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“WhyDoGoodPeopleDoBadThings?:MotivationalMetaphorsthroughMovies,MythsandMilgram”–ProfessorPaulFiorelli,XavierUniversity
THEFRAUDTRIANGLE
Atrustedemployee,whohasn’ttakenavacationinyears,wakesupinahospitalbedtothe
soundsofbeepingmonitors.Thelastthingtheywereawareofwasdrivinghomefrom
workandseeingadeerjumpoutofthebushes.Theyrememberhearingaloudthump,and
theneverythingwentdark.They’restillinafoggyhaze,butquestionscomeracingacross
theirmind:
Whofoundme?
WhatamIdoinghere?
WhereamI?
WhencanIgetoutofhere,andbacktowork?
Whydidthishappentome?
Anotherco-workertemporarilyassumesthehospitalizedemployee’sduties.Thestand-in
isfirstconfused,thenconcernedabouthowtheinjuredco-workerhasbeenrecording
certaintransactions.Thingsjustaren’taddingup.Diggingdeeper,thereplacement
unravelsanembezzlementschemethat’sbeencoveredupforyears.Thecompanyisthe
latestvictimof“theFraudTriangle”,aphraseattributedtocriminologistDonaldCressey.1
Otherresearchershavestretched,pulledandreshapedthispolygonintoaFraudDiamond
andevenaFraudPentagon,butthebasicelementsremainthesame-motivation,
opportunityandrationalization.
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Motivationmeansthefraudsterbelievestheyneedmoremoney.They’retypicallyundera
lotoffinancialpressure.Perhapsaspouselostajob,orarelativeisill.Maybetheyhavean
addictiontogambling,alcoholordrugs,ortheyjustlikelivingbeyondtheirsalary.They
haveaproblem,butcan’tshareitwithanyoneelse.Howcantheseproblemsbesolved?
Thisiswhereopportunityknocks,sometimesintheformofinadequateinternalcontrols.
Fraudstersunderstandtheweaknessesoftheircompany’schecksandbalances.Theymay
haveevendesignedthem.Anexamplewouldbeallowingthesamepersontosendout
invoices,andthenopenupthepaymentenvelopes.Thisisarecipefordisaster,becauseno
oneislookingovertheirshoulder.Check–no!Balance–no!Wheneverpossible,segregate
dutieswithintheoffice.Considerrotatingresponsibilities,andconductingrandom,spot
audits.And,justbecauseanemployeerefusestotakeanytimeoff,doesn’tmeanthey’re
loyalanddedicated.Theymightnotwantanyoneelsereviewingtheiractivity,sotheycan
prolongthefraud.Countlessschemeshavebeenrevealedafteremployeeswereforcedto
takeavacation,orendedupinthehospitalbecauseofanaccident.
Rationalizationoccurswhenpeoplerattleoffalistofreasons,atleasttothemselves,why
they’reactingacertainway.Theymayfeelunderappreciated,trapped,orevenaplayer
helpingtheirteam.Whatevershapeandsizeofthefraud,itcanbeveryexpensiveto
companies:
AccordingtoACFE(AssociationofCertifiedFraudExaminers)estimates,fraudcosts
organizationsfully5%ofannualtop-linerevenue.Thisenormouscostisserious
enough,butitiscompoundedbythefactthatfraudisahiddencrimethaterodesan
organization’scapacityfromwithin.Consequencescangobeyondmonetarylossesto
inflictdamageonmorale,trustandtransparency.Thesekindsofcostsendurefar
beyondthetriggeringevent.2
RESPONDINGTOFRAUD
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Whatdowetypicallysaywhenwefindoutaboutpotential,oractual,problems?
Anothervariationofthe5“Ws”cometomind:
“Whodidthis?”
“Whatwereyouthinking?
“Wherewillthisproblemleadus?”
“Whenwillitstop?”
“Whydidn’tIfindoutaboutthissooner?”
Thesequestionsareunderstandable,butthey’rethewrongonesbeingaskedatthewrong
time.Abetterlineofinquirywouldbe:
“Who’sintrouble?”
“WhatcanIdotohelp?”
“Wheredoyouneedme?”
“Whenwillemployeesbelievetheycansucceed,whilestayingwithinacceptable
rules?”
“Whydidn’ttheytrustme?”
Inordertoaddressthisfinalsetofquestions,weneedtobetterunderstandwhypeopleact
improperly,andwhatleaderscandoaboutit.Manyviolatorsfallintooneormoreofthe
followingcategories:incrementalists,altruists,prisoners,browbeaten,conformists,
rationalizers,andhedonists.Inthischapter,I’lldiscusseachofthesefraudconsiderations,
andpresentpossiblemanagerialresponsestolimitthem.
INCREMENTALIST–“thebeliefinoradvocacyofchangebydegrees;gradualism”.3
4
GeorgeLefcoe,formerLACountyRegionalPlanningCommissionandlawprofessoratthe
UniversityofSouthernCalifornia,demonstratesthethoughtprocessandsubtlechanges,
behindslidingdowntheslipperyslope.Upontheoccasionofhisretirementfrompublic
office,hemadethesecommentsabouttheperksandseductionofpubliclife,whenhe
talkedabout“theChristmasHam”.4
MyfirstChristmasascommissioner--whenIreceivedtheham--Itriedtoreturnit
atonce,thoughfortherecord,Ididnot,sincenooneatForestLawn(afuneral
home)seemedauthorizedtoaccepthams,apparentlynotevenforburial.Myguess
isthatnotoneofthemanypublicservantswhoreceivedthehameverhadtriedto
returnit.
(RighteousIndignation)5
WhenIreceivedanotherhamthenextChristmas,Igaveittoaworthycharity.
(SmallJustification)
Thenextyear,someworthyfriendswerehavingapartysoIgaveittothem.
(DefensibleExplanation)
ThenextyearIhadapartyandweenjoyedtheham.
(FullRationalization)
Inthefifthyear,aboutthetenthofDecember,Ibeganwondering,whereismyham?
(OutrightEntitlement)
Notmanypeoplestartoutatthe“hamasabirthright”phase,andmostofusdon’tjump
frommilddisgust,directlytoexpectedbenefit.Weproceeddownthepath,onebabystep
atatime,untilweendatplaceweneverexpectedtoreach.Itsdeathbyathousandspiral
cuts,toboththeham,andtheconscience.
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Whatgoesthroughthemindduringthisdownwarddecent?Acceptingasmallgiftbya
businessperson,orevenapublicofficial,mightbelegal,butneedstobedisclosed,reported
properly,andnotacceptedinanticipationofreturningafavor(quidproquo–thisforthat).
Inmanyculturesitwouldappearrudetorefuseasmalltokenoffriendship,andmightcost
youthedeal,orthecontribution.InCommissionerLefcoe’sinitial“hamgate”incident,he
wasn’tsurewhetheracceptingitwasproper,butitdidseemtobotherhim.Whatwasthe
funeralhometryingtodo?Befriendhim?Influencehim?Buyhim?Forthecostofaham?
