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Tag: integrity

  • Ethics: New Cars Have Been Put on Hold by the Auto Maker. My Manager Says to Sell Them Anyway

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    A reader writes: I am the business manager in an automobile dealership when we received a notice from the manufacturer: several vehicles had been placed on the hold list. That meant one thing–those cars were not allowed to be delivered. Whether the issue was safety, software, or pending approval, the directive was clear: no delivery, no exceptions.

    The sales manager came to me and told me to push the deliveries through anyway. He wanted the units delivered so the dealership could hit its monthly numbers. He told me things like: “Just print the paperwork.” “The factory is slow, nobody will know.” “We need these cars out today.”

    I knew exactly what he was asking me to do: ignore the manufacturer’s restriction, bypass protocol, and put the dealership–and the customers–at risk. Delivering a hold-listed vehicle is not only unethical; it’s potentially illegal. I refused.

    That refusal has sparked a full-blown conflict. What should I do now?

    Minda Zetlin responds:

    Your sales manager is being foolish and self-destructive. Does he not see how he’s put himself completely in your power? You could report him to the manufacturer and to your state’s attorney general. You could tell could tell customers or the local media, or post it to social media. His actions, if exposed would cause no end of trouble for both the sales manager and the dealership.

    That’s especially true if he has already sold any of these cars without your agreement. If that’s happened, you have an ethical obligation to alert the purchasers. If you didn’t, and something bad happened, that would be very hard for you to live with. But it sounds like, in your role, you are able to prevent the sale of these cars.

    Your next move depends on your relationship with the sales manager, and with the dealership as a whole. If you have a good relationship and generally trust him, you can gently let him know that if he doesn’t back down, you will expose him. You can try to make him understand the huge risk he’s taking. But from what you say, it doesn’t sound like you have a good relationship.

    That being the case, if I were you I would document as much of this as possible. Has he put any of these instructions in writing? Make sure to keep copies. Has he given these same instructions to anyone else? I might try to find out.

    I’m guessing you will have to report this to someone in your organization sooner or later. It might be the only way to get out of this difficult relationship. Ideally, you’ll have solid documentation in hand when you do that. Based on their response, you can decide what to do next.

    Update:

    The reader decided to quit. “I walked away,” they write. “I chose to protect the customer, the dealership’s legal exposure, and my own integrity–even if it meant losing my job.”

    It turned out to be a good thing. For a long time, this reader had wanted to go back to school and pursue a law degree. But they’d hesitated, fearing they were too old to start a new career. Leaving the dealership was the push they needed to start on a path that would ultimately make them happier.

    “The dealership owner asked me to come back.”

    Before they left, they informed the dealership’s owner of what had happened. Because customers’ safety was potentially at risk, they also informed the auto maker. “After a few days, my representative from the auto maker, as well as the dealership’s owner called me, by conference call, to tell me they had fired the sales manager. The dealership owner asked me to come back, but I had already enrolled in university.”

    The reader’s last paycheck from the dealership included pay for an extra two weeks of vacation time, they say. “I know I could have asked for more but, I just wanted to end that saga.”

    Today’s ethics question came from a member of my text community, a growing audience of Inc.com readers who receive a daily text from me. Interested in joining us? Here’s some information about the texts and a special invitation to a two-month free trial.

    The opinions expressed here by Inc.com columnists are their own, not those of Inc.com.

    The final deadline for the 2026 Inc. Regionals Awards is Friday, December 12, at 11:59 p.m. PT. Apply now.

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    Minda Zetlin

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  • What It Takes to Build a Best-In-Class Company | Entrepreneur

    What It Takes to Build a Best-In-Class Company | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    More than 5 million businesses were created in the U.S. in 2022. What makes the true industry giants stand out in a world of fierce competition? What separates an average company from a top-tier organization that’s successful and pivotal in shaping the future?

    Drawing upon 20-plus years as an entrepreneur, during which I’ve witnessed numerous businesses rise and fall, I’ve gathered insights into critical factors that differentiate outstanding enterprises from the rest.

    Let’s dig into the essential elements that elevate a company to best-in-class status, exploring how ethical conduct, innovation and social responsibility are admirable goals and vital drivers of success.

