Managing Yourself: Keeping Your Colleagues Honest

Jonathan has a new job. Just promoted from the accounting group at headquarters, he is now the controller for a regional sales unit of a consumer electronics company. When the quarterly numbers come due, he realizes that the next quarter's sales are being reported early to boost bonus compensation. The group manager's silence suggests that this sort of thing has probably happened before. This may seem like a mundane accounting matter. But the consequences--in terms of carrying costs, distorted forecasting, compromised ethical culture, and even legal ramifications--are very serious. All managers should know how to respond constructively, and senior managers must be able to change the cultural norms that gave rise to bad judgment in the first place. Over the past four years, I have studied the moments when people decide whether to speak up about an ethical issue, and what they say when they do. I've collected stories from managers at all levels, with a particular focus on the earlier years in careers and on individuals who have positive stories to tell. These stories--along with the social-psychology research on decision making--shed light on what enables people to be candid when they encounter ethical conflicts in the workplace. The insights I describe here can help younger managers raise their voices when they should and help senior managers build a strong, honest organizational culture.