Fall 2006 BGSIE

FALL 2006

New Beta Gamma Sigma Initiative

ETHICAL BUSINESS LEADERSHIP

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what’s inside 2

A Message from the BGS President

3

Letters to the Editor

4

Ethical Business Leadership An Introduction by David H. Blake

6

Gaining Perspective - A Discussion on the Topic of Ethical Business Leadership

9

Ethical Business Leadership in Action - AMD and the 50x15 Initiative

11

Worldwide Corruption Continues to Block Development

13

Dr. Z

14

More Fun than Decent People Think Should Be Legal

15

Lifetime Gifts

16

Gifts from Friends

BGS INTERNATIONAL EXCHANGE Beta Gamma Sigma 125 Weldon Parkway Maryland Heights, MO 63043-3101

FALL 2006 Volume 5, No. 3 Circulation: 399,087

email: bgshonors@betagammasigma.org phone: 314-432-5650 website: www.betagammasigma.org If you have any questions or comments about this issue of the BGS International Exchange, please forward them to exchange@betagammasigma.org.

Beta Gamma Sigma is a not-for-profit, 501(c)(3) organization.

BGS INTERNATIONAL EXCHANGE FALL 2006 WWW.BETAGAMMASIGMA.ORG 1

A Message from the BGS President It is a great pleasure for me to communicate with more than 400,000 members around the world through this fall 2006 issue of the BGS International Exchange. As this is my first “Message from the President,” I wanted to say that all lifetime members of the Society are welcome and encouraged to make their thoughts about Beta Gamma Sigma known through “Letters to the Editor,” emailing or calling the Central Office, or by getting involved in their local Alumni Chapter.

Before getting into the main point of my message, I wanted to highlight the outstanding service that Sara Freedman, Immediate Past President of Beta Gamma Sigma, has given to the Society. As Vice President the last two years, it has been my pleasure and good fortune to work closely with Sara on a variety of BGS initiatives.

We are very fortunate that she remains an officer and board member, because her dedication and service to the Society are unmatched.

Similarly, George R. Burman (Syracuse University), Yash P. Gupta (University of Southern California), Thomas G. Gutteridge (University of Toledo), Lynne D. Richardson (Ball State University), Melvin T. Stith (Syracuse University) and Dennis J. Weidenaar (Purdue University) deserve our thanks for their many years of service on the BGS Board of Governors. They all leave the Board knowing their efforts have made membership in the Society more valuable than when they joined it.

As you read the pages of this issue of the BGS International Exchange, you will notice “Ethical Business Leadership” is highlighted. I am very excited and pleased to announce that “Ethical Business Leadership” has been adopted by the Board as a focus of the Society.

We plan to develop ways to encourage business leaders to adhere to the highest ethical standards, and to show that this is one of the most important aspects of leadership in the 21st century.

“Of course,” you might be saying to yourself, “everyone is doing ‘business ethics’ these days.” Well, we are taking it one step further; going one layer deeper in the process. The Society plans to emphasize that good ethical behavior in business is more often than not a result of leaders, at all levels, displaying the courage and conviction to make the right choices at the right times. If leaders display consistent ethical decision-making, those who follow are much more inclined to do the right thing as well.

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We aim to celebrate those leaders who make the positive choice, and show that Ethical Business Leadership makes good business sense. In other words, we want to show how these leaders have positively impacted the bottom lines of their organizations while also planting the seeds of good ethical decision-making in those around them.

It would be easier, perhaps, to highlight those that have avoided making the right choices. The stories are more plentiful, and perhaps more attention-grabbing in the mainstream media business pages,

John Wholihan, President of Beta Gamma Sigma

but we feel the good news far outweighs the bad. For every Enron and WorldCom there are hundreds – maybe thousands – of examples of managers making the tough but correct choices and leading their organizations down the right paths.

Those are the stories we hope to bring you, and they’re the ones we’d like to hear about. Maybe you work for a firm where someone has truly stood out as an ethical business leader. It doesn’t have to be a large company; we’d like to hear about it.

If you have an example you would like to share with your fellow BGS members, send your ideas to exchange@betagammasigma.org. We know there are many more leaders at every level who do the right things as a matter of habit and principle. It’s time we heard their stories, too.

Again, I want to express my excitement at the opportunity to serve BGS members everywhere as president for the next two years. With your help, we can help encourage the next generation of business leaders that “Ethical Business Leadership” is the key to business success.

Business and the Environment I applaud your issue on Business and the Environment. It is both courageous and prudent for you to open a dialogue on this important area.

It is time for businesses to recognize that being environmentally conscious and being profitable are not mutually exclusive. Companies like Toyota have proved that. Also, Global Warming has been endorsed by leading scientists and is not a “pseudo-science” as one of your readers described it. It is not limited to environmental or “socialistic” groups, either. Just look at the Evangelical Environmental Network as an example.

As business leaders, we need to be aware of how our business activities affect the environment today and in the future. In addition, environmental products and services and environmentally-conscious companies are becoming big business. Those that ignore it will find they will not be able to remain competitive.

Valerie Chereskin

(BGS 1996, San Diego State University)

The Cost of Health Care I have three simple comments I would like to share regarding your issue focused on health care: 1. All the solutions proposed by the Exchange were in essence some form of Socialized Medicine ... let the government decide. We need less governmental intervention.

2. The problems we face today with medical costs, in large measure, are that the “patient” has been taken out of the cost equation ... and it is the “patient” that bears that burden either directly or through some inscrutable and poorly designed insurance premium. He has li�le or no voice in the ma�er.

3. That the most expensive programs that we face are those run by governmental agencies of all levels but the most insidious of which are those run by the Feds. Go back and look what Hillary Clinton proposed in 1994 ... it would have bankrupt the Nation.

CW Stewart

(BGS 1963, Rutgers, The State University of New Jersey Newark)

What do you think about this issue of the International Exchange?

