Leading by Example

As we have all grown up, we have had people that we look up to. The examples our parents, older siblings, relatives, and even teachers showed are what have helped shape our own attitudes and behaviors about life. If we are older siblings or have younger relatives, we have heard about being a good "role model." There are people who look at our actions as examples of how to act, just as we have looked to our elders.

This happens in the workplace as well. If we see a manager talking on their cell phone in the back room, we assume that we can do it as well. If they are acting unethically by lying to a customer, misrepresenting financial figures, or practicing favoritism, we assume that these are acceptable behaviors to use as well.

Hewlett Packard's CEO Mark Hurd was a successful leader in the company, and was even considered a "TopGunCEO" by Brendan Wood International, an advisory agency, in 2009. He had a lot of success and was a good example of how to lead effectively, and ethically, as far as the public was concerned.

However, in April of 2010, he was sued for sexual harassment by a former contractor. He was not convicted, but was found to have acted unethically in the workplace. According to this article on huffingtonpost.com, "Hurd's 'systematic pattern' of submitting falsified financial reports to hide the relationship convinced the board that 'it would be impossible for him to be an effective leader moving forward and that he had to step down,' HP general counsel Michael Holston said."

This brings us to the question of leadership ethics. In our book we read about how ethics is defined. Page 378 relates ethics in this way:
            "Ethics is concerned with the kinds of values and morals an individual or society finds desirable or appropriate."                          and,
            "The choices leaders make and how they respond in a given circumstance are informed and directed by their ethics.'

This article also gives good examples on considering if we act ethically or not in the workplace, and even mentions Mark Hurd's situation. 

Hurd did not have very strong values or morals concerning honesty and following company policies. The appropriateness of paying a woman for work she did not do and the choice he made in this circumstance heavily relay the message of just how unethical Hurd really was/is.
 

"Hurd acknowledged there were 'instances in which I did not live up to the standards and principles of trust, respect and integrity that I have espoused at HP.'"

He was found to have falsified expense reports and other financial documents to conceal the relationship with the woman who had sued him. We can all agree that falsifying reports is not right and is an unethical practice. But what is he showing those who look up to him? The article states that he has two children, now what is he showing those kids? How can they look up to a father who helped a company prosper, yet had to find another job because he lied in financial documents in the end?

Considering an article I posted before in this blog concerning the severance packages of unethical leaders, Hurd was given a $12.2 million severance payment and nearly 350,000 shares of HP stock worth about $16 million. Now what kind of example does this give? Even though he lied he still left millions of dollars richer?

Overall, leaders have a choice to make while in their positions. They can act ethically within the domains of conduct and character (Page 378 in our book explains theories on conduct and character; look to Table 15:1), or they can chose another route.

If they are successful enough before the cheating, lying, etc., they may receive millions of dollars upon their severance from the company, thus creating a great example for those who look up to these leaders. 

-Melissa Beechy