Trust Me! Insights into Ethical Leadership Frank C. Bucaro, CSP,CPAE

Norman R. Augustine: Former CEO of Lockheed Martin Corporation “I can think of no commitment more important to a corporation or its survival than its commitment to ethics. That means not only conducting our business affairs within the letter of the law, but also in the spirit of the law.”

“ Business is a partnership of people creating, in many ways, a better life for others as well as ourselves. If Aristotle Ran General Motors If Aristotle Ran General Motors -Tom Morris -Tom Morris

Negative Ethics  Tell us what not to do.  Prevent harm.  Imply the obligation to not do harm. -Marvin T. Brown

Positive Ethics  Give guidelines for what we should do.  Promote a good.  Imply a responsibility to do good.  Rely on the power of the organization to be responsive, and to love the ability to respond. -Marvin T. Brown

Ethics Focus on action not behavior. Focus on action not behavior. Justify action not behavior. Justify action not behavior. Acknowledge the gap between “ought” and “is.” Acknowledge the gap between “ought” and “is.”

“We are not disturbed by things, but by the view we take of them…. When we meet with troubles, become anxious or depressed, let us never blame anyone but…..our opinion about blame anyone but…..our opinion about things.” things.” Epictetus - 60 A.D.

Americans’ outlook for U.S. Morality remains bleak Gallup Poll on 5/1/2010 found: 76% of Americans say moral values in the U.S. are getting worse. 14% of Americans say moral values are getting better.

Five top reasons for the moral decline: -Gallup poll- May 17, Declining moral values 2. Disrespect of others 3. Parents not instilling values in their children 4. Dishonesty in government/business 5. Rising crime/violence

There are only four dilemmas for humanity 1. Truth vs. Loyalty 2. Individual vs. Community 3. Short Term vs. Long Term 4. Justice vs. Mercy -Institute for Global Ethics

Myths That Our Culture Teaches… 1. PAIN Must be avoided at all costs. 2. HAPPINESS “Go For It!” “If it feels good, do it!” 3.“ME” ORIENTED SOCIETY Money and materialism 4.COMPETITION Winning isn’t the only thing, it is everything!

Decision Making Process EXPERIENCE DECISION REFLECTION

Three Psychological Persons ADULT Go Slow! PARENT No! No! No! CHILD Go For It!

Five Emotions 1.Sad 2.Mad 3.Glad 4.Scared 5.Hurt

Four “C”s of getting it right Conscience = intuition, moral code, “gut” Choice = pros and cons of choosing Culture = beliefs and practices Compliance = What does the law say

Relationship Builders TRUSTTIME TALK TOUCH

Effective Leaders Need To: 1.Deal with direction. 2.Deal with vision. 3.Focus on the top line. 4.Derive power from values and correct principles. 5.Foster mutual respect and build a complimentary team. - Steven Covey - Steven Covey

8 Great Leadership Habits 1. Find every opportunity to practice the virtues of integrity, trustworthiness, honesty and compassion. 2. Ask yourself: How is my organization better today because I am in it? 3. Weigh your actions toward creating more good than harm. 4. Ask yourself: How am I a better person because I am part of this organization.

Leadership Habits-2 5. Remember to treat each person with the dignity and respect that every human being deserves. 6. Find and name strengths of the organization that can help you become more human. 7. Be aware of whom you benefit, whom you burden and how that decision is made. 8. Practice getting beyond your own interests to make the organization stronger.

Leadership Values 1.Trustworthiness 2.Unity 3.Respect 4.Justice 5.Service and Humility

Four questions to measure my trustworthiness 1.Is my behavior predictable or erratic? 2. Do I communicate clearly or carelessly 3. Do I treat promises seriously or lightly 4. Am I forthright or dishonest?

To be trustworthy requires: 1. Discerning right from wrong. 2. Acting on your discernment even at personal cost. 3. Saying openly that you are acting on your understanding of right and wrong.

Siemens CEO Peter Loescher “You have to have your personal values and then you build from there. Ethical people are guided by a moral compass. My father taught me that there is no conflict between success and ethics, indeed the only guarantee for a good life is to live as a good person.” USA Today – 2/15/2010

Decisions are Based on … Decisions are Based on … 1.Intuition 2.Experience 3.Feelings 4.External Authority

Cowboy Ethics 1. Live each day with courage. 2. Take pride in your work. 3. Always finish what you start. 4. Do what has to be done.

Cowboy Ethics Be tough, but fair. 6. When you make a promise, keep it. 7. Ride for the Brand. 8. Talk less and say more.

Cowboy Ethics Remember that some things are not for sale. 10. Know where to draw the line.

Mindfulness Consider all implications of every decision you make!

You Must Consider:  The Act  Circumstances  Criteria for Judgment  Communal Wisdom

Kolberg & Piaget 1.Punishment 2.Reward 3.“Good” 4.Rules and Regulations 5.Choice and Commitment 6.Internalization

Power Authoritarian  Empowers oneself at the cost of the other.  Self serving as one uses fear to get obedience. Must have power over others.  Commands, does not invite. To command is to settle for behavior change. NO value change or understanding. Authoritative  Empowers the other through service for the other.  They are chosen by their peers, They don’t force themselves, but gain our trust.  Invites, does not command. To invite is to recognize the value of the other.

Leaders Must Ask: How Will This Help Them… Feel that they belong? Feel that they belong? Develop an unique identity? Develop an unique identity? Feel significant? Feel significant?

Social Significance Question How Do I Fit In Here?

Ethical Considerations On what foundation do we base our ethical decisions? On what foundation do we base our ethical decisions? People make decisions based on the values they hold dear. People make decisions based on the values they hold dear. Ethical principles are not concerned with how things do operate, but with how they should operate! Ethical principles are not concerned with how things do operate, but with how they should operate!

Ethical Considerations (continued) The most difficult decisions to make, are those in which there is a conflict between two or more principles of which you deeply believe in. The most difficult decisions to make, are those in which there is a conflict between two or more principles of which you deeply believe in. It is important that we determine in advance what our priorities are, realizing that a lot will depend on the situation. It is important that we determine in advance what our priorities are, realizing that a lot will depend on the situation.

Factors in Making a Decision 1. Is this in line with our company’s objectives? 2. Will this decision result in the right thing being done for the client?

Challenges for Leaders 1. Become involved in the culture, i.e. managing the culture and assess if it is properly serving the long term goals. 2. Stop asking “CAN we do this” but rather “SHOULD we do this?”

Challenges, cont’d 2 3. Focus on how your organization does business, not just what it does. “The high standards and values embedded in how you do business are more powerful differentiators to distinguish you in the marketplace.” “Corporate Culture: The Ultimate Driver of Business Performance” by Dov L. Seidman

Challenges, cont’d 4 5. Make your decision in the light of the broader ecosystem. Do the right thing, any time and all the time.

Challenges, cont’d 3 4. Reward ethical leadership, even when it hurts and punish unethical behavior whenever you see it. “If you lose dollars for the firm, I will be understanding; if you lose reputation, I will be ruthless.” -Warren Buffet -Warren Buffet

GIFT Each Day Each Person