An Ethical Leadership Dilemma

If you could become a hero at your company by grabbing a business opportunity, but it meant breaking a small law, a company rule, or your own values, would you do it?

I’ve faced this kind of tough choice several times in my career. I’ve found that choosing to do the right thing not only feels good but also brings great benefits to the business, faster than you might expect.

Here’s an example from my past. I was leading a big company in Germany, and we were in a tight competition with another company in the retail fuel and convenience sector.

The rivalry was well-known, especially because the other company’s leader publicly claimed they were the top dog, which wasn’t true. This caused worry among our team.

During a town hall meeting, I was challenged with a question about our competitor’s claims. My response focused on what our customers and franchisees thought about us.

I emphasized the importance of staying focused on our goals and not getting distracted by the competition.

The key to our success? I formed a business development team to connect with large, independent distributors, who had a 3% market share with other brands, including our competitor’s.

This was a big step, especially as the company was cutting down on staff. My boss, Tufan Erginbilgic, who is now CEO of Rolls-Royce, saw the potential in this and supported it.

The real ethical dilemma came when I was trying to build a relationship with these distributors. They were under contract with our competitor but wanted to join us, which would boost our market share.

However, I chose to wait until their contracts ended before doing business with them. This decision was tough, but it paid off.

After 18 months, these distributors joined our team, significantly increasing our market share!

This experience taught me the value of making ethical decisions. Shortcuts might seem tempting, but in the long run, they can harm your reputation.

Ethical leadership is essential, and it’s important to make the right choices when faced with such dilemmas. I believe in setting this example for my students and colleagues.