“A felony is forever. That’s not a legacy to leave to anybody.”

Harvin C. Moore III (right) gave a speech on ethics Nov. 4 to Urton Anderson and Janet Dukerich’s undergraduate studies class, Organizational Corruption and Organizational Control.

At first glance, Moore looks like the picture of success. He earned a law degree from UT Austin and went to work for a law firm in Houston, where he had a “Midas touch” for putting together lucrative business deals. His real estate developments were valued at $250 million and he co-owned a savings and loan business with more than $400 million in assets.

It wasn’t until Moore took off his jacket and put on the prison badge he wore during his 2-year sentence in federal prison that students realized that this wasn’t going to be like any ethics speech they had heard before.

Moore was in business during the collapse of both the oil and gas industry and the real estate market in the four oil and gas states - Texas, Colorado, Oklahoma and Louisiana. That collapse caused all of his personal business to fail and left him with only the savings and loan institution, which he believed to be in excellent health.

However, the savings and loan institution was hit by defaults on the loans it had made to people in Houston and under the rules the partners could not declare a dividend for themselves under those circumstances. That meant that they could not pay back their debts and lenders were threatening to foreclose on their stock in the institution, thereby forcing both parties into bankruptcy.

It was the pressure and fear of being without a job that caused Moore to make three loans to his friends. Those friends would then use part of the money they were lent to “buy” miscellaneous assets from Moore’s personal holdings so that he could use the money to pay his debts.

Moore said he knew that this type of lending was illegal but that he rationalized his actions by convincing himself that he needed to do it to survive. He also told himself that he and his partner were the only ones at risk since they had made the original loan and would be the only ones hurt if the borrower defaulted. He tied it all up by reminding himself that “everybody’s doing it,” and that they were doing far worse things than what he had done.

Things continued to get worse at the institution, however, and by the end of 1988 the company had been taken over by the Resolution Trust Corps (RTC), which mean that Moore lost ownership of the company to the government and had to file for bankruptcy anyway. It was then that his 27-year marriage ended in divorce.

During the investigation of his bankruptcy filings the RTC found those illegal loans and filed a criminal suit against Moore. While he was planning how to defend himself, he suddenly realized that he had no defense.

“It didn’t matter that the institution was solvent when I made that loan,” said Moore. “Did I get the money out correctly? The answer is no. That is a federal crime, and I realized I could not go into a courtroom and plead not-guilty.”

As a result of his conviction, Moore spent 601 days in federal prison and three years on parole in Houston. He was forced to pay $500,000 in restitution and he lost his licenses to practice law and to issue property, casualty and life insurance. He also lost the right to vote or to own or possess a gun.

He said that the toughest thing was getting a job after his release. He went through five jobs in five years before he found one that gave him a platform from which to rebuild his life and his career.

Moore ended his talk by reinforcing the consequences of one bad decision.

“When you make the right choice, most of the time there is a short-term cost associated with it,” said Moore. “But the potential of taking the other side is a long-term liability.

“A felony is forever,” he continued. ”That’s not a legacy to leave to anybody.”

Some of the best business students from around the world convened in Austin October 27-31 for the 16th McCombs International Business Competition (MIBC), one of the top annual undergraduate business competitions in the world. In total, 20 schools from North America, Asia and Europe competed in this year’s MIBC, which was sponsored by Motorola, the Undergraduate Business Council and the Office of Student Life.

Motorola put together an open-ended case that challenged the four-member teams to present an innovative global business strategy for the company. The winner was the University of Hong Kong, which became the MIBC’s first repeat winner.

“It was a fantastic event,” said Gautam Shah, MIBC chair. “We had a great, involved company with Motorola. The University of Hong Kong team presented a thorough solution that impressed all of the Motorola judges. It was airtight.”

McCombs’ John Doggett, one of the competition’s faculty advisors, said that what makes the MIBC special is that it uses only real cases.

“We give them a three-page ‘engagement letter’ from senior management and ask them to spend two days researching the challenges mentioned in the letter,” Doggett said. “And they have the opportunity to engage with the senior executives during a Q&A session a day before they make their recommendations.”

As for the winning team, Doggett said that Hong Kong was “simply amazing.” He said, “In 48 hours they produced a new product development and launch strategy for two new mobile devices for the China market that was so detailed that they even had chipset specifications for the two new phones. What those ‘undergraduates’ did during the finals was truly something to behold.”

Doggett continued, “ Motorola sent four executives to be judges, and their former acting CFO and current board member, Tom Meredith, sat in on the presentations. It says volumes about what Motorola thought about the value of this competition that they would send so many senior managers to see what undergraduates from 20 universities from 9 countries had to say.”

