One response to “Why Leaders have Trouble Restoring Trust”

  1. Excellent article…some thoughts on ethics:

    Rebuilding trust is indeed difficult, but some companies have managed to do it e.g. Maple Leaf Foods and Johnson & Johnson, whose approach differed from that of Toyota and the Peanut Corporation of America. That being said, business decisions often concern complicated situations which are neither totally ethical nor totally unethical. Therefore, it is often difficult to do the right thing, contrary to what many case studies will have you believe! Moral values such as respect, honesty, fairness and responsibility are supposed to dictate our (ethical) behaviour, but are often ignored in times of stress and confusion, when one must stand by one’s principles.

    Ethics is concerned with “doing the right thing” but moral standards differ between individuals depending upon their upbringing, traditions, religion, social and economic situations, and so on. Hence, the existence of gray areas. Therefore, state the “moral” problem in a simple manner and review feedback so that an acceptable decision can be made with minimal overall harm/loss—i.e., we are concerned with “Pareto optimality,” which is related to the net balance of benefits over harm for society as a whole.

    Leaders often have to deal with potential conflicts of interest, wrongful use of resources, mismanagement of contracts, false promises and exaggerated demands on resources. In a proposed sale, is it the seller’s duty to disclose all material facts regarding the product /service in question or is it the buyer’s responsibility to conduct due diligence? Should the seller answer each question exactly as it was asked, and ignore some pertinent information or merely address the spirit of the question?

    For free abridged books on leadership, ethics, teamwork, women, write to crespin79@primus.ca.
    Maxwell Pinto, Business Consultant & Author

    http://www.strategicbookpublishing.com/Management-TidbitsForTheNewMillenium.html
    http://www.youtube.com/watch?v=p34hB50lv-8

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