How did we ever get from George Washington’s "I cannot tell a lie" to "I refuse to testify"?the Fifth Amendment invocation that so many executives have hidden behind recently? From the criminal behavior of the Enrons and WorldComs to the political campaign ads filled with lies, half-truths and distortions to puffed-up rŽsumŽs and cheating on income taxes, the pervasiveness of this integrity deficit is astounding. In a USA Today survey, 82 percent of CEOs admitted lying about their golf scores. Some might say that is insignificant in the overall scheme of things, but it is a small window into the character of those CEOs. The probability that golf cheaters are also business cheaters is high. Little by little we lower our standards so that what was unthinkable yesterday becomes acceptable today and rewarded tomorrow.

A sense of fairness should make us cautious, lest we paint everyone with one brush. Many companies, executives, politicians and others are exemplars of integrity. Nevertheless, everyone can benefit by brushing up on ethics. Begin by looking in the mirror. Where would you place yourself on the integrity scale? Honestly?

Ethical Leadership

Good leaders have ethics, character and integrity. Ethical leaders are self-confident, not self-centered. People will deliver an extraordinary performance for a leader they trust. You’ve seen it in a winning athletic team, a successful project or a profitable business venture, where teamwork built on trust and mutual respect accomplishes the common goals.

Consider, then, the consequences for business of the current negative perceptions. In a CBS poll taken in fall 2002, less than one-third of the respondents said they believe most CEOs are honest, 79 percent said questionable business practices are widespread, and more than two-thirds said they think CEOs are commonly compensated illegally. Employee distrust becomes the business issue. Unremedied, it will threaten our future competitiveness.

Skeptics may say that in the "real world" we are led by the manipulators. Undeniably, some leaders will fit that description. In the short run they may be successful, but inevitably most will suffer the consequences of their actions. Ask yourself whether this is what you aspire to. Is this how you want to lead?and be led?

To operate an ethical organization, you have to create an environment for your people that allows them to operate in an ethical manner.

Set the tone. The character of the leader casts a long shadow over his organization and can determine the character of the organization itself. What you do, how you do it and what you say will set the tone for your employees and create the boundaries of acceptable behavior. The values you profess must be aligned with the behaviors you demonstrate.