Hecoulddefendhisinitialactionbygivingthepeskyporkeraway.Itmayhavebeen
inconvenient,requiringadditionaleffort,butatleastsomeneedypeoplecouldbenefit,and
he’dmaintainhisintegrity.
Anotheryear.Anotherham.Anotherexplanation.Thistimeperhapswithsome
indigestion,butwithoutthesideorderofindignation.Thesmokedswinethatinitiallyleft
suchabadtasteinhismouth,wasgettingmoreandmorepalatable.Savoryeven.After
justafewyears,hestartedsalivatinginanticipation,rightafterThanksgiving.Slippery
slopesuccessfullyslid.Nowwhere’sthatcarvingknife?
Continuingwiththeconceptofcharcuterie,there’sanotherincrementaltheoryknownas
“salamislicing”.Itsdefinedas,“aseriesofactionstoremoveorreducesomethingbysmall
amountsoveraperiodoftime,sothatpeoplearelesslikelytonoticeanychanges.”6
ReflectionisanimportantpartofaJesuiteducation,andIencourageallofmystudentsto
contemplatewhatwe’vereadanddiscussedinclass.Here’swhatoneofthemwroteinher
journal,whilewewerediscussing“slipperyslopes”.
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Oneotherpieceofdiscussionthatwasbroughtupinclassishow,littlebylittle,it’s
easytogodownanon-ethicalpath.Atwork,Icallthis“salamislicing”.Sayyouhave
a[processthatuses10%ofamaterial].Thecompanydecidestocost-savethe
formulaforagivenreason,butwewanttomakesuretheconsumerstillgetsthe
benefit.Welowerthe[factor]to9%.Theformulasarecompared,andnonoticeable
negativesareseen–managementapprovesthe9%[factor].Afewmonthslater,
thereisaneedtocostsaveagain,thesamehappens,the9%[factor]iscomparedto
the8%,andnonoticeablenegativesareseen.Asthishappensoverandover,you
endupina5%[factor]thinkingyouarestillgoodsinceyouare“salamislicing”little
bylittle.Ifyouweretocomparethe10%formulawiththenew5%,Iamsurethe
differenceswouldbehuge;yet,youblindyourselftothinkyouare“stillokay”.Itis
interestingseeingthatwhenaseriesofeventshappengradually,itnumbsthe
“ethicalmuscle”intobelievingitisokay.Everydaywepushboundaries,andwefind
ourselvesinsituationsthatarehardtoassess.7
Thethingthatwasoncetolerable,andprobablylegaltobeginwith,nowbearslittle
resemblancetotheoriginalbehavior.We’vegonefromacceptabletounethical,andmaybe
evenillegal,onesliveratatime.
RECOMMENDATION:Beverycarefulbeforeyoustartdowntheslipperyslope.Cuttingthat
first“sliceofthesalami”canleadtofuturerationalizations,andpointyouinthewrong
direction.Youmightstrugglewiththisoriginaldecision,butaftersignificantsoulsearching,
reluctantlyacquiescetothe“onetime”request.The“firstcut”canleadtofuture
rationalizations,andpointyouinthewrongdirection.Unfortunately,onceyou’vedonethat
deed,itbecomesincreasinglydifficulttorefuse,andeasytoaccept,thesecond,fifthandtenth
request.Younolongerhavethemoralhighground,anditbecomesverytoughtoreverse
course.
ALTRUISTS–“thebeliefinorpracticeofdisinterestedandselflessconcernforthewell-beingofothers”8
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Whileincrementalistsmaystartabovethelineofthelaw,altruiststypicallyoperate
somewherebelowit.Theyjusthavedifferentmotivationsandintentionsthanother
lawbreakers.
Peopleareabletocheatmorewhentheycheatforotherpeople.Insome
experiments,peoplecheatedthemostwhentheydidn’tbenefitatall.Thismakes
senseifourabilitytobedishonestisincreasedbytheabilitytorationalizeour
behavior.Ifyou’recheatingforthebenefitofanotherentity,yourabilityto
rationalizeisenhanced.Soyes,it’seasierforanaccountanttoseefudgingonclients’
taxreturnsassomethingotherthandishonesty.Andit’saconcernwithin
companies,sincepeople’saltruistictendenciesallowthemtocheatmorewhenit
benefitsteammembers.9
Wenormallythinkofaltruistsaspeoplewhodoselfless,asopposedtoselfish,acts.
PrometheusstealingfirefromOlympusandgivingittohumanswasanactofaltruism.10
ZeuspunishedhimbychainingPrometheustoarockandhavinganeaglegnawonhisliver
everyday.BecausePrometheuswasimmortal,hisorgansregeneratedeverynight,onlyto
beperpetuallypicked,peckedandpokedbythatpainfulbirdofprey.
JustasPrometheuswasloyaltohumans,“[M]anyemployees…rationalizedishonestillegal
behaviorbyseeingthemselvesasloyalcorporatesoldiers.”11Sohowdoweviewthese
goodsoldierswho“takeonefortheteam?”Typicallybetterthantheoneswho“takesome
fromtheteam”.In2007,retiredNewYorkYankeepitcher,AndyPettitte,demonstrated
thiswhenheconfessed,“Ifeltanobligationtogetbacktomyteamassoonaspossible.For
thisreason,andonlyforthisreason,fortwodaysItriedhumangrowthhormone(HGH)…I
wasn’tlookingforanedge.Iwaslookingtoheal.”12Mr.PettittetooktheHGHin2002,
whichwasn’tbannedfrombaseballuntil2005.Whilehisintentionsmayhavebeengood,
hisactionswerequestionable,butnotillegal.
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Altruistsmayconvincethemselvestheirmainmotivationishelpingothers,butpride,ego
andevennarcissismcanalsofactorintotheequation.Somepeoplecan’ttoleratebeing
associatedwithafailedprojectorcompany.Theymightalsobefrustrated,believingthe
rulestheyarerequiredtoplaybyareoutdated,cumbersomeandineffective.Whynotjust
cuttothechase,ignoretherules,andgivethecompanyabenefittheydidn’thavebefore.
Somepeoplebelieveit’seasiertoaskforforgivenessafterwards,thanbedenied
permissionbeforehand.Irrespectiveofwhethertheirmotivesarepureormixed,altruists
doappearloyaltoothers.Unfortunately,thisloyaltyismisguided,andtheir“gifts”tothe
companyaretainted.
Intheshortterm,altruistsmaybreakrecords(eithersports,sales,productivity,orothers);
butattheendoftheday,theirachievementswillbeaccompaniedbyan“*”,aftertheir
dirtydeedsarediscoveredanddisclosed.Organizationscan’tquietlyscoldtheoffending
employee,whileacceptingbenefitsfromtheirimproperactions.Allthisdoesisdevelop
anddeepenacorruptcorporateculture.
