GenXmanager: Leadership for the Generation X Manager

“Ethical decision making” is a tired phrase. It has been bantered about in MBA programs for decades and yet we find ourselves plagued by corporate scandals. Former CEO of Medtronics, author, and now Harvard professor believes that the whole economic mess we are in today is a result of leaders not acting ethically nor responsibly. He says “Once again, ego-driven operators hungry for glory and power have taken the U.S. to the brink while a few true leaders built sound futures.” He goes on to say that we need leaders who act in the best interest of all stakeholder [Source: US News & World Report].

I think ethics has been missing the critical virtue of prudence. Leaders must think both ethically and prudently about decisions. Even if a decision is legal, ethical, and moral, it still may not be a good decision. The big three automaker CEOs flew their private jets to Washington, DC. Flying their jets was not illegal, unethical, or immoral, but was it prudent given the economic and political climate?

I’ve always been impressed with SAS, the business intelligence software giant. SAS seems to make very prudent decisions that are focused on long-term gain for all stakeholders. They recently reported record revenue despite horrible economic conditions. The CEO of SAS, Jim Goodnight, said, “This growth is a direct result of being a stable privately held company, which allows us to invest in long-term relationships with employees and customers.”  [Source: Triangle Business Journal]

There was debate recently at an MBA conference I attended. The debate asked “can ethics be taught?” Assume that it can’t for a moment. Prudence might be the antidote to the unethical, short-sighted, self-serving leader. Even if he or she is utterly unethical to the bone, the person can still act in the best interest of all shareholders using the ancient virtue of prudence.

You have a hard decision staring you in the face. Think ethically, of course, but also think prudently taking into consideration all stakeholders and how the decision will affect them.