    Related: How to Take Advantage of Your Underdog Status and Conquer Industry Giants

    Ethical practices: A foundation of excellence

    When we talk about ethical conduct in business, we’re not just checking boxes to comply with laws and regulations. We are establishing a compass that guides our companies’ actions, shapes culture and dictates how we interact with stakeholders. In a time when trust can shatter like glass and reputation is everything, integrity is the foundation upon which best-in-class businesses are built.

    In my enterprises, I’ve learned that cultivating a culture that values doing the right thing, even when it’s tough, is critical. This means creating an environment where your team feels empowered to make ethical decisions, with you leading by example. Weaving ethics into your company’s DNA increases credibility, fosters trust and boosts profitability.

    And here’s the magic: When customers and clients trust your company, they become loyal advocates, bolstering your reputation and driving sustainable growth through word-of-mouth referrals. Ethical practices also attract socially conscious investors, further boosting your company’s financial health.

    To establish and strengthen ethical practices:

    • Create ethics and values statements as a team and share them internally and externally.
    • Incorporate your ethics and values into your brand messaging, recruiting, and training materials.
    • Embody these in your conduct as a leader and organization.

    Related: More Than Just A Moral Compass: The Power Of Ethical Business Practices

    Pioneering business practices

    Innovation isn’t confined to new technology and cutting-edge software. Best-in-class companies view innovation as a continuous pursuit of creative solutions to problems, whether in your products, services, how you treat team members or the processes that drive your business.

    Innovation isn’t just a buzzword; it’s a significant driver of profitability. A recent McKinsey & Company study found that companies embracing innovation enjoy a substantial performance edge, outperforming their peers by a staggering 2.4 times in economic profit.

    Nurturing innovation doesn’t only mean hosting grand brainstorming sessions; it involves having a company culture where every team member feels empowered to contribute ideas regardless of their title.

    It centers on embracing diverse voices and perspectives, encouraging experimentation, and seeing failure as a stepping stone to success. Best-in-class companies are pioneers who establish themselves as thought leaders in their industry and push the boundaries of what’s possible.

    I learned these principles early in my business career through observing successful companies and leaders. After a few years of ideation and experimentation, I found what worked for my leadership style and industry. Today, I’m still trying new things and paying close attention to results and the feedback of my teams, clients and other stakeholders.

    Which approaches to innovation will work for you? You’ll only discover by jumping in fearlessly and getting creative.

    To leverage innovation in your business:

    • Look for opportunities to improve efficiency, productivity, and results.
    • Include your leadership and frontline teams in planning from the start.
    • Talk to clients, investors and other stakeholders to gather unique perspectives and discover new ideas.
    • Due your due diligence: Study a variety of strategies and solutions.
    • Take risks (measured) — don’t be afraid to disrupt the status quo.

    Related: How To Use Entrepreneurial Creativity For Innovation

    Leading the charge for positive change

    To be a best-in-class company, you can’t shy away from taking on significant challenges.

    This means fully embracing environmental, social, and governance (ESG) principles and addressing critical concerns such as sustainability, reducing your carbon footprint, promoting employee wellbeing and engaging with the community.

    It has become evident that stakeholders want, need and deserve a business approach that aligns with their values and addresses pressing global concerns.

    A recent study revealed global investors are increasingly focused on ESG issues in their investment strategies. Roughly 89% of investors considered ESG issues in some form as part of their investment approach in 2022, up from 84% in 2021.

    Equally vital is the commitment to diversity, equity and inclusion (DEI). Companies that prioritize diversity and inclusion not only contribute to a more equitable society but also reap the rewards of being able to tap into a variety of perspectives and ideas.

    When you demonstrate an unwavering commitment to positive change, you enhance employee engagement and elevate your brand’s reputation, resonating with socially conscious consumers and investors.

    To become a more conscientious organization:

    • Listen to your stakeholders and the public to learn what’s most important to them.
    • Research more into what comprises ESG and DEI initiatives.
    • Hire professionals or retain consultants with relevant expertise.
    • As with ethics, share these values across your organization and let them guide your actions.

    Related: Why ESG-Conscious Companies are Resilient Companies

    Standing the test of time

    Success goes beyond the bottom line; it hinges on a relentless pursuit of excellence. Best-in-class companies understand this truth.

    They thrive by integrating ethics into their DNA, prioritizing innovation, and leading positive change by adopting ESG and DEI initiatives.