Send your letters and comments to the editor: exchange@betagammasigma.org BGS INTERNATIONAL EXCHANGE FALL 2006 WWW.BETAGAMMASIGMA.ORG 3

In the fall of 2004, this magazine explored the topic of business ethics as a result of the corporate scandals of 2001 and 2002. We and others had hoped that these were aberrations, flagrant enough to have caused the fear of God, the disapproval of colleagues, or the threat of jail to mend the ways of those who were pushing the envelope too far. Sadly, the scandals have kept occurring, obviously only in a small minority of companies, but still enough to seriously harm the credibility and reputation of business. The many events of the last several years have spawned a range of emotions in the light of each new revelation. We have felt anger, disgust, disbelief in the chicanery and amazement at the stupidity. Yet these transgressions keep coming.

Ethical Business Leadership

An Introduction by David H. Blake, Chairman of the Ethical Business Leadership Task Force, BGS Board of Governors; Professor, University of California at Irvine

W

hile each case is different, there is this sense of a moral, managerial and leadership breakdown in some quarters of global business. “How could this have been allowed to happen?” we are likely to say to ourselves followed by, “Why is it that no one (on the board, in the executive suite, in the depths of the corporation or on the legal and accounting teams) stood up and pointed out the obvious, that what is going on is wrong?” While we applaud Sherron Watkins, formerly of Enron, and Cynthia Cooper (BGS 1985, Mississippi State University), formerly of Worldcom, for having the courage to speak up, why is it that they could not make an ever bigger stink about it? Where were the thousands of corporate colleagues who should have immediately lined up behind them? From many more corners of the corporate offices, we should have heard, “This is our company too and we will not tolerate such behavior. Stop, and stop now!”

Beta Gamma Sigma members have been deeply troubled by these episodes, for they run directly counter to the pledge we took when we were inducted into the Honor Society. At our induction ceremonies, if we listened, we knew that the Society’s principles of “honor, wisdom and earnestness” committed us to behavior that would not allow such cheating, nor tolerate or wink at it in our places of business. After all, honor meant that we were “to recognize, to uphold and to encourage that which is ethical and that which is just.”

In response, the Board of Governors of Beta Gamma Sigma, in concert with its more than 500,000 members, is launching a long-term initiative to improve ethical business leadership. As the premier honor society in business, we believe in leadership, and we also believe that leadership must and can be dispersed throughout the corporation. Leadership at all levels, we feel, must become more effective in developing and running organizations where ethical behavior is part of the very fabric of the corporation.

Yes, the shenanigans of Enron, Worldcom, Tyco, Brocade and many others show incredible ethical lapses. Equally disturbing is the lack of leadership at the top and throughout the corporation, a leadership that would have the moral good sense, leadership skills and commitment to ensure that ethical behavior guided the actions of every person

in the company. Good corporate citizenship and generous support of community interests are not enough.

What is needed is management and leadership expertise that establishes the tone, provides the tools, builds the culture, and always supports and indeed insists upon a company where ethical behavior is both expected and practiced.

Over the next year, Beta Gamma Sigma will be developing programs and activities with our collegiate and alumni members that we hope will vastly increase our knowledge about how to build and run organizations where ethical behavior is practiced without exception. We are going to reach out to our collegiate and alumni chapters to help us build a repository of best practices on ethical business leadership. We will be asking you to identify companies where there has been a conscious, continuing and successful effort to incorporate the

values and the behaviors that lead to the ethical conduct of business throughout the organization. Among other initiatives, we will be incorporating these stories and best-practice insights into practitioner-oriented articles and publications that we hope will improve the effectiveness of ethical business leadership.

“Beta Gamma Sigma members have been deeply troubled by these episodes, for they run directly counter to the pledge we took when we were inducted into the Honor Society.”

-David H. Blake

We must build upon the honor, wisdom and earnestness of our members, because it is our intention that Beta Gamma Sigma and its membership lead the way for the best in business, including ethical leadership in a global setting. The Board is very clear; we are doing this not only for our membership but also for all of business in the United States and in other countries. Effective and resultsoriented ethical business leadership is important for business throughout the world, and Beta Gamma Sigma intends to be a long-term agent for progress.

We look forward to working with you, our members, to ensure that our organization aggressively promotes the principles of ethical business leadership that have always guided our organization.

What did you think about this article? Share your feedback with BGS: exchange@betagammasigma.org

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The following is an interview with Rushworth M. Kidder, Ph.D., founder and president of the Institute for Global Ethics. He spent a few minutes discussing the importance of “Ethical Business Leadership” with Beta Gamma Sigma. Dr. Kidder is the author of Moral Courage and How Good People Make Tough Choices: Resolving the Dilemmas of Ethical Living. His organization works with individuals, groups and corporations to help them tackle some of the most challenging ethical issues of our time.

GAINING PERSPECTIVE

matter and shape ethics: honesty, responsibility, respect, fairness and compassion. We find this everywhere we go – across the different religions, different political spectrums, dealing with different genders – there is this commonality that people seem to feel defines this notion of ethics.

That helps us understand what ethics is, and more importantly what ethics is not. That which is unethical is that which is untruthful, or disrespectful, or irresponsible, or unfair, or lacking in compassion. The word “or” is very important. You don’t have to fail at all five categories to be called unethical.

A Discussion on the Topic of Ethical Business Leadership BGS: You have written, “One of the most useful ways for people to think about ethics is as the application of values to decision-making.” How would you relate that to the topic of “Ethical Business Leadership?”

Kidder: The work that we’ve done at the Institute for Global Ethics over the last 16 years has really convinced us that everywhere you go in the world and talk to people about ethical values, you hear the same thing. What SJU-454 Arrupe saying 8/3/06 2:54 are PM five Page 1 values that they’re basically is there core

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Erivan K. Haub School of Business

Spirit Intellect Purpose 6 BGS INTERNATIONAL EXCHANGE FALL 2006 WWW.BETAGAMMASIGMA.ORG

In a business context, as you apply those values to your decision making, then you end up with the ethical structures within an organization. And if you in fact apply a very clear sense of truth telling and honesty, as opposed to a desire to spin, fudge, warp and deceive, that will put you in an ethical organizational culture. So it goes similarly for respect, responsibility, fairness and compassion.

BGS: How critical is it for the leaders of an organization to provide an ethical example for others to follow?

