The Root Cause of Ethical Failings (and Our Political Dysfunction)

Scandals. Fraud. Abuse of power. Greed. Corruption. Tax evasion. Coverups.

Once rare occurrences, coming back to haunt us every decade or so, these are now front and center in our daily lives and our daily news cycle. We see them in government, in business, and even in nonprofits and some religious organizations.

It seems as if we are in a race to the bottom.

While these challenges and failings have always been with us, we are not particularly well equipped to deal with them, in part because we fail to understand their root causes—and to hack away at them.

Enter Professor Kenneth Goodpaster and what he calls the “three symptoms of ethical hazard”:*

1. Fixation: obsession with an overarching goal. For example, Enron executives were a group of hyper-ambitious overachievers with something to prove about being number one. Many were ruthless and uninhibited about doing whatever it took to get there. For NASA, it was fixation with set-in-stone space shuttle launch dates, contributing to tragic explosions and loss of life. Some mountain climbers get “summit fever,” where they are so focused on reaching the top that they recklessly risk their own lives and those of their teams.

2. Rationalization: attempting to explain or justify behavior with logical reasons, even when not appropriate. Sometimes values conflict (e.g., truth vs. loyalty). Rationalization entails choosing based on one “privileged feature” (e.g., total loyalty regardless of the truth). This creates “blind spots” in ethical thinking. Examples of rationalization are legion:

  • My boss told me to do it.
  • Everybody else is doing it.
  • It’s just this one time.
  • No one will find out.
  • It’s not my responsibility.
  • It’s not lying. (It’s just not telling the truth.)
  • We really need/deserve this.
  • I didn’t do anything. (I just looked the other way.)
  • You don’t understand the pressure we’re under.
  • “Business is business”: we’re just “maximizing shareholder value.”
  • “Politics is dirty”: we have to do this so we can do X, Y, Z….

“I… rationalized that what I was doing was OK, that it wasn’t going to hurt anybody.” / “I will live with this pain, with this torment, for the rest of my life.”Bernie Madoff, former financier and operator of a Ponzi scheme considered the largest financial fraud in U.S. history

3. Detachment: the sense of not being personally involved in something or of having no interest or stake. On ethical matters, Goodpaster raises the alarm when our actions are detached from our personal values. When detached, people bypass their heart and soul as they privilege only their head, and they anesthetize their humanity in the face of temptations to win or be perceived as successful. Here he draws on psychoanalyst and author Michael Maccoby, who warned that “careerism” was a self-destructive affliction suffered by many successful executives (and politicians, presumably), fueled by an obsession with winning and a “gamesman” view of all actions in terms of whether they will help you succeed in your career or campaign. The person detaches from his or her sense of identity (e.g., as a mother or father, citizen, etc.) and integrity, and one’s sense of self-worth becomes measured by performance in the market, game, or arena. Such detachment corrodes character and degrades mental health, with people leading divided lives between work and home.

Two related dangers here are “ethical fading” and “moral disengagement”:

  • Ethical fading: “when the ethical aspects of a decision disappear from view,” such as when people focus so much on things like profitability or winning that they do not register unethical and illegal behavior (and the related aspects of harm, pain, conflict).
  • Moral disengagement: restructuring reality to make our actions seem less harmful than they are, convincing ourselves that ethical standards do not apply to us in a certain context, such as a political campaign. We mentally reframe destructive behavior as acceptable, and our brains are masterful at this misdirection.

Each one of these three symptoms is dangerous, but the real problem is that they converge into a single, terrible pattern. Goodpaster calls this “teleopathy”: the unbalanced pursuit of purpose. The word “teleopathy” combines two Greek roots: “teleo”: goal, target, or purpose; and “pathos”: disease or sickness.

We can think of it as a goal sickness—as being so focused on a goal that we pursue it destructively:

We must win.
We must be the best.
We must rule.

Thankfully, Goodpaster notes that there are “antidotes” for the three symptoms of ethical hazard:

1. From fixation to perspective. We must see that our goals are part of a larger mission, the common good. We need to transcend our perpetual busyness and reactivity and build in reflection time, renewal rituals, and sanctuary. Without a larger and longer term perspective of community, duty, stewardship, and sustainability, we will spiral down in self-destructive patterns.