    Through these pillars, they enhance profitability, but more importantly, create a lasting positive impact that solidifies their best-in-class status, setting a high standard for all who follow.

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    Robert Finlay

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  • How to Maintain Your Integrity While Keeping Up With a Rapidly Changing Environment | Entrepreneur

    How to Maintain Your Integrity While Keeping Up With a Rapidly Changing Environment | Entrepreneur

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    When Moe Rock isn’t running the Los Angeles Tribune, he’s busy trying to help entrepreneurs build their community, elevate their leadership and improve their personal development. He believes that everything comes down to integrity and is releasing his debut book The Moral Compass: 28 Principles for Integrity-Driven Leadership next month. “I think we don’t have enough conversations on integrity,” he says. “Without integrity, we cannot have a functioning organization, we cannot have healthy relationships, we cannot have a flourishing world, it all starts with integrity, it’s the foundational component of all success and it’s the foundational component of all aspects of life.”

    While companies are spending more on integrity training, maintaining a high level of integrity doesn’t come without challenges. According to the EY Global Integrity Report 2022, 97% of respondents said integrity is important. But more than half said that standards of integrity either stayed the same or worsened over the 18 months leading up to the report.

    It’s statistics like this that inspired Rock to write his book in the first place. In order to give leaders more ways to think about the role integrity plays in their lives and in their companies, Rock shares 28 principles in his book for leaders to marinate. One of those is empathy. “When you practice empathy, and when you create a culture of empathy, and when you have that as a value in the workplace, it actually increases productivity, it actually decreases the number of individuals that will leave your organization. There’s a practical reason why you want to incorporate empathy in your business and in your culture. Let’s not forget what it’s like to be human, right?”

    Rock says it can be easy to forget we’re human beings when working in a rapidly changing environment and trying to keep up. While he acknowledges computers are going to replace a lot of the tasks that humans do, he highlights what connects us to one another is “our heart-centered decisions, our integrity, our empathy, our ability to love.”

    Rock sat down with Jessica Abo to share more about his book, the role he sees AI playing in journalism, and what it’s been like taking over a legacy brand.

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    Jessica Abo

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  • The Impact of Fake News and False Narratives on Company Culture

    The Impact of Fake News and False Narratives on Company Culture

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    Opinions expressed by Entrepreneur contributors are their own.

    It’s not all that shocking that with the rise of social media and big data, CEOs can hide many activities that would otherwise cause consumers to stop purchasing their products or services. What is shocking is just how many CEOs have been lying or deceiving the public and shareholders about the health of their companies.

    An HBR study showed that over one-third of executives believe CEOs should be held legally responsible for being dishonest or misleading regarding topics like sustainability and ethical business practices, but this still doesn’t stop them from doing it.

    The collapses are based on throwing out age-old wisdom to fleece millions with new-age Ponzi schemes.

    Related: The Future of Work: 4 Ways Companies Can Evolve to Usher in the Future of the Workplace

    What is a false narrative?

    A false narrative is when CEOs and executives of a company create and propagate a story to their stakeholders and the public that misrepresents the actual situation of the business. This can be done in different ways, including making false claims about the company’s profitability and success, hyping up faulty prospects of future growth, and more.

    Unfortunately, this false narrative often results in people investing their hard-earned money into companies with inflated expectations, only to find out too late that the company executives have deliberately misled these expectations.

    In addition, a false narrative is often used to justify irresponsible spending and excessive bonuses for top executives. This practice has become too common recently, with many high-profile corporate scandals coming to light.

    It’s estimated that billions of dollars have been lost by investors who have fallen prey to the false narrative spun by CEOs, leading to a massive collapse in trust in companies.

    Ultimately, a false narrative from companies can be highly damaging and should be guarded against at all costs. Companies need to take responsibility for their actions and ensure they only share accurate information with their stakeholders and the public.

    When companies fail to do this, they risk damaging not just their reputation but also the trust of their customers, which can be challenging to regain.

    How does this false narrative cause a collapse in trust?

    The false narrative being spread by CEOs of companies and, at times, promoted by large media institutions is leading to a collapse in trust among their consumers, shareholders and the public. It’s no secret that the actions of a company’s top executive can have an enormous impact on how their organization is perceived.

    When a CEO makes bold statements not backed up by reality or presents a false story about the company’s performance or direction, it can lead to a crisis of trust between the company and its stakeholders.

