Here's Why Wall Street Has A Hard Time Being Ethical.

A new report finds 53% of financial services executives say that adhering to ethical standards inhibits career progression at their firm. A former Wall Street trader describes why. Check it out HERE. For the original article from the Economist, click HERE.

Image provided by Namphuong at Unsplash.

Ethical Leadership — You Need A Mastermind Group.

In Napoleon Hill's bestselling book, Think & Grow Rich, he introduces a practice called The Master Mind Group. As an executive who wants to succeed, you should regularly assemble a grouping of professionals who will help you learn, understand and grow.

They could be an attorney, an accountant, a financial planner, a marketing/pr consultant, etc. At the end of the day, you need a grouping of smart individuals who know their areas cold and can help you with any problem, situation, or opportunity that might arise. You meet with them on a quarterly basis, off-site, usually for a full day (you also pay them for their time).

Let's look at this idea through a lens to pursue a highly ethical leadership style: Can you use this Master Mind Group practice to help you maintain (or regain) your high ethical standards? Yes, you can.

Look at the makeup of the group. You need highly reputable professionals that abide by ethical standards in their respective vocations. Now we all know that there are some miscreants who buck the system ethically (we are not talking about them) — we want the best, the brightest, AND the most ethical.

Choose an attorney, accountant, or financial planner of the highest ethical standards . . . Why? Because they will steer you straight ALL THE TIME. Adopt a 'Definite Purpose' as an objective to be attained by the alliance, choosing individual members whose education, experience and influence are such as to make them of the greatest value in achieving that purpose.

There isn't any use in forming a Master Mind Alliance just to have someone to chat with. Your Master Mind will fail if you don't have a strong motive behind it, and it's up to you to plant that motive in the minds of the group members. Your allies for this group should be chosen for their ability to help you get to where you are going. Do not choose people simply because you know them and like them.

You want the hard truth — you want these members to steer you straight and give you valuable advice.

When you have established rapport, you will find that ideas will flow into the minds of each of the members and likewise into your own mind. When the Master Mind is in effect, it produces ideas that would not come to your mind alone. I have had that experience many times when sitting in on the many groups of which I am a member on a consulting basis.

But in the end, you want these professionals to keep you on the straight and narrow and to help you when you are pulled into shady territory by investors, the board, your peers, etc. You need a voice of reason to help you navigate these treacherous waters.

When It Comes To Business, You're Unethical.

Or are you? Most people tend to think they are as clean as downy-fresh sheets drying in the summer sunshine. As with many areas in business and our lives, we tend to modulate along a spectrum. We strive and hope to be squeaky-clean, but sometimes we wander to the dark side depending on the situation, circumstance or outside pressure. In addition, being un-focused and lazy also causes one to forget to center themselves when it comes to ethics.

What makes you move? What do you do to center yourself? Where do you go? What do you read? Who do you talk to?

Here are some of the things I do:

1. If I have a tough decision to make, I weigh the pros and cons, but I also ask myself, what is the 'RIGHT' thing to do here. I sometimes get a different answer.
2. I read and frequently consult many authors to help me stay grounded.
3. I attend gatherings of peers to discuss business ethics — one meeting I treasure is The Greenwich Leadership Forum. If you live nearby (I travel an hour to attend), you should check it out. They meet monthly and I find it a powerful experience every time.

Finally, I write about my thoughts on business ethics — it allows me to broadcast my ethical philosophy to the world and get input from my peers.

Here are some of my favorite (and most popular posts):

Ethics – The Only Way To Be A True Leader Can executives still achieve greatness if they do the right thing?

Ethical Leadership – Start With Gut Instinct “I rely far more on gut instinct than researching huge amounts of statistics.” – Richard Branson

Ethical Leadership — You Need A Mentor “Mentor: Someone whose hindsight can become your foresight.”

Ethical Leadership — You Need A Mastermind Group You should regularly assemble a group to help you learn, understand and grow.

Losing Your Compass? Try Simple Philosophy “The higher the buildings, the lower the morals.” – Noel Coward

Lots of Enemies? Make Friends With The Press Hear me out — there is a logic to my madness.

