nfl-referee-fiasco-integrity-risk-assessment

When It’s All About The Money, Even The Money Is Lost

nfl-referee-fiasco-integrity-risk-assessment

The NFL robbed the Green Bay Packers of a win this week. They did it in the name of money.

Commissioner Roger Goodell, acting on behalf of the owners of the 32 teams, allowed incompetent replacement referees to run the game, rather than paying a few dollars more to the league’s professional refs. For now, the Packers are the primary victims of the league’s misguided attempt at profit maximization. But if you listen to and read the thoughts from analysts and fans, even those of the Seahawks who benefited, it is apparent that they feel victimized by the NFL’s shortsightedness as well.

The reputation of the league has been severely damaged.

It did not have to be so. A couple of years ago, I did a compliance and reputation risk assessment for one of the few professional leagues that can be mentioned in the same breath as the NFL. Fun stuff. Here were the top three risks:

  1. Player behavior could jeopardize the brand of the league. This extended to behavior not related to an actual game.
  2. Actions by officials and others could damage the integrity of the game, particularly in perceptions of bias and gambling.
  3. The safety and security of fans and players.

For those of you who are ethics and compliance professionals, it is important to note that none of these are in the “standard” risk assessment templates that many organizations rely upon. There is no such thing as a one-size-fits-all risk assessment.

For the rest of us, it is the second risk that stands out. The league I worked for—with its emphatic recognition of the role of officials in maintaining the integrity of the game—would not risk damaging their reputation with third rate referees.

The lessons from the NFL fiasco, as it is now being called, go far beyond a poor understanding of risks. They go to the tragic flaw underlying most of our corporations.

In tragedies from the Greeks to Shakespeare one’s tragic flaw was the dark side of one’s defining attribute. In our age, the defining attribute of the corporation is the relentless drive to improve profitability.

Most of the time, this leads to tremendous innovation. But sometimes, usually when arrogance overcomes prudence, people and companies do stupid things in the name of profitability. They take shortcuts with quality. They provide underwhelming customer service. They forget that their right to do business as an ongoing enterprise depends on the trust of regulators, suppliers, customers and the public.

The NFL is facing such a moment now.

You don’t want your organization to be in the same situation. I have worked with many companies whose employees hide the logos on their briefcases following a breach of trust. Not good for anybody.

So I leave you with three questions to ask yourself to reduce the likelihood you will face an NFL fiasco moment:

  1. Do we have a true understanding of what our real compliance and reputational risks are?
  2. Do we include cultural risks—like arrogance, failure to listen, profit only orientation—in our analysis of and response to risks?
  3. Do we have executives who will raise hard truths—like “this may appear to be a profit maximizing move, but when you consider the long term implications for our brand…”

When it’s all about the money, even the money is lost.

Steve Priest, senior advisor at Global Compliance**********

About the Author

Steve Priest is an independent consultant who works with boards, senior leaders and ethics and compliance professionals to strengthen cultures of integrity. He is a renowned speaker and trainer, and has consulted in 49 countries with almost half of the Fortune 200. Steve can be reached at ethical@aol.com. For more information about his work, visit Steve’s CCI author page.

About the Author

Steve Priest

Steve Priest, senior advisor at Global ComplianceSteve Priest was described by The Wall Street Journal as “one of the most sought consultants to keep companies on the straight and narrow.” Steve founded Ethical Leadership Group in 1993, sold it to Global Compliance in 2007, and is now an independent consultant who works with boards, senior leaders and ethics and compliance professionals to strengthen cultures of integrity. Steve has:

  • Consulted “on the ground” in 48 countries on every continent with more than 25% of the Fortune 200.
  • Trained forty boards of directors and senior leadership teams, including Nobel laureates, CEOs and (retired) senior politicians.
  • Served as the trusted, “go-to” adviser for CEOs, GCs, and compliance officers when organizations are in trouble, assisting with assessments, strategies, and communications within and outside the organization.
  • Been relied upon by the U.S. Department of Defense and other government agencies to objectively assess organizational culture and compliance programs.
  • Been approved by the government of India to conduct anti-bribery training and coaching in a sensitive case.
  • Written the most widely imitated codes of conduct in the world, read by millions of employees.
  • Informed and entertained hundreds of audiences with his skillful blend of facilitation and platform skills as well as conveying serious messages with a sense of humor.
Prior to founding the Ethical Leadership Group in 1993, Steve Priest was for three years executive director of the Center for Ethics and Corporate Policy, a Chicago-based ethics think tank. Priest received his ethics training both in the real world of business and inside the ivy-covered walls at Harvard University’s Divinity School, where he received a Master of Theological Studies degree. He has his MBA and BA from the University of Chicago and studied international organizational development in the Graduate Business School at the Katholieke University of Leuven in Belgium. Contact Steve at 312-799-9586 or ethical@aol.com. In his articles for Corporate Compliance Insights Steve will explore the challenges of creating a culture of ethics and integrity in global organizations.