58% of workers surveyed indicated that employee fraud would decrease if managers (company leaders) were better role models (Oct 2002, Ernst & Young, “The CPA Letter”)
	80% of people surveyed indicated that they decide to buy a firm’s goods or services partly on their perception of its ethics (2003, Wirthlin Worldwide)
	Unethical behavior leads to more sabotaging behavior in the workplace, such as: Underdelivering on commitments Overpromising to win a customer or gain support for a project Wasting time and energy guarding turf Lowering goals to avoid failure rather than striving for excellence Padding the budget to look better Fudging results to stay competitive Hiding facts Skipping over details Withholding praise from others Hogging credit Shifting or buffering blame Looking for scapegoats (Case Western Reserve University, Online Ethics Center for Engineering and Science)

As you can see from the results of these studies, the character of the leader impacts not only the behavior of the organization, but its results as well. I don’t know all the details of the Enron or MCI Worldcom scandals, but I do know that the companies and their employees were hurt by the fallout. These examples are extreme cases of character failures, but many smaller ones happen in business and organizational life every day.

As usual, I have a story to relate to illustrate my point. One time I hired a man to work in a department I managed. During the hiring process, I realized that a woman in the department, working in the same capacity, was significantly underpaid compared to both industry standards and the starting salary of the man we were hiring. I immediately went to my supervisor and attempted to negotiate a resolution plan. In response to my request to adjust her salary he asked: “Does she know that he will be making more than her?” I was floored. It seems that her knowledge of the situation, rather than a determination of whether it was right or wrong, was the deciding factor on whether it should be addressed or not. At that moment, I was reminded of a statement I had heard long before: “Character is what you do when no one is watching.”

Unfortunately, I was unable to persuade my supervisor to take action in this case. My trust and respect for both the person and the organization was severely
damaged. I eventually left the organization for other reasons, but in retrospect I probably should have left sooner. When it comes to character, leaders simply cannot compromise.

You can staff your organization to compensate for skill and knowledge deficiencies. You must stand alone on character. Don’t let short-term thinking entice you into small, subtle concessions on matters of character. Be a leader of high morals and impeccable integrity in everything you do.

So for now, I encourage you to remember this month's tip . . .
 
It is far better to have character than to be one.

Have a great day,

Guy Harris
The Recovering Engineer