RECOMMENDATION:Altruistswhobelievethatcertainpoliciesareinappropriateorsimply
wrong,shouldcomeforwardandpubliclyadvocateforchange.Theyshouldn’tactsecretly,
justifyingtheirimproperaction,bybelievingtheywillbenefitothers.Thispublicdiscourse
allowsmanagerstoopenlydiscussconcerns.Thecompanymaybeconvincedbythe
altruist/advocate’slogic,thenattempttochangethepolicy,regulationorlaw.Ifthe
organizationdisagrees,itcan’tjustcloseitseyestotheviolation,andacceptthebenefits.It
mayappreciateloyalty,butmustrequireintegrity.Breakingtherulestohelpthecompany,or
9
theteam,isstillbreakingtherules.Altruists’improperactionsmaybeunderstandable,but
cannotbeacceptable.
PRISONERS-“apersonwhofeelstrappedorconfinedbyasituationorsetofcircumstances”.13
There’sanoldstoryaboutamanwhooffendedtheking,andwassentencedtodeath.This
manpleadedwithhisroyalhighness,askinghebespared.Hetoldtheking,thatgivenone
year’stime,hecouldteachtheking’sfavoritehorsetosing.Ifsuccessful,heshouldbe
released.Withfailure,he’dwillinglygotothegallows.Intriguedandamused,thekingsent
theprisonertothestables.Onhiswaytothebarn,aguardquestionedtheinmate’ssanity.
Theprisonerreplied,“Alotcanhappeninayear.Thekingmightdie.Imightdie.The
horsemightdie,andwhoknows–maybethehorsewilllearntosing.”Sometimes
prisonersjustwantalittlemoretime.Maybethey’llcomeupwithasolution.Perhaps
circumstanceswillchange.Atleastthey’llhaveanotheryear.
Notallprisonersareasquickwittedasthewould-behorsecrooner.Manyfeeltrappedby
circumstancesbeyondtheircontrol.Inthe1998movie,SnakeEyes(DirectedbyBrian
DiPalma),NicholasCageplaysthecorruptAtlanticCitycop,RickSantoro.JuliaCostello
(CarlaGugino)isadefensecontractorwhistleblower.Shehasjustunburdenedherself,by
tellingSantorohisbestfriend,CommanderKevinDunne,(GarySinise)wastheleaderina
conspiracytomurdertheSecretaryofDefense.ThenewlyburdenedSantoroshrieksinhis
NickCage“crazyeyes”,nowSnakeEyesway,“BecauseIdidn’thavetoknow!Youdecided
tohavethisproblem,notme!Myworldwould’vegoneonturningjustfine,butnow,either
wayIlook,IhavetodosomethingIdon’twannado.Doyouunderstand,Idonotwannato
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dothis!”14Insteadofbeinginformed,butconflicted,hewishedhe’dstuckhisfingersinhis
earswhilescreaming,“La,la,la,la,la.Ican’thearyou”.
Movingfromcinema,toothercreativeartsinmusicandtheater,riddlemethis-whatdoes
a1963rhythmandbluessongbySamCooke,haveincommonwithalinespokenbyNurse
inShakespeare’s“RomeoandJuliette”?Bothrefertolivingina“Fool’sParadise”.15Just
likeSnakeEyes’Santoro,sometimeswe’remindingourownbusiness,andeverything
seemsrightwiththeworld.Thensomethingunexpectedfallsintoourlap.Wedidn’tcause
theproblem,butnowknowaboutit,andwishwedidn’t.Wewerehappylivingwith
blindersoninourown“fool’sparadise”,butnowwe’reconfrontedwithadilemma.Dowe
getinvolved,orignoreit?Eveninaction,isstillanaction,thatcanhaveconsequences.
Perhapspoliticscanprovidetheanswertohowprisonersshouldproceed.Growingup,I
rememberwatchingtheWatergatehearingsin1973.Inthedawntillduskcoverage,that
evenpre-emptedafternoonsoapoperas,SenatorHowardBakerkeptaskingNixon’saids,
“WhatdidthePresidentknow,andwhendidheknowit?”Imagineyou’rebeingcross-
examinedbyazealousprosecutor,askingyou-“WhatdidYOUknow,andwhendidYOU
knowit?”Thefollowuptothisinquiryis,“WhatdidYOUdo,onceYOUknewit?”We’rea
tolerantsociety.Wedon’tlikemistakes,butovertime,wecanforgivethem.Doyouknow
whatwehate?Cover-ups.Sincethe1973politicalconspiracy,wehaveanewshorthand
wayofdescribingthisbehavior.Wejustaddthefourletters…”gate”totheendofthe
scandal,andthesubjectbecomesaprisonertotheheadlines.Atleastforthenextnews
cycle,ortwo.
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RECOMMENDATION:Whenyour’realertedtoapotentialproblem,assumeotherswillalso
findoutaboutit.Yourinitialresponseshouldnotbetolookforexcuses,orblamesomeone
else.Plausibledeniabilitywon’tsolveanything.Investigatewhathappenedandpropose
viablesolutions.Ifyoucausedpartoftheproblem,acceptresponsibility,apologize,andlearn
fromit.Betransparentandkeepyourcompanyandthepublicinformedaboutyouractions.
Explainwhysomethinghappened,thenwhatyou’redoingtomakesureitdoesn’thappen
again.Evenprisonerscanbepardoned,withgoodbehavior.
BROWBEATEN-“intimidate(someone),typicallyintodoingsomething,withsternorabusivewords.16
Aboutadozenyearsago,IdesignedanMBAelectiveIteacheverysummercalledBusiness
EthicsThroughFilm.Oneofthemostinteresting,butdifficult,moviesinthecourseis
GlengarryGlenRoss.17Inthis1992movie,basedonaDavidMametplay,AlecBaldwin
playsBlake,thetopsalespersoninafictionalrealestatefirm,whoearned$970,000in
commissionsthepreviousyear.Hetakesnoprisonersinselling,andbelieves“thesale
beginswhenthecustomersays‘No’”.You’reeithersellingtheclientwhytheyshouldbuy
youroverpricedswamplandinFlorida,orthey’resellingyouwhytheyshouldn’t.Butmake
nomistake,asaleisalwaysmade.Blake’sonamissionofmercyforhisemployers,Mitch
andMurray,who’veaskedhimtolightafireunderthetroopsatthelocaloffice.Blake
chastisesShelly“TheMachine”Levine(JackLemmon)to“putthatcoffeedown.Coffeeis
forclosersonly.”18BlakeputsDaveMoss(EdHarris)inhisplacebybraggingthathis
watchcostmorethanMoss’car.Thefinalactofmotivation/humiliationoccurswhen
Blakeexplainsthenewrulesofthegame."Causewe'readdingalittlesomethingtothis
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month'ssalescontest.AsyouallknowfirstprizeisaCadillacElDorado.Anyonewannasee
secondprize?Secondprizeisasetofsteakknives.Thirdprizeisyou'refired.”19Inthis
cutthroat,dog-eat-dogenvironment,peopleareundersomuchpressure;they’lldo
anythingtosurvive.Theyaredesperatetogetapromisinglead,tryinganytacticsto
convinceoneoftheirrecycledcold-calledprospectstoagreetoa“sit”(ameetinginthe
customer’shome),sotheycanbuyrealestate,snake-oil,widgetsoranyotheruseless
product,atinflatedprices.
