Skip to Main Content
HBS Home
  • About
  • Academic Programs
  • Alumni
  • Faculty & Research
  • Baker Library
  • Giving
  • Harvard Business Review
  • Initiatives
  • News
  • Recruit
  • Map / Directions
Working Knowledge
Business Research for Business Leaders
  • Browse All Articles
  • Popular Articles
  • Cold Call Podcasts
  • About Us
  • Leadership
  • Marketing
  • Finance
  • Management
  • Entrepreneurship
  • All Topics...
  • Topics
    • COVID-19
    • Entrepreneurship
    • Finance
    • Gender
    • Globalization
    • Leadership
    • Management
    • Negotiation
    • Social Enterprise
    • Strategy
  • Sections
    • Book
    • Cold Call Podcast
    • HBS Case
    • In Practice
    • Lessons from the Classroom
    • Op-Ed
    • Research & Ideas
    • Research Event
    • Sharpening Your Skills
    • What Do You Think?
    • Working Paper Summaries
  • Browse All
    • COVID-19 Business Impact Center
      COVID-19 Business Impact Center
      Business Summit: Ethics in Globalization
      17 Jul 2009Research Event

      Business Summit: Ethics in Globalization

      It is impossible to regulate against greed and ethical shortcomings. What can be done is to force greater transparency and accountability.
      LinkedIn
      Email

      Editor's Note: This is a summary of an HBS Business Summit presentation. View a full summary and video of the event on the HBS Centennial Web site linked below.

      Date of Event: October 13, 2008
      Moderator: Rafael M. DiTella, HBS faculty
      Speakers: Robert Glauber, Adjunct Lecturer in Public Policy, Mossavar-Rahmani Center for Business and Government
      Michael Oxley, Of Counsel, Baker Hostetler
      Daniel Vasella, Chairman & CEO, Novartis

      Drawing upon learnings from their work and experiences, the panelists and moderator exchanged views with the audience on the ethics and legitimacy of business and capitalism in general, and the financial crisis in particular.

      The current financial crisis has raised questions about the legitimacy of capitalism. Ethical failures certainly played a role. While it remains to be seen whether and how many people blatantly broke the law, there are abundant signs of various forms of potentially unethical behavior. These include greed, unreasonable amounts of leverage, subtle forms of corruption (such as ratings agencies that appear to have had a conflict of interest), complex financial instruments that no one really understood, and herd behavior where people just followed along and failed to exercise independent judgment.

      It is difficult or impossible to regulate against greed and against many of the other ethical shortcomings that have been seen. What can be done is to force greater transparency and accountability, a process which began with Sarbanes-Oxley and is expected to continue with new regulations of the financial system.

      Key concepts include:

      • The financial crisis may shift societal views on the legitimacy of business.
      • Ethical lapses, failures of understanding, herd behavior, self-deception—all contributed to the financial crisis.
      • Read the in-depth summary

      For more coverage and video:
      http://www.hbs.edu/centennial/businesssummit/business-society/ethics-in-globalization.html

          Trending
            • 29 Oct 2020
            • Research & Ideas

            The COVID Gender Gap: Why Fewer Women Are Dying

            • 13 Jul 2020
            • Research & Ideas

            Merck CEO Ken Frazier Discusses a COVID Cure, Racism, and Why Leaders Need to Walk the Talk

            • 11 Jan 2021
            • Research & Ideas

            Is A/B Testing Effective? Evidence from 35,000 Startups

            • 17 Feb 2020
            • Sharpening Your Skills

            How Entrepreneurs Can Find the Right Problem to Solve

            • 13 Jan 2021
            • Research & Ideas

            How 'Small C' Change Can Beat Large-Scale Rebuilding

        Rafael M. Di Tella
        Rafael M. Di Tella
        William Ziegler Professor of Business Administration
        Contact
        Send an email
        → More Articles
        Find Related Articles
        • Globalization
        • Society
        • Economics

        Sign up for our weekly newsletter

        Interested in improving your business? Learn about fresh research and ideas from Harvard Business School faculty.
        ǁ
        Campus Map
        Harvard Business School Working Knowledge
        Baker Library | Bloomberg Center
        Soldiers Field
        Boston, MA 02163
        Email: Editor-in-Chief
        →Map & Directions
        →More Contact Information
        • Make a Gift
        • Site Map
        • Jobs
        • Harvard University
        • Trademarks
        • Policies
        • Digital Accessibility
        Copyright © President & Fellows of Harvard College