The doctrine of laissez-faire, free market system is based upon the belief that economies should not be encumbered
by regulation; an economy works best with enlightened self-interest, competition, and the laws of supply and
demand. Adam Smith used the term “invisible hand” to describe how enlightened self-interest, competition, and
supply and demand worked to self-regulation markets without needing regulation. The 2007-2008 financial crisis
4.In this chapter we discuss the Joe Paterno matter at Penn State. Another situation where a respected
individual’s reputation was tarnished by personal decisions having nothing to do with performance on
the job is the resignation of former U.S. military General and Head of the CIA, David Petraeus. On
November 9, 2012, Petraeus resigned from the CIA after it was announced he had an extramarital affair
with a biographer, Paula Broadwell, who wrote a glowing book about his life. Petraeus acknowledged he
used poor judgment by engaging in the affair. When F.B.I. agents investigated the matter because of
concerns there may have been security leaks, they discovered a substantial number of classified
documents on her computer. Broadwell told investigators she ended up with the secret military
documents after taking them from a government building, No security leaks had been found. In
accepting Petraeus’ resignation, President Obama praised Petraeus’ leadership during the Iraq and
Afghanistan wars and said: “By any measure, through his lifetime of service David Petraeus has made
our country safer and stronger.” Should our evaluation of one’s lifetime of hard work and success in
their careers be tainted by one act having nothing to do with job performance?