Ethics Sometimes Pays Off In Ways You May Not Expect

Survival skills.
Make a list of what it takes to succeed in business, and you might not think of ethics. As corporations merge and jobs are purged, a sense of values sounds like a luxury these days. But ethics can be plenty practical. Consider the case of Packard Brown.

Brown, 47, was a human resource manager at Pace Warehouse, until September when he resigned over a matter of principle. Brown left the company just two weeks before it was sold to Wal-Mart and 700 jobs, including his, were eliminated. By leaving at his own pace, Brown doubled the size of his severance package. Here's his story.

Brown directed an employee assessment program for Pace: a deep-discount merchandiser with 120 outlets around the country. Founded in 1983, the company expanded rapidly - but just as rapidly went into debt. In 1989, Pace was sold to Kmart.

In 1992, as the red ink flowed faster, Kmart brought in a new team of top managers. That's when Brown first noticed a change in the climate of the organization.

"The new execs held a series of 'mini-conferences' with the managers of each region," he recalls. "They wanted to communicate their philosophy to as many employees as possible. But when they visited corporate headquarters, less than a third of the employees were invited to the conference and most managers seemed reluctant to share what they'd learned with their subordinates.

"You could see people pull in their horns. There was a huge drop off in trust and communication." Still, Brown enjoyed his job. Pace had embarked on a training program to upgrade employees' skills and identify potential managers. Employees were offered courses in interpersonal relations, marketing, computer literacy, and financial management.

Managers were to be selected through tests of their behavior, not just on the basis of their job titles. Brown and his staff used role-playing exercises as well as paper-and-pencil tests to determine whether prospective managers had leadership skills for the job.

As the employees were tested, Brown's assessment team would meet to compare notes and come up with a joint recommendation on each person. That's where the system went sour.

Last summer, Brown's team was asked to evaluate three employees as possible managers for two new stores. They agreed that one person was an outstanding candidate for the job. "But as soon as the meeting broke up, my boss cornered the person who was to write up the minutes and told him to change the recommendation," Brown says. "It may have been because she had a long history of conflict with this individual. Some people thought it was because her husband wanted the job.

"Then, later that week, she tried to doctor the results again: this time to improve a candidate's position. That 's when I knew I had to take a stand. I wrote a letter to the CEO, pitting myself against my boss. I told him I knew I was risking my job - and I was right!. But this was becoming an environment I didn't want to work in."

The story has a happy ending. Less than two months after leaving Pace, Brown found a good job with an employee leasing company. Now he's in one of the nation's fastest-growing industries. The moral of the story? Perhaps It's just that good guys don't always finish last. But maybe there's another lesson: that unethical behavior is often a sign of stress in an organization. It's what people do when trust and loyalty break down. That's the time to take a stand, or stay in a rotting environment. Brown stood up and made a solid career decision.

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