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This chapter explores historical and institutional drivers of unethical practices in consultancy, industry changes in the last decade, and validity of charges against consultants. It covers rise of corporate ethics, institutional relationships, failure of reform, individualization of ethics, and critical charges.
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Dr. Joe O’Mahoney and Calvert Markham O’Mahoney and Markham: Management Consultancy, 2nd edition Chapter 10: The Ethics of Consultancy
By the end of this lecture, you will be able to: Outline the historical and institutional forces that have led to unethical practice in consultancies. Describe the changes that have happened to the industry in the last ten years. Considers the validity of specific charges that have been made against consultants by academics and the press. Chapter Objectives
The rise of ethics • CSR, Ethics and ‘Community Engagement’ • More rhetoric than reality? • The potential impact of consultancy
Institutional Relationships 1950 - 2000 • Audit companies • The government • IT Companies
The failure of reform? • Audit • Government • IT
The individualisation of ethics • Understanding individualisation • Ethical codes of practice • The segmentation of ethical behaviour • Professionalisation
Considering the charges • Consulting advice isn’t value for money • Consulting solutions are boiler-plate fads • Consultants can’t be trusted • Consultants prey on management insecurity
This chapter has: Outlined the institutional conflicts of interest that contributed to the “crisis” of consultancy. Argued that attempts to tackle ethics have focused on the individual rather than institutional forces. Showed that many (though not all) of the claims of unethical behaviour in consulting still stand. Suggested that ethical problems are complex and cannot be prevented by giving students “ethical dilemmas” to tackle. Summary