Ethics and Success

There is no guarantee that doing the right thing will lead to personal success. In thirty plus years as an ethics consultant, I have seen ethics undo more than a few brilliant careers. But I have also seen leaders whose ethics helped make them successful. You may think that rising to the top with your ethics intact is a matter of luck. But my observation is that ethical leaders follow a conscious strategy for building success upon their ethics. Here are a few steps to help you align your ethics with your career goals.

Choose who you work for. If your ethics and the ethics of your employer are in significant disagreement, your career success is certain to be limited. Organizations seldom promote individuals who are outside of their cultural boundaries, which include the organization’s ethics. It is not reasonable to expect perfect agreement between your ethics and the ethics of an employer. But a vegan who works for a meat packing company can expect problems. While most of us cannot change jobs at will, you increase your chances of advancement when you are employed by an organization with which you are in ethical agreement.

There are more steps that will be covered in future posts.

The 5th Biggest Ethical Mistake

The fifth biggest ethical mistake is assuming that a business practice is acceptable because it is a common practice in the industry. Just because a practice is common in an industry does not mean that it is safe or ethical. It all depends on which companies in an industry you compare yourself to. For example, Enron was the most admired company in the energy industry – until it wasn’t. If you are the first one in an industry caught doing something wrong, you often pay the price of the entire industry correcting its practices. Think of the scene in The Tin Men in which two aluminum siding salesmen sit outside a Congressional hearing saying to one another, “We only did what everyone was doing.” If this sounds a bit lame, avoid putting yourself in the same position.

The 4th Biggest Ethical Mistake

The fourth biggest ethical mistake made by leaders is confusing legal advice with ethical advice. The job of legal counsel is to tell you the legal consequences of various courses of action – and not whether you should take those actions. Many of the investment activities that led to the 2008 recession were perfectly legal and also perfectly unethical. The training that makes a good lawyer does not make the lawyer an ethics expert.

The 3rd Big Ethical Mistake

The third big ethical mistake that leaders make is allowing managers in an area suspected of wrong-doing to investigate the matter. Leaders believe they should show trust in the their managers and allow them to investigate accusations. But the chances that the manager is conflicted are too great to take this path. By the way, I discuss ways of avoiding these mistakes in my book Make an Ethical Difference.

Question re Ethical Mistakes

What ethical mistakes do you see leaders making? I have an odd view since I only hear from them when they have problems. What do you think?

Ethics Masters and Slaves

In my book Make an Ethical Difference I use the following quote: The master knows the rules without suffering them; the slave suffers the rules without knowing them.”

Book at O’Reilly

My book Make an Ethical Difference is on sale at half price today at http://oreilly.com/. One day only.

Compliance Headhunters

We are contacted by headhunters because we know a lot of compliance officers and we know whether they are available. However, it is extremely difficult to help these folks as they often have no idea what a compliance officer does. They are generally working from a job description written by someone in HR who also has little idea what a compliance officer does. The essence of the job of a compliance officer is the ability to influence others to do the right thing. This does not translate into a certain college degree or work history. When describing a compliance position to a headhunter, don’t forget to include BEHAVIORAL requirements and expectations. This will save the headhunter and job candidates a lot of time

Whistleblowers or Pirates?

Everyday brings new reports of whistleblowers receiving millions of dollars – even tens of millions of dollars – as a reward for being a whistleblower. This occurs primarily in healthcare, defense and financial services. It changes the equation from one in which the whistleblower risks their job to do the right thing to one in which the whistleblower risks their job in the hope of winning the lottery. The public image of the whistleblower has not caught up with this new reality in which the whistleblower is more of a pirate than a hero. The media have been particularly reluctant to give attention to this new, profit-seeking  whistleblower. It is time that our perceptions begin to fit the facts.

Getting Fired

Ever more frequently, I learn about compliance officers losing their jobs, mainly because they were doing them. A lot of organizations have a compliance officer because they know they are supposed to. But they would really be happier if the compliance officer cashed their paycheck and stayed out of the way. This is confirmed by the fact that the compliance officers being fired are not the dregs but often among the best in the business. Compliance officers are not always adept at organizational politics and tend not to be assertive on their own behalf. But this is a job where you have to get a contract for at least three years. You owe this to yourself and those who depend on you. I know that asking for a contract may seem extreme, but you don’t answer the phone where I work.