Kidder: You’ve got to establish what’s been called “the tone at the top,” which is hugely important but it’s not the only thing. If you don’t have the pockets of champions down through the organization, the tone at the top is not going to be able to steer the ship as rapidly as it needs to be steered. It’s a cop-out for people to say, “Well, this company is never going to get ethical because the CEO is just a crook. Therefore, there’s nothing I can do about it.”

Nonsense. There’s a lot you can do about it. It may not be the kind of thing that’s going to radiate very far outside your own unit, but it’s certainly going to help that unit in all kinds of ways. And it may very well help you decide that you want to move on to some other place where you really can do better work.

BGS: What are some ways ethical business leaders can help others around them within their organizations?

Kidder: There are three things that leaders are constantly called upon to do. One is to engage in the conversation; get the discourse, the communications, the dialogue, the discussion about ethics going and keep it going. That is one of the most powerful ways that you create a culture of integrity. The second is through modeling and mentoring.

What are you showing through your body language and your own decision-making? Whether or not you articulate

it isn’t the point, but the actual “doing” that shines right through. This helps set the standards that you want others to follow. The third hugely important thing is to find the occasions and ways to allow people to practice these things. Give them the opportunity; compel them to take responsibility for ethical decision-making.

Reward them clearly when they do and, in the very best sense of what practice means, provide a “safety net” so that when they don’t quite come up to the standards, they can learn from that. You can help them learn.

“Why should moral courage matter so much to us these days? In part because we see so many examples of its lack – in corporate settings and legal proceedings, in politics and sports and entertainment, in personal and social relationships. But there’s another, deeper reason. If courage is indeed one of the core virtues of humanity, we need to find ways to express it, support it, and teach it.”

From Moral Courage, by Rushword Kidder, founder and president of the Institute for Global Ethics

BGS: In your book Moral Courage, you state that having personal ethics is not enough. Leaders must have the strength to stand up for what they know is right.

Kidder: Moral courage really is the catalyst to all this.

I use “catalyst” as a technical term the way a chemist might use the word. It is something you introduce into a reaction, in a metal like platinum. The reaction is going along fine at its own rate, but when you throw in the catalyst the very same reaction continues, but 10 times as fast. That’s what you need in catalytic work – the courage to stand up and say, “this is really what matters.” The

courage to say, “It’s more important to tell the truth here than to keep the peace.” Those moments are catalytic, and they will cause all kinds of things to happen. Sometimes it won’t be all that pleasant. But then, a lot of positive reactions aren’t that pleasant either.

BGS: What kinds of things do those in the early stages of their careers need as they seek to include ethical business leadership as part of their skill set?

Continued on Next Page

BGS INTERNATIONAL EXCHANGE FALL 2006 WWW.BETAGAMMASIGMA.ORG 7

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Kidder: They need some sort of understanding of a moral compass; some way to understand that the really tough decisions they are going to face are not going to be right vs. wrong, but right vs. right. Almost more important, at least at the beginning, is an understanding of why ethics matters. Is there in fact a business case to be made for ethics?

Given the way businesspeople are trained, they are accustomed to not doing things unless there is a business case for them. And that’s probably what you want. So what is the business case for ethics?

At the Institute, we’ve spent a lot of time thinking about the false dichotomy that would present itself as saying – from a cynical perspective – “Look, you can either have a strong bottom line, or you can have an ethical company. Which do you want because you can’t have both?” We need to help people understand that that’s a false assessment of reality. In fact you can have both. And what are

the ways in which ethics directly – not just indirectly – affect the bottom line?

There are hundreds of examples of how the reputation for ethics can be hugely valuable for a company.

BGS: You have said that it is vitally important for wealthy and famous people to act ethically, because of their power and access. Would you consider this important also for those who are visible to the world as leaders in business?

Kidder: Sure it is. If you are talking about people of inherited or accumulated wealth, you are talking about people who are dispensing it in one way or another. When you are talking about the business community, what you are really talking about is the wealth generation capacity of any culture. It is, as far as I can tell, the only wealth generating part of a culture. And as we all know you can generate wealth ethically or unethically. To the extent you create a culture that, at every turn, is selling its soul for the sake of creating wealth, you are building in increasing

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problems down the line.

7/31/06 3:02:33 PM

The danger is that if corruption is allowed to really take root, we are encountering a period where the critique of capitalism itself has the capacity to become so profound that it almost grinds business to a halt.

We are seeing a tiny hint of that in what happened with SarbanesOxley and the costs associated with that. I was just talking to a CEO this morning that a good company doesn’t need Sarbanes-Oxley because you’re already doing that stuff. It matters to you. So you put that kind of law in place to control the bad companies, and the cost to the good companies is absolutely extravagant. We’ve got to move to a situation where the regulation is a self-regulation rather than an imposed regulation – and that’s what ethics is at its root.

What did you think about this article?

Share your comments: exchange@betagammasigma.org

“Our industry’s ability to effect positive change is no longer merely a result of the powerful technology we create. We are global citizens accountable for our actions. It is time for technology to close the ever-widening digital, economic and social divides. This requires us to do things differently.”

Hector Ruiz, Chairman and Chief Executive Officer, Advanced Micro Devices, Inc.

S

tanding before a room full of information technology professionals, Hector Ruiz, Chairman and CEO of Advanced Micro Devices, Inc. (AMD), called upon his fellow industry leaders to become catalysts for solving the world’s most important issues.

“IT has proven it has a brain; now it is time to show the world it has a heart,” said Ruiz, delivering the opening day keynote address at the 15th World Congress on Information Technology held May 2006.

For Ruiz, profitability and social responsibility are not mutually exclusive concepts.

“As the chairman and CEO of a Fortune 500 company in the information technology industry, I feel that I have two incredibly important responsibilities,” wrote Ruiz in AMD’s 2005 Corporate Responsibility Report. “The first is to do everything I can to ensure that

ETHICAL BUSINESS LEADERSHIP IN ACTION Advanced Micro Devices, Inc. and the 50x15 Initiative our investors get a fair return on their investment, and the second is to do everything I can to help make the world a better place.”

In an effort to do just that, Ruiz and AMD announced the 50x15 Initiative at the 2004 World Economic Forum. Intended to equip more people with access to information, the initiative seeks to provide affordable Internet access and computing capabilities to half the world’s population by the year 2015.

