The example of Dennis Bakke, CEO of AES, in which he and his team took responsibility for employees who lied to the EPA about water quality at the plant, suggests that for an ethical organization, it is not necessary to do more than just take strong punitive action against those who act contrary to the company-established expected behavior.

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Many would believe that it would have been much easier and personally less expensive for Bakke and his management team to merely take strong punitive action against the nine individuals who were acting contrary to the behavior expected in the AES ethical culture. By sharing responsibility, however, for the misdeeds, the top executives made it clear that responsibility and penalties for ethical lapses go well beyond the guilty parties. Such courageous behavior by leaders helps to strengthen the organizational ethical environment.

The Example of Dennis Bakke, CEO of AES, in Which