I'd love your input, thoughts and reviews of my posts. Feel free to comment below!

The One Mistake We All Make.

"In looking for people to hire, you look for three qualities: integrity, intelligence, and energy. And if they don't have the first, the other two will kill you."— Warren Buffett

If you don't know Warren, he's an American industrialist and philanthropist widely regarded as one of the most successful investors in the world. Often called the "Oracle of Omaha", he is the primary shareholder, chairman and CEO of Berkshire Hathaway. He is consistently ranked among the world's wealthiest people (third wealthiest person in the world as of 2011).

So he knows what he is talking about.

It's interesting Warren places integrity first. In today's work- and marketplace, the focus is centered on intelligence and energy. How much do you know? What experience do you have? What have you done? Are you willing to spend 10-12 hours a day (and more) knocking it out of the park for me?

But we always forget about integrity. A definition of integrity — "Adherence to moral and ethical principles; soundness of moral character; honesty."

Let's be honest — how many times do you experience a concerted effort by management to adhere to moral and ethical principles? Where everyone displays a powerful moral character? Where people don't lie and endeavor to tell the truth in their business dealings?

I'm not saying the marketplace or workplace is totally devoid of integrity. But it does take a back seat to profits, targets, stock price and power. Not even a back seat . . . it's in the trunk with the spare tire.

In the wake of all the turmoil with Wall Street, Washington, and many boardrooms, (and even on Twitter lately) we all need to begin to make harder choices based on integrity. Who we invest in, who we purchase from, who we do business with.

And sometimes we need to look within for our anchor to integrity — because sometimes we fall short. We need to also pay attention to our own actions and decisions and how they impact others.

Whatever we do, we will continue to face ethical challenges. It's how we react to them that counts.

What do you do to stay ethically anchored?

I Love Michael Hyatt.

Who is Michael Hyatt? Well, let me tell you about a man called Mike in Tennessee. I first 'met' Michael on Twitter. The topics he spoke about and the 'traveling' tweets that he posted immediately appealed to me. There was an innate energy about him and what he was accomplishing.

I then visited his site. Two words: "Blown Away". This man — who not only is the CEO of Thomas Nelson Publishers, is an accomplished speaker, leader, and social media guru. He's also a devoted family man — married for over 32 years and has five daughters and four grandchildren.

But what really attracted me to him is his focus on Leadership and Ethics. You see — Michael is rare in today's business world. He actually embraces a strict ethical and moral stance (in business and life) and strikes a decided separation from today's "laissez-faire" attitude of business leaders.

Since I also write about these topics — I was happy to stumble upon a fellow traveler.

So check him out — he just launched a new site — and I love his quote about it:

"My personal philosophy is that if you aren’t continually reinventing yourself, your company, and your brand, it’s only a matter of time before you become obsolete, irrelevant, or go out of business."

Someday, I would like to meet and speak to Michael. I think we have a lot in common.

Lots of Enemies? Make Friends With The Press.

Part Five of a series on Ethical Leadership — many more to come. Have I lost my mind? Honestly — the idea of making the press your friend is obscene!

Hear me out — there is a logic to my madness.

When my team coaches businesses on the inner workings of their business, we ask them to develop a Mastermind group. A group that includes a tax accountant and an attorney. Why? In addition to the visionary participants (marketing/sales), as a business owner you need trusted individuals who will tell you the truth — and don't have an agenda — because they stick to the FACTS.

Now I will lay all my cards on the table — certain parts of the press are unreliable, sneaky, and downright corrupt (like all areas of business). But there are certain areas of the press who are ethical, forthright, and just. Reporters who stick to the facts and tell it like it is — whether it is good or bad news. Finally, reporters who are in it to report the NEWS and not just get the juicy story.

Those are the people that you sidle-up to and make friends. Why?

Because they are ethical. And they will keep you on the straight and narrow. It is always refreshing to surround yourself with people that will not only massage your ego, but trusted advisers who will tell you the truth AND let you know when you venture into unethical territory.

Now let's be honest — you don't have to tell them everything. But if you get a trusted editor or publisher that you meet for lunch on a regular basis, you can be assured that they will tell you what's on their mind.

