[Note: bit of a re-blog from 2013 but reworked for a class I taught last week.]

I have had the pleasure of teaching or lecturing on Business Ethics to undergraduates the past few years. Through the case study method, we learn a lot about what not to do. After reading about so many failures of managers in Corporate America, students can become rather jaded in their perspective. “Business Ethics” takes its place in scholarly wit much like military intelligence and other notable oxymorons. To combat this, professors promote the many positive attributes of business leaders and benefits of capitalism seen in our community every day. We also challenge students to think about their personal moral compass and how they would do better in the difficult situations faced by these managers.

One of my favorite recurring themes to discuss is the role of courage. So many of our tragic heroes and villains in the case studies were tripped up, it seemed to me, by a stunning lack of courage. I remind students that many of the people we study were just like them 20 years prior – students in business or undergraduate school, figuring out their career path, excited about the future. I don’t believe any of these people sat at a desk in a university at age 20 and thought “I know how I’m going to make my first million – outright fraud sounds like a good plan!” No, most of the characters in our unfortunately true case studies were good, hard-working individuals who simply lost their way.

And while some of them clearly went down a very dark path, the vast majority simply seemed to lack courage, incapable of standing up to their boss, peers, or other influences. They could not stop the train once it started rolling, often consumed by fear of what it might do to them personally or professionally if they were to speak out. Instead of blowing the whistle or taking a less antagonistic approach or even walking away, our subjects continued to toil away hoping for some (perhaps Divine) intervention.

These people may be purely “wallflowers” who silently go about their business, not wanting to cause a stir and perhaps lose their job or create hardship for their co-workers or company. Or they may be order-takers, yes-men. In either case, they consider themselves ethical because they do not cause harm by any overt act. They shy away from conflict, safe in the knowledge that comfortable retirement is theirs if they keep their head down and play the game. Many have perhaps seen the treatment of whistleblowers and know the challenges of stepping forward without a net – potentially sacrificing years of one’s life to uncertainty and litigation, and a possible trip to the poorhouse before it all (hopefully) gets straightened out. They want to be able to just do their job and figure it will all work out in the end.

So can you be ethical if you lack courage?

Many people would argue yes. The innocent bystander who witnesses a murder isn’t considered unethical if they avoid the police. They are protecting themselves and their family from years of trial and possible reprisals for their testimony. Similarly, a lower level accountant who becomes aware of potential fraud, or the engineer who knows of a bad design, may feel justified in taking a passive approach to the issue, especially if it is not in their direct area.

We can look at these people and say they are still ethical. They may lead exemplary lives and have never harmed anyone. At most, theirs is a sin of omission and our society tends to view those much less harshly. Their lack of courage is understood – we empathize with the wallflower.

I would argue against this. I believe anyone claiming to be ethical must also be courageous. You have to be able to speak up when you perceive potential wrong doing – either directly or through anonymous hotlines or other channels. One of my favorite quotes on the topic comes from Edmund Burke: “The only thing necessary for the triumph of evil is for good men to do nothing.” Apply this to a geo-political world event, an abusive domestic situation down the street, or a burgeoning corporate scandal. It has broad, and yet amazingly direct, applicability.

A principal reason corporate malfeasance continues for so long and generates so many news stories is the lack of early-stage intervention by supposed ethical bystanders. We watch and wait, hoping the problem will fix itself, or that a courageous whistleblower will emerge. I believe people have a responsibility to bring problems to light; we have an ethical duty of confrontation. This does not necessarily mean shouting it from the mountain tops – there are many ways to relieve your burden of knowledge. Company Codes of Ethics, personal and corporate advisors, and other resources are available to consult for guidance. You need to know your facts and understand the process for proper disclosure. But to act ethically, to me, requires action. And action requires courage.