By William P. McGowan and Johnny C. Taylor, Jr
Very few in this country would disagree that America is in the midst of a wide range of crises and challenges. An underlying factor in a great many of them, in our view, is the lack of ethics and ethical leadership in businesses, organizations, and institutions that make our society what it is and serve as the basis of people’s trust and confidence.
William G. McGowan, the legendary head of MCI, a disruptor in his era who helped create an extraordinary range of new communication options, was guided by a set of six Principles of Ethical Leadership he often highlighted in his speeches. McGowan held himself fully accountable to those principals. Despite the pushback, Bill never wavered from his conviction that those principles were vital to a successful business – and a successful nation.
The William G. McGowan Charitable Fund, inspired by the commitment of its benefactor, has placed their highest priority on helping to secure a greater commitment to preparing future business leaders in the Principles of Ethical Leadership. They have designed and demonstrated a new means of ensuring future generations of business leaders are fully immersed in principles of ethics and ethical leadership through the McGowan Fellows Program. The Fund partners with 10 universities to ensure a selected set of MBA students receive the full benefit of immersion in ethics and ethical leadership, concurrent with their participation in the MBA program in which they are enrolled.
As our organizations tracked the extraordinary surge in national concern and interest in ethical behavior and ethical leadership, we heard directly from the National Association of Corporate Directors and Korn Ferry, the nation’s largest search firm, that individuals responsible for hiring the next generation of top corporate leaders were demanding demonstrated commitment to and “walking the talk” of ethical behavior and ethical leadership. Most recently, McKinsey issued a report on the top 10 most important traits for a CEO in this new era, concluding “the number one skill” was ethics/ethical leadership.
Equally intriguing to us was how Korn Ferry reported the fact that the candidates themselves, who were considering joining companies at a senior level, were asking the same question: does the organization I am considering joining demonstrate commitment to ethics and ethical leadership?
We think we are making progress in building a new national consensus around ensuring that MBA programs are now placing a priority on ensuring business leaders in the future have been prepared with the ability to lead ethically and make ethical decisions.
Together, we believe it is time to highlight Chief Executive Officers who are true national role models in their commitments to ethics and ethical leadership – leaders who have stood the test of time in applying those principles in challenging circumstances, where decisions were especially tough ones.
Therefore, to help demonstrate both the business and ethical value of ethical leadership, last year the Fund joined forces with SHRM, which for decades has demonstrated a high-priority on creating cultures of ethics and ethical behavior and leadership, to create the first-ever Ethical Leader of the Year Award. We pulled together a group of national leaders to serve as judges when we launched the first-ever Ethical Leader of the Year Award in 2022. Leaders from both of our organizations were part of the panel of judges, alongside board members from Fortune 500 companies, a Fortune 500 CEO, and this year, the CEO recipient of the 2022 award.
Last year, by unanimous vote, Charles Lowrey, the longtime Chair and CEO of Prudential Financial, received the Award, which was presented on the main stage at the SHRM Annual Convention, one of the nation’s largest annual conferences, with about 18,000 people in attendance as Lowrey received the award.
The reactions we received were extremely positive. However, what impressed us most were the reactions of Prudential employees from around the world who wrote to the Fund as the sponsor of the award to say that the judges had made “exactly the right choice.” They confirmed that they saw and worked in a genuine culture of ethics and ethical leadership, established by Lowrey and the Prudential leadership team.
The 2023 Ethical Leader of the Year Award was presented on June 13