Panama Papers and the Honorable Merchant - Dr. Mario Buchinger

Panama Papers and the Honorable Merchant - Dr. Mario Buchinger

The Distinction between "Legal" and "Legitimate": A Challenge Currently, in the wake of the revelations of the so-called Panama Papers, there is intense discussion about the acceptability of setting up and operating shell companies. Questions of this nature have been raised in many situations in recent years and have been widely discussed, for example in relation to executive bonuses. When the former CEO of Hypo Real Estate, Georg Funke, demanded a claim of 12 million euros from his former employer after the bank's collapse, this was heavily criticized by the public. Funke, on the other hand, always pointed out that these benefits were legally due to him. Currently, bonus payments to the executives of Volkswagen AG are under scrutiny, as they do not wish to waive their bonuses despite the massive losses from the diesel emissions scandal and would only consider accepting a 30% reduction. Here too, the managers refer to the rights granted to them in their contracts. Laws Always Have Weaknesses Gaps in the law do exist, and it is everyone's right to exploit these loopholes. Legally speaking, this may be correct, but to what extent can a group of people, who see themselves as the elite of society, rely solely on legal considerations? It is also said that humans, unlike animals, are intelligent. If this is true, then humans should be capable of more than just focusing on their own profit within existing rules. Of course, legislation must continually adapt to the changing demands of the world. Identified gaps must be closed - consistently and not just as lip service. However, one must also let go of the belief that legislation can curb all escape routes. Laws are made by humans for humans and will therefore always be imperfect and incomplete. This is where the responsibility of the so-called elites is also required. That people adhere to laws is unfortunately not self-evident, although it should be a fundamental prerequisite. However, merely complying with laws is not enough. Particularly individuals in decision-making positions, such as politicians or managers, have a special responsibility here, as they are in the public eye and have a special role model function due to their office and mandate. Not Everything That Is Legal Is Automatically Legitimate This can be illustrated by a simple example from private life. In society, it is not illegal to cheat on one's partner in a marriage. Legally speaking, adultery is completely legal. However, most people would likely agree that this is unfair and constitutes an immoral act, and therefore can never be considered legitimate. The same applies in business and politics. Especially individuals in decision-making positions have a special role in weighing this distinction carefully. Otherwise, the general public will always wonder why they should adhere to morals and decency if "those up there" do not. An old saying states, leadership means setting an example through integrity. Leaders, whether they like it or not, are always role models for society. And here, a role model can also serve as an example of misconduct. It would have been appropriate for Mr. Funke, in view of the massive collapse of the bank he led, to waive any bonuses, even if they were legally due to him. The executives of Volkswagen would also set a good example if they completely waived their bonuses. Considering that the workforce is being urged to tighten their belts and the final consequences of the fraudulent actions are not yet fully foreseeable, it is incomprehensible why the management should be rewarded for their actions. The term "bonus" translates to "good" and denotes an additional part of the salary for achieving something good. This is sometimes not apparent. Regarding the numerous shell companies, this must be seen in a similar way. Even though setting up shell companies is legal, it is far from legitimate. The responsibility lies with those who consider using such offers. What do these individuals want to hide? Often, the use of these legally viewed legal offers is based on illegal actions. However, the actions are likely never to be legitimate. Revisiting the "Honorable Merchant" Managers and politicians must become more aware of their role again. Their office is not an end in itself and not a self-service store. In particular, this group of individuals must return more to the code of the Honorable Merchant. Politicians are representatives of the people and must focus on the long-term common good of the community. Managers must be more entrepreneurs who are aware of the long-term responsibility of the company they lead. Leaders are obligated to their office and not to their profit. Many seem not to have learned this or have forgotten. The consequences can be disastrous. A disappointed and marginalized broad mass is the breeding ground for radicalism and unrest. The so-called elites have it in their hands in the first instance to lead by good example. # Panama Papers # VWGate For more information on Panama Papers and on the topic of leadership culture by Dr. Mario Buchinger, please visit:http://www.trainers-excellence.de/redner/mario-buchinger.html