Dean Clark Addresses Journalists
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| Clark Photo by John Metelsky / National Press Club |
Declaring himself “appalled” and “dismayed“ by recent acts of greed and wrongdoing in corporate America, Dean Kim B. Clark told a National Press Club audience in Washington last February that “we need solutions that are driven by a broader conception of what went wrong and what ought to be done.” The nation’s business schools have a responsibility to contribute to that effort, Clark said, describing a special series of workshops on corporate issues undertaken at the School during the past academic year. Known as Corporate Governance, Leadership, and Values, the project involved leading thinkers from business, HBS, and other institutions of higher learning; it will soon report its conclusions and recommendations.
Invited to appear as part of the club’s celebrated program of lunchtime speakers, Clark presented his views in terms of “apples” and “barrels”: Is the rash of corporate misconduct due to a few bad apples (wayward individuals), or is malfeasance enabled by the barrel itself (business’s framework of governance, practice, and rules)? The answer, Clark asserted, is that bad apples and barrel flaws were involved, exacerbated by an intensely competitive environment. In order to meet market measures of success, he said, sound judgment and principles were suspended by individuals and governance institutions alike.
In seeking solutions to these problems, Clark suggested a two-pronged approach. “The first step will be to find ways to reduce conflicts of interest and to shore up standards, principles, and institutions of governance. The second comprises strengthening the integrity of leaders in business.” He cited the School’s well-established curriculum and initiatives involving leadership and values, as well as its commitment to community standards, as integral to the HBS experience. As for the “barrel,” Clark observed that HBS and other business schools can also make important contributions by studying ways to design markets more effectively, reduce conflicts of interest, and build stronger governance institutions. Noting that the economic system ultimately runs on faith in the people and the processes that drive it, Clark vowed that he would help restore that faith. “Each of us needs to act within our sphere of influence to make that happen,” he said.
Visit www.hbs.edu for Dean Clark’s National Press Club prepared remarks. For more on the Corporate Governance, Leadership, and Values project, visit www.cglv.hbs.edu.
