Probems in Zen? There Were Always Simple Solutions

So all four first generation Zen monasteries were involved in decades of deceit and cover-ups involving sex and finances.

I lived at some of these places.  The level of devotion is unhealthy, and what is not known to most is that the "masters" kept careful watch of the sanghas, making sure the unhealthy environment remained in place.  They never really had any interest in "Zen".   Their sole interest was creating and maintaining a blindly devoted, cult-like group.

What happened at these places required:  1) remarkably deceptive and manipulative character on the part of the master 2)  lack of simple policy and awareness to protect students 3)  secrecy 4) a small number of loyal, devoted followers.

You can't eliminate 1) without committing murder, but you can remove his/her influence, using openness and transparency, and implementing measures that provide choice, within the group.

Actually, this is a simple thing to do.

There are an infinite number of things you can do.

Here are just some:

1. Separate the notion of "spiritual hierarchy" from operational function of the center.  Include such operational hierarchy only where it is necessary -- work. 
2. Elect "work leader", periodically, through sangha elections.  Make it known that all sangha members (including "traditional" monks and "masters") are to be treated as equals regarding work (at least, to their abilities).  If a "master" has truly "achieved the ultimate", he would be OK with washing dishes, right?
3. In an effort to minimize unhealthy "guru"-dynamics, make spontaneous "challenge-response" periods part of practice, where students sit in a circle, and anyone may question anyone else on the subjects of "insight", etc. Provide a mechanism to disallow interruptions.  One way:  everyone has a bean bag.  When one person raises his, it means he will as a question, and nobody else raises theirs.  He tosses the bean bag to the person he will question.  The person answering the question has as long as he/she wants to answer.  When he/she is finished, he tosses the bean bag back to the questioner.
4. Would it hurt to keep the circle around for normal sits too?
5. Reduce or eliminate ceremony and liturgy.  If people feel they need this, make it optional, allowing people to sit in the zendo while others attend the devotional practices.  Make concerted efforts to NOT present "leaders" of form, or simplify the devotional forms to the point that "leaders" are changed often, and easily.  Change them all the time.  After one guy leads, he chooses the next guy.
6. For sesshin, allow up to two talks a day, and allow sangha to nominate speakers from within the group or invite guests.  Do not limit this to "Buddhist" or "Zen".  Compassion isn't "Buddhist", it's just compassion.  You can say the same for wisdom.  Don't sweat the talks.  Put no ceremony around them, so all  would be comfortable speaking spontaneously, with little or no preparation.
7. Take steps to ensure extraordinary level of transparancy regarding financial matters.  Examples:  post, online, all donations higher than a certain level.  post salaries of all who are on center payroll?  Post approximate costs, per person, of running a retreat, etc. etc.  Keep a blog, online, regarding expansion projects costs, donations.  Elect a treasurer to do these things.
8. Post, online and in commons areas, center-specific guidelines regarding sexual relations, and harassment policy.  Doesn't even matter what they are, just decide on them and make them.  Include 3rd party contact number of professional counselor.  Include set procedures for dealing with violations.  Make sure every person at the center understands.  Nobody is "above" these rules.
9. Instead of "traditional" dokusan, allow sesshin participants to select who they wish to meet with, during retreat.  Allow them to meet with their friend, for example, if they wish.  Allow them to choose on a per-day basis (if you are laughing at this idea, ask yourself if you really have the right).  Make only a few dokusans per sesshin -- perhaps only three total.
10. Internally, perhaps once a month, publish minutes of "resident meeting", where each sangha resident has a chance to speak, or may, alternatively, submit a written post.   Keep these records in a repository.
11. Minimize the operational difference between "monk" and "layman".   Make these the same thing, as far as how the center is run.  If you are talking about "commitment" to the center, then just call it "one year commitment to the center".  Put no secular/sacred into practice.

This list can go on.  These aren't all "great" ideas.  But they are, at least, very simple ideas.  It is very, very easy to come up with ideas that would make the problems in Zen go away.  It is a simple thing to choose openness over secrecy.

Anyone could actually do things like this, and anyone could have, at any time, during the last five decades.