Corporate Leadership and Integrity
In our 21st Century business environment, integrity is arguably the top characteristic of successful leaders. The integrity of corporate senior leadership (i.e. CEO’s, Presidents, Vice Presidents, Corporate Board Members, Senior Managers, etc.) is closely monitored – and scrutinized – by employees, vendors, suppliers, stockholders, and other leaders. In addition, senior leadership integrity may be emulated by those who aspire to become senior leaders.
The definitions of corporate leadership integrity differ for one primary reason: there is no universal acceptance of what ethical, moral behavior is. For example, a corporate leader’s interpretation may be different from that of an employee, a vendor, an investor, or the citizens of the community in which the business operates. Most definitions of integrity I have researched include the following:
• Acting in an ethical, honest, and moral manner;
• Your actions and behaviors when everyone is watching compared to when no one is watching;
• Standing up and speaking out when you encounter unethical, immoral behavior of others.
This week’s blog, albeit rather short, will address some of the challenges of corporate leaders and integrity.
Current-Day Business Issues and Integrity
The temptation of financial gain and notoriety from corporate success is great. Sometimes the fine line between ethical, moral, and legal activity becomes shaded. Corporate stockholders and the investment community expect a constant and predictable return on investment. If a company delivers a 5% ROI in a quarter, the company must devise and produce additional efficiencies to deliver another 5% ROI the following quarter – or risk stockholders selling their stock. Sometimes finding innovative ways to consistently increase ROI results in unethical, immoral, or maybe even illegal behavior.
Senior leaders, specifically CEO’s wield significant clout. CEO’s of our Fortune 100 companies may influence our cultural, environmental, and social values and attitudes. I encourage you to research the activity and impact of the senior leaders of Enron and WorldCom during the past 10 years as a reference to the societal consequences of leadership integrity and behavior. Also examine the Sarbanes Oxley Act of 2002 for requirements of corporate leaders to help prevent future improprieties.
Considering the ramifications of unethical behavior, stakeholder reaction is mixed. On the one hand, stakeholders become disappointed, disgruntled, and frustrated when they hear reports of unethical behavior from their leaders. In addition, the level of trust in senior leadership is lost. Think about what your own personal feelings were when (if) you experienced such dysfunction. Think of how such news impacts your morale about the company you work for. On the other hand, some stakeholders find solace in the fact that their leaders are human and can make mistakes like the rest of us. Yet, some stakeholders are envious of leaders and aspire to become a leader. These stakeholders may even look to emulate the senior leadership behaviors they observe, regardless if the attitudes and behaviors are considered to be ethical or not.
Seeking Feedback on Your Leadership Integrity
If you currently serve in a management or leadership role, and you firmly believe that you consistently act in an ethical manner, I encourage you to seek input from others. Feedback is a gift. Just like you provide open and honest performance feedback to your employees and suppliers, they can also offer you open and honest feedback on your performance and behavior. If obtaining this valuable information is a challenge, then try a method by which subordinates, peers, and vendors can provide feedback confidentially. Whatever ethical means is used, you want to get this input and compare it to your own self assessment. You may find that your attitude, behavior, and values meet the expectations of those you work with. But you may also find out that you attitude, behavior, and values do not. In any case, please remember and adhere to the following acronym: DWYSYWD (do what you say you will do). Always keep your word. Leadership integrity and trust can be difficult to build, but it is very easy to tear down. More information on leadership integrity can be reviewed in Corporate Leadership Selection: Impact on American Business, Employees, and Society (Authorhouse Publishing).
Feedback to the bi-monthly blog entry is always welcome.
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