Ruiz and his management team provide a compelling example of Ethical Business Leadership, Beta Gamma Sigma’s new focus and effort (see related story, Page 4). AMD was ranked by Business Ethics magazine No. 3 on the “100 Best Corporate Citizens 2006” list.

The 50x15 Initiative has set some very lofty goals. With less than 16 percent of the world’s population currently able to access the Internet, AMD has a long way to go in the next nine years. Thankfully, they won’t be going it alone.

In the two years since announcing 50x15, AMD has partnered with many other big names in the technology field, including Microsoft and Samsung, and with governments to provide even more access to information within developing countries. AMD and its network of partners have already launched efforts in India, Brazil, China and the Caribbean and plan to start operations in Russia, Africa and Central America in the near future.

It is important to note that 50x15 is not a charity.

Rather, the Initiative was created to be a self-sustainable entity, intent on not only changing the world, but also creating opportunity for those involved.

The Personal Internet Communicator (PIC) was designed by AMD to provide affordable Internet access in the world’s developing areas.

“We can be socially responsible and simultaneously profitable,” said Ruiz at the 2006 World Congress on Information Technology. “We can do well Continued on Next Page

BGS INTERNATIONAL EXCHANGE FALL 2006 WWW.BETAGAMMASIGMA.ORG 9

ETHICAL BUSINESS LEADERSHIP IN ACTION (Cont. from page 9)

by doing good.”

A key component in the 50x15 plan has been the development of the Personal Internet Communicator (PIC). This small device, weighing just about three pounds, was designed to put information technology into the hands of firsttime users in the world’s most rapidly developing areas. It costs about $185 (U.S.).

With the PIC, users can access the Internet through existing household communications and network infrastructure. Users are able to send and receive e-mail, access the Internet, view pictures and video and create documents using a word processor and spreadsheet tools.

In addition to the PIC, AMD has teamed up with technology manufacturers in different parts of the world to develop other regionalspecific ways to address market needs, including solar powered

“IT has proven it has a brain; now it is time to show the world it has a heart” - Hector Ruiz computing solutions and a $100 (U.S.) laptop computer.

“As a child growing up in Mexico, I became aware at an early age of the importance of education,” said Ruiz on the 50x15 website. “As I have learned and developed in my career, I have discovered that perhaps no force can have a greater impact on promoting education than technology.”

In July 2006, AMD announced that they had teamed up with Telmex, Mexico’s leading telecommunications provider. Under the partnership, Personal Internet Communicators will be available for purchase in Telmex shops throughout the country.

Thanks to Ruiz and 50x15, more children in Mexico will have access to information than ever before. And if the organization meets its goals, millions more arround the globe will benefit, as well.

Beta Gamma Sigma wants your feedback. Send your comments to: exchange@betagammasigma.org

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Bribery, nepotism, and other forms of corruption exist to a greater or lesser extent in all countries, but its corrosive effects hurt poor nations the most. The World Bank considers corruption one of the greatest obstacles to economic and social development because it undermines the rule of law and weakens the institutional foundations upon which economic growth depends.

WORLDWIDE CORRUPTION CONTINUES TO BLOCK DEVELOPMENT

I

by Bill Rodgers, voanews.com

t was a secret video of Peru’s one-time intelligence chief, Vladimiro Montesinos, paying a bribe to a congressman that led to the downfall of President Alberto Fujimori’s government. When the video, taped

by Montesinos himself, was leaked to the media in September 2000, it unleashed such a scandal that the Fujimori government fell less than three months later, ending 10 years of autocratic rule.

the amount of corruption that takes place each year because of its secretive nature. However, some estimates put the global figure for bribery alone at more than $1 trillion (U.S.) annually. In just the construction industry, Transparency estimates, 10 percent of the $4 trillion industry disappears because of corruption.

Corruption expert Louise Shelley says the effect of graft is especially damaging for poor countries.

“If you have 5 percent of an economy being paid in bribes or 7 percent, a strong economy like an Italy can tolerate that. A weaker economy that loses a similar percentage of its assets will be much worse off,” she says.

A country plagued by corruption also will have difficulty in attracting foreign investment – one of the Continued on Next Page

The Montesinos bribery scandal is a textbook example of the corrosive effects of corruption on a country’s political life, its institutions and economy. Yet Peru is not the only country plagued by corruption.

“Corruption is something that afflicts all of us.

There is no country that does not have a challenge in terms of controlling corruption,” says Nancy Boswell, who heads the U.S. chapter of Transparency International – a group which monitors global corruption. “There are always going to be people who are corrupt. I don’t think at the end of the day that any one of us believes that one country has more of that culture or less of that culture. It really is a question of have they been able to develop the institutional mechanisms to control it.”

Corruption takes many forms – bribery of police or government officials, insider trading in stock markets, nepotism in hiring for jobs, etc. Groups like Transparency say it is extremely difficult to quantify BGS INTERNATIONAL EXCHANGE FALL 2006 WWW.BETAGAMMASIGMA.ORG 11

WORLDWIDE CORRUPTION (Cont. from page 11)

keys in generating economic development.

“Companies, if they can help it, will not go to countries where corruption is rampant,” says Boswell.

“Survey after survey demonstrates that companies go where there is a hospitable environment and part of that is less corruption. So that is an important factor as well.

For countries that want to attract investment and trade, focusing on fighting corruption is an absolutely vital element for that equation.”

With some exceptions, it is the countries that rely on a single natural resource for most of their income that are most susceptible to corruption. Oil rich countries, like Venezuela and Nigeria, are examples of this. In its annual corruption index, Transparency International ranks these two nations as among the worst for corruption.

Shelley, who heads the Washington-based Terrorism, Transnational Crime and Corruption Center, explains why oil-rich countries are so susceptible.

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“Every time we see the damage, particularly in the poorest areas of the world, and we understand the disproportionate impact of corruption on the poor, then I think we remember it is really important for all of us to play a role. Business, for example, thinks about ‘Am I going to get the deal?’ and they think about competition. It is important that they also understand there’s an impact to their actions that flows down the chain to the very poorest.”