Themovieisshotindarkprimarycolors.Blurrybluesandflashingredssetthescenefor
thisprimalbattle.Yourworthismeasuredbywhatyou’vedoneformelately.Notthe
nostalgicglorydaysofwinningpastcontests.Thesesalesmeneatwhattheykill,andtheir
cave-manhoodiscontinuouslychallenged.Baldwin’sBlakeistheconsummatebully,and
therestoftheofficetakeshisabuse.TheexceptionisRickyRoma(AlPacino)who’s
excusedfromtheverbalbeatdown,becausehe’sonthetopoftheboard,andontopofthe
world.Roma’sabsentbecausehe’sclosinganewclient,JamesLingk(JonathanPryce),with
bigstories,falseflattery,misdirection,liesandseduction.Romaisthelivingembodiment
ofBlake’ssalesmantra–“A.B.C.–AlwaysBeClosing”.
GlengarryGlenRossexposesustothe“duressforsuccess”,dowhateverittakestohitthe
numbers,corporateculture.In2003,PaulMoore,theformerheadofriskmanagementof
HBOS(aholdingcompanyfortheBankofScotland),experiencedthisinreallife.He
cautionedthecompanyaboutitsriskappetite,whenHBOSgambledonbadmortgagesand
paymentprotectioninsurance(PPI).“Alarmbellsranginlate2003,whenhenoticed12%
ofprofitswerecomingfromthesaleofmortgagePPI.Helookedacrossthebusinessand
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sawaggressivemanagerspressuringstafftomeetwildsalestargets(‘We’llneverhitour
salestargetssellingethically,‘onetoldhim…’)”.20Unfortunately,integritytookabackseat
tomakingoutrageousshort-termprofits.Alesspressured,moreprudentapproach,might
havepreventedHBOS’£10bninlossesin2008.
Givenenoughpressureovertime,natureturnscoalintodiamonds.Underthesame
conditions-pressureovertime-goodemployeescanhavetheirsoulsfirstdeadened,then
hardened.Theseuglyblackgemstonesmaybeabletocutglass,butareimperviousto
chipping,orfeeling.TheseGlengarryGlen-workersdon’twakeupexcited,champingatthe
bitforanotherday,anotheropportunity,anotherchallenge.They’rewatchingtheclockas
soonastheyarriveatworkinthemorning.BludgeonedbytheBlakebossesoftheworld,
theydon’tevencareanymore.Thereisnojoy,justtheconstantpressuretoperform.They
needtobeontopoftheboardandwintheCadillac–oratleastthesteakknives.
RECOMMENDATION:I’vegivennumerousvaluesbasedpresentationstocorporations,
associationsanduniversities.Whenevercynicalbusinesspeoplehearthe“E”(ethics)word,
theythink“here’sanotherpointyheadedacademiclecturingme,withoutrealworld
understandingabouthowtoughitisoutthere.Youcan’thavebothhighethicalstandards
andhighperformanceexpectations.”Asyoumightimagine,Iwoulddisagreewiththem.
Companiescansetveryhighperformancetargets.Theyjustneedtoprovidetheiremployees
theresourcestoaccomplishthesegoalsinanethicalfashion.
Compensationstructurescanhavedirectsocialandmoraleffects,whichiswhy
executivecompensationisacriticalcorporategovernanceissuethatmustbeoverseen
closely.Compensationstructuresthatdonotincludeanethicscomponentcan
encouragethewrongtypesofbehavior.Forexample,alargepayincreasethatistied
tounreasonableperformancetargetscouldhelpanindividualtorationalizeunethical
andexcessiverisktaking.Stockoptions,profitsharing,bonuses,executiveretirement
14
benefits,severancepoliciesandotherperksshouldbealignedwithacorporate
commitmenttoethicalbehavior.21
Withoutadequateresources,ifmanagerstellassociatesto“justgetitdone,andIdon’tcare
howyoudoit,”employeeswillinterpretthisastacit,ifnotexplicit,approvaltocheat.
Giventherighttools,aggressive,butrealisticstretchgoalscancreatearichandcompetitive
workenvironment.Manyemployeeswillacceptthechallenge,followtherulesandhavea
betterattitudeandworkproduct.Aslongasthey’renotpressuredtocheat,andbrowbeaten
intosubmissioneveryday,theseemployeescanbecomehiddendiamondsforthecompany.
CONFORMISTS-“tomakeoneselflikeorinharmonywith(apatternorexample);tobringoneselfintoconformity,adaptoneself.22Themovie“AFewGoodMen”wasfirstaplay,writtenbyAaronSorkinin1989.Hebased
theideaoffaincidenthissister,ayoungmilitaryattorney,experiencedearlierinher
career.23 Sorkin adaptedtheplayintothescreenplayforthe1992movieofthesame
name,directedbyRobReiner.TomCruiseplaysLt.DanielKaffee,theaffableNavyJAG
attorneyknownfornegotiatingsweetpleaagreementsforhismilitaryclients,whilestill
havingplentyoftimetopracticehissoftballswing.Cruise/Kaffeeisselectedtodefendtwo
Marines,CorporalDawsonandPrivateDowney,accusedofkillingPrivateWillySantiago
duringahazingincidentcalleda“CodeRed”.Kaffeeisonlyoneyearoutoflawschoolbut
duringthattime,“He’ssuccessfullypleabargained44casesinninemonths.”24Hisquickto
settlem.o.isexactlywhyhisbossesfrom“division”selectedhim,notthebrilliantbylegally
clumsyLt.CommanderJoAnneGalloway(DemiMoore),torepresentDawsonandDowney.
15
Thecasewasdesignedtobesweptunderthecarpet,andneverseetheinsideofa
courtroom.
Ifconvicted,thetwoMarinesfacedlifeinprisonatLeavenworth.Theprosecutingattorney
CaptainRoss(KevinBacon),startedthesentencingauctionat22yearsapiece,thenquickly
droppeditto12.WhenKaffeepushedback,Rossgavehisbestandfinaloffer,twoyearsin
prison,andDawsonandDowneywouldbereleasedafter6months.Surprised,butpleased
withasentencelastingshorterthanahockeyseason,Kaffeetakestheoffertohisclients,
expectingasighofrelief,athankyou,andmaybeevenasalute.Instead,CorporalDawson
refusesthedeal,stating“Wedidnothingwrong,sir.Wedidourjob.Ifthathas
consequences,thenIacceptthem.ButIwon’tsayI’mguilty,sir.”25Withouttheir
admissionofguilt,Kaffeewouldhavetousethe“justfollowingorders”defenseknowing
“thatdidn’tworkforCalleyatMyLai,anargumentthatdidn’tworkfortheNazisat
Nuremeberg”.26Cruisetriestodefendhisclientsbyimplicatingtheheadofthe
GuantanamoCubaMarinebase,ColonelNathanJessep(JackNicholson).Thisisrisky
businessforCruise,becausefalselyaccusingasuperiorofficercouldgetKaffeecourt-
martialedtoaplacethatdidn’thaveasoftballfield.KaffeeneedJesseptohanghimself.
