Watch the following article http://finance.fortune.cnn.com/2014/02/18/private-equitys-internal-conflict/ them summarized and, in addition, provide a response to each of these questions …
- How are these topics relevant for workers today?
- What is the role of communication in these processes?
- What does the new information contribute to our understanding of ethical leadership?
The article is about a young, private equity executive who seems to have conflicting thoughts about the practices of private equity corporations versus what the end results are to those who fully participate in it. As a young man who was given this lucrative and promising job, he moves away from his blue collar, farming background and joins in the chess-like world of business. In his particular business, he describes what they do as:
we buy these little companies, we put the best lawyers and consultants in the world on it, and if it goes bankrupt we never lose. We put in stipulations that don't leave us liable, there are seventeen blocker corporations between us and the company."... "How are you going to out-money private equity?"
The banker, whose fake last name (for the purpose of privacy) is "Heavens", believes that ethical behavior works at a "spectrum" and that he believes that, ultimately, what they do is strengthen business as a whole. However, the "set of rules" that they go by are different than mainstream accepted guidelines. He "feels" for those whom he will inevitably have to victimize in order to accomplish their corporate goals.
This is relevant to today, as the big corporations continue to phase out the smaller businesses. It is evident everywhere we see a "mom and pop" shop that cannot last more than 5 years in operation. Contrastingly, look across and you can see more and more "Walworlds" being added to nearly every subdivision. Moreover, those Big Corp stores, for example, get bigger and offer even more and more items. Whether their claims that they help the local farmers is true or not, this article does not really say. However, it is clear that there is little remorse in the ultimate action.
Communication in this particular case is used as a way for the reporter to shadow these "young money" professionals and see exactly where their interests lay. Due to blogging and thanks to the instant access to technology we can see that this young man has little ethical sense because he has turned the idea behind ethics to his own interested. In its natural form, communication is the only way to maintain an organization together. Therefore, it may be a lifeline among small businesses to keep each other abreast of what big corporations can and will do to them.
This particular case makes you think on how even philosophical constructs that have been long accepted and embraced can still be bent to the benefit of others. The word "ethical", its meaning, was heavily manipulated, showing how values vary from person to person.