Ethics, a code of conduct or behavior governing and individual or a group, is a vital link in the success of any enterprise. A good executive must have a dream, have the ability to get the company to support that dream, and provide a framework by which the people in the organization can help achieve the dream. This is called corporate culture.

No corporate culture condones unethical performance. Yet, overwhelming pressures from internal and external sources have driven many an executive to address these pressures with actions that compromise his or her principles ranging from morally wrong to outright illegal. Every organization has an obligation to its stakeholders and its shareholders. In the case of Enron, for example, these obligations were not met. Executives made decisions that were wrong and may have involved illegal activities. Even the professional conduct of auditor Arthur Anderson has been questioned. Did their interest in preserving their income affect their judgment?

Not all illegal or immoral actions are so subtle. Others may include:

• “pay to play” which has been around for a long time. Many companies who participated and have been caught, suffered embarrassment, fines, and were barred from doing business in that particular industry,

• misuse or malfeasance of corporate funds. (Rite Aid),

• participation in gambling, drugs or alcohol,

• extra marital affairs,

• knowingly keeping an unsafe product on the market

For the most part, many watchdog organizations and individuals follow corporate actions and "blow the whistle" alerting the general public and the official overseers.. There are, however, many companies who purposely "fly" under the radar only to be exposed later after damage has been done.

Here are some steps you might want to consider in your organization:

• Develop and distribute a Corporate Code of Ethics. This way everyone working for the company knows what is expected of them.

• Sponsor an Ethics Seminar internally at least twice a year. This keeps awareness of the problem front and center in all employees' minds.

• Thoroughly investigate any companies that ask you or your associates to serve on its board of directors to ensure that there are no hidden problems or agendas. Make sure your company covers you under their corporate indemnification policy.

I cannot condone or explain such unethical actions. I can only stress that the one thing you have built over a lifetime is your good name. To lose it because of a stupid decision or an outright illegal action stigmatizes you for the rest of your life.