Briloff lecture speaker Jay S. Benet ’74 explores influence of corporate culture on ethics

Who is responsible for maintaining ethics in a large organization? Everyone is, according to a Binghamton University alumnus who’s had plenty of experience managing large corporations.

Jay S. Benet ’74, vice chairman and former CFO of Travelers Companies Inc., was the speaker at the 31st Abraham J. Briloff Lecture on Accountability and Society. The speaker series is sponsored by the Binghamton University School of Management (SOM) and honors the late Briloff, who was recognized as the ethical conscience of the accounting profession.

Benet’s lecture, titled “Influence of Corporate Culture on Ethics: A CFO’s Perspective,” focused on institutional changes that can be implemented to promote a healthy culture of ethics within an organization.

“There’s this feeling around ethics that they should be a given and that ethical practices are what people already do. That isn’t always the case,” Benet said as he cited recent scandals involving Wells Fargo and KPMG that have resulted in nightmarish news headlines for those companies.

“What is it about a company that creates an environment where ethical disasters even happen in the first place?” Benet asked. “What happens that make people feel pressured to do things that are inappropriate?”

Benet pointed to the corporate philosophy at Travelers as one that creates an environment of accountability and responsibility. Benet said the company prioritizes giving back to its shareholders and 30,000 employees, and is very upfront about what to expect.

“When people ask why they should invest in Travelers, I tell them exactly what we, as a company, are about and how it frames every decision we make,” he said. “By managing expectations, we don’t feel the pressure to do things that are inappropriate or outside of our philosophy.”

Another component of this is strong risk management. Benet said the company will only underwrite property and casualty risks that they understand, staying away from more-opaque scenarios.

“We strive to operate with integrity and high ethical standards, and we are constantly looking at the data to measure results at a granular, controllable level. This lets us thoroughly understand the performance of our products and business units,” he said.

Benet said that a responsible work environment isn’t the result of magic — it takes a lot of hard work from the top down.

“The tone at the top really matters. Words and actions matter. Setting an ethical tone from the top is absolutely critical to beginning down an ethical path for the entire organization,” he said.

Benet said all employees share a role in maintaining an ethical environment.

“If you join a company, you are responsible not just for your actions, but for the actions of people around you. Understand the business you are in, understand your role and make sure the accountability is clear,” he said. “Keep it simple, run business like it’s your own, spend money like it’s your own, and seek clarity around the risks and rewards.”

Benet said establishing and maintaining a culture of openness and accountability means not only establishing multiple channels of communication and feedback from all employees, but to take the feedback seriously.

Benet urged the students in the audience to rate themselves on ethics before diving into job searches.

“Find out what ethics means to you. Run through ethical situations in your head and think about what you’d do in them,” he said.

Once students have a grasp on that, Benet encouraged them to research the corporate culture at the places they’d like to work.

“Companies and individuals have brands and reputations. Some have their brands and reputations tarnished because of ethical mistakes. Don’t take that as a sign that every company is that way,” Benet said. “There are good companies out there. Find them and contribute to them.”

A mathematics major during his time at Binghamton University, Benet remains a very active alumnus. He is the recipient of the Harpur College of Arts & Sciences Distinguished Alumni Award, and the Jay S. and Jeanne Benet Alumni Lounge in Old O’Connor Hall on campus honors the contributions he and his wife have made to the University.