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Corporate executives must place ethics above profits
August 12, 2002
By C. Richard Panico
Confucius once said: "What I hear, I forget. What I see, I believe. But what I do, I understand."
Recently, however, it has seemed as if some business leaders have forgotten their responsibilities to set an ethical example, and their ethical base itself is in question.
Perhaps some back-to-basics are in order:
Ethical behavior is not a short-term proposition. Far too many companies and executives live quarter to quarter, year to year, in search of short-term gains. I believe that while leaders should see both the short- and long-term consequences of decisions, ethical considerations ought to have more influence. Ethical leadership and decision-making are essential to long-term survival. In its absence, there is no truth, no trust, no loyalty. The two biggest enemies facing Corporate America today are greed and complacency. Both are killers.
Put profits second. At the top of the list, put providing security and opportunity for your employees, and building and maintaining trust. Develop your people; nurture their drive to achieve optimal results; focus on continuous improvement. Trust is the single greatest competitive advantage that any leader can have. Trust generates loyalty, and loyalty surpasses all other supposed advantages.
Make no compromises. Make your ethical beliefs and values the natural basis for how you and your staff operate in every situation. Live up to them. This can be tough in a world that has learned to rationalize and legitimize actions once considered socially and morally unacceptable. Too many people, as their careers progress, find excuses to compromise their integrity. Keep your values alive by weighing decisions against them. Your reputation and your future depend on it.
If it's all about you, quit. Leadership is a precious opportunity to earn the right to influence others; don't waste it or abuse it. Leaders are responsible to others first, before they take care of themselves. So, if you are unwilling to endure sacrifice, quit. If you lack self-confidence, quit. If you are intimidated or uncomfortable with loneliness, quit. But, if you believe in making a positive change and believe you are responsible for securing the world for future generations, go for it.
Ethical leaders change a corporation's culture. Leaders with firm beliefs and strong ethical and moral convictions will always have a positive impact on any organization. Imparting authenticity, honesty and an absolute dedication to being the best you can be at all times often comes back to you in the form of strong business relationships, friendships and mutual respect.
And if you are awarded additional business as a result of this behavior, you win again.
C. Richard Panico is chairman of DePaul University's Institute for Business and Professional Ethics and CEO of Integrated Project Management Co. in Burr Ridge.
©2002 by Crain Communications Inc.