- Nancy Boswell, Transparency International

“Because you have one natural resource that generates huge amounts of money, and that natural resource is concentrated in the hands of a central elite or ruling figure, therefore it becomes a very close held group that controls this natural resource,” she says.

“And because there is such an international market for it, there’s just enormous corruption that accompanies it.”

The United States is not immune from corruption.

Recently, there have been several scandals involving misdeeds by U.S. lawmakers.

Congressman Randy “Duke” Cunningham, for example, was forced to resign his office last year and was sentenced to jail for taking more than $2 million (U.S.) in bribes.

But it is in dictatorships like those in Burma or Belarus where corruption flourishes because there is no transparency, no free press, and citizens have almost no rights. Shelley points to the 2003 Rose Revolution in Georgia as an example where citizens mobilized to depose a corrupt, authoritarian government.

“You need citizens that are so fed up with the corruption that is in existence that they demand change,” she says. “And that they are ready to change their ways and their behavior so they are not complicit

in this corruption. There needs to be a social contract where the society decides it is going to do something about it. We’ve seen it in Italy, we’ve seen it in Georgia, where there are major efforts made with the society and the government in tandem to do something about a serious problem.”

Anti-corruption marches have been staged in Peru and other nations where citizens are demanding change.

But ending corruption requires more than just demonstrations. Anti-corruption laws have to be passed and the judiciary must be empowered to enforce them. To this end, a United Nations Convention signed by more than 130 countries went into effect in December, outlining a list of recommendations for how government, the private sector and citizens can help stop corruption.

Much of the focus is on business. Since 1977, the United States has had a law on the books, called the Foreign Corrupt Practices Act, which forbids U.S. businesses from paying bribes when operating abroad.

The OECD – which groups together 30 industrialized

Dr. Z

countries – has a convention that makes it illegal for the companies of member nations to engage in bribery.

Prior to the 1999 OECD convention, some industrialized countries permitted their companies to engage in bribery abroad and even allowed those expenses to be tax deductible.

Transparency International’s Boswell says she is hopeful measures such as the OECD treaty will help curb corruption, but she adds a change of attitude is also required.

“Every time we see the damage, particularly in the poorest areas of the world, and we understand the disproportionate impact of corruption on the poor, then I think we remember it is really important for all of us to play a role,” she says. “Business, for example, thinks about ‘Am I going to get the deal?’ and they think about competition.

It is important that they also understand there’s an impact to their actions that flows down the chain to the very poorest.”

The stakes are highest for developing countries.

Boswell and others agree that these nations must stamp out corruption if they hope to someday emerge from the mire of underdevelopment and poverty.

Dieter Zetsche, Chairman & CEO, DaimlerChrysler 2004 BGS International Honoree

Unless you live in a cave – in a cave that is, with no access to television or radio – you’ve seen or heard the “Ask Dr. Z” advertising campaign for DaimlerChrysler. The spots are catchy, funny and seem to be successful.

According to the askdrz.com website, there had been more than 546,000 visitors to the site since the ads began, with more than 3.5 million customer questions answered through the program by August 4, 2006.

So why is this of interest to members of Beta Gamma Sigma? Well, you may not remember, but Dr. Dieter Zetsche, the man with the “awesome mustache” and the German accent who plays the now-famous Dr. Z, was the recipient of the BGS International Honoree Award in April 2004.

Dr. Zetsche, Chairman and CEO of DaimlerChrysler, has found time in his busy schedule over the last couple years to stay connected to Beta Gamma Sigma. On December 14, 2004, he installed the first BGS collegiate chapter in Germany at the HHL Leipzig Graduate School of Management.

The Ask Dr. Z ad campaign, premiering during this summer’s soccer World Cup, has rapidly caught the public’s a�ention. In one recent blog entry on FC Now (the Fast Company weblog), Chuck Salter wrote: “While Dr. Zetsche has been Dr. Zetsche speaks at the installation of the HHL-Leipzig BGS Collegiate Chapter busy remaking the troubled automaker, he’s kept a low profile. Now he’s following Lee Iacocca in becoming the public face of the company.”

Salter continued, “The (ads) worked: I didn’t fast-forward the Tivo...maybe it’s because Dr. Z is, well, pre�y good. He has a mischievous look about him (I’m telling you, it’s the ‘stache) that suggests he has some tricks up his sleeve. Or maybe it’s the German accent. In recent years, it was easy to forget that Chrysler is German-owned. Not anymore.”

BGS INTERNATIONAL EXCHANGE FALL 2006 WWW.BETAGAMMASIGMA.ORG 13

L

os Angeles is known for the unusual, but the Center for Ethics and Business at Loyola Marymount University thinks that, when it comes to trying to help students face the inevitable ethical challenges in business, maybe weird isn’t such a bad thing.

The Center’s main program, “Business Ethics Fortnight,” consists of intramural and intercollegiate student team business ethics competitions; dialogue on ethical issues among people who would otherwise never meet; a 5K/10K road race that serves as a community fundraiser; and “L.A.’s Weirdest Biathlon,” a combined academic and athletic competition. To top it off, the program even has its own trademarked slogan: “More fun than decent people think should be legal!”

The multi-faceted program was the brainchild of Thomas I. White, Hilton Professor in Business Ethics and Director of LMU’s Center for Ethics and Business.

MORE FUN THAN DECENT PEOPLE THINK SHOULD BE LEGAL

A coffee mug featuring the motto of the Center for Ethics and Business at Loyola Marymount University

Upon his arrival at Loyola Marymount, White developed an annual university-wide business ethics competition. Students form teams, choose and research a problem, and prepare a presentation for a panel of executive judges.

“Students get valuable experience in working on a team, doing business research, balancing competing demands – financial, ethical and legal – and making their case to executives,” said White. “They also get excellent feedback from the judges, and an important reminder of the fact executives actually take ethical issues seriously.”

So how did the run fit into the program?

White thought an ethics program should include more than just academic activities. Because he is a runner, he decided that the “Business Ethics Fortnight” would include an optional, community walk/run to raise money for a worthy cause. As a way of encouraging students to be involved, he came up with “L.A.’s Weirdest Biathlon,” an optional academic/athletic competition in which a team’s score is evenly split between the presentation competition and the team’s performance in the race.

