it’s Easter that my thoughts turn to the concepts of forgiveness and redemption...
I was reminded recently about John Profumo, the secretary of state for war in Harold MacMillan’s cabinet in the early 1960s. Profumo, of course, resigned from the cabinet and his position as an MP after he lied to the House of Commons over his relationship with the model, Christine Keeler.
He then began work cleaning toilets at a charity based in the East End of London. He worked there for the rest of his life, eventually becoming chief fundraiser. He did this as a volunteer, as he was able to live on inherited wealth. He was awarded a CBE in 1975 and when he died in 2006, most commentators said his contribution to society, rather than the scandal of the 1960s, was his main legacy.
It’s an interesting parallel to compare the example of Profumo with recent business scandals. Could Bernard Madoff atone for his multi-billion pound fraud? Going slightly further back in time, the leading executives involved in the collapse of Enron are either dead or in prison, with little sign of being able to restore their reputation.
For me, both political and business scandals involve a breach of trust with stakeholders – whether that’s the electorate, shareholders or clients. The public found it possible to forgive Profumo because it was he himself who lost out most in the scandal and he sought redemption through charity work. In the case of business scandals it is harder. Many people lose out in addition to the perpetrators, because money is lost.
The individuals at fault often show little sense of contrition because of pending legal action, external pressures or hubris and ego.
This makes it very hard to forgive. But any company that aims to behave ethically should ensure that, if the worst comes to the worst, they are able to atone for their mistakes in a way that the public can understand.