What Everybody Ought to Know about Character and Leadership
The fall of Enron sent shockwaves to the business world in the early 2000s. Accountants actively looked for and exploited the loopholes of accounting and transparency laws. They showed the world that Enron was robust and growing when in fact it was rotting under the pressure of hidden debts and a dysfunctional corporate culture.
Yet, the accountants are not just the main culprits, the leaders of the company knew what was happening and they couldn’t care less. The whole system, then, was not working and even middle level managers and their underlings were out to get the maximum earnings in the shortest time possible.
How many more companies are like Enron? Outwardly robust but rotting inside. How many more leaders are like the executives and managers of Enron? Enjoying insanely high executive compensation yet failing to turn the company around.
Baron Thomas Babington Macauley said that “the measure of a man’s character is what he would do if he knew he never would be found out.”
Thousands of leaders around the world make daily decisions involving money. And a lot of them heed the temptation to cut corners, thinking that they will not be found out.
Each time you cut corners, you will have to back it up with more lies, manipulation and a tenacious hold on your power. You don’t want anybody to replace you soon because they will find out about any unethical decisions you have done.
If you go the way of short cuts to success, you will eventually find out that such short cuts eventually lead to destruction. They are not a shorter way to success.
Wherever you may work right now, you can easily cut corners and steal a bit here and there. Manipulate reports now and then. But if you want a surefire, foolproof way to succeed, be real. Be true. Have the conviction to say no to unethical business behaviors.
Even if you don’t call the shots yet because you are young and you are way below the big bosses, hammer yourself. Clarify your principles and convictions. Stand by them even if the world around you thinks that cutting corners is a way fo life.
“Character is that which reveals moral purpose, exposing the class of things a man chooses and avoids,” said Aristotle. Learn how to choose and stand by your choices. That’s the best way to develop character.
The character of a leader will determine the destiny of the organization he leads. Without character, a leader will simply go the way of Enron down into oblivion.
image credit: About.com
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Written by Mighty Rasing
January 6th, 2010 at 8:30 am
Posted in Leadership
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I personally think that the time you take to become successful is directly related to the time you’ll fail. So if you succeed thanks to some tricks, then you could fail very fast.
Oscar – freestyle mind´s last blog ..Motivation 101: How to Stay Motivated
Oscar - freestyle mind
6 Jan 10 at 7:36 pm
Hey man. Nice post here. You reminded us of what good ethics can bring to business. I agree that in life, there’s no shortcuts. Don’t try to “game the system” so to speak or you will end up in doom, just like those people who tried to cheat their way through the Ponzi scheme. Thanks for showing us again the importance of building a moral and strong character in ourselves.
Hulbert
7 Jan 10 at 4:32 am
Creating superficial success by cutting corners seems a bit like building a house of straw, whereas building success through hard work and persistence is like building a house of stone and brick, which is much harder to collapse.
The Enron bit was based on horrible accountability and executives who were no longer in touch with reality. If you haven’t already, you should watch the documentary “The Smartest Guys in the Room.” Goes into great detail about the fall of Enron.
Ryan @ Planting Dollars´s last blog ..How to Win Through Quitting
Ryan @ Planting Dollars
7 Jan 10 at 9:06 am
Thanks for presenting well those true stories. What can I only say is that we should grow like a tree rather than a grass. In business we should be patient to become like a tree, which is well established and is permanent. We should not become grasses, easily planted, but quickly die.
Vic´s last blog ..10 business lessons I learned in 2009
Vic
8 Jan 10 at 12:30 am
Thanks for the comment Oscar. Good tricks can help but the bad ones, almost always lead to downfall.
Mighty Rasing
9 Jan 10 at 6:46 am
A lot of people think that unethical business is the way to go but people need to realize the dangers of “shortcuts.” thanks for the comment Hulbert.
Mighty Rasing
9 Jan 10 at 6:47 am
Hi Ryan, thanks for dropping by. I’ll search for that documentary. superficial success is really an illusion that will not last long.
Mighty Rasing
9 Jan 10 at 6:48 am
Yes, growing a business takes patience. thanks for dropping by Vic.
Mighty Rasing
9 Jan 10 at 6:49 am
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