Maybehe’ddojustthat,ifCruisesuppliedenoughrope.
Col.Jessep:Haveyoueverspenttimeinaninfantryunit,son?
Kaffee:Nosir.
Col.Jessep:Everservedinaforwardarea?
Kaffee:Nosir.
Col.Jessep:Everputyourlifeinanotherman'shands,askhimtoputhislifeinyours?
Kaffee:Nosir.
Col.Jessep:Wefolloworders,son.Wefollowordersorpeopledie.It'sthatsimple.Arewe
clear?
Kaffee:Yessir.
Col.Jessep:Areweclear?
Kaffee:Crystal.27
16
Followingthisexchange,JesseptellsKaffeethathegaveanorderthatPrivateSantiagonot
betouched.HelatertestifiedthathedirectedSantiagobeflowntotheUSbecausehewas
in“grave”danger(isthereanyotherkind?).Kaffeechallengesthesetwoinconsistencies,
attemptingtoshowperjury,andultimatelyJessep’scomplicity.
IfyougavetheorderthatSantiagowasnottobetouched,andyourordersare
alwaysfollowed,thenwhywouldSantiagobeindanger?Whywoulditbenecessary
totransferhim?...Youmadeitclearjustamomentagothatyourmennevertake
mattersintotheirownhands.Yourmenfollowordersorpeopledie.SoSantiago
shouldn’thavebeeninanydangeratall,shouldhehave,Colonel?”28
Cornered,butnotcontrite,JessepcontemptuouslyeducatesyoungKaffeeonthetruth,that
hemayormaynotbeabletohandle.Jessep’sego,coupledwithhisdogmaticneedfor
respectforthechainofcommand,orderandrulefollowingleadtohisadmissionof
orderingthe“CodeRed”,whichresultedinSantiago’sdeath.Itseemsthatevenwhen
peopledofollowColonelJessep’sorders,someinnocentpeopledie.How’sthatnoose
feelingColonel?Isittightenough?Doyouneedanymorerope?
Uponenlistinginthemilitary,soldierslikethefictionalDowneyandDawson,takealoyalty
oathofobedience.Sowhydoesn’t“IwasjustdoingwhatIwastolddefense”work?
Soldiersaredutyboundtofollowtheordersoftheirsuperiors,butthis“Nuremburg
Defense”didnotsaveAdolfEichmannfrombeingconvictedandhangedforcrimesagainst
humanityandwarcrimesonMay31,1962.Whilesoldiersmustobeylegalorders,they
candisobeyillegalones.Decipheringwhichiswhichcanbethetoughpart.
AboutthesametimeasEichmann’strial,in1961StanleyMilgram,aYalepsychologist,
startedexploringthequestionwhywefollowauthority,eveninlightofunthinkable
consequences.“He(Milgram)wasseekingananswertothepertinentquestion:‘Coulditbe
17
thatEichmannandhismillionaccomplicesintheHolocaustwerejustfollowingorders?’”29
Milgram’scontroversialexperimentusedthreepeople–“theexperimenter”,“theteacher”,
and“thelearner”.Boththeexperimenterandthelearnerwereincahoots,andtherealtest
wastoseehowfarthe“teacher”wouldgo,ifproddedbytheexperimenter.Thefake
experimenthadgroupsoftwopeople,chosentoparticipate.Allegedlythetwoparticipants
“randomly”selectedapieceofpaper,assigningwhethertheywerethe“teacher”orthe
“learner”.Unbeknownsttotherealsubject,bothsheetsofpapersaid“teacher”,butthe
stoogealwaysclaimedtobethelearner.Letthephonyexperimentbegin!Theback-story
abouttheallegedexperimentwasincreasingelectricshockscouldhelppeopleremember
wordpairings.Beforetheexperimentbegan,theteacherwasadministeredalowdoseof
electricitybyamachine,tofeelitwasreal.Afterthis,thelearnerwasremovedtoanother
room,behindabarrier.Witheachwronganswer,theteacherwasinstructedbythe
experimentertoincreasethevoltage.
Conflictariseswhenthemanreceivingtheshockbeginstoindicateheis
experiencingdiscomfort.At75volts,the“learner”grunts.At120voltshe
complainsverbally;at150hedemandstobereleasedfromtheexperiment.His
protestscontinueastheshocksescalate,growingincreasinglyvehementand
emotional.At285voltshisresponsecanonlybedescribedasanagonizedscream.30
Whenevertheteachersprotestedthattheywantedtostop,theexperimentersaidthe
followingstatements,inthefollowingorder:1.“Pleasecontinue.”,2.“Theexperiment
requiresthatyoucontinue.”,3.“Itisabsolutelyessentialthatyoucontinue.”,and4.“You
havenootherchoice,youmustgoon.”31InMilgram’sfirstexperiment,65%(26outof40),
followedorders,andwerewillingtoadministeraseeminglylethal450-voltshock.
18
Bothsoldiers,andpsychologysubjectshavefacedthepressuretoobeyauthorityfigures.
So,howdoesthe“Iwasjustfollowingorders”defenseworkwithlowerlevelwhite-collar
criminals?It’snotanexcuse,butmayhelpasastrategyforbettertreatment,when
prosecutorsusethemaschumtocatchbiggerfish.“’Thestrategythatmostexperienced
prosecutorswanttofollowisstartatthebottomandworktothetop,’saidMelindaHaag,
formerheadofthewhite-collarcrimesectionoftheUnitedStatesAttorney’sofficeinSan
Francisco.”32Whengovernmentattorneysjustfollowthetrailofthosejustfollowingthe
orders,theycaneventually“tradeup”totheseniorexecutiveswhoissuedtheorders.
Theirmotivationandreward-anotherhighprofileconviction.Anotherpressconference.
Anotherpromotion.
RECOMMENDATION:Almosteverythingyouneedtoknowaboutconformists,canbelearned
inaPSYC101class.AlongwithMilgram,psychologistsfromA(Asche)toZ(Zimbardo)have
studiedthequestionabouthownormal,goodpeople,canfirsthavetheirjudgment
subordinated,thenpersuadedtodounimaginableacts.WhileMilgramexploredauthority,
Asche(Milgram’smentor)andZimbardoexaminedtheinfluencegroupshaveonour
behavior.