“The students were outstanding,” said Elizabeth Altman, vice president of business development in Motorola’s Mobile Devices business. “They showed great skill and professionalism in both their analyses and presentations, and a few of the groups developed creative ideas that we will explore further. Additionally, the team of undergraduates that organized the competition was equally impressive. We thoroughly enjoyed our involvement and commend the organizers and competitors for an exceptional event.”

In addition to the University of Hong Kong, the other three finalists were FGV from Sao Paulo, Brazil, the University of Washington and Georgetown University.

Trophy Skin develops and sells home-use medical aesthetic devices that treat common skin conditions, and currently markets the BlueMD acne light therapy device. Future products will include devices that treat wrinkles, rosacea, skin tightening, and sun damage.

Visit http://www.inc.com/newpreneur/vote.html to vote for Imran by Nov. 6 or click here to read more about Imran and the competition!

Dr. Ronn will provide an overview of the financial markets’ forward-looking metrics: what they are, how they are obtained and the message they are conveying by focusing his talk on:

• Measuring the nervousness/uncertainty of equity, credit and commodity markets
• Assessing the status of credit markets
• Quantifying future inflation rates
• Forecasting crude-oil prices

“Equity, Credit and Commodity Markets: The Market’s Assessment of Where We Are Headed”

When: October 29, 6:00 p.m.
Where: CityPlace
2711 N. Haskell Ave.
Dallas, TX 75204
Cost: Today - $25, cash bar available.
After 10/27/09 online registration will be closed. Please pay $30 at the door.

Click here to RSVP.

Background on Dr. Ronn:

Dr. Ehud Ronn is a professor of finance and director of the Center for Energy Finance at the McCombs School of Business.

Dr. Ronn obtained his Ph.D. from Stanford University and has published articles on investments and energy derivatives in both academic and practitioner literature.

Prior to joining the University of Texas at Austin in July 1988, Dr. Ronn was a faculty member at the University of California, Berkeley, and the University of Chicago. While on a two-year 1991-93 leave of absence, Dr. Ronn served as vice president, Trading Research Group at Merrill Lynch & Co. Dr. Ronn has been the founding director of the Center for Energy Finance since 1997.

Since 1993, he has served as a consultant on interest rates and energy-commodities. In November 2004, Dr. Ronn was selected by Energy Risk to the “Energy Risk Hall of Fame.”

The McCombs School of Business has a commitment to honor and ethics. It is apparent to me, judging from comments and inquiries I have received recently, that our students, faculty, staff and alumni believe strongly in these principles as well.

We derive this high standard from the university of which we are a part. Our purpose is to prepare the next generation of individuals who will act responsibly; improve quality of life for themselves and others; and serve the communities in which they live and work. This foundation of ethical behavior is essential to the disciplined culture of excellence that exemplifies our students, our faculty and our alumni.

The undergraduate program takes specific steps to expose each student to these principles and to emphasize their importance.

Every undergraduate student takes BA 101, a course which emphasizes integrity, fair treatment, and honesty, in the context of academic studies, career, and life in general. Topics of discussion include:

• Definition of ethical and moral principles
• The high costs of ethical lapses
• Real life scenarios in business and recruiting
• Ethical Code of Conduct
• Five-Step Decision-Making Process
• The McCombs Recruiting Code of Ethics

Additionally, all students take at least one other course encompassing ethics and leadership. Read more.

A team of McCombs undergraduate students were selected to be one of three finalists for the Net Impact Resource Challenge.

Bijal Mehta, Elaine Hsu and Zoe Gabbard were the only undergraduate students to enter, and they beat out more than 30 MBA teams for a spot in the finals. The Resource Challenge is a mini-case competition that challenged students to submit a plan for boosting on-campus recycling rates.

Based on their submission, the team earned an all-expense paid trip to Ithaca in November for the Net Impact National Conference, where they will compete to win $5,000 in prize money and the opportunity to implement their business plan at UT.

Congratulations to Bijal, Elaine and Zoe, and good luck in the finals!

When: October 21, 7:15 p.m.-9:00 p.m.
Where: AT&T Executive Education & Conference Center, Room 106
1900 University Avenue
Austin, Texas 78705

Cost: $20 at door ($10 for Students and Staff)

Smart professionals know that networking is a proven way not only to find a job, but also to thrive in a job and bring in new business. Learn how to take the stress out of networking and get better results in a way that feels natural to you.