The Center’s first competition was in 1996, and for three years the contest was open only to LMU students. In 1999 other schools were invited, and the competition has since grown into a national, intercollegiate contest. The 2006 competition included teams from 21 schools across the country, and the “LMU 5K/10K Run for the Bay” is now a fixture in the Los Angeles spring racing calendar.

The Center works to raise the funds necessary to make 14 BGS INTERNATIONAL EXCHANGE FALL 2006 WWW.BETAGAMMASIGMA.ORG

sure teams from schools that serve underrepresented groups can take part in the competition. The program creates situations in which people of diverse perspectives engage in meaningful dialogue about ethical issues in business.

Because of these and other considerations, the program has been regarded as a model and replicated elsewhere.

For example, in 2002 the Compaq Corporation in Houston designed a competition after the event for Texas schools.

This spring, the Middle Eastern Technical University in Ankara, Turkey launched a similar program.

In fact, one of the teams from METU participated in this year’s competition via videoconferencing as a way of exploring the possibility of LMU launching a web-based international track to the competition.

The next intercollegiate competition will take place April 19-21, 2007. For more information, see http://ethicsandbusiness. lmu.edu or contact Thomas White at twhite@lmu.edu.

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Lifetime Gifts from Friends In 2004, the Beta Gamma Sigma Board of Governors authorized the development of Lifetime Giving Levels for individual members. This was done so members of the Society could recognize the outstanding, generous contributions made by those who have reached certain levels of giving over their lifetimes.

While the Society continues to recognize members’ generous annual contributions (page 16), these Lifetime Giving Levels recognize those who have made a significant financial commitment to Beta Gamma Sigma, thereby helping fund worthwhile Society benefits and programs. Thanks to all who are listed below for your continuing support of the International Honor Society Beta Gamma Sigma.

The Society recognizes individuals as lifetime members of the Governor’s Council ($25,000 or more), Chairman’s Board ($10,000 - $24,999), and Directors’ Table ($5,000 - $9,999). In addition, we have included those below who have not reached one of these Lifetime Giving Levels but have contributed $1,000 - $4,999 over their lifetimes.

Thank you from the more than 560,000 lifetime members of Beta Gamma Sigma.

Chairman’s Board $10,000 - $24,999

Columbia University Mace Siegel University of Florida Wyckoff Myers Indiana University James D. Downing Lawrence D. Glaubinger

Directors’ Table $5,000 - $9,999

University of Arkansas John M. Norwood University at Buffalo, SUNY Paul F. Eckel University of Georgia Ogden O. Allsbrook Jacksonville State University Carl W. Gooding Miami University Jack R. Anderson University of Pennsylvania John C. Hanson University of Pittsburgh Donald R. Beall Purdue University Dennis J. Weidenaar University of Rhode Island James A. Viehland University of Southern California Jay H. Grodin University of Virginia William J. Kehoe

$2,500 - $4,999

University of Alabama James H. Bearden Marinda J.C. Wood Ball State University Lynne D. & Woodrow Richardson Baylor University Tim D. Brewer Boston University D. Anne S. Borenstein California State University-Long Beach Robert H. Smith University of California-Berkeley Henry F. Trione University of California-Los Angeles Ross E. Roeder Wilbur B. Seaton Edward W. Wedbush University of Chicago Charles W. Lake, Jr. Grant U. Meyers (deceased) University of Colorado George C. Keely (deceased) P. John Lymberopoulos University of Illinois Brian J. Brille

James Madison University Robert D. Reid University of Kansas Edward C. Burns Larry D. Horner University of Kentucky Robert T. McCowan Loyola Marymount University John T. Wholihan Marquette University Theodore C. Rogers University of Maryland Margaret Hicks University of Michigan Fred A. Erb John W. Madigan Philip L. Smith Michigan State University Bruce D. Bottomley Philip E. Lippincott University of Missouri-Columbia Duncan L. Matteson Carl S. Quinn New York University Edward Peters New York University-Graduate School Kinne Sigety Yon Michael David Yon University of North Texas Ebby Halliday Acers Northeastern University Mary Anne Lambert Northwestern University Ernest C. Styberg Ohio University Albert J. Weatherhead, III The Ohio State University E. A. McClintock Charles W. Plum Oklahoma State University Sara M. Freedman University of Pennsylvania Robert C. Nevin The Pennsylvania State University Anthony P. Lubrano Santa Clara University Ruth M. Collins University of Southern California Roscoe Moss, Jr. Temple University John J. Mehalchin Stephen H. Morris Texas Tech University Ray L. Robbins Tulane University Darwin C. Fenner Western Illinois University Vicki C. Klutts University of Wisconsin-Madison James F. Kress Friend of Beta Gamma Sigma William Blackie

$1,000 - $2,499

University of Alabama Whit Armstrong James E. Chapman Gregory B. Jones University of Arizona David P. McElvain Janis Monroe University of Arkansas Phillip E. Allen Fred I. Brown, Jr. Richard M. Bushkuhl Julia Peck Mobley Bob R. Owens (deceased) Ball State University John J. Carter Baruch College, CUNY Anthony K. Adjei Hal H. Beretz Seymour Gartenberg Bernard Hirsch (deceased) William E. Oakley John V. Restuccio Dr. & Mrs. Samuel G. Ryan, Jr. William H. Shron George T. Wendler Bentley College Martin Benis Mary L. Sullivan (deceased) Boston College James Ronald Kearnan Hector Reichard-DeCardona Boston University Harvey A. Creem Robert F. Himmelman Gregory E. Hudson Gitta M. Kurlat, Esq. Richard A. Scheid Bowling Green State University Gerda Ziegler Holland University at Buffalo, SUNY Kenneth D. Greene University of California-Berkeley William D. Crawford Jerry S. Frank University of California-Irvine David H. Blake University of California-Los Angeles Wayne A. Brunkan Al A. Finci Bernard D. Fischer Irwin D. Goldring Raynor J. Klaris Jesse D. Miller California State University-Fresno Pete Peters California State University-Long Beach Dan M. Berns Canisius College Reginald B. Newman, II Gerald C. Saxe

