Ethics

One of the big problems I see in the recent headline-grabbing scandals, and in business in general, is the lack of commitment to ethical values by those in leadership positions. Each of us makes ethical decisions every day.

As a longtime and proud Rotarian, I am reminded of Rotary’s often-quoted and perhaps a bit corny Four Way Test, a set of guidelines for daily living which, if implemented, could circumvent a huge number of problems.

The first tenet: Is it the truth? This sounds logical and acceptable to most of us, but applying it in daily decisions is not so easy. Is what I say the truth or is it a rationalization of the truth?

How about applying this test to our words and actions against our competitors? It is almost an accepted policy to bad mouth or criticize others, but is it the truth? Are they that bad, or are we trying to embellish our position?

Second: Is if fair to all concerned? Greed is rampant and may be human nature, but has its own reward — and its ultimate consequences.

Fairness is a considered an outdated principle. When decisions are based on fairness everyone wins. No one denies a business a profit. No one denies reasonable compensation for reasonable results. I also think that no one denies fabulous compensation for fabulous results. However, no one is worth tens of millions in compensation per year, no matter how great they performed. How did the boards of directors approve these compensation packages anyway?

The third part of the test is: Will it build goodwill and better friendships? Come on, you may be thinking. Building goodwill and friendships is for patsies. Business isn’t Mayberry RFD. It’s a cutthroat world out there. Cutthroat may be a good description of our current state of affairs, but that doesn’t make it right.

Fourth and finally: Will it be beneficial to all concerned? I am all for competition, but I learned long ago that winning at all costs is not worth the price. I learned, perhaps like you, that “win-win” is always better than “win-lose” or “lose-win.” If lose is in the equation, it is not a good deal and certainly not beneficial to all concerned.

This is no easy test. It is hard to pass. However, if we are going to breathe confidence back into the American investor, business must make it the truth. They must make their dealings fair. They must seek and earn goodwill. They must convince the average person that investing will be beneficial for all concerned. “They” may also include each of us in our own daily decisions and business actions.

Notable Quote: “I am afraid we must make the world honest before we can honestly say to our children that honesty is the best policy.” — G. B. Shaw

Contact Tom at 1030 Seminary St., Ste. D, Napa CA 94559, 254-0155, fax 254-0158 or e-mail suntrm@aol.com.

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