Wetrytoavoidconfrontationandconflict.Welikefittinginwiththegroup,andunderstand
theneedtofolloworders.Itmayseemcounterintuitive,butemployeesshouldbewillingto
stickoutfromthecrowd.Byofferingdiverseperspectives,theirteamswillbestrongerand
cometobettersolutionsthanitwouldfrompoliteheadnodsfromcorporatetoadiestoo
afraidtospeaktheirminds.EinsteinrecognizedthedangerofconformityinaJuly8,1901
statementtoJostWinteler,“Slavishobediencetoauthorityisthegreatestenemyofthe
19
truth”.33Thissamesentimentiscapturedinthe20thcenturybumpersticker/t-shirt-
“QuestionAuthority”.Ithinkthatcanbegoodadvice,butIwouldadd,“Doitinarespectful
way”.
RATIONALIZERS-“toexplainorjustify(one’sbehaviororattitude)tooneselforotherswithplausible,butspeciousreasons.”34In2014,attheGraceHopperCelebrationofWomeninComputingConference,Microsoft
CEOSatyaNadella,wasaskedhowthetechindustryshouldrespondtowagedisparity,
basedongender.Hesaid,“It’snotreallyaboutaskingforaraise,butknowingandhaving
faiththatthesystemwillgiveyoutherightraise…Thatmightbeoneoftheadditional
superpowersthatquitefrankly,womenwhodon’taskforraiseshave.Becausethat’sgood
karma.Itwillcomeback.”Thepublicresponsetothisstatement,especiallyatthis
conference,waspredictable,negativeandswift.Tolimithisownbadkarma,Nadella’s
reactionwasatweetedretraction.
Nowimagineyouaskforthatwelldeservedraiseandaretoldbyyourbossthatthere’sa
salaryfreeze,sonooneatyourlevelisgettinganincrease,eventhoughyoubothsuspect
seniormanagersaregettingtheirs.Yoursupervisorrecommendsanalternativesolution-
youshouldincreaseyourtravelandentertainmentexpensereportbyabout$50aweek.
Thecompany’sperdiemreimbursementsystemexpectsstrictaccuracy,butisbasedon
trust,andallowsyoutovouchermealexpensesunder$50,withoutreceipts.Your
supervisorinstructsyouto“Payforahotdog,andvoucherasteak.Howaretheygoingto
knowwhatyouate?Makedon’trepeatexactnumbersfromweektoweek,becausethat
couldraisearedflag.”Thesupervisorpromisestosignoffonyourreports,andyou’llget
theequivalentofa$2,500raise($50perweekfor50weeks)–taxfreeandclear,aslongas
20
you’renotcaughtbytheIRS,FBI,localpolice,oryourcompany’sinternalauditors.You’re
reassurednottoworry,becauseeverybodydoesthis,andnoonewilleverfindout.
Youmightrationalizeparticipatinginthisschemebythinking,“WhoamItoarguewithmy
boss.Anyway,Ideservethemoney,andworkasmanyhoursastheCEOwho’smaking
hundredsoftimesmysalary.Thecompany’smakingsomuchmoney,they’llnevermissit.
WhyshouldIbetheonlyoneNOTdoingthis?”
DanAriely,ProfessoratDukeUniversity,haswrittenextensivelyonrationalization.35He
tellsastoryaboutalittleboywhogotintroubleforstealingapencilfromanotherstudent.
Hisfatherwasmortifiedbytheincidentandtoldhisson,“Johnny,that’sterrible,younever
steal,andbesidesifyouneedapencil,letmeknowandI’llbringyouaboxfromthe
office.”36Welearntherulesbymodelingdifferentroles,includingourparents,colleagues,
andbosses.
Arielyresearchedrationalizations,byexploringhowpeoplecancheat,andstillconsider
themselvestobea“goodperson”.Oneofhisexperimentsinvolveddistributingaseriesof
mathquestionstoparticipants.Theyhadalimitedtimetosolvetheproblems,andwere
awardedmoneyforeachcorrectanswer.Inthecontrolledformat,whenthetestwas
monitoredandresponsescouldbeconfirmed,theaveragenumberofcorrectanswers
reportedwas4solutionsin5minutes.Inasecondversion,participantswereallowedto
takethetest,shredtheiranswers,anddeclaretothemonitorhowmanyquizzesthey
solvedcorrectly,andthencollecttheirpayment.Manyparticipantsacceptedasmall
amountofcheating,andstillbelievedtheyweregoodpeople.
21
Inaway,thismightbesimilartospeedingonthehighway.Mostofuswouldneverdrive
90onahighwayzonedfor65mph.Peoplewhodothatarereckless.Atleasttheydeserve
aspeedingticket,andmaybehavetheirlicenserevoked,ifnottheirfreedom.Butwhat
abouttravelingonthatsameinterstateroadat66,68oreven70mph?Aswe’regently
pushingtheacceleratorpedal,westillconsiderourselvesbothgooddriversandgood
peoplebyrationalizingthatwe’rejustgoingthespeedoftraffic.We’recertainlynotasbad
asthepeoplewhoarepassingus.Infact,weconvinceourselvesthatifweonlydrove65
mph,wemightcreatethedangerousconditionofgoingtooslow.Tryexplainingthatlogic
toOfficerSpeedtrap,whojustclockedyougoing70ina65mphzone.LikeAriely’smath
testtakers,alittlecheating-speedingmayseemjustifiableinourownminds,butprobably
nottothepolice.
Arielydiscoveredtherecouldbesomesignificantfinancialimplicationsforjustcheatinga
little.Intheuncontrolledexperiment,hefoundthattherewereasmallpercentageof
peoplewhoneverlied,alwaysansweringthetesthonestly.Hedidn’tloseanymoneyon
them.Therewasanothersmallgroupthatliedalmostallthetime,significantlyinflating
thenumberoftheircorrectanswers.Whiletheexperimenterlostmoremoneyperperson,
therewerenotmanywhofellintothiscategory,thereforenotmuchmoneywaslostin
total.Thesurprisingpartwasthathelostthemostmoneyfromthosewhoonlycheateda
little.Theymayhavesolved4problems,butreported5or6.
Acrossallofourexperiments,we'vetestedmaybe30,000people,andwehada
dozenorsobadapplesandtheystoleabout$150fromus.Andwehadabout18,000
littlerottenapples,eachofthemjuststoleacoupleofdollars,buttogetheritwas
$36,000.Andifyouthinkaboutit,Ithinkit'sactuallyagoodreflectionofwhat
happensinsociety.37
22
Iftheyjustcheatedalittle,theycouldstillconsiderthemselvestobefairlyhonestandstilla
“goodperson”.“Wehaveafudgefactor,wehaveanabilitytorationalizesomedishonesty
andaslongaswecheatjustalittlebit,wecanstillrationalizeit.”38
RECOMMENDATION:Organizationsmustunderstandanddealwiththerootcausesofits
employee’srationalizations.Ifemployeesareunhappyabouthowlittletheymake,compared
toseniormanagement,companiesshouldexplainwhythisdifferenceisnecessarytoattract
andretaintoptalent.Theyneedtosetclearexpectationsthat“noteveryoneisdoingit”,and
establishappropriateinternalcontrolstopreventanddetectviolationsforthose“whoare
doingit”.Companiesshouldexplainthatemployeescan’tjuststealalittleandstillconsider
themselvesgoodemployees.Theyshouldconsiderthemselvescheaters.