In this series of three teleseminars presented by Carol Ross, career coach, social entrepreneur and founder of Carol Ross and Associates, LLC, you will learn to create and nurture the connections needed to thrive in hard times.  You will also have the opportunity to network with alumni from McCombs and other major universities through a participant-only site.

Watch this video to learn how a visit to the dentist’s office led to a job interview with the CEO of a start-up (really!).

Other results reported by past participants include:

• New contacts: Who would have thought that business cards would be exchanged at a dog park or while waiting for a train that was late?  But that’s exactly what happened.
• New clients: “To my surprise, I have two new clients and the possibility of two additional. And it all feels natural.” -Lynn Pearson, graphic artist (http://www.pearsonandgraham.com/)
• New business opportunities: The founder of a non-profit dedicated to financial literacy (http://www.money-masters.org/) applied her new networking skills with two speakers at a conference. She walked away with an invitation to submit her resume for a national task force under the Department of Treasury and consideration of her middle-school curriculum by The New York Federal Reserve Bank, to teach financial literacy to kids in Puerto Rico.

Teleseminar Dates & Topics:

October 27: Avoid Common Traps in Networking
November 3: Create Meaningful Conversations and Develop Lasting Connections
November 10: In-Person + Online Networking, Put It All Together

Location: Anywhere (online or by phone)
NOTE: Teleseminars are not sold separately.  All teleseminars are recorded and available via MP3 download.  The McCombs School of Business and Carol Ross & Associates value your privacy and will not share your email address with others. 

Choose from a mid-day time or an early evening time to attend:
Mid-day series: 10am PT/11am MT/12noon CT/1pm ET
Early evening series: 4pm PT/5pm MT/6pm CT/7pm ET

Teleseminars are 75 minutes long (50 minutes of presentation followed by 25 minutes of Q&A).

Cost: $75 for all three sessions (discounted from the public registration price of $189). Register by Oct. 25!

Click here to learn about the presenter, Carol Ross. Questions? Contact alumni@mccombs.utexas.edu.

“I have trouble starting conversations with people. Your program gave me the confidence to start networking with people.” –Keith, attorney
“I’ve already had positive results, not only in my job search, but with personal relationships, which is an added bonus!”—Nancy Gallagher, commercial real estate professional

Click here for more testimonials.

I’ve been going to networking events for years, first as a way to build my career and then as a way to build my business. For some, this may sound like hell on earth. I prefer to think of it as a long-term study in human behavior. Think rats in cages. Okay, just kidding.

I’m 48 years old. I’ve met hundreds, if not thousands, of strangers in ballrooms with overactive air conditioning and in restaurants with noise levels approaching take-off at O’Hare. I’ve had engrossing conversations and “ewwww” reactions. I’ve been bored silly eating appetizers in the corner and been the last person to leave because I found myself having so much fun. After all of this, I think I may have found the Rosetta Stone of networking.

Before we go any further, it’s useful to introduce the idea of a “stake,” the core driver for how one behaves in any situation. It’s the thing that one can count on when things go awry or when things are going smoothly. Some people might call this your intention but more often, it’s “unintention.” Most people are unaware of their stake at any moment. For me, my stake is usually to learn. No matter what I’m experiencing in life, if I’m learning, I feel okay. Learning is my homeostasis, my thermostat of life.

Now, dissect any conference hall crowd, formal social gathering, or group of industry seminar attendees. Create an expectation among normal adults that they will be interacting with people they’ve never met for the next thirty minutes. The Petri dish begins to reveal mixed emotions and intentions.
My theory is that you’ll find three types of individuals with three different stakes:

• Givers. The stake for a Giver is to provide value to others, no matter what else happens. Givers operate from a sense of abundance. They give without strings attached. Givers are not looking for anything tangible in return other than a genuine expression of thanks.  They feel good that they can be of service to others and are otherwise unattached to the outcome from their giving.
• Takers. The stake for a Taker is to get something of value from others, no matter what else happens. Takers operate from a tit for tat mindset. They keep count of who is ahead and who is behind, in both giving and receiving, so that they come out ahead. They give with strings attached–to get something in return.
• Protectors. The stake for a Protector is to stay safe, no matter what else happens. Protectors are wary of both Takers and Givers, because they can’t distinguish between the two. For a Protector, all networking interactions carry the risk of being taken advantage of. Protectors neither give nor take. They remain safe by holding back and keeping their distance.

Which one are you? At different times in my life, I know that I’ve played all three roles, Giver, Taker, and Protector. There’s no shame in that. What is important is that you consciously choose what role you take on and know the consequences of doing so.

