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REALTOR® ASSOCIATION EXECUTIVE
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|  Summer 2002 Leadership Ethics: Doing what's right to build strong associations In light of the Enron and Arthur Andersen corporate corruption scandals, consultants in organizational ethics say their services are in high demand. But we shouldn't focus on ethics in response to an ethical crisis, we should always be thinking about ethics in our professional lives, says business consultant Dr. Shannon Skousgaard, who teaches top executives and nonprofit association leaders how to stay focused on fundamental values and how to build respect in an organization. Even though Realtors¨ are guided by the National Association of Realtors¨' Code of Ethics, keeping ethics at the forefront of everyday practices is an ongoing process, says Skousgaard. The same holds true for association leaders, both elected and staff, who strive to be ethical examples for members. It is easy to talk about ethics, but it's a lot harder to create an ethical, effective, diverse organization that stands for truth and integrity, says Skousgaard. Associations, brokers, and salespeople alike know that if they are not trusted, their business will dry up. They also know that trust is grounded in integrity and 'underestimating the importance of trust spells disaster for any organization,' she says. RAE spoke with Skousgaard on the state of ethics in association leadership today. RAE: Are associations held to higher ethical standards than large corporations? Skousgaard: At their foundation, ethics are about knowing, understanding, and doing what is right. So in that sense, ethics are no different from one type of organization to another. However, every group faces unique conflicts within their organizations. Associations have different problems than large corporations, and Realtors® have different issues than aerospace engineers. But ultimately, ethical leadership is about trying to achieve organizational goals while guarding and protecting the rights of members and coworkers. Although nonprofit associations are no different from corporations when it comes to ethics, Realtor® associations have an advantage because of the established Code of Ethics. Also unique to Realtors¨ is their long history of taking the lead on ethical issues both socially and politically. Since Realtors¨ have a more developed culture of ethics than other organizations, they ultimately make better leaders. RAE: When a real estate practitioner leads a volunteer organization, what adjustments do they face in their leadership ethics? Skousgaard: Because the Code is such an integral part of being a Realtor®, by the time members become leaders they are already dedicated to ethical habits and principles in their businesses. When they become leaders, they already have ethical standards. When I do workshops on ethics for Realtor® leaders, I can skip most of the basic elements and start work at a higher level. When Realtors® become volunteer leaders, their ethics are in the forefront, and because leaders leave a legacy, their term must be filled with ethical decision-making. RAE: How can leaders learn to be ethical? Skousgaard: Some Realtors¨ think that if they know the Code, there's nothing else to know about ethics. I tell them that knowing the rules doesn't make you ethical. Knowing what's right and doing what's right in every business decision makes you ethical. The Code can't address every possible ethical quandary leaders may face. I tell leaders to create an aspirational ethics code and think about what they want to live up to. Leaders should always aspire to be better leaders. RAE: How can associations be sure their leaders will be ethical? Skousgaard: Ethics should not be an add-on to leadership responsibilities; they should be part of everything we do. Ethics are one component of being an outstanding leader and an outstanding association. Associations often think of creating an ethics policy as if ethics were distinct from their other policies and practices. Ethics are akin to the egg in the cake, not the frosting on the cake. Codes of ethics are symbolic statements about the kind of leaders an organization's members want to be, not about ways to stay out of jail. What we need to do is focus on the dignity of others, not just on what's against the rules. When you groom real estate practitioners for leadership positions, look for members who are ethical at their core. One of the ways you can spot an ethical leader is that they want to guide and teach others, not grab power and limelight. If you create a culture that encourages members to do the right thing, then you will attract ethical leaders. How to Be an Ethical Leader Ethical leaders embody the following qualities, principles, behavior, and actions. Qualities: Internal qualities: trustworthiness, integrity, and honesty Relationships with others: compassion, tolerance, empathy, open-mindedness, decency, fairness, consistency, and loyalty How we act: humble, grateful, sincere, and transparent Personal energy: acting with courage, holding to high ideals, maintaining a positive state of mind Principles: Core beliefs that guide the ethical leader include: - Respect for all people - Commitment to service - Stewardship of life - Concern for the future - Recognizing the interdependence of all things - Willingness to take risks - Being true to oneself - Being responsible Behavior: Ethical leaders act consistently from core beliefs in both the small decisions of daily life and in the large-scale decisions of career and occupation. The ethical leader's behavior sets a standard of moral conduct by being principle-centered and consistent. Behavior regarding small decisions: From obeying the traffic laws to telling the truth at all times to providing a good example for the little ones. Behavior regarding decision-making on the broad front: Searching for the big picture, acting locally but thinking globally, suspending critical judgment, listening deeply, being part of the team Actions: Ethical leaders are recognized by a commitment to right action that reflects the qualities and principles described above. Enlightened by a sense of service and respect, they empower others to act and grow. In every decision, they put ethics at the center, shifting the emphasis from narrow self-interest to a broader orientation. Ethical leaders always come from a place of consistency. How to Recognize an Ethical Leader Ethical leadership seeks not to distribute favors to a few, but benefits to many, justly earned by the quality of their effort. It keeps commitments and it honors loyalty. Ethical leaders are strong, generous, full-hearted, trustworthy, resolute, and utterly reliable. They will not be without error or fault, but they will be honest in the admission of their fault when they have searched in their soul and seen it. They will not seek to dominate, except when they see the core principles of right action are in danger. They will encourage others to come forward when it is their turn to lead. They will seek to guide rather than to direct. Their greatest achievements are made when the people move forward on their own. |
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