2. From rationalization to frankness. Since our rationalizations tend to be subconscious, coming from the older and faster parts of our brain that do not engage our most advanced reasoning capacities in our prefrontal cortex, we need radical honesty and candor through searching and piercing dialogue and healthy conflict with colleagues who recognize the tremendous value of vetting and pressure-testing our ideas and decisions and inviting conversations about whether we are upholding our shared values. We need people who are willing to “speak truth to power,” even when they are a voice of one. Ideally, our organizational culture fosters such questioning and conflict, all in service of making wise decisions and proper actions.

3. From detachment to engagement. This requires engaging our heart as well as our head. A powerful way to do that is to be clear about the higher purpose of the work you are doing (beyond winning a campaign or maximizing profits:

  • What will you do once elected?
  • What value can you create for all stakeholders through the profits you generate?
  • What positive impact can you have via serving others, and are you doing your part for the common good?

Now more than ever we need to identify and hack away at the root causes of our ethical failings and political dysfunction. We need to stop our senseless race to the bottom—in business with our myopic pursuit of profit and growth regardless of the consequences on people and planet, and in politics with our zero-sum game mentality of “I must win and you must lose” with all its attendant cynicism and disdain for fellow citizens who happen to disagree with us on some issues. We need to look for shared values and mutual interests instead of stoking mistrust, anger, and resentment. This race to the bottom is so dangerous because it threatens to destroy the very foundations of our communities and society. With perspective, frankness, engagement, and a healthy pursuit of shared purpose, we can redirect the race upward.


* Source: Kenneth Goodpaster, “Ethics or Excellence? Conscience as a Check on the Unbalanced Pursuit of Organizational Goals,”Ivey Business Journal, March/April 2004.

+++++++++++++++++++++++++++
Gregg Vanourek is an award-winning author who trains, teaches, and speaks on leadership and personal development. He runs Gregg Vanourek LLC, a training venture focused on helping you lead yourself, lead others, and lead change. Gregg is co-author of three books, including Triple Crown Leadership: Building Excellent, Ethical, and Enduring Organizations (a winner of the International Book Awards) and LIFE Entrepreneurs (a manifesto for integrating our life and work with purpose and passion). To get Gregg’s manifesto on how to avoid the Common Traps of Living and free book chapters from Gregg’s books, check out his Free Guide.

The Problem of Bad Leaders – and Why People Keep Following Them

With a pandemic and all of its attendant human suffering, with economic devastation and so much loss of livelihood and dignity, with painful but overdue and much-needed conversations about structural and systematic racial injustice and inequity, and with so much division, disdain, and distrust, we need good leadership more than ever. Not because it is a cure-all, but because it is a prerequisite for stemming the crises, healing the wounds, and getting us moving in the right direction. Not just leadership at one level, but leadership at all levels of society and organizations. Not top-down, but leadership all around.

Yet too often we encounter not just mediocre but bad or even toxic leadership, the kind that not only fails to match the moment but that takes us in the wrong direction.

David Gergen, senior advisor to four U.S. presidents (from both parties), and author of Eyewitness to Power, wrote, “Most books about leadership tell us what a person ought to do to become effective and powerful. Few tell us what to avoid. But the latter may be even more valuable because many people on the road to success are tripped up by their mistakes and weaknesses.”

No leader is perfect. We all have faults, flaws, blind spots, and shadow sides. But we have to understand and grapple with the problem of bad leadership if we are to figure out what kind of leadership is needed today and to develop the leaders needed for tomorrow.

Bad leadership comes in various degrees, starting with lacking desirable behaviors, moving to missing essential elements, and falling off a cliff when it comes to toxic leadership. We address each in turn below.

There are many things that can “derail” our leadership. We can avoid difficult tasks. We can be a bottleneck on decisions. We can struggle with effective communication, listening, or delegation. We can get caught up in firefighting—reacting to events without moving toward a worthy vision. We can be too hard or too soft (what we call “steel and velvet” in Triple Crown Leadership). We can be overly rational and not sufficiently emotional, or vice versa. We can be impulsive, insecure, or intimidating. We can be overly optimistic or pessimistic. We can be perfectionist, people pleasers, or procrastinators. There are many derailers, and most leaders have multiple derailers. Those willing to learn and develop and can turn to coaches, mentors, advisors, feedback, training, books, and more.