College of Charleston Guy E. Beatty University of Chicago Thomas G. Baker Thomas W. Davis George Krikorian Robert J. Mannarino James R. Sanger J. Fred Weston University of Cincinnati Dean P. Fite Hugh H. Hoffman Michael D. Rose Clemson University John Patrick Harman Joerg Sellerbeck Cleveland State University Kenneth A. Sloan University of Colorado Katherine L. M. Hart Colorado State University Richard L. Robinson Columbia University Joseph E. Connor, Jr. Carl E. Favelukes George Fellows Thomas D. Flynn John W. Jordan, II Hisanori Kataoka Earle William Kazis Paul M. Montrone Marilyn L. Quittmeyer Diana Mary Sattelberger Washington Sycip University of Connecticut Robert C. Burrill George G. Roller Hicks B. Waldron University of Dayton Terry D. Carder University of Denver Charles H. Albi Allan Gemmell Lowell A. Hare DePaul University Jose Jorge University of Detroit Mercy J.F. Bradley, Jr. Peter T. Swallow Francis Westmeyer Duquesne University Steven R. Berlin East Carolina University Max R. Joyner, Sr. Eastern Michigan University Jane M. McManus Emory University Katherine Buckman Davis H. G. Pattillo University of Florida John J. Slaboch Florida State University Robert Gilliam Angus Calvin Morrison

Fordham University Colette M. Dalferes Diane Kalkbrenner Turner George Washington University Sheila J. Curran Ashby R. Miller Eric M. Schaufert Georgetown University Mortimer A. Dittenhofer University of Georgia William A. Mills Kathleen P. Wilson Georgia State University W. Daniel Barker Bobbie J. Bennett William H. Edwards Rodger Lee Johnson Larry F. Miller University of Hawaii C. Dudley Pratt, Jr. Hofstra University Bernard M. Eiber University of Houston Emile A. Bussemey Elizabeth C. Starkey University of Illinois John H. Barnes Robert K. Divall Robert L. May Thomas B. Sleeman University of Illinois Chicago Mary Smoley Blust Daniel James Phillips Indiana University Martha Alsen Atherton Donald C. Danielson David E. Greene Warren O. Hilton Thomas S. Hoelle Erwilli R. Jackson Laura Gick Jaicomo E. W. Kelley (deceased) Audrey J. Marmon Robert C. Purcell, Jr. John M. Raber Allen E. Rosenberg John E. Thiel Jack R. Wentworth Warren S. Widing Christopher T. Winkler University of Iowa W. Robert Berg Vernley R. Rehnstrom Jackson State University Glenda B. Glover University of Kansas William Russell Docking W. C. Hartley Lester M. Mertz Kenneth J. Wagnon

Continued on page 16

BGS INTERNATIONAL EXCHANGE FALL 2006 WWW.BETAGAMMASIGMA.ORG 15

Gifts from Friends

GENEROUS DONORS SUPPORTING BETA GAMMA SIGMA April 16, 2006 - July 15, 2006

Beta Gamma Sigma gratefully acknowledges the support of the following individuals, as well as the organizations listed on the back inside cover. Without this assistance, the Society would be unable to continue adding value to the lifetime membership.

President’s Cabinet $500 - $999 Kent State University George E. Stevens Michigan State University Bruce D. Bottomley Northwestern University Ernest C. Styberg Ohio Northern University Amy M. Amstutz Western Illinois University Vicki C. Klutts

Deans’ Club $250 - $499 University of Arkansas John M. Norwood La Salle University Michael Stern Century Club $100 - $249 Boise State University Sharon E. Nielsen Boston College Kenneth D. Freda, Jr. Bennett Soo Yee

University of California, Berkeley Ira K. Vantress, Jr. University of Connecticut Jeffrey C. Rodrigues University of Detroit Mercy J.F. Bradley, Jr. Drake University Daniel B. Peterson University of Florida H. Jeffrey Cutler George Washington University Edward F. Dube

Georgia Tech University Catherine Swope Indiana University Thomas S. Hoelle University of Kansas Edward C. Burns University of Louisiana at Monroe Saul A. Mintz University of Michigan A. P. Bartholomew, Jr. Mississippi State University Ronnie G. Michaels New York University Lester H. Lieberman Northeastern University Thomas E. Gildersleeve The Ohio State University Charles W. Plum University of Oregon Eugene E. Holt

Lifetime Gifts from Friends Continued from page 15

Kennesaw State University Shelby R. Wilkes Kent State University George E. Stevens University of Kentucky Ralph Fontaine Lehigh University J. Gerhard Marschall Eugene Mercy, Jr. Philip R. Peller University of Louisiana-Monroe Clarke M. Williams Louisiana State University Robert S. Greer Virginia J. Kahnt Loyola College In Maryland I.H. Hammerman, II Loyola University-Chicago Virgilijus A. Kaulius Marquette University Barbara K. Schreiber (deceased) University of Maryland Larry E. Groves Clark E. Luther Morton H. Offit Louis I. Rosen Curtis L. Scribner Pamela L. Volm University of Massachusetts John F. Smith, Jr. University of Miami R. Chad Brenner Peter J. Neufeld Miami University Robert J. Kamerschen University of Michigan A. P. Bartholomew, Jr. Wilfred K. Engel Joanne T. Meagher David S. Miller Lawrence J. Pilon Sanford R. Robertson Richard C. Slayton Joel D. Tauber Michigan State University Steven J. Frisbie Edward E. Hagenlocker Richard J. Lewis Alexander C. McKeen Ronald J. Patten University of Minnesota Hugh A. Barker David G. Croonquist David R. Fesler LeRoy Kopp Duane R. Kullberg Mississippi State University Ronnie Gene Michaels

