Business Leadership & Ethics

Throughout my many years in leadership there is always one topic that comes up whether I am consulting, in a full time leadership role, serving on a board or even speaking with other leaders in a casual conversation.  This is the topic of ethics in business.  I have witnessed that some leaders get more nervous speaking about this topic than they do speaking about my Lord and Savior, Jesus Christ.  

Unfortunately I have had to work with people in the past where I would question their business ethics and morals.  This occurs particularly during my consulting engagements as they are typically shorter in term, and this type of culture is already present before I am engaged. When someone is exposed to this type of situation, it can be very difficult as one frequently fears that retribution will follow any awareness of the behavior.  Because of this, many people try to convince themselves that the behavior is not ‘that bad’.  A simple test I run in these circumstances is by asking myself a few simple questions:

1. Does the behavior of the leadership comply with local and state laws?

2. Does the behavior of the leadership comply with company policies?

3. Is the behavior of the leadership in the best interest of everyone, or only themselves?

4. Would a business person I respect agree with the behavior of the leadership?

When I can answer no to any of these, it is time for me to exit stage right.  It is important to keep in mind that it is not the degree of the behavior. It could be something as simple as identifying a pattern where work is being done without filing (and paying for) necessary permits, to the extremes where you are asked to break the law because “we do it all the time, and it’s really no big deal as nobody knows”. If you can answer no to ANY of the questions above, as a leader, you are putting yourself at risk in that role, and need to move on. 

As I stated in a previous article, Leadership Styles, leaders are highly influential and wield a great deal of power in an organization. The reality is that if the leadership is not conducting itself ethically and with moral values, the organization can NEVER expect to operate its business in an ethical manner.

If you would like help addressing unethical business practices in your organization, please reach out to me.