Moral Compass

Thanks for your editorial Enron and Morality (2/11). Teaching corporate finance, investment analysis and portfolio construction and management established that the model of wealth maximization is worthwhile and shares the attributes of all economic models. It is a great engine for discovery, and it is flawed because it abstracts from people in a humanistic sense. Students were often reminded of that absence as emphasis was placed on their integrity, grounded in rigorous honesty, not necessarily as codified by due diligence or full disclosure.

As trustees of a religious-sponsored retirement plan, we were mindful of two things: 1) our independence of the sponsoring corporation and 2) the need to be sensitive to the work of the employees whose money was in the plan. It would have been both facile and deleterious to separate investment policies and decisions from the hard-earned money of the janitorial staff, nurses, administrators and others. It was their dough over which we had a fiduciary responsibility. Although it was not explicitly stated, as I look back on it now, we saw 1) our fiduciary responsibility as grounded not just in civil law but primarily in the law of Christ and 2) that work is noble because of the nobility of the workerthat is, their work and their retirement plan were the continuation of God’s creation. Such was the moral compass.

Charles A. D’Ambrosio