DATE: May 29, 2008

CONTACT: Daniel E. Wueste, (864) 656-6147 or (864) 650-6545
ernest@clemson.edu

WRITER: Teresa C. Hopkins, (864) 656-1222
hopkin1@clemson.edu

Survey reveals ethics concerns of U.S. CEOs

CLEMSON, S.C. — A national survey conducted by Clemson University has found that improper accounting practices and conflicts of interest rank among the top ethics concerns of chief executive officers.

Results of “The National Survey of CEOs on Business Ethics” were released Thursday and provide insight into challenges CEOs face.

“This is the first survey of its kind involving CEOs from across the country that lead businesses in a variety of industries of varying size, both in terms of revenue and number of employees,” said Dan Wueste, director of the Robert J. Rutland Institute for Ethics at Clemson. “We believe that knowing what CEOs are thinking about ethics in business can be helpful in coming to grips with the ethical challenges leaders face. That’s especially true given the much-discussed decline in public trust in leaders across all sectors of society.”

According to the survey, the top ethical concerns in the general business community are:

1. Improper accounting practices;
2. Lying on reports/falsifying records; (tie)
Conflicts of interest;
3. Exorbitant executive compensation;
4. Dishonesty with customers; and
5. Misleading the public or the media.

When asked what the top ethical concerns are within their specific industries, the list is somewhat different:
1. Conflicts of interest;
2. Deceptive sales practices;
3. Lying on reports/falsifying records;
4. Dishonesty with customers; (tie)
Stealing/theft; and
5. Improper accounting practices.

Wueste said the lists differ, in part, because CEOs' knowledge is direct or first hand only in their own industries.

“The more noteworthy point, which emerges clearly in the lists for each industry, is that the ethics challenges business leaders face are vary significantly by industry,” he said.

The survey of 300 large and mid-size corporations across the country was conducted and sponsored by the Rutland Institute for Ethics in collaboration with the Center for Ethics and Corporate Responsibility at Georgia State University and the department of sociology and anthropology at Clemson. UPS was the corporate sponsor of the survey.