Morality in Business?

Morality in Business.

Perhaps you have never lied, cheated or stolen. If you haven’t please let me know because you are the first among thousands that I have asked this simple question to in my seminars who answered in the affirmative.

John Adams knew it. So did Thomas Jefferson and Alexander Hamilton. On the dollar bill we find “In God We Trust” and the second unstated part “but tie your camel” is alive and well too. This is why we are a country of laws – in other words, a republic. Recognizing man’s propensity for serving self over the common good, laws and legal agreements ensure we can uphold the behavioral requirements of a relationship, our country, our liberty and our pursuit of happiness. In other words, so we can keep intact our democracy in capitalism.
Recently, a client read a study that stated MBA students were more likely to cheat than other disciplines. Few if any are bad people. Those that cheated didn’t understand the fundamental importance of their role as future business people in our society and let their pursuit of short-term ambition for grades (and later greed) exceed their understanding of the bigger picture. Some were possibly not bright enough, but most were just not educated or influenced properly to actualize social truth. Thomas Jefferson enacted strong leadership in the direction of publicly funded universities for the purpose of educating people so they would assume responsibility for the common good. First UNC Chapel Hill and later other publicly funded universities were originally created with Jefferson’s purpose in mind. His view was that people receiving a strong liberal arts education would be less likely to overly self serve or cheat the system, thus fewer laws like Sarbanes Oxley would be needed. This of course would reduce the astronomical social waste of human time and money these types of band aids incur for most of us.
There is great confusion between the concept of ethics and morality. I will take some license here. One character finds a loop hole and decides that it is OK to self serve; another considers the common good and decides and acts differently. Both have a type of morality and neither broke the law, yet their morality is quite different. Morality implies a certain value or “belief” and presumes a “right way” of doing business which can be different for different people; whereas ethics doesn’t necessarily do so. This critically important distinction is at the root of many of our social-business issues today. Ethics are neutral, conscious agreements between people and/or institutions for conducting business. Morality, like the “golden rule” can play into the agreements, but ethics only implies people will hold discourse to openly discover an agreed upon path of action together. For example, there can be an ethical arrangement between two drug dealers, yet their behavior is quite wrong from most people’s moral standpoint. For some people morality is rooted in their religious faith with their beliefs and values serving as guiding principles. For others it is what they know in their heart to be the right way to do business. Two client CEOs I polled for this article; one from a large bank and the other from a leading engineering firm, both emphasized there should be no distinction between private and business morality. This view could be tested by hypothetically placing one’s important decisions and actions on the evening news and see if they continue to feel good about their decision and what their children would see, hear and learn to live by.
“…it is our responsibility to continually seek to understand right from wrong and when in doubt seek counsel.”

Being moral is not a passive activity according to one CEO I polled who runs a large services company. He says that it is our responsibility to continually seek to understand right from wrong and when in doubt seek counsel. CEO and owner of a very successful restaurant believes that to knowingly deceive at any time is wrong. Another president of a southeastern bank stated that it is always important to be truthful with associates and customers. If a problem or mistake is made, own up to it and say so. They went on to say if someone isn’t doing a good job let them know; that this act builds trust and a reputation for integrity.
The real test of one’s capacity for morality and ethics is first and foremost an issue of self awareness and maturity. It has been my experience that most of us know when we are doing wrong. When we do wrong we seem to not have the personal capacity to stomach emotional pressure associated with doing the right thing in a difficult situation. Bill McLaurin, Ph.D. a consultant in our firm calls it “the thirty seconds of discomfort to do the right thing.” A top tier executive from one of the premier manufacturing companies in the world said that “listening to the quiet voice of one’s gut tells most of us when things are right and wrong.” It’s easy not to pay attention to this feeling-voice inside when we don’t want to – and then revert to denial or rationalization.

Self-awareness is critically important in deciding rightly because the man who knows his weaknesses of character is much more likely to make the right decision especially when not inclined not to. It is too bad that most ethics courses don’t teach people about the emotional nature of man and instead prefer lectures and intellectual discussions around the content of decisions. Alexander Hamilton, the “original MBA” knew it too as he posed that the study of human nature was the science of sciences. Undoubtedly he and others that established our democracy in capitalism knew too well what would cause us to fail and also what would give us the opportunity to be great.
“The real test of one’s capacity for morality and ethics is first and foremost an issue of self awareness and maturity.”



Slainte

Gordon

Leadership...what ever you do..

