Bill George has written several books including a couple of my favorites, Authentic Leadership (2003) and Discover Your True North (2015). I believe he was, and still is, ahead of the times when it comes to defining true ethical leadership and organization priorities.
Most of today’s organizational ethics struggles come down to a struggle of priorities and stakeholders. There are those who worship at the altar of “serving the shareholder” and there are those who believe that ethical leadership rests completely on serving the balanced best interests of all stakeholders (i.e., employees, customers, suppliers, communities, the environment, the public).
Recently, I was struck by the comments of one Big Pharma chief executive during a U.S. Congressional hearing. When asked what he felt his job is, the unequivocal answer was “serve the shareholder’s interests.”
Bill George, on the other hand, described his priorities as an “authentic leader” as one of balancing the interests of all stakeholders for the long term. He stated that success, first and foremost, depends on serving customers. He also expressed his view that authentic leaders understand that excessive emphasis of shareholder value can be misplaced. (Side note: He expressed these views in his book published in 2003, and yet the struggle about organizational priorities lives on. And is why I dedicated an entire chapter in Becoming the Everyday Ethicist to this topic!)
The Covid-19 pandemic has produced, and continues to produce, situations where organizations have to make tough decisions. Throughout the triple pandemic (yes, triple – health, economics, and social) there are those who clearly have placed “shareholder interests” first – to the detriment of others. Then, there are some who have taken a more balanced approach to serving stakeholders, many described in a recent ”Change the World” article in Fortune magazine.
Medtronic made the list of organizations (#13) that have taken actions to serve the greater needs of all stakeholders. In other words, they have exhibited ethical, authentic leadership in George’s terms. (Another side note: Yes, Medtronic has faced ethical challenges in the past – but I will point out they were NOT under the direction of Bill George as CEO – and they appear to have changed behaviors and learned their lesson. Something a lot of organizations need to take note of…).
Here is a short version of the Medtronic Covid-19 story…
As we all know by now, there was a shortage of ventilators early in the pandemic. Medtronic is one of the major suppliers of ventilators in the world. Although Medronic increased its production to its capacity, the needs of the world still could not be met.
So, what did Medtronic do?
They responded by “sharing the design specification” of one of its ventilator products so any and all could build the product. The action may not be unprecedented – but it is certainly rare. Especially with organizations that put SHAREHOLDERS above STAKEHOLDERS.
Therefore, Medtronic made my “Do The Right Thing… Even If” list. They made the right decision – even if it meant giving away its playbook to competitors. I think Bill George would be proud.
I teach ethics to students, professionals, associations, and organizationals every week. In my trainings, I like to talk about what I call The Everyday Ethicist™… Hence the new book! There are many definitions and characteristics but I like to sum up by saying that The Everyday Ethicist makes decisions putting the welfare of others first “even if” there is a personal or organization cost.
Because remember….
Ethics is all about doing the right thing… even if.
Need Ethics CPE? Book your virtual 1-hour, 2-hour, or 4-hour Ethics training with Jo today! Email Jo@AuditConsultingEducation.com.
Amanda “Jo” Erven, CPA, CIA, CFE, is the President and Founder of Audit. Consulting. Education. LLC. After a successful career in external/internal audit and accounting, Jo is now an active Internal Audit Strategist, Management Consultant, Higher Education Professor, Author, and Trainer/Speaker, providing Continuing Professional Education (CPE) hours, live and virtually, to organizations across the globe. Jo’s motto says the most about her personal and professional outlook: “Good things come to those who wait… but don’t. You deserve better than good.” Every one of her books and presentations focuses on that proactive stance, and how we can immediately connect our actions to our values.
