Lead Ethically

            During the first season, several of the episodes focused on an ethical issue.  In this short chapter, we will briefly look at these incidents, and then we will look at a few ethical considerations related to business in general.

Two incidents happened while the teams were managing Planet Hollywood during episode four of the first season that raised ethical questions.  The first was when the women were drinking with the customers.  This prompted the restaurant manager, Andy Yates, to tell them, “We have this thing called responsible alcohol management.  Zero drinking when we’re on shift.  And we’ve got to be careful, we’re liable for whatever happens to these people when they leave this building.  If they leave ripe, and they pass out on the street, it’s going to be our asses.”

The second incident was when Troy and Kwame created a buzz by selling Kwame Jackson autographs.  Nick became very upset with the two and believed it was unethical, stating that people were led to believe Kwame was someone he was not.  Troy and Kwame replied that they did not tell anyone anything that was not true.

The seventh task of season one consisted of negotiating for an apartment, renovate it, and then rent out the renovated apartment for the greatest percent increase over the starting market value.  Katrina and Troy were Project Managers of Versacorp and Protégé, respectively.  Katrina was chosen to lead her team because of her extensive real estate experience.  Troy realized he did not have the experience Katrina had, and overheard her tell her team that the second apartment the two looked at had more potential.  As the two began negotiating for which apartment they wanted for their team, Troy would not divulge which apartment he wanted first.  Katrina then suggested that they each write which place they wanted on a piece of paper to exchange and reveal simultaneously.  Troy wanted to get under Katrina’s skin, so he wrote down, “I want exactly what you want.”  This infuriated Katrina.  The negotiations came down to a coin toss and Troy won, and in his words, Katrina was, “mad as a wet hen.”

In the boardroom, after losing, Katrina said that Troy did not play by the rules of the game, calling him extremely unethical.  Trump did not say Troy was unethical, rather he told Katrina business was tough and Troy duped her.  Unfortunately for Tammy, she agreed with Trump and went against her team by saying, “I think we got duped.”  Later Tammy said Troy was smart, not dishonest.  Her teammates believed she was disloyal, and so did Trump, and in the end Tammy was fired.

The tenth episode featured the pedicab task, where both teams were trying to raise the most money by managing a shift of pedicabs.  Versecorp gave Protégé a severe thumping when they came up with the idea to sell advertising on the sides and backs of the pedicabs.  Unfortunately, some of the signs were not staying on correctly, and one fell completely off.  Bill was project manager, and he considered giving the restaurant that bought the fallen sign a partial refund.  He sent Nick over to talk with the restaurant owner.  Nick felt that the team did not come through as promised and gave the owner back his full $250.00, which angered Bill.  Nicked summed up his position in an interview, “I’m very big on business ethics.  You have to be able to look them in the eye and be happy with the transaction.  Because without your reputation, you’re pretty much finished.”

Dealing with a topic such as ethics can become extremely complicated.  Rather than address whether the teams or individuals were ethical or not, let us look at some ethical considerations related to business and how they might be applied by managers and leaders in various instances.  Keep the situations above and other episodes of the Apprentice in mind as you think of these considerations.

In the long run, ethical business practices will have a positive effect on profitability.  There are situations, especially in the short term, where unethical performance can produce greater profits than in the short run.  However, for the long term health and profitability of a business, abiding by the highest ethical standards can prevent unnecessary litigation and legal ramifications, prevent a tarnished reputation as a crooked company and increase the bottom line.  Even without the legal aspects and being crooked, a business needs a good reputation to prosper.

Corporate ethics are determined by the management and leadership of the company.  The corporate culture, planning process, and the way the company implements its plans and controls all behavior and actions of those involved with company dealings help determine if the company is ethical or unethical.  The perception of being ethical or unethical can have significant impact on the profitability of any company.  It is imperative that those in leadership and management positions hold themselves to the highest of standards and insist those they supervise also adhere to the ethical guidelines set for the company.  Wrong is wrong, and there is no right way to do a wrong thing.  In the great little book, The Power of Ethical Management by Kenneth Blanchard and Norman Vincent Peale, the authors set forth the “ethics check” questions:

1.      Is it legal?  Will I be violating either civil law or company policy?

2.      Is it balanced?  Is it fair to all concerned in the short term as well as the long term?  Does it promote win-win relationships?

3.      How will it make me feel about myself?  Will it make me proud?  Would I feel good if my decision was published in the newspaper? Would I feel good if my family knew about it?

Using Blanchard and Peale’s “ethic check” questions can guide managers and workers alike toward “right” behavior.  As we have learned, managers have the responsibility of bringing out the best in those that work for them.  The “best” encompasses ethical performance.  In many situations, the best way to lead is by example, and when it comes to ethical behavior, there is no other way.  If a manager acts unethically, or avoids confronting an ethical issue, it is as if he is condoning it and saying it is okay.  That is a bad example.  It is easy to lose focus and then make an excuse or justify behavior, but in the end you harm yourself and the business you work for.  You must lead ethically.  Checking your behavior and actions with the “ethics check” can help keep things in perspective and balance, not to mention on the straight and narrow.

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