Some modern leadership frameworks can inform this discussion. Authentic leadership from Bill George incorporates purpose, values, commitment to relationships, self-discipline, and heart, and these in turn generate passion, connectedness, consistency, and compassion. It is easy to see how some leaders may struggle in some of these areas.

Servant leadership from Robert Greenleaf emphasizes that the leader’s essential role is to serve others—the team, the organization, the community, the nation, the world. At its best, servant leadership involves listening, empathy, persuasion, stewardship, commitment to people’s growth, and building community. Greenleaf wrote that its best test is this: “Do those served grow as persons; do they, while being served, become healthier, wiser, freer, more autonomous, more likely themselves to become servants?” Again, it is easy to see how many leaders might fall short in some or many of these areas.

Transformational leadership (from James MacGregor Burns, Bernard M. Bass, Bruce Avolio, and others) causes significant change in individuals and social systems. In contrast with transactional leadership, which focuses on exchanges of expediency between leaders and followers via contingent rewards, transformational leadership involves emotional influence, vision and inspirational motivation, stimulation of creativity and reflections on values and beliefs, and consideration of the needs of followers. Clearly, this is a high standard, and many leaders fall short of it.

Leadership scholars James Kouzes and Barry Posner, authors of the best-selling classic, The Leadership Challenge, have been surveying people around the world for decades on the “Characteristics of Admired Leaders.” More than 100,000 people worldwide have responded, and the findings are powerful and surprisingly consistent across nations: “for over three decades, there are only four qualities that have always received more than 60 percent of the votes… for the majority of people to follow someone willingly, they want a leader who they believe is

  • Honest
  • Competent
  • Inspiring
  • Forward-looking”

Clearly, leaders who lack honesty, competence, inspiration, and the ability to rise out of the present moment and look forward are not ones who will motivate and bring out the best in their followers. Honesty and credibility were far and away at the top of the list of things people want from their leaders:

“In every survey we’ve conducted, honesty is selected more often than any other leadership characteristic. Overall, it emerges as the single most important factor in the leader-constituent relationship…. First and foremost, people want a leader who is honest…. people want to follow leaders who, more than anything, are credible. Credibility is the foundation of leadership. People must be able, above all else, to believe in their leaders. To willingly follow them, people must believe that the leader’s word can be trusted, that they are personally passionate and enthusiastic about the work, and that they have the knowledge and skill to lead.” -James Kouzes and Barry Posner, The Leadership Challenge

What we want from leaders can be greatly influenced by the context. For example, during a crisis we want leaders who show humanity and grace under pressure; seek credible information from a diverse array of experts; form a brilliant crisis response team; communicate reality, urgency, and hope; make themselves present, visible, and available; maintain radical focus; make big decisions fast; empower leaders at all levels; restore psychological stability as well as financial stability; use purpose and values as a guide; create a sense that people are all in it together; build operating rhythm with small wins; maintain a long-term perspective; and anticipate and shape the “new normal.”

Bad leadership gets much worse in a hurry when leaders are deeply flawed with what I call mega-derailers. In my experience, ego and fear are the mega-derailers that are most pernicious, and that underly many of the other derailers. Cynicism, derision, and hate are also candidates for this list.

In her book, Multipliers, researcher and executive advisor Liz Wiseman notes that some leaders are “diminishers” who stifle others for their own benefit and aggrandizement, as opposed to “multipliers” who use their intelligence to amplify the smarts and capabilities of those around them. Diminishers include:

  1. Empire builders who hoard resources and underutilize talent
  2. Tyrants who create anxiety and suppress thinking
  3. Know-it-alls who showcase their own knowledge and tell people what to do
  4. Decision makers who make abrupt decisions that confuse people through the attendant chaos
  5. Micromanagers who take over and control things without trusting others to do their work

Importantly, Wiseman notes that there are also “accidental diminishers” who unintentionally shut down the intelligence and potential of others, for example by making others dependent on them by always rescuing them, overwhelming others with a flurry of ideas, consuming all the energy in the room, driving so hard or fast that others become passive spectators, or being so optimistic that others wonder if they appreciate struggles and risks.

