AUBURN – The corporate world needs to take a lesson from the folks in the trenches: Behave honorably or pay the consequences. And the folks in the trenches have a moral imperative as well: make sure there are consequences.

That was the message delivered Thursday morning to the Androscoggin County Chamber of Commerce breakfast crowd at Lost Valley. The speaker, Mike Haskell of Adventure Quest – USA, was talking about the high cost of low ethics in the business world.

He had plenty of material to work with. Within a few minutes of taking the podium, Haskell was ticking off names that have dominated recent headlines: Martha Stewart, Kenneth Lay, Dennis Kozlowski. All have been high-profile executives embroiled in scandals involving fraud and abuse of the public trust.

And the small businessperson – and entrepreneurs especially – have been paying the cost.

To prove his point, Haskell asked for a show of hands from people who were seeking investment capital. Hands shot up across the room.

How many have secured it? he asked. Many fewer hands rose.

“It’s tough to get capital now because people are afraid of the business culture,” said Haskell.

Ethical codes have deteriorated to the point where the ultimate crime is not the deed itself, but getting caught, said Haskell, whose Bowdoinham business teaches executive leadership development.

“We have to take ourselves back to self-imposed absolute standards,” he said, noting that even his Labrador retriever knows the difference between right and wrong.

When people see Michael Milliken and Charles Keating caught and punished for their misdeeds – but still able to preserve enormous personal wealth and standing within the financial world – the message is clear: business is ambivalent about ethics.

Haskell said that doesn’t need to be the case. He cited role models such Aaron Feuerstein of Malden Mills and Darwin Smith of Kimberly-Clark, who brought honor and values to their businesses through their conduct.

Haskell said others can do the same by following fundamental rules: honor contracts; be truthful about products and commodities; treat customers fairly; be fair and up front with investors; consolidate accounting; and report all revenues and expenses accurately and appropriately.

And then take it one step further by demanding that other businesses do that as well, Haskell said. He recommended that people research companies carefully before investing in them to make sure they are honorable and forthright.

“Obligation is reciprocal,” said Haskell. “Demand that others comply with what you’re doing. Don’t buy into the greed.”

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