    When a CEO pushes a false narrative, it can create serious doubts about the integrity of their promises or statements. This can be seen in recent examples from corporate America, such as Volkswagen’s CEO Martin Winterkorn, who resigned after admitting to having lied about the company’s emissions scandal.

    This is just one case of how the false narrative of a CEO can create mistrust in the company they represent.

    Related: Why Everyone and Everything on Social Media Is Fake

    What are some examples of a false narrative?

    In recent years, the world has seen several high-profile cases of false narratives being peddled by CEOs. One of the most well-known examples is Elizabeth Holmes and her now-defunct health technology startup, Theranos.

    She sold a story to the public about revolutionary new blood tests and technology that would revolutionize the healthcare industry. In reality, the company was based on inaccurate and false statements about its products and services.

    Related: What the Theranos Story Teaches Us About the Dark Side of Personal Branding

    Another example of a CEO peddling false narratives is Adam Neumann, CEO of WeWork, before his ouster in 2019. His narrative was that WeWork was an innovative tech startup and a revolutionary business model when it was built on a shaky foundation of inflated valuations and poor management decisions.

    Finally, there’s Samuel Bankman-Fried, the founder of FTX, a cryptocurrency derivatives trading platform. Despite the revolutionary nature of cryptocurrency and blockchain technology, Bankman-Fried painted a misleading picture of how FTX worked by claiming that its underlying technology was more secure and reliable than traditional financial services. In reality, this wasn’t the case.

    These cases highlight how important it is for investors and customers to vet any company and CEO before investing or signing up for services. By doing due diligence, you can avoid becoming victims of false narratives peddled by unscrupulous CEOs.

    What can be done to prevent the false narrative from continuing?

    First and foremost, it’s essential to ensure that CEOs remain accountable and transparent with their statements. They should also be encouraged to make decisions based on facts rather than speculation or hype.

    Additionally, CEOs should focus on building relationships with stakeholders through open and honest communication, as this will help create trust between the company and its stakeholders.

    Furthermore, companies should encourage a culture of questioning and critical thinking within the organization. Ensuring that employees are questioning the decisions being made and challenging the status quo will ensure that decisions are made based on sound judgment and that any potential false narratives will be uncovered quickly.

    Finally, companies should ensure that their employees are regularly trained in ethics, so they understand the importance of ethical behavior when making decisions. This can extend toward ensuring that any false narratives are quickly identified and addressed.

    By implementing these steps, companies can help build a more trustworthy relationship with their stakeholders and eliminate false narratives before they impact the organization.

    Related: The Importance Of Honesty And Integrity In Business

    Conclusion

    The false narrative by CEOs has been causing a collapse in trust in companies, resulting in a lack of confidence from both the public and shareholders.

    With the reputation of businesses taking a hit, CEOs need to realize that honesty and transparency are crucial to sustaining trust. Only by communicating openly and accurately can leaders hope to rebuild the trust necessary for any successful company.

    Taking responsibility for their words and actions will go a long way in reinstating trust in companies and the people who run them.

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    Jon Michail

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  • The Voice of General Counsels a Game-Changing Influence at Ethisphere’s 10th Annual Global Ethics Summit

    The Voice of General Counsels a Game-Changing Influence at Ethisphere’s 10th Annual Global Ethics Summit

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    Top company legal minds assemble in New York City to discuss integrity as a performance accelerator.

    Press Release
    –


    updated: Mar 1, 2018


    NEW YORK, March 1, 2018 (Newswire.com)
    –
    The Ethisphere Institute, a global leader in defining and advancing the standards of ethical business practices, announced today a roster of company legal practitioners anchoring a diverse faculty at Ethisphere’s 10th Annual Global Ethics Summit, March 14-15 at the Grand Hyatt in New York City.

    A special selection of current and former General Counsels (GC) and Deputy GCs will offer candid insights through interactive sessions with peers and other company officers highlighting some of the unique angles on corporate behavior today. Each leader will speak on a distinct range of topics impacting corporate integrity and performance in a global business environment rife with both opportunities and pitfalls.

    Among those topics are the emerging impact of artificial intelligence, global compliance team management, influence at the executive level, board-level relationship building, career-shaping, key insights into anti-bribery and corruption, careful execution through times of crisis, progressing the “speak up” culture and more.