And that my friends, is worth its weight in GOLD.

Losing Your Compass? Try Simple Philosophy.

Part Four of a series on Ethical Leadership — many more to come. "The higher the buildings, the lower the morals." - Noel Coward

In the past three parts of this series, I've endeavored to lay out ways for leaders to strengthen their ethics and how to apply it to their leadership style. Some are hard and some are easy. This is an easy one:

Get Philosophy into your life.

It could take many forms - religion, classes, books, people, etc. But a strong dose of philosphical study in your life will allow you to become more grounded and keep you thinking about past, present, and future ethical positions. Some suggestions:

1. Religion - If you are at all religious, hit a church, synagogue, or organization to reacquaint yourself with the ethical and moral teachings of that religion. It's not taxing, doesn't cost a lot of money, and you surround yourself with a lot of people who believe the same way you do. And when you hit an ethical pothole in the road, you can lean on them to send you on the straight and narrow once again.
2. Books - Read! There are thousands of philosophers out there. If you like the classics, dive into them. If you like the moderns, there are many to choose from. I especially love the ethical textbooks from college - they present differing points of view of an ethical choice - and they really make you think (email me for a list of great texts - richgee@richgee.com).
3. Speakers - Go to one of their meetings. Listen and see how you can begin to incorporate some of their teachings into your life. The worse that can happen is that you don't agree with their position - you can then walk out.

By taking this first step, it allows you to always have an 'ethical rudder' on your life - it will guide you in your business and personal life.

Ethical Leadership — You Need A Mentor.

Part Two of a series on Ethical Leadership — many more to come.

"Mentor: Someone whose hindsight can become your foresight.”
- Unknown

Ethics is a balance. Simply put, a balance between good and evil and your relationship with each.

Leadership is a balance. Guiding and letting go is a balance in itself.

In every endeavor in life, balance comes to play and it helps to have something or someone to help you maintain (or regain) your balance when times are tough. This is where mentors come in.

Of course you can ask someone for temporary guidance — we all do that from time to time. Unfortunately, 'temporary mentors' usually don't know the full score, they are fishing in the shallow waters and cannot fully understand the depths of your dilemma, opportunity, or situation.

A long-term mentor can help you not only solve present issues, but keep your eye on your long-term goals. Talking with them on a regular basis can help you regain your balance, fly straight, and keep your head clear.

Pick a mentor - choose a past boss, one that is not steeped in company intrigue. One that seems to fly above the corporate radar and get things done without playing politics. They can either come from a past company or your current one — but be careful with current company mentors - choose wisely.

State frankly that you would like to have them be your mentor. That you'll take them out to lunch to bounce ideas off of them. Let them understand that your talks will be highly confidential in nature and that you appreciate their guidance.

Schedule regular meetings - usually monthly or quarterly, off-site. Come with a good idea of the topics that you would like to cover. In addition, always add the question: "What do you think my next step should be?" It will allow you both to move from tactical to strategic thinking.

Keep them informed of the results - this will help the mentor/mentee relationship stay healthy and focused.

A mentor can help you focus on what is REALLY important and see things you might have missed. They will keep you on the right track.

P.S. By the way, if you cannot find anyone who can be a good mentor for you, call me.

Ethical Leadership - Start With Gut Instinct.

This is Part One of a multi-part series on Ethical Leadership. "I rely far more on gut instinct than researching huge amounts of statistics." - Richard Branson

I thought I would start with the most apparent way to lead ethically - by your gut. Why? Because I feel that most people are good and try to live their lives from a position of doing good for others. I know — there are some horrible people out there — but overall, I believe that the majority of executives are guided by good rather than evil. Unfortunately, some are pulled to the dark side by a number of different reasons (found in my last post).

Leading with Gut Instinct means that you listen to an inner voice — what scientists call 'your intuition'. Intuition is a feeling within your body that something is right or just not right. Did you catch that I said "within your body" and not just "within your mind"? We've all had moments of intuition - a certain colleague or a business deal. Sometimes we listen and sometimes we don't —intuition is the signpost pointing us to the right way — unfortunately, we sometimes take the wrong way.

