Norman Scarborough
Willam Henry Scott III Professor Emeritus of Entrepreneurship

A former Presbyterian College professor returned to campus this week to give a familiar but powerful lesson on the importance of behaving ethically in today’s business climate.

Norman Scarborough, the William Henry Scott III Professor Emeritus of Entrepreneurship, was tapped to deliver the 2024 Robert M. Vance Lecture on Business Ethics following the late cancellation of the original speaker and eloquently stated why and how ethical behavior matters in the workplace.

Scarborough said, first of all, that ethical business decision-making is nothing new.

“In 560 B.C., the Greek philosopher Cimon said, “A merchant does better to take a loss than to make a dishonest profit,’” he said. “So, does ethics really matter? Is it really that important? I think that it really is.”

Scarborough said seniors graduating this spring and entering the workplace will quickly discover how important integrity is to their future.

“If an individual succumbs to these unethical temptations, it can have long-lasting impacts,” he said. “It can destroy an individual’s reputation and a company’s reputation very, very quickly, too. It takes a long, long time to build a company’s reputation. But it takes only one act to destroy it. The same thing for individuals. It takes time for you to build your reputation as a person of integrity, but just one action can actually wipe that out.”

Showing a graphic of an inverted pyramid, Scarborough argued there are three levels of ethics. The first and most basic level, he said, is the law. As the director of the S.C. Public Service Commission’s Technical Analyst Department, Scarborough said he comes into regular contact with attorneys who understand what is legally permissible and what is not.

“But does obeying the law mean that you are acting ethically?” he asked. “What do you think? Would you be acting ethically just by obeying the law? I would say that the answer is no. The law is the narrowest level of ethical standards.”

For example, during the pandemic, several utility companies filed for rate increases before the Public Service Commission and were legally within their right to seek them. Instead, while people were losing their jobs and struggling financially, companies postponed their requests until the economy recovered and utility customers could bear the increases.

“They could have gotten their rate increases,” Scarborough said, “but to their credit, they didn’t just follow the law. They did what was ethical.”

Scarborough said the next level of ethical behavior in business is organizational policies and procedures – the specific guidelines an organization outlines for how they make decisions and how it behaves.

At the Public Service Commission, commissioners must abide by the S.C. Code of Judicial Conduct because the group acts as a court, in many ways, by hearing cases just as judges do, Scarborough said. But he and all other employees at the organization are also required to abide by the same state code and each of its canons, including the avoidance of impropriety or even the appearance of impropriety.

PC’s Honor Code, signed by every student, faculty member, and staff member, is another example of an organizational policy that guides ethical behavior, Scarborough said.

“The college also has a standard here that it expects its students to live up to, and faculty and staff to live up to,” he said. “It begins with, ‘On my honor, I will abstain from all deceit.’”

The third and broadest degree of ethical behavior is one’s moral stance, Scarborough said.

“They are the things that you’ve learned from your parents, your family members, your grandma, your religious upbringing, the community in which you were raised, your school, where you work” he said. “All of those things are ingredients. They form your morality, which forms your character.”

Scarborough also shared some basic principles that guide ethical behavior. One of those, he said, is choosing the option that offers the greatest good for the greatest number of people. Another is acting in such a way that a panel of colleagues would agree is proper.

“How would you explain it to them?” he said. “How would they view your actions? Would they view it as proper? And what actions allow me to act in a way that is consistent with the type of person that I want to be? Most of us want to be known as people of character, people of integrity. What actions in this particular instance would allow you to promote that reputation?”

The Golden Rule – treating others as you wish to be treated – is another powerful ethical principle, Scarborough said, as are what he referred to as the “television test” and the “family test.”

“Would you and your colleagues feel comfortable explaining your actions to a national television audience?” he said. “Would you be comfortable doing that? Explaining your actions in this particular situation to a national audience? And then the family test. Would you feel comfortable explaining to your children, your spouse, your parents, why you took this action? Would they be proud of you? Would they be ashamed of you? Would they be concerned about you?”

Scarborough said behaving ethically requires adherence to a few very basic, common sense guidelines. Truth and honesty. Having the integrity to do the right thing even when no one is watching. Keeping promises. Being worthy of other people’s trust. Being fair. Holding yourself accountable. Being respectful of others.

Scarborough also told students in the audience that, even at a young age, they are setting example for others.

There are people out there, there are kids in your hometown, there are kids in this town with whom you’ve interacted,” he said. “They want to be just like you. Set a good example for them.

Scarborough also told students it is inevitable that they will encounter ethical dilemmas when they go out into the world. Citing the recently-published Global Business Ethics Survey, 53 percent of workers in the U.S. have observed ethical lapses in their companies.

“You’re going to have this happen to you,” he said. “Be ready.”

Scarborough encouraged the audience to, first, make the commitment to always do the right thing.

“If you do that ahead of time, when the issue arises, it will make your life so much easier,” he said. “Select your employer carefully, especially your first employer. But select all of your employers carefully, because a company’s culture can either serve to support or undermine its employee’s concept of what constitutes ethical behavior. So go to work for a company known for its ethics.”

Scarborough said it is always important to thank the people who help you along the way and to help others along their way in the future.

“Get involved in your community,” he said. “Make it a better place to live. Practice ethical behavior in the little things.”

Scarborough concluded with one of his favorite Bible verses – Colossians 3:23:

“Whatever you do, work at it with all your heart as working for the Lord, not for human masters.”

(Left to right) Karen Mattison, associate professor of economics and business administration; Norman Scarborough, William H. Scott III Professor Emeritus of Entrepreneurship; and Dr. Anita Gustafson, PC president.