A growing number of companies are terminating employees over perceived violations
of their ethical standards, the New York Times reports.
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Download NowThe newspaper says many companies have adopted a zero-tolerance policy because
of the new regulations and scrutiny that followed in the wake of major corporate
scandals, including those of Enron and WorldCom.
"We are in a regulatory frenzy," says Ira Lee Sorkin, a senior white-collar
crime lawyer at Carter Ledyard & Milburn. "Corporations are acting
out of fear and they don't want to take a chance that employees did something
wrong under their watch, so they are basically cleaning house. Someone has to
say enough."
The newspaper notes that companies are cracking down on both business and personal
behavior they believe will hurt the company.
The newspaper cites the example of Boeing, which forced chief executive Harry
C. Stonecipher to resign after he admitted to having an affair with a female
executive at the company.
The newspaper says the trend in zero-tolerance policies is evident on Wall
Street. Bank of America, for example, terminated Andrew Susser after he compiled
a research report on the casino and lodging industry that contained an image
the company deemed inappropriate. In the image, Susser's face was superimposed
over the body of a woman in a cocktail-party dress, being carried over the threshold,
according to the newspaper.
In addition, companies are stepping up their training efforts on ethics. Citibank has created a mandatory online training program on ethics for all employees, the newspaper reports.
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