Issue link: https://www.e-digitaleditions.com/i/59979
A leader has to set the standard and require that people be transparent about what they do. That's easy when things are successful; but the real test is, can you be transparent when things go wrong? In a corporate sense, these values are written into a code of conduct which says, "On the basis of these values, we've writ- ten a code, an internal law, and we're going to abide by it." The real question then comes down to consequences.Howdo you judge the actions of a person, and how do you implement consequences if those actions are negative? It's very rare that this is cut-and-dried. It's very rare that people are caught red- handed. It's important to get the organization to understand this, and consequences must be applied in a way that is equi- table and uniform.Otherwise, it will weaken the organization. Again, the challenge is getting people to be open under all IAN WALDIE/GETTY IMAGES outstanding business leader who exhibits the highest standard of ethical conduct. Obviously, we've seen a lot of scandals in recent years and many examples of bad corporate behavior. How have you been able to maintain a sense of ethics? I think first you have to commit to the values of the firm. I don't want to use the word "ethics"—I think it's too narrow. I'm going to redefine the question about how to maintain a sense of integrity. Behavior is always enhanced by more transparency. That we know for sure. A leader has to set the standard and require that people be transparent about what they do. That's easy when things are successful; but the real test is, can you be transparent when things go wrong? A leader must demonstrate that there is virtue in being bal- anced and truthful. I'm tempered, I believe, by the organiza- tion. Everyone else looks at what I do, and what my direct reports do, and how we set the tone. I believe there are very high standards I have to adhere to in terms of clarity of disclo- sure, behavior within the code of conduct, and certainty that there is no conflict of interest—or perceived conflict of inter- est—in the things I do. If you are a gatekeeper, you'd better make sure people understand how you are keeping the gate. The other thing I recognize is that we're all frail, me included. This requires you to have a great team. I don't mean sycophants, I mean real people who help one another through difficult times. That's a very important way of mak- ing sure behavior is ethical and open, because, as they say, a problem shared is very often a problem solved. Most business schools today are adding an ethical component to their courses of study. Do you think their efforts will truly lead to more ethical corporations? An ethical purpose is very important in teaching—but, insofar as is possible, it has to be free of cultural bias.One person's val- ues are not necessarily another person's values. 22 BizEd NOVEMBER/DECEMBER 2005 circumstances. I think these days we're better off in this regard because we have tools and techniques that allow peo- ple to speak up without fear of retaliation—hotlines, open talk lines, counselors, law firms. This is very important in terms of keeping people on point. Even if they just think something is wrong, in my view, people should speak up and find out what's going on. Occasionally, you speak to management students at business schools. What is the message you most want to deliver to these future executives? I always want to convey how important business is to society, how businesses do good, and how business leaders and exec- utives are good, on balance. Business is behind the starting line in this regard. People don't instinctively trust business executives or business. I always tell students to be humble, but be confident. Out of humility can come strength. Always remember that business has a very noble role in society. Is there any advice you would give specifically to busi- ness students considering careers in the energy field? I would naturally say, come into the field! It's very exciting, because energy is one of the key fundamentals.Health, water, food, education, energy—these are the things you need. I would tell students to go into the field and see howmany dif- ferent careers they can have. You've led BP in its quest to become a superpower in the oil industry. You've been the first CEO of a major energy company to publicly embrace sustainable development. What do you think your most enduring legacy will be? It's too early to writemy testimonial, I think. But I hope peo- ple will remember that I wanted to use energy in the right way. That I made it possible to supply energy without the tradeoff of damaging the environment. What a marvelous aspiration. s z