Are Poor Business Ethics From Your Management Team Costing You Business Relationships?

Much is written about the lack of integrity, poor work ethics and business ethics of the rank and file employees. Yet, is your management team or executives costing you business because of poor ethics and no integrity?

One example of poor work ethics and business ethics if the recent survey released by PopCap Games in the 3rd quarter of 2007. The results from this survey suggested that white collar executives wasted more time each day playing video games that those that they managed. Now this is a bad thing, but it is not the most serious behavior that affects the overall performance within any organization.

Many times I have had to coach small business owners to corporate executives who have had to deal with the unethical behavior of those they are negotiating with specific to work contracts. These coaching sessions usually center around a subordinate within an organization being given authority to negotiate a contract. Yes, my clients know they should have had a signed contract or least a letter of intent, but they are from the old school of high business ethics.

A gentlemans agreement happens over breakfast or lunch because of the personal integrity between the parties. The vendor is told to proceed. Yet, when the contract needs to be signed, the subordinates supervisor starts changing the scope of the work. As an instructional designer we call this scope creep and can be very costly to any vendor.

Then the vendor is asked to make more concessions. Usually more is demanded for less money and in a shorter delivery time frame. What happens is that the potential vendor feels very used and abused. Also, the vendor believes that the subordinate has been set up by management to keep upper managements image clean and above board.

When incidents like this happen, the end result is that business suffers. And the reason is that upper management is unethical, plain and simple. Of course, management may claim that they are doing what is best for the company, but that is not true.

Best for the company should always be measured against the organizations values. If the best violates the values, then those actions are not the best ones. Of course, if there is not a values statement this also suggests there is not strategic plan and so everyones behaviors are up for grab.

When we look at the numerous failed companies such as Enron to Anderson including the recent mortgage industry challenges, the main cause for these failures are bad business ethics. Private industry is not alone as not for profit and government elected and appointed officials are equal and willing partners to bad business and personal ethics.

Bottom line all of these bad ethics are bad for business and costing the U.S. economy billions of dollars. Simply speaking, people want business as well as personal relationships with individuals who have high ethics. So if your bottom is suffering, check your ethics and those of your executive management team.

Would you like to increase the productivity of your employees? Then you may find the FREE Leadership Audit of interest at http://www.processspecialist.com/od.htm

P.S. Are you where you want to be for your business or even yourself? Then, please feel free to contact me, Leanne Hoagland-Smith, Your Chief People Officer and Business Coach for individuals and organizations that are tired of not being where they want to be. 219.759.5601

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