Tell the Truth

The last few weeks have been tough for CEOs.

Patricia Dunn resigned as the Chairperson of Hewlett Packard. The pretexting scandal - that arose from her spying on her board members- got out of hand.

Peter Dolan was fired as CEO of Bristol Myers Squibb. Mr. Dolan was running a company that was already in hot water - operating under a deferred prosecution agreement with the US Attorney - and sanctioned actions in which BMS overloaded wholesalers with inventory to meet quarterly sales targets.

To paraphrase an old hamburger commercial, where's the ethics?

In my book 4 Secrets of High Performing Organizations, I stress the importance of building strong, lasting, mutually beneficial relationships with key outside constituencies, including customers, suppliers, government regulators and shareholders.

Ethical behavior is a great way to build those relationships, and ethical behavior must start at the top. The latest issue of The Motivational Managerhas a great piece entitled "Build a Culture of Honesty in Four Steps." Here are the four recommended steps for executives and small business owners who want to develop an ethical culture in their operations:

1. Tell the truth. It sounds simple, but it can be tempting to massage or spin information. Bad idea. A culture of honesty begins at the top.
2. Seek feedback. Give all your associates the opportunity to share what they think in safe forums such as anonymous surveys, suggestions programs and all-hands meetings.
3. Mythologize truth tellers. Share anecdotes about people who had the courage to tell the truth. Portray them as the heroes they are. Let everyone know that you prize people who tell the truth, no matter how unpleasant.
4. Police yourself. Take a look at your behavior. Grade yourself on your honesty and openness. Encourage others to grade you too.

Ethical behavior is the foundation on which strong relationships are built. Leaders and business owners need to set, and hold to, high ethical standards. It's only common sense - if you won't do it, how can you expect others to do so?

Bud Bilanich is president of the Organization Effectiveness Group in Denver, CO, a management and leadership consulting group whose clients include Johnson & Johnson, Pfizer, AT&T andthe Boys and Girls Clubs of America. His books include 4 Secrets of High Performing Organizations: Beyond the Flavor of the Month to Lasting Results. For a lively exchange on leadership, management and running a business, visit his blog, Common Sense Guy. This is Bud's first contribution to The Trump Blog, and we welcome him.

For more insights on starting and running a business with integrity, enroll in Trump University's premier new course, The Entrepreneurship Mastery Program. Classes are forming now.