University of Missouri-Columbia Stephen Furbacher University of Missouri-St Louis Fred W. Wenzel University of Nebraska-Lincoln Alan D. Chunka Harold D. Kube (deceased) University of Nevada-Reno Richard A. Cable E. T. Hermann New York University Thomas Dso Yun Fok Thurston C. Hughes Gerald A. Leboff Joseph P. Martori Joel P. Mellis Sanford J. Moster Kenneth A. Preston Richard L. Rosenthal Emanuel M. Terner (deceased) John R. Woodward (deceased) New York University-Graduate School David D. Hoguet Orlando A. Jimenez Obence K.Y. Ma Elizabeth A. Sherman North Carolina A&T State University Quiester Craig Bernard J. Milano University of North CarolinaChapel Hill William K. Rollins University of North CarolinaGreensboro James K. Weeks University of North Dakota Lyle C. Kasprick University of North Florida Douglas M. Lambert Northeastern University Richard C. Cloran James M. Fowler Amin J. Khoury Nels A. Palm Warren H. Phillips Lorraine P. Steele Northern Arizona University Dwight A. Combs Northern Illinois University Denis M. Desmond Northwestern University Rudolph E. Farber William D. Isherwood, Jr. Chosei Kuge Frank Gorr Mayes Ronald Neale Paul Paul R. Seegers

University of Notre Dame Robert M. Tobben Oakland University C.S. Bud Kulesza George H. Seifert Ohio University Paul J. Dunphy Frank Nicholas Vovko The Ohio State University John R. Ervin Thomas F. Hambleton Wesley M. Hart Ralph E. Kent (deceased) James G. McMillan Philip E. Mark James D. Willson University of Oklahoma Fred E. Brown Charles T. Doyle Julian J. Rothbaum (deceased) Old Dominion University Christopher M. Lloyd University of Oregon James C. Lynch Oregon State University P. Leon Giles University of Pennsylvania Julian J. Aresty Michael Scott Blechman Ronald P. Brotherton Thomas G. Clark (deceased) Clayton R. Jones, Sr. Howard S. Marks George A. Miller George Norsig Edward A. Schrag The Pennsylvania State University James B. Miller University of Pittsburgh Gerry R. Murphy Robert R. Zahm Portland State University George E. Miller University of Rochester Ramachandra Bhagavatula Gary P. Johnson Paul H. McAfee Roosevelt University Byron A. Denenberg Donald H. Ho Fung Jacqueline J. Goldberg Rosemary Irmis Patrick L. O’Malley Robert A. Sperl Rutgers University-Newark Chrysa Z. Golashesky Harold Haddock, Jr. Richard D. Whitehead

16 BGS INTERNATIONAL EXCHANGE FALL 2006 WWW.BETAGAMMASIGMA.ORG

University of Pittsburgh Gerry R. Murphy Rochester Institute of Technology Andrea E. Hurok Southern Methodist University John W. Hasse Syracuse University Barry L. Garber Temple University John W. Wilchek University of WisconsinOshkosh Sharon F. Alferi Memorials University of Washington George W. Morford

Matching Gift Contributors Aon Foundation Robert L. Boumann Lisa S. Kremer Chevron Robert E. Hafey GE Foundation Laura L. Salma J.P. Morgan Chase Foundation Iris Altilio Morgan Stanley Paul J. Baeske Phoenix Foundation Steven S. Go Verizon Stanley C. Kuenn Washington Mutual Amy C. Stanton University Way of New York City Unknown

Thank You!

FOR YOUR GENEROUS SUPPORT

St John’s University Milton D. Felson Saint Louis University David A. Gardiner University of San Diego Patricia M. Howe San Diego State University Arthur R. Barron San Jose State University Dave L. Coles Santa Clara University John Lawrence Fetter Anthony J. McKeon Seattle University Gary P. Brinson Stephen F. Norman University of South Carolina James M. Mancini University of South Florida Edward B. Smith University of Southern California Steven D. Crowe Robert R. Dockson Doreen Lee Gee John G. Hainsworth John S. Patton Southern Illinois UniversityCarbondale Roy A. Causey Southern Illinois UniversityEdwardsville Mark A. Clay Gerald L. Fuller Edward G. Goldenbaum, Jr. John Hamilton Martinson Southern Methodist University Cher E. Thomas Jacobs Stephen F. Austin State University Brian Keith McAlpine Syracuse University Richard H. Rencurrel Frederick H. Weeks Temple University Arnold Glaberson Deborah S. Lambert Gary Mozenter George E. Schott John W. Wilchek University of Tennessee-Knoxville Cheryl A. Butler Dona Lee Stooksbery The University of Texas at Arlington Mark C. Hensel, Jr. Ely M. Rosenthal

The University of Texas at Austin Dause L. Bibby Grant A. Fuller Glen Allen Rosenbaum William Edward Rosenthal Stephen M. Szigethy Clyde L. Wilson, Jr. Texas A&M University Jim M. Plummer Texas Tech University Jason Brian Bone University of Utah Geraldine C. Merkes University of Toledo Thomas G. Gutteridge Tulane University Richard J. Freeman University of Tulsa James W. Middleton University of Utah Francis A. Madsen, Jr. Valdosta State University W. Ed Crane Kenneth L. Stanley Vanderbilt University Charles J. Kane Tod Gavin Shuttleworth Villanova University Francis J. Grey Virginia Commonwealth University James R. Bedenbaugh Virginia Tech University John G. Rocovich, Jr. Washington University Donald H. Driemeier Howard E. Lovely Joe E. Strawn, Jr. John K. Wallace University of Washington Raymond Oatfield Ruth Ann Whitten Washington & Lee University Floyd D. Gottwald, Jr. Julian B. Mohr Richard H. Turrell West Virginia University Russell L. Isaacs Western Michigan University David R. Mitchell College of William & Mary Eric R. Maggio William R. Rittenhouse Hays T. Watkins University of Wisconsin-Madison Jack W. Boyle Russell M. Hansen Donald L. Stehr University of Wisconsin-Oshkosh Hans G. Storr

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http://careercentral.betagammasigma.org BGS Corporate Contributors and Partners 2006 Beta Gamma Sigma thanks those organizations that generously support the Society’s programs and services partners@betagammasigma.org 800-337-4677 (US) 314-432-5650 (outside US)

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2006 Silver Chapter

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C

ongratulations to the 2006 Beta Gamma Sigma Outstanding Chapters

2006 Honorable Mention

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2006 Honorable Mention

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