Another version of bad leadership takes the benefits of transformational leadership noted above and twists it into pseudo-transformational leadership, which is characterized by self-serving yet inspirational leadership behaviors, discouraging independent thought in followers, and little caring for them. According to leadership scholars Bernard Bass and Ron Riggio, pseudo-transformational leaders are self-consumed, exploitative, and power-oriented, with warped moral values.

Recently, there has been increasing attention given to the “dark side of leadership,” often focused on narcissism (excessive need for admiration, disregard for others’ feelings, inability to handle criticism, and sense of entitlement), hubris (foolish pride or dangerous overconfidence), and exploitation (taking unfair advantage). To those we can add the scourges of bullying and harassment. And of course there is a long history of authoritarian and autocratic leadership, and unethical and criminal leadership.

Toxic leadership, according to Jean Lipman-Blumen of Claremont Graduate University and author of The Allure of Toxic Leaders, is “a process in which leaders, by dint of their destructive behavior and/or dysfunctional personal characteristics, inflict serious and enduring harm on their followers, their organizations, and non-followers, alike.”

++++++++++++++++++++++++++++++++++++++

Clearly, there is a range of bad leadership behaviors, ranging from mild to severe, but the important question remains as to why people continue to follow bad or toxic leaders.

Some scholars have written about a “toxic triangle,” a confluence of leader, follower, and environmental factors that facilitate destructive patterns:

  • Toxic leaders: charisma, narcissism, power, negative life themes and ideology
  • Susceptible followers: unmet needs, low self-evaluation, ambition, similar world view
  • Conducive environments: instability, perceived threats, lack of effective institutions and checks and balances

For years, many have pointed to the allure of charisma (compelling attractiveness or charm that can inspire devotion in others) and charismatic leadership, with people being seduced by leader characteristics such as wealth, power, or confidence. We can also look at the “psychodynamics of leadership,” including the psychological underpinnings of leaders’ behavior. Harvard’s Joseph S. Nye, Jr. wrote in his book, The Powers to Lead, “People persist in looking for heroic leaders.” Abraham Zaleznik, a leading scholar in this field, asks, “Is the leadership mystique merely a holdover from our childhood—from a sense of dependency and a longing for good and heroic parents?” Many people just long for somebody to come along and fix things, abdicating their own agency and responsibility, and they believe it when some leaders make unrealistic promises.

Ethics scholar Kenneth Goodpaster has done important work that I believe may shed light here. He notes that many leaders and followers get caught up in “teleopathy,” an unbalanced pursuit of purpose (e.g., winning in politics or sports, being a market leader in business, launching a space shuttle by X date), which is driven by fixation on set goals, rationalization of questionable behavior and decisions (e.g., everybody is doing it), and detachment from our personal values as we pursue those aims. I wonder if people are willing to stick with bad or unethical leaders because they are so caught up in winning and will do whatever it takes to prevail.

Our brains (and evolutionary biology) may also be part of the story. Social psychologist Jonathan Haidt writes in his book, The Righteous Mind: Why Good People Are Divided by Politics and Religion:

“People bind themselves into political teams that share moral narratives. Once they accept a particular narrative, they become blind to alternative moral worlds…. If you think about moral reasoning as a skill we humans evolved to further our social agendas—to justify our own actions and to defend the teams we belong to—then things will make a lot more sense.”

Our brains have evolved to seek and defend tribes, and to be exceptionally good at rationalizing the behaviors and decisions of our tribe (and its leader), a phenomenon that is often unconscious (so exceptionally difficult to defend against).

As we can see, there are many reasons why good people continue to follow bad leaders, and these neurological, psychological, and social phenomena are complex and powerful (and subject to exploitation by savvy operators and marketers).

In the end, we want leaders who add and multiply, not subtract and divide. We want leaders who get great results, with integrity, and sustainably. We want leaders who create more followers and serve the larger good rather than themselves. We want leaders we admire, who make us better, and who call on our better angels. We need better leaders, and we need them now. But most of all, we need to be our own best advocates and changemakers.

