Want Great Relationships With Customers, Suppliers, Regulators and Investors? Tell the Truth

Last week was a tough one for two CEOs. 

Patricia Dunn resigned as the Chairperson of Hewlett Packard.  The pretexting scandal – that arose from her spying on her board members and member so the media – got out of hand. 

Peter Dolan was fired as CEO of Bristol Myers Squibb.  Mr. Dolan was running a company that was already in hot water -- operating under a deferred prosecution agreement with the US Attorney – sanctioned actions in which BMS overloaded wholesalers with inventory to meet quarterly sales targets.

To paraphrase an old hamburger commercial, where’s the ethics?

Strong, lasting, mutually beneficial relationships with key outside constituencies is one of the points I make in my book 4 Secrets of High Performing Organizations.  Customers, suppliers, government regulators and shareholders are four key constituencies. 

Ethical behavior is a great way to build relationships with external constituencies.  Ethical behavior must start at the top.  The latest issue of The Motivational Manager has a great piece entitled Build a Culture of Honesty in Four Steps.  This article provides a quick roadmap for executives and small business owners who want to develop a ethical culture in their operations.

Here are the four steps to building an ethical culture.

1. Tell the truth.  It sounds simple, but it can be tempting for managers to massage or spin information.  Bad idea.  A culture of honesty begins at the top.
2. Seek feedback.  Give employees the opportunity to share what they think in safe forums such as anonymous surveys, suggestions programs and all hands meetings. 
3. Mythologize truth tellers.  Share anecdotes about truth tellers.  Portray them as the heroes they are.  Let everyone know that you prize people who tell the truth, no matter how unpleasant.
4. Police yourself.  Take a look at your behavior.  Grade yourself on your honesty and openness.  Encourage others to grade you too.

Ethical behavior and honest dealings with external constituents is the foundation on which strong relationships are built.  Leaders and business owners need to set and hold to high ethical standards.  It’s only common sense – if you won’t do it, how can you expect others to do so?

That’s it for today.  Thanks for reading.  Log on to my website www.BudBilanich.com for more common sense.  Check out my other blogs: www.CareerSuperStar.com for common sense advice on becoming the life and career star you are meant to be; and www.CommonSenseDay.com to learn more about Use Your Common Sense Day -- November 4, and to read stories of common sense in action.

I’ll see you around the web, and at Alex’s Lemonade Stand.

Bud

PS: Speaking of Alex’s Lemonade Stand – my fundraising page is still open.  Please go to www.FirstGiving.com/TheCommonSenseGuy to read Alex’s inspiring story and to donate if you can.