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Who's Packing the CEO's Parachute?
Why Ethics supports and shouldn't hinder competitiveness

February/March 2005 A recent opinion column in the Wall Street Journal criticized CEOs who have been "distracted" by the demands of management experts and government officials to do "'what's right' rather than what good business sense suggests is best." The columnist fears that all of the talk of corporate responsibility is distracting companies from their core mission of serving customers and beating competitors.



Where is it written that being ethical means that a company can't be aggressive in pursuing its business goals? Does corporate responsibility require leaders to lose their focus and take their eye off winning?

The question assumes that ethics and competitiveness is an either/or proposition. Instead, ethics and integrity are part of the foundation that permits leadership to be aggressive.

A vivid example of this relationship is the job our armed forces ask of fighter pilots. Fighter pilots need to be aggressive and fearless in combat. They need to be singularly focused on meeting their objective and defeating their enemy. Yet no matter how aggressive and competitive our "top-gun" is, behind him or her is a team that is ensuring that the plane is operating at its peak performance and that the parachute has been carefully and correctly packed. The skills and performance of the team back at the base requires the highest levels of integrity and compliance.

The impact of this relationship was recently shared by the CEO of a Fortune 500 company who in fact had served in the US Air Force as a fighter pilot. He wants his business development team to be very aggressive. They need to be as singularly focused on winning market share as the fighter pilot is in meeting the mission plan. Yet this CEO understands that having an integrity-based culture assures that his "top-guns" won't be putting the company at risk every time they make a deal. This leader makes sure that his business people work alongside the compliance team, whether from legal or finance. He wants to be certain that he is tied at the hip with someone who will be sure that critical lines aren't crossed.

The intent behind Sarbanes-Oxley and the resulting regulations is not to restrict competitive business tactics. The message is that every company must understand the unique sets of risks it must take to succeed and know how to manage them to ensure that the company doesn't damage its ability to play in its desire to win.

DAVID GEBLER is the President of Working Values, Ltd., a Boston-based business ethics consulting and training development firm. More articles by David Gebler

WORKING VALUES LTD. is a business ethics and training company. Through a variety of products and services, including Web-based compliance and ethics programs, on-site training, video and award-winning ethics games for employees, Working Values aims to align employee behavior with company values. For more information as to how Working Values can narrow your company's Behavior-Standards Gap, visit www.workingvalues.com or contact cgebler@workingvalues.com. For news on ethics in the workplace, visit SmartPros Ethics & Compliance.

2005 SmartPros Ltd. All rights reserved.

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