+++++++++++++++++++++++++++
Gregg Vanourek is an award-winning author who trains, teaches, and speaks on leadership and personal development. He runs Gregg Vanourek LLC, a training venture focused on helping you lead yourself, lead others, and lead change. Gregg is co-author of three books, including Triple Crown Leadership: Building Excellent, Ethical, and Enduring Organizations (a winner of the International Book Awards) and LIFE Entrepreneurs (a manifesto for integrating our life and work with purpose and passion). To get Gregg’s manifesto on how to avoid the Common Traps of Living and free book chapters from Gregg’s books, check out his Free Guide.

Avoiding Breakdowns

“The world breaks everyone and afterward many are strong at the broken places.”
-Ernest Hemingway in A Farewell to Arms

In leadership circles, too often the focus is on success principles for effective leading. That is all well and good, but often it can be more helpful to tackle things from the other perspective: what causes leadership to break down (and what can we do to avoid breakdowns)?

First, there is a connection between personal breakdowns among leaders and the breakdowns of their organizations. Here we reflect on both.

Personal Breakdowns
“Take rest; a field that has rested gives a bountiful crop.”
-Ovid, Roman poet

Even the best leaders are at risk of breakdowns or setbacks in their life and work. Many leaders have frenetic schedules of meetings and travel, or face constant stress and pressure. As the effects accumulate over time, exhaustion sets in. Though many just “suck it up” and ignore the risks, those who want to thrive and endure recognize the potential for danger, including losing their ethical moorings, making rash decisions, and damaging important relationships.

Leaders need regular exercise and movement, nutritious food, good sleep, and ways to find sanctuary (e.g., mindfulness practices, nature walks). “Triple crown leadership” (our model for excellent, ethical, and enduring/sustainable leadership) begins with leading ourselves. Failure to do so leads to problems with all three areas: excellent (in terms of performance problems), ethical (with lapses in judgment and impulsive compromises), and enduring (with an unsustainable pace that wreaks havoc on our health, judgment, and relationships, and that can damage our organizational culture). Leaders seeking to avoid organizational breakdowns should start by leading themselves.

“The cornerstone of effective leadership is self-mastery.”
Patricia Aburdene, best-selling author and social forecaster

Organizational Breakdowns
In today’s volatile environment, organizational breakdowns are common. Sometimes it is a quiet affair with an orderly dissolution of assets. Other times, it is a seismic crash with painful ripple effects. Sometimes an organization rises to the pinnacle and then slowly fades back in the field.

Most organizations do not break down before emitting warning signs. Normally, the financial signals, such as revenue declines and shrinking margins, are lagging indicators. Leading indicators are more important because leaders can address them before the financials go south. What are some early warning signals of potential breakdowns?

Early Warning Signals of Organizational Breakdowns

  • Focusing too much on strategy shifts and tweaking processes instead of accountability for results
  • Complacency
  • Ethical compromises
  • Short-termism
  • Boards out to lunch about performance, culture, ethics, and sustainability
  • Chaos or constantly changing priorities

Some of the common causes of these breakdowns include: excessive deference to the top managers, failing to tap into the potential of people, leaders assuming they must make all the decisions and have all the answers, poor communication and secrecy, organizational silos, and lack of discipline and follow-through. All are failures of leadership.

As you encounter the early warning signs, you will need courage to take decisive and bold action to get the enterprise back on track. Often, this requires a rare blend of what we call “steel” (flexing to the hard edge of leadership, even if that is not a natural mode for you as a person) and smart use of people practices, such as unleashing the latent leadership potential of people throughout the organization, via what we call a culture of “stewards.”

We can avoid the breakdowns when we tap into the brilliant potential and goodwill of our team, aligning their work toward the organization’s purpose and vision, while guided by its shared values. Such resilience is the hallmark of triple crown organizations, and it can turn these challenges into amazing opportunities for transformation.

+++++++++++++++++++++++++++
Gregg Vanourek is an award-winning author who trains, teaches, and speaks on leadership and personal development. He runs Gregg Vanourek LLC, a training venture focused on helping you lead yourself, lead others, and lead change. Gregg is co-author of three books, including Triple Crown Leadership: Building Excellent, Ethical, and Enduring Organizations (a winner of the International Book Awards) and LIFE Entrepreneurs (a manifesto for integrating our life and work with purpose and passion). To get Gregg’s manifesto on how to avoid the Common Traps of Living and free book chapters from Gregg’s books, check out his Free Guide.