    First-time members of the faculty leadership include:

    • Trish Walsh, Chief Legal Officer, Voya Financial, Inc.
    • Rich Rothberg, Senior Vice President and General Counsel, Dell
    • Ann D. Davidson, Senior Vice President, General Counsel and Corporate Secretary, L3 Technologies
    • Guillermo Bichara, Vice President, General Counsel and Corporate Secretary, Praxair, Inc.
    • Gregory L. Riggs, Former Senior Vice President – General Counsel and Chief Corporate Affairs Officer, Delta Air Lines, Inc.
    • David Pitofsky, General Counsel and Chief Compliance Officer, News Corp.
    • David Deitchman, Deputy General Counsel, Global Functions, Ethics & Compliance, HP Inc.
    • Michele M. Brown, SVP, Chief Ethics & Compliance Officer and Deputy General Counsel, Leidos
    • Callie Pappas, Vice President, Chief Compliance Officer & Deputy General Counsel, Schnitzer Steel Industries, Inc.
    • Tushar Chawla, General Counsel, India, JLL
    • Glenn Leon, SVP & Deputy General Counsel, Chief Ethics & Compliance Officer, Hewlett Packard Enterprise

    Among those returning to the Global Ethics Summit to offer new insights and advancements are:

    • David Howard, Corporate VP and Deputy GC, Litigation, Competition Law and Compliance, Microsoft Corporation
    • Lucy Fato, Executive Vice President & General Counsel, AIG
    • Edward A. Ryan, Former Executive Vice President and Global General Counsel, Marriott International, Inc.
    • Richard Buchband, Senior Vice President, General Counsel and Secretary, ManpowerGroup
    • Lynn Haaland, SVP, Deputy General Counsel, Global Chief Compliance & Ethics Officer and Chief Counsel, Cybersecurity, PepsiCo, Inc.
    • Kathryn Ditmars, Global Litigation Director and General Counsel, Americas, JLL

    Drawing from Ethisphere’s Business Ethics Leadership Alliance (BELA) community and further enriched from a broad selection of additional multinational companies, the Global Ethics Summit is the premier annual event connecting some of the most respected and diverse company leaders. Senior representatives come together to share forward-thinking practices and amplify the need for greater application of values ethical culture, and responsible practices. CEOs, board members, GCs/CLOs, corporate secretaries, chief compliance officers, law firm partners, and other influencers participate in the Summit to examine together the ways in which companies can make a difference in doing good.

    “Throughout the Summit, there will be more than 70 speakers each contributing unique perspectives and meaningful advice, but the voices of General Counsels continue to be transcendent as these are roles that are make-or-break for the executive team and the company itself,” said Kevin McCormack, Vice President of Global Thought Leadership & Programs at Ethisphere. “You simply cannot have the proper calibration of many of the issues addressed at the Summit without GCs in the mix. They are a universal connector when it comes to balancing risk, integrity, culture, and strategy within the organization. From the GCs involved each year, we see that while they may represent very different organizations and industries, there is a shared purpose and commitment to continuous improvement enabling companies to perform better while keeping their values intact.”

    Join these leaders and other influencers among over 400 delegates as the Global Ethics Summit celebrates its 10th Anniversary March 14-15, 2018 at the Grand Hyatt New York City. Registration remains open but is closing soon: https://www.globalethicssummit2018.com.

    About Ethisphere 

    The Ethisphere® Institute is the global leader in defining and advancing the standards of ethical business practices that fuel corporate character, marketplace trust, and business success. Ethisphere has deep expertise in measuring and defining core ethics standards using data-driven insights that help companies enhance corporate character. Ethisphere honors superior achievement through its World’s Most Ethical Companies® recognition program provides a community of industry experts with the Business Ethics Leadership Alliance (BELA), and showcases trends and best practices in ethics with Ethisphere Magazine. Ethisphere is also the leading provider of independent verification of corporate ethics and compliance programs, including Ethics Inside® Certification and Compliance Leader Verification™. More information about Ethisphere can be found at http://www.ethisphere.com. 

    Media Contact

    Aarti Maharaj

    Director of Communications

    646-480-9715

    aarti.maharaj@ethisphere.com 

    Twitter: @Ethisphere

    Source: The Ethisphere Institute

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