"It is the elites who are threatening to cause the system to collapse."
February 18, 2008
Although no one is guilty before proven, the affair makes me angry too. Perception is reality; and in this case not a nice one. Apparently people who are supposed to be role models for society, have misused societal and individual trust. Dr Zumwinkel has been applying different measures to himself than he apparently promotes. You only have to go to page two of Deutsche Post’s 2006 sustainability report to read this wonderful quote: “During the last few years we have become the global leader in our industry. This leadership entails great responsibilities toward society, the environment and our employees, as well as with respect to our continued sound financial performance.” Well thank you Doctor; but as you know actions speak louder than words.
The tax scandal in itself has everything to cause major distrust in business in general. Why would society continue to believe and be willing to follow “the elite” if such disasters happen regularly? (Germany has had it share over the last years; among others including such icons as Siemens and Volkswagen). Moreover, these kinds of scandals can be a backlash for sustainable entrepreneurship which is built on a principle-based approach. As a growing group of business leaders is –rightly so- promoting self regulation as a way to a better future –for business and society, they should indeed act as role models. If you paint yourself whiter-than-white any trace of grey creates a stain.
What should be done to minimise the damage? I believe the situation asks for a brave response from different stakeholders involved and they should be transparent about what they do and their motives. Business leaders (despite the perception of this week’s news the incident is about a few rotten apples) should disapprove the tax evasion in the clearest way. They should communicate that they appal the fact that the reputation of business is put at risk by those perpetrators. The legal system should show no mercy and punish all who are guilty. Clear examples should be set. And the government should be careful with new regulation. There is a risk that incidents like these make the pendulum swing to the extreme. Society’s immediate demand will be for stricter laws, but politicians should appreciate that only smart regulation is an answer. Plato already noted that “good people do not need laws to tell them to act responsibly, while bad people will find a way around the laws”. How ever disappointing incidents like these are, they are part of any system. Because unfortunately there will always be bad people. A good system will not let the bad ones ruin the system, but let the system adequately take care of the bad ones. Transparency is crucial for that.
I’ll be in Germany for the next few days and I’m very curious how my contacts think about all this. What would you expect?
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