Doing The Right Thing
With so many corporate shenanigans going on, it is time that we leaders set a tone of honesty within our companies. This should and needs to start at the top of the company and extend through the board of directors, senior management, auditors, lawyers, and all employees.
Board of Directors: The CEO handpicks most directors because the CEO finds these individuals easy to work with or the individuals bring some marquee value to the masthead of the company. Directors, by and large, want to be supportive and inherently believe that subjects brought to the board for discussion and/or resolution have been thoroughly vetted by the senior management and its advisors. Because of the often social nature of their relationship with the CEO and their concern of upstaging the company leader, directors can act subservient, neglecting to ensure that the management is running an aboveboard operation. This culture can lead to trouble.
Undoubtedly, a director who is driven by ego and simply wishes to challenge a CEO is an ineffective board member. However, effective board members are those who professionally analyze the company's operations and practices—independently. They need to ask questions if something seems amiss. Only by acting independently and questioning practices can the board be certain that significant controls are built into the system to guarantee —unequivocally—the ethics of the company are above reproach.
Corporate Ethics: Back in the 1970s, there was corporate legislation known as the Foreign Corrupt Practices Act that targeted the illegal payments being made abroad for securing business. Because of this legislation, many companies adopted a corporate sign-off of the corporate ethics statement (at least by its executive group) that promised the individual signing the statement had conducted their business at the highest ethical standards, was following company policy, etc.
Unfortunately, the sign-off practice faded with time and the resulting damage is clear. With the current round of corporate misdeeds, we have corporate policy being established that is illegal and not in conformance with generally accepted accounting principles (GAAP). We need to return to the concept of high-level management signing off on their ethical behavior. A strengthened ethics policy would have executives questioning themselves before establishing policies that are unethical.
Such sign-offs shouldn't be limited to CEOs or CFOs. In the case of WorldCom, it is reported that the CFO truly believed what he was doing by deferring expenditures (transferring period expenses to capitalize them on the balance sheet) was in accordance with GAAP. Unfortunately, he made the auditors agree with him or they simply ignored this accounting misstep. Whatever happened, it caused the bankruptcy filing for WorldCom.
Legislation and executive-level sign-offs are important elements to a reconstitution of ethical practice in the corporate world. However, they are far-reaching by nature and often difficult to implement. Smaller steps can be taken.
As leaders, no matter what our level, we need to ensure that all employees have the ability to report unethical behavior when they see it occur. If allowed to come forward, “Whistle-blowers” can prevent cataclysmic mistakes by stopping unethical practices at an early stage. We need to empower employees to identify wrongdoing without fear of consequence. Providing this empowerment may be our biggest challenge in the war for ethical adherence.
Now ask yourself... Am I a Leader?
Think Big Dreams
Two weeks ago, I was fortunate to have the opportunity to attend the National Speakers Association's annual speakers' conference. We had the opportunity to hear from the likes of Zig Ziglar, who at the ripe old age of 75 years old, moves across the platform like a 25-year old. It was wonderful to listen to a man who has it all, tell us his future lies in front of him and that he looks forward to each day. Then we heard Lou Holtz talking about his first year as head coach for the University of South Carolina and how attitude makes the difference between success and failure. I especially enjoyed Lou's remarks since one of my favorite sayings is “Your Attitude Will Determine Your Altitude.”
At this speakers' conference, they had a mini-conference for children ages 10-16 years old. My son, Tod, attended his first year as an 11-year old. My wife and I didn't know what to expect and wondered whether we were pushing him into something that he wouldn't like. Oh contraire! Not only did he welcome the three-and-a-half day conference, he wants to go back next year—as long as the pool is as nice as it was at The Orlando World Center Marriott.
When we were leaving the conference, I asked him, “Tod, what is the one thing you learned at this conference?” He replied, “Think big dreams, Dad.” Only from the mouths of our young ones can come such a profound statement.
Each of us, whether we are CEOs, corporate officers, team leaders, or parents, can encourage those for whom we have influence over (notice I didn't say control) to think big dreams. We are in a unique position if we can inspire our followers to pursue big accomplishments. And that is our responsibility, helping others achieve all they can in their lives.
Now ask yourself... Am I a Leader?