"Trust your hunches. They're usually based on facts filed away just below the conscious level." – Dr. Joyce Brothers This is why I believe my gut. Our brain is made up of billions of neurons firing many times during the day. Thoughts, emotions, facts, knowledge, etc. all are accessible at one time or another. If you have a highly structured and organized mind, you probably don't use your intuition as much as the next person. You just go to the library, choose your book from the shelves, and access the info that you need.

Everyone else's brain uses a more complex system — intuition — to unconsciously make their way through that ball of wire we call the brain and access that one (or more) tidbit of information needed to make the right decision.

The creative is the place where no one else has ever been. You have to leave the city of your comfort and go into the wilderness of your intuition. What you'll discover will be wonderful. What you'll discover will be yourself. – Alan Alda "Be yourself" — (how I love that term) — intuition allows you to make decisions from where you stand, not from anyone else's perspective. This is a sign of a true leader - one that makes the hard decisions, efficiently and effectively.

So next time you need to make the right decision — use your gut. It will keep you on the right track.

Ethics - The Only Way To Be A True Leader.

eth-ics (noun) - that branch of philosophy dealing with values relating to human conduct, with respect to the rightness and wrongness of certain actions and to the goodness and badness of the motives and ends of such actions. Right and Wrong. Good and Bad. And the most important part - the motive and ends of such actions.

There are many executives out in the marketplace today that know what they are doing is wrong . . . and bad. But they still do it because the motives and ends of such actions will deliver one or both of these results:

1. The company will do better.
2. They will make more money, be more successful, and ensure a continuous launching pad to bigger and better positions.

Now here's the REAL question - Can they still achieve these same goals listed above if they do the right thing . . . good things?

Now we can get into the semantical argument that what I see as good might be bad for another (or vice-versa). Or that based on our differing opinions of ethics, what you might see as 'bad' might be 'good' viewed by another. But let's cut out the BS - as an executive, you absolutely know when you are doing something that is slightly (or gravely) unethical (until you do it so frequently that it becomes 'good' in your eyes).

I took ethics in college (I state that I am not an expert) and know that there are two arguments (or more) for every ethical issue. But I've also lived in the corporate world for 20+ years and coached top level executives for 10 years. I believe that in business, there is rarely gray, there is only black and white. Why? In business, everything is measured, everyone is conservative, and risk is constantly minimized. Most of the time (not all mind you), you can faithfully predict how your actions will affect your bottom line, customers, employees, shareholders, etc. Not on a granular scale - but more on a ballpark one.

But when it comes to bad and wrong, I know it when I see it.

Bad and Wrong decisions go against the company's natural grain of behavior. You've probably felt this if you have worked in corporate - you are marching down the street with a strategy, everyone is singing the same tune. Suddenly, management makes a 180° turn and states that we will be doing the exact opposite of what they were pontificating 6-12 months before.

Now I understand that markets change. Customer wants and needs change. But 180 degrees? We were going North, but now we are going South? That clearly communicates to me that the people at the top don't know what they are doing, are open to the fickleness of certain corporate soothsayers, or dramatically underestimate the market to the point that they were COMPLETELY wrong. Candidly, these people should be FIRED. But these are not Bad and Wrong decisions in an Ethical context.

I honestly think that when executives make bad and wrong decisions do so for three reasons (the motive and ends):

1. They're lazy. Going the 'bad' or 'wrong' direction is easier, less risky, more profitable in the short term, etc.
2. It's a personality thing. They feel that making contrarian decisions keep them above the rabble, they are smarter than the rest, and they are fooling the masses.
3. They believe that there is a LOT more money and power to be made by going bad.

Bernard Madoff was a #2 & #3. Not only did he realize that there was a LOT more money to be made by deceiving his investors and the market, it probably was a personality thing. Bottom line - most unethical executives have abnormal self-esteem (very low or very high) so they compensate by doing unethical things.

Many executives who testify in front of Congress (honestly - they've probably done something wrong!) usually have all three personality traits. Go back and view the testimonies of the investment firms, insurance companies, tobacco companies to get a good feel for #1, #2 and #3.

OK - That's enough for one day. My next post will discuss the treatment.