The Need for Business LEADERSHIP to Steer Corporate Cultures toward Morality

By Larry Ventimiglio

 

In the wake of recent corporate brand implosions at Volkswagen, General Motors, Takada, and several other multi-national giants, I sit back in amazement wondering “What were these guys thinking?” These organizations invest in high-priced “talent” and tools dedicated to business risk assessment and avoidance, but you have to wonder whether they blindly omit consideration of risks from within. As a result, corporate executive suites are working overtime in spinning responses to unflattering news headlines, investigations, political hearings, recalls, lawsuits, damages, and plummeting stock values. Corporate egos and negligence have, too often, destroyed consumer TRUST in their brands. More importantly, they have in certain cases placed consumers, employees, as well as the general public at risk.

As we listen to politicians babble over the evils of expanding government “interference” and regulations, the reality of ongoing examples of bad business behavior strongly counter this flawed political rhetoric. Unfortunately, business is proving that governmental regulation and oversight have become very necessary to protect society. After acts of corporate misconduct have been identified, how is it “reasonable” that a CEO who brought disgrace to his company, as in the case of VW, is entitled to a $ 66.9 million severance package? REALLY!! Could it have been a settlement for his silence? This simply adds insult to injury. Where does the madness end?

The Shield of Corporate Anonymity

Part of the emerging problems may be based on evolving corporate cultures. The CORPORATION is a non-person. Its identity has transgressed into a wispy ghost-like cloud, rather than a tangible organization comprised of people who are responsible for corporate actions and behavior. While most corporations operate with a sound sense of corporate responsibility, through continuous mission review, recent news headlines exhibit a darker and far less flattering side of business. Has size and global footprint extended the distance between the board room and the rest of the world? Perhaps combinations of factors come into play, based on the non-personal element of corporate existence, corporate size, and global reach. Over time, perhaps these elements have been gradually moving corporate culture away from ethics and moral-based core values toward more selfish-based values. Profits and shareholder value have achieved greater and disproportionate corporate priority. Corporations have hoarded billions of dollars in cash reserves, rather than investing in expansion opportunities, education, resource sustainability, or even dividends to shareholders. We’ve lost the sense of corporate balance and attention in areas of corporate safety, resource development in leadership, and promotion of core values, community responsibility, and corporate integrity. Corporate “teams” have replaced chain of command and “leadership”. Current corporate culture has neutered the importance of leadership. As a result, there are fewer inspirational and visible leaders in business today than in previous decades.

The Need for Inspiring “Leaders” in Business  

Inspirational and visible leaders are necessary to a successful business. Leadership commands and empowers integrity, responsibility, authority, and accountability within the organization. The team concept (as used by some large corporations) circumvents leadership development and undermines all of these basic principles in business management. Everyone is responsible, and therefore, no one is responsible. Every business needs to have a clear set of goals and policies with accountability, particularly in the areas of morals and ethics. Employees need to know and understand that business holds itself-and them-to a higher standard. Integrity is a very important element of morals and ethics. Real business leaders set the moral standards by “talking the talk, and walking the walk.” We need more of them to step up and out of the corporate shadows!

Here’s the Bottom Line

Businesses are being measured not only for their operating performance, but also for their impact on society. Business models need to include visible community involvement and inspirational brand development to insure strategic success. Many believe the moral framework of America is fractured-or perhaps confused. Although this life responsibility needs to be borne and nurtured within a more faith-based family unit, businesses are positioned to exhibit and promote positive cultural standards that can help restore moral and ethical values for the next generation of positive business enterprises. As corporate citizens, businesses should set a more positive moral tone for society.

A large regional community bank in our area uses the motto “There’s more to banking than money.” I say “Bravo” for exhibiting a more sensitive perspective to the regional community. Money is important for strategic business success, but it must also have a moral center. Additionally, we need to build a better economy with a greater conscience by investing in education, technology, professional leadership development, community-based needs, broader availability of healthcare, and resource sustainability. We don’t necessarily need more government to drive these goals, but rather more local community leadership and community “caring and pride” to initiate tangible momentum.

Greater profits AND leadership will follow!

 

What about YOUR business? Do you need help maneuvering through these types of risks and uncertainties? Perhaps I can help!

What does “success” mean to YOU?

 

For more information on how I may be able to support YOUR business, please contact me at 843-245-9753, and visit my website: www.LJVBusinessSolutions.com