I have been busy this week with the restructuring, I have lost my appetite for this business at present, we still have a great product and a future, but It has just been very tiring. I have a lot going round my head at present but not in a suitable format to commit to the blog world yet..when it is I will deliver it...I am just looking forward to 4pm today to go home and switch off. There has been one idea that has been at the fore front of my thoughts and that is leadership, I have spoken about it in the past, but it is something that is so important in the running of the business that I thought it would be a good subject to close with this week....I see Anne Nicole Smith passed away yesterday....I always thought that there is a waste of a life, she had money and she had leadership power as well from the life style she led and the money she has, I did think she could have seriously helped the 1000's of woman caught in the sex industry to move on.....but she never had a good model of leadership herself to follow she did not know how to move out and influence and develop her own leadership for the good of mankind. There is a lack of great leadership in the world, sit and name 10 great leaders you know at present who are bringing benefit to mankind and really making a difference and creating true value and meaning...I do envy people like Rob Smorfitt http://main-spring.blogspot.com/ he works in South Africa here the start up model is different...pay him a visit...he is one of the guys who creates meaning and value..

So to the post on Leadership...

An article from George F. Franks, he is the President of Franks Consulting Group, a Bethesda, Maryland based management consultancy, he brings out some good ideas in a relaxed way.


Leadership
Encompasses the topic from supervision to CEO level and everything in between.
Steps to More Effective Leadership
By George F. Franks, III

Leaders, whether supervisors or chief executives, face many of the same daily challenges. How leaders respond to these challenges differentiates average or even good leaders from great leaders. Anyone can be a better leader. Following the points outlined below is there first step to improving your leadership effectiveness.
Listen
A big part of every leader’s job is to listen. Many leaders are very poor listeners. An effective leader must learn to listen: to employees, customers or clients, professional peers and others. The more a leader listens, the more she will have better points of reference for any issue or decision that arises.
Communicate
Some leaders like to talk to groups. Others like to talk to individuals. And others prefer letters or e-mails. There is no one right way to communicate. The point is to communicate. It must be direct, clear and to the point. Say what you mean. It is easy to get caught up in business or professional jargon. Regardless of the audience, make sure you communicate thoughtfully and clearly.
Decisions: Gut vs. Analysis
The MBA revolution has produced many business leaders who require mountains of data and reports to make even the smallest decision. There is a growing movement among leaders to “go with the gut” when it comes to decisions large and small. Is there a right way to make decisions? Frankly, the best decisions evolve from some level of analysis plus experience (or “gut” instinct). The point is to make decisions. Make them often. Too may leaders today avoid making decisions and defer to teams, committees and task forces. While input may come from these bodies, ultimately the leader should make the final decision.
Example
Most great leaders have someone they look up to – whether an historical figure or a mentor. A model for leadership is not only valuable – it is essential. At the same time, every leader – regardless of position or stature – should mentor others and serve as an example. An effective leader will want others to live up to and carry on their style and techniques in the future.
Priorities
Every leader wakes up every day with a “to do list”. Some items on the list are at their discretion. Others are imposed by others: customers, investors, subordinates, other external or internal bodies. Are you a prisoner to someone else’s priorities for your day? It is up to the leader to insure that every block of “work time” every day focuses on actions essential to meeting and exceeding the short and long term objectives of the office or position. This does not mean no time with family or to exercise or to socialize. What it does mean is that working hours – whether from 8-5 or from 5-8 should be focused and deliberately spent on activities which will serve – in the end – to meet and exceed specific performance objectives.
Be True to Yourself
Imitating Bill Gates, Steve Jobs, Nancy Pelosi or Hillary Clinton will not serve any aspiring leader well. Your style of speaking, dress and more evolved from your family background, education and career-to-date. Be yourself. By imitating the gestures, speech patterns, attire or other mannerisms of someone who is famous, you are only making yourself a caricature of that person – and that does not translate into effective leadership.
Walk the Talk
Today one only has to look at the front page of any newspaper to see examples in business, government and the non-profit world of leaders who are not role models. These leaders are the height of “do as I say, don’t do as I do”. Leadership by example should be one of the most fundamental goals for leaders at all levels regardless of their profession or field. Employees at all levels perform better for leaders who “walk the talk”.
Leaders are everywhere. And yet great leaders are rare. Our society rewards those who lie, cheat and steal – to and from employees, investors, constituents and customers. The fundamentals of effective leadership are attainable by every woman and man who has the courage, self-discipline and integrity to follow these simple – yet challenging principles.




Leadership = Power to influence
Power = No of Followers



Slainte


Gordon