Can an executive who cheats on his wife be a good business leader?

During the Clinton-Lewinsky news cycle, I was having a private dinner with an international CEO in his on-grounds guest house. I commented that Steve Covey had told us in business school that if a man would cheat on his wife, he’d cheat in business. The CEO replied, “Well, that’s not true. I know every CEO in (city name) and they all have mistresses and I’d trust them in a business deal any day.” For me that was a major VABE abrasion/explosion. Blew my mind. And was an experience that deepened my understanding of how VABEs control people’s decisions and behavior.  In the end, it's ALL about VABEs. That's why I taught and assert the importance of leading at the VABE level, Level Three.  See my website at www.nadobimakoba.com  

For me personally, I still believe that one either tells the truth or not and that those who have grown comfortable with stretching or changing the truth in different parts of their lives will be more likely to stretch or change the truth in other, including business, settings.

I once had a client for whom I was conducting a seminar for senior management. At one moment, the question was, “should you tell the truth in business?” Soon, one VP was standing on his chair shouting at his colleagues across the room! On one side, the premise was “if you tell the truth in business, others will take advantage of you, and you’ll go bankrupt.” On the other side the premise was “if you don’t tell the truth in business, people won’t trust you and you’ll go bankrupt.”

Rich Teerlink, the former CEO of Harley Davidson once said that it was important to have a “moral foundation for leading” namely a) truth- telling, b) promise - keeping, c) fairness, and d) respect for the individual. I like his formula.

I remain highly skeptical of most advertising, fine print, rapid disclaimers at the end of radio ads, and all such like—they are simply efforts to deceive or manipulate the public to buy something.

So, for me, yes, being an ethical person is essential to being an effective executive. Many if not most business people are trying to maximize their own wealth from their businesses—often at the expense of the Commons (what we all share, air, water, soil, flora, fauna, and the underprivileged). I strongly prefer an honest executive who is a net contributor to society not a net taker. “Maximize sustainable profits that don’t abuse the Commons.” “In Truth We Trust.”

Other professions like medicine and law have codes of ethics. There is no widely accepted code of ethics for business. Those who follow Teerlink’s Code will likely have high levels of trust among employees, suppliers, and customers.

By the way, I don’t care if an executive has a mistress—if they are honest with their partner about it. Truth-telling. With the most important person in your life. Seems to me foundational.