|
|
Is Your Company Above Corruption?
By: Rick Merrill
Issue: 2009aug
Widespread cynicism offers a chance to shine, or fade, in one of the most challenging business environments ever.
In recent years, mentioning Enron, Tyco or any number of company names could conjure a sense of deceit, dishonesty and corporate corruption in our minds. In real time, the list is exploding—Madoff, AIG, big banks, Wall Street moguls, etc. The business landscape has become an ethical battleground. The average citizen is weary of hearing the myriad shocking revelations about political leaders’ indiscretions, businesses and business leaders involved in manipulation and greed and the growing awareness of silent complicity along with the trillions of dollars of costs and losses that affect us all.
Such major atrocities are rarely reported within the promotional products industry, but our clients—other businesses, key consumer groups and the associations or coalitions that oversee business practices—are more conscientious and skeptical. Concerns continue to arise about product safety, gifts causing undue influence over those entrusted with healthcare decisions, financial and investment decisions and virtually everything else that affects the well-being of our population. And as we’ve seen in other industries, one or two bad apples can have an enormous effect on customers who end up avoiding the entire barrel. We are, and will increasingly be, besieged with those who are cautious about the integrity of our industry and the company with which they are doing business. More than ever in recent history, this is a defining area of paramount importance, a differentiating factor that will influence market share and success and make or break a business in the coming years.
Integrity isn’t a new issue, or a new challenge, but it is certainly more central in the minds of consumers. “Is this company credible?” “Can it be trusted?” “Are employees honest?” New efforts related to ethical practice and accountability and how they can be effectively conveyed are going into company culture. There is new art and science in how companies can build competitive advantage, particularly in a world of social media and mass information at the speed of light.
Six years ago, Larry Johnson and Bob Phillips co-authored Absolute Honesty—Building a Corporate Culture that Values Straight Talk and Rewards Integrity (AMACOM). This book hit hard at the issue of honesty in business and how to create it. In the past year, with an unprecedented volume of news on business dishonesty, the content of this work has never been more relevant to business leaders. The following is excerpted from this book, an elemental and essential framework for company cultural change.
For most companies, fortunately, the problem is not whether to practice truthfulness and accountability. It’s how to integrate such practices into the culture so that they are rewarded, self-perpetuating and virtually automatic. This means building an infrastructure rooted in these six laws:
Law No. 1: Tell the truth. Too often, telling it like it is amounts to professional suicide. In the long run, however, there is no other way to earn the trust of employees, customers and shareholders.
Law No. 2: Tackle the problem. When the prevailing attitude is always to cooperate but rarely to confront, you can expect problems to fester under the surface. The solution is constructive confrontation, an essential technique for business professionals and executives.
Law No. 3: Disagree and commit. Who hasn’t been to a meeting where everyone agreed on a decision, then ran back to their desks to lobby against it or even sabotage it? Better methods of consensus are available, as are mechanisms for what to do when you’re asked to support a decision that is morally, ethically or legally wrong.
Law No. 4: Welcome the truth. It’s human nature to defend yourself against criticism and to attack when you feel attacked. A culture of absolute honesty not only addresses this issue but transforms it into a potent tool for growth.
Law No. 5: Reward the messenger. Speaking out against the status quo usually brings retribution. At an absolutely honest company, it brings reward. The transition from payback to payout is one of the trickiest cultural changes to navigate, but it can be done.
Law No. 6: Build a platform of integrity. If a company wants its people to contribute their ideas freely and to speak up when wrongdoing occurs, it must lead by example. This means communicating and clarifying the values that matter—and sticking to them when times get rough.
Upcoming Education Event
Attend a lecture by Larry Johnson, co-author of the best-selling Absolute Honesty—Building a Corporate Culture that Values Straight Talk and Rewards Integrity.
The next generation of the PPAI Presidents’ Forum has arrived. The always highly anticipated annual event has evolved, taking on a new name—North American Leadership Conference—as well as a fresh approach to addressing the most relevant, top-of-mind business issues currently impacting our industry.
During the 2009 North American Leadership Conference, August 23-25, at the Hilton Indian Lakes Resort in Chicago, Larry Johnson will be one of the keynote presenters, discussing the strategic importance of business cultural differentiation and the tactical how-tos of making the shift. Larry will also offer breakout sessions on leadership and leading change, with particular attention to making successful business decisions.
There is a full schedule of other important topics and top business authorities at the conference—check it out at www.ppai.org.
|
|
|
|