The stage is set. Walking across a hotel carpet, with busy patterns designed to hide the spotty record of past networking encounters, we each assume a position—Giver, Taker, or Protector. What happens when the different pairings interact?

• Giver-Giver. Nirvana. This is the ideal situation. Both parties feel like they are appreciated when they give, which engenders even more giving. Unfortunately, this pairing is not what most people experience when they are networking.
• Giver-Taker. Tricked, again. This can work for awhile, until the Giver realizes that she is working with a Taker. Takers may even initiate giving first, with the intention that they will get something in return. At some point, Takers give themselves away by operating from an entitlement mindset (as in,” I did this for you, so now you owe me.”) The impact on the Giver is that this can turn them into a Protector.
• Protector-Taker or Protector-Giver or Protector-Protector. The drawbridge is up. I’ve combined these three pairings because the dynamic is the same. The Protector holds back from any meaningful interaction in order to remain safe.
• Taker–Taker. It’s just bizzz-ness. What can I say? This is purely transactional and both parties know and agree to it. They know what the game is.

I discovered several years ago that I enjoy myself more and get better results when I’m a Giver. The time goes by quickly and I’m energized when I go home. I make new connections and in some cases, new friends.
However, as you can see from the pairings above, just because I’m playing the role of a Giver, doesn’t mean that I will meet Givers. It may take me a few tries to find “my tribe” of Givers.

Whether you are a natural Giver, a born-again Giver, or like me, one borne from years of living, here are tips for Givers: 

• Don’t take unpleasant interactions personally. You can’t control how others behave but you can control how you respond to their behavior. For all you know, the person in front of you may have caught their spouse cheating last week, gotten laid off, and be taking care of a dying mother. Being a Taker or Protector sounds pretty good right now. Or it just may be the man or woman in front of you is a jerk.  In either case, it’s nothing personal.
• Know the signs of a Taker, so that you can steer clear when you need to.  You will sense a “tit for tat” in the moment that something is given by the Taker. It may be very subtle but trust your own feelings. The giving will be less joyful and more purposeful on the part of the Taker. Often, Takers will have a laser-like focus as a way to make sure that they get what they want out of the interaction. They won’t waste time on people who they perceive can’t give them something of value. They seek out others based on status, title, position, experience level, or closeness to someone else with power.
• Know the signs of a Protector–wariness and holding back (not to be confused with introversion.) Even after you extend a giving hand and ask questions from genuine curiosity, Protectors won’t let down their guard. It’s worth a try working with Protectors to shift their idea of who you are and what your intentions might be. However, at some point, if you don’t sense a change, it’s best to move on.

Topics for further research (which may take the rest of my life to fully understand):

• What causes a Taker to become a Giver?
• What causes a Protector to become a Giver?
• How can we create more Givers in the world?
• How can you recognize Givers, Takers, and Protectors in the online world?

For now, let’s try this experiment: Independent of what role you naturally gravitate towards, the next time you find yourself in a conversation with a stranger, choose to be a Giver.

_____________________________
Copyright © 2009 by Carol Ross and Associates, LLC. As a coach, Carol delights in working with Boundary Crossers, individuals who operate in multiple worlds but who fit wholly in no one world. As founder of A Bigger Voice, she works with frustrated social entrepreneurs to transform an idea into a sustainable, scalable movement. Find her playing on Twitter (@carolross), musing about life and work on her blog, or sampling new groups on LinkedIn.

“I wanted to make an immediate, meaningful, and scalable impact. As an international student at UT who had studied abroad in other countries since high school, I know how important it is to study abroad early in one’s academic life. I want to encourage freshmen at McCombs to study abroad as early as possible in their college careers, as this would also give them a competitive edge in recruitment and thus improve the school’s overall competitiveness. I firmly believe that study abroad should be compulsive, as it is in the many of the best universities around the world. Of course this is easier said than done (and certainly than to be paid for), but I hope this scholarship will be a step towards that goal. It would be a good selling point for the Business School to say that a significant amount/percentage of students decide to study abroad right after their freshman year, and that most of them do so with funding. My vision is that, in the future, this scholarship grows to be a much larger source of funding for all deserving students at McCombs who want to take their careers to an accelerated path through early study abroad.”

Any first year McCombs student who is planning on studying abroad the summer after their freshman year through one of the established BBA exchange programs is eligible to apply for this $1000 scholarship, which is administered by The Texas Exes. Juan currently works as a Business Technology Analyst with Deloitte Consulting LLP in New York City.