HEDONISTS-“onewhoregardspleasureasthechiefgood”39
“Whydotalented,bright,highlyeducated,successfulpeople,whohave‘madeit,’riskitall
bylying,stealingandcheating,especiallywhenthey’restealingisnotmuchcomparedto
whattheyhave?Thesimpleansweris,‘becausetheycan.’”40Thisquotecouldhavebeen
appliedtoMarthaStewart’ssaleofImclonestockonDecember27,2001,thedaybeforethe
FDAdeniedthatcompany’srequesttohaveitsdrug–Erbitux–approvedtotreatcancer.
Allegedly,Ms.StewartindirectlyreceivedinformationabouttheFDAdenial,throughPeter
Bacanovic.HewasthestockbrokerforbothMs.Stewart,andSamWacksal,theformerCEO
ofImclone.41
23
Bysellingher3,928sharesofImclonestockthedaybeforetheFDApubliclyreleasedits
Erbituxdecision,MarthaStewartavoidedlossesof$45,673.42$46,000toMarthaSteward
isaroundingerror.It’sacoupleofNewYorkCitygalas,withfancydressesandJimmy
Chooshoes.Thiswouldbeequivalenttomid-levelmanagersriskingtheirreputationfor
thepriceofaniPad-mini(withonly64gigabytesofmemory).NowIhatelosingany
money,butI’mnotchancingprisonfor500bucks.
Bytheway,MarthaStewartwasneverconvictedofinsidertrading,whichcanbetoughto
prove.Instead,shewassentencedtofivemonthsin“CampCupcake”aminimumsecurity
women’sworkcampinAlderson,WestVirginia,onfourcountsof“obstructionofjustice
andlyingtoinvestigators”(amucheasiercasetomake).Ms.Stewartdidn’tappealher
sentenceanddidhertimewell.SinceherreleaseonMarch5,2005,MarthaStewarthas
doneawonderfuljobrehabilitatingbothherreputationandherbrand.Forallthe
stakeholdersinhercompany,MarthaStewartLivingOmnimedia,that’s“agoodthing.”
WhatdoPeteRose,WesleySnipesandLeonaHelmsleyhaveincommon?Theyallwentto
prisonfortaxevasion.DuringHelmsley’strial,aformerhousekeepertestifiedthatshe
overheardLeonasaying,“Wedon’tpaytaxes.Onlythelittlepeoplepaytaxes.”43Whydo
somerichandpowerfulpeoplethinktherulesdon’tapplytothem?Whatisthecauseof
thishubris?Sometimesitsbecausenobodytellsthemtostop.
Organizationslovehighpotentialperformers(highpots)-superstarswhonotonlymeet
expectations,butcrushthem.Managersmustdomorethanjustacceptresults.“Thewhat”.
Theyhavetoexploretheprocessofgettingthegoals.“Thehow”.JackWelchdiscussedthis
24
inhis2000AnnualReporttotheBoardofGE,whenhedividedleadersintofourdistinct
groups:
Andit'saboutthefour"types"thatrepresentthewayweevaluateanddealwithour
existingleaders.TypeI:sharesourvalues;makesthenumbers—sky'sthelimit!
TypeII:doesn'tsharethevalues;doesn'tmakethenumbers—gone.TypeIII:shares
thevalues;missesthenumbers—typically,anotherchance,ortwo.Noneofthese
threearetoughcalls,butTypeIVisthetoughestcallofall:themanagerwhodoesn't
sharethevalues,butdeliversthenumbers;the"go-to"manager,thehammer,who
deliversthebaconbutdoesitonthebacksofpeople,often"kissingupandkicking
down"duringtheprocess.Thistypeisthetoughesttopartwithbecause
organizationsalwayswanttodeliver—it'sintheblood—andtoletsomeonegowho
getsthejobdoneisyetanotherunnaturalact.ButwehavetoremovetheseTypeIVs
becausetheyhavethepower,bythemselves,todestroytheopen,informal,trust-
basedcultureweneedtowintodayandtomorrow.44
Forcorporatevaluestomeananything,managementmustbackthemupwithactions.
Otherwisetheyarejustsnappypneumonicdevices,placedonplacardsonthewall.
RECOMMENDATIONS:Around1800,JohnRandolphhadthisdescriptionofRepresentative
EdwardLivingstonofNewYork–“Heisamanofsplendidabilitiesbututterlycorrupt.He
shinesandstinkslikerottenmackerelbymoonlight.”45Managerscan’tbedazzledbythe
numbers(theshine)deliveredbyhighperformers,whogetresults,butdoitthewrongway
(thestink).Supervisorscan’tjustwinkatviolations.Theymustapplycompanypolicies
evenly,tosuperstarsandeveryoneelse.Iftheydon’t,thecompanywillcreateatwo-tiered
systemofjustice.Onefor“justus”,andanotherfor“justthem”.Policiesandruleswillbe
irrelevant,and“hittingthenumbers”willbeallthatmatters.Inthisworld,theonly
motivationemployeeshavewillbetoperformwellenough,sotheycanignoretherules.To
paraphraseLeonaHelmsley,“Onlythelittlepeoplewillfollowpolicies”.
CONCLUSION:
25
Therearemanyexplanationsaboutwhygoodpeopledobadthings,andgetlostinthe
BurmudaTriangleofFraud.Onegroupmaystartabovethelaw,butdescendbelowit
(incrementalists).Somemaybewellintentioned,tryingtohelptheirteam(altruists).
Othermayfeeltrapped(prisoners),pressured(browbeaten),groupfollowers
(conformists)orjustconvincethemselvesthecancheatalittlebitandstillbeagood
person(rationalizers)Thelastgroupofpeople,likemackerelsarejustrotten(hedonists).
26
1DonaldRayCressey,OtherPeople’sMoney:AStudyintheSocialPsychologyofEmbezzlement(1972).
2MichaelGaul,TheFraudTriangle,TheRiskManagementBlog(November4,2013)
http://www.lowersriskgroup.com/blog/2013/11/04/fraud-triangle-infographic/3"incrementalism,n.".OxfordDictionaries.
http://www.oxforddictionaries.com/us/definition/american_english/incrementalism?q=incrementalist&sea
rchDictCode=all#incrementalism__6
4Notable&Quotable,WallStreetJournal,EasternEdition,December18,1998:A14.Thiscasecanalsobe
foundin,MarianneJennings,TheMovingLine,BusinessEthics:CaseStudiesandSelectedReadings190
(2014).5Additionaltextaddedbytheauthor.
6“salami-slicing,n.”CambridgeDictionariesOnline,
http://dictionary.cambridge.org/us/dictionary/business-english/salami-slicing
7Iaskedthestudentforpermissiontousethisquote.IexplainedIwouldnotrefertohername,company,or
anyotheridentifyingfeatures.Ihavesubstitutedtheword“factor”,foratermthatcouldidentifyher
company.Shegavemepermissiontousethisquote.
8"altruism,n.".OEDOnline.September2014.OxfordUniversityPress.
http://www.oed.com/view/Entry/5857(accessedNovember21,2014).9http://business.time.com/2012/06/18/why-almost-all-of-us-cheat-and-steal/
10AndreaKuszewski,WalkingtheLineBetweenGoodandEvil:TheCommonThreadofHeroesandVillains,
GuestBlog,ScientificAmerican,March31,2011.http://blogs.scientificamerican.com/guest-
blog/2011/03/31/walking-the-line-between-good-and-evil-the-common-thread-of-heroes-and-villains/11Stricharchuk,BusinessCrackDownonWorkersWhoCheattoHelptheCompany,WallSt.J.,June13,1986at
25,col.4.
12PettitteAdmitsusingHGHtorecoverfromelbowinjuryin2002,AssociatedPress,December16,2007.
http://sports.espn.go.com/mlb/news/story?id=3156305
13“prisoner,n.”OxfordDictionariesOnline.
http://www.oxforddictionaries.com/us/definition/american_english/prisoner?searchDictCode=all
14RickSantoro(NicholasCage)beratesJuliaCostello(CarlaGugino)aftertellinghimhisbestfriendwas
involvedinaconspiracy.SnakeEyes(1998),directedbyBrianDiPalma.
http://www.imdb.com/title/tt0120832/quotes
15WilliamShakespeare,RomeoandJuliet,ActII,Scene4,line1321.“LivinginaFool’sParadise”wasasong
onSamCooke’s1963album“NightBeat”.
16“browbeat,v.”OxfordDictionariesOnline.
http://www.oxforddictionaries.com/us/definition/american_english/browbeat?q=browbeaten&searchDictC
ode=all
17http://www.imdb.com/title/tt0104348/
18http://www.imdb.com/title/tt0104348/quotes.GlengarryGlenRossisfilledwithswearing.Linkingto
thiswebsitewillbringreaderstomanyoffensivewordsandslurs.
19Id.20AndrewSmith,“Therewerehundredsofuscryingoutforhelp”:theafterlifeofthewhistleblower,Saturday,
22November2014,TheGuardian.http://www.theguardian.com/society/2014/nov/22/there-were-
hundreds-of-us-crying-out-for-help-afterlife-of-whistleblower
21JonathanMarks,AMatterofEthics:UnderstandingtheMindofaWhite-CollarCriminal,28Financial
Executive31,33(November2012).
22"conform,v."OEDOnline.OxfordUniversityPress,December2014.Web.17December2014.23WilliamGlaberson,ASurplusof‘AFewGoodMen’,September15,2011,NewYorkTimes,
http://www.nytimes.com/2011/09/16/nyregion/4-lawyers-claim-to-be-the-hero-in-a-few-good-
men.html?_r=024http://www.imsdb.com/scripts/A-Few-Good-Men.html
25http://www.imsdb.com/scripts/A-Few-Good-Men.html
26http://www.imsdb.com/scripts/A-Few-Good-Men.html27AFewGoodMen,http://www.imdb.com/character/ch0007463/quotes.
27
28http://www.imsdb.com/scripts/A-Few-Good-Men.html
29RabbiHaroldM.Schulweis,Conscience:TheDutytoObeyandtheDutytoDisobey106(2008).
30StanleyMilgram,ObediencetoAuthority4(1974).
31Id.at21.32JonathanD.Glater,“ForSome‘JustFollowingOrders’IsaGoodDefense”,NewYorkTimes,June24,2005.
http://www.nytimes.com/2005/06/24/business/24legal.html?_r=0
33RobertSchulmann,TheCambridgeCompaniontoEinstein,editedbyMichelJanssenandChristophLehner
426(2014).
34"rationalize,v.".OEDOnline.December2014.OxfordUniversityPress.
http://www.oed.com/view/Entry/158510?redirectedFrom=rationalizer(accessedDecember17,2014).
35DanAriely,The(Honest)TruthaboutDishonesty(2012),TheUpsideofIrrationality(2010),Predictably
Irrational(2008),http://danariely.com/the-books/
36JoannaPearlstein,6.22.12Wired,WhyWeLie,GotoPrisonandEatCake:10QuestionswithDanAriely,
http://www.wired.com/2012/06/why-we-lie-cheat-go-to-prison-and-eat-chocolate-cake-10-questions-with-
dan-ariely/
37The‘Truth’AboutWhyWeLie,CheatandSteal,June4,2012,NPR,
http://www.npr.org/2012/06/04/154287476/honest-truth-about-why-we-lie-cheat-and-steal
38Id.39"hedonist,n."OEDOnline.OxfordUniversityPress,December2014.Web.17December2014.40PamelaBucy,ElizabethFormby,MarcRaspanti,KathrynRooney,WhyDidtheyDoIt?TheMotive,Moresand
CharacterofWhiteCollarCriminals,82St.Johns’L.Rev.401(Spring,2008).41AnOctober13,2006NewYorkTimesarticleentitled,“TheBrokerWhoFelltoEarth”,byLandonThomas
Jr.,discussedtheImcloneinformationbetweenMr.BanacovicandMs.Stewart.Theendofthearticle
includedacorrection,datedOctober18,2006“An article in Business Day on Friday about the life of Peter E. Bacanovic, the former broker for Martha Stewart, since both were released from prison, incorrectly described a communication he had with Ms. Stewart in December 2001. Mr. Bacanovic called Ms. Stewart at that time and left a message about ImClone Systems; he did not talk to her about Samuel D. Waksal, then the chief executive of ImClone, selling his shares in the company. According to the government’s indictment, a brokerage sales assistant told Ms. Stewart about Mr. Waksal’s selling of the shares.” 42SecuritiesandExchangeCommission,Plaintiff,againstMarthaStewardandPeterBacanovicDefendants,
Complaint,availableathttp://www.sec.gov/litigation/complaints/comp18169.htm,althoughsomearticles
quotethesavingsat$51,000.
4313infamoustaxcheaters,USAToday,March1,2014,
http://www.usatoday.com/story/money/business/2014/02/28/famous-tax-cheats/5903143/
44http://www.ge.com/annual00/letter/page3.html45JohnRandolf,speakingofRep.EdwardLivingstonofNewYork,c.1800,citedbyWilliamCabellBruce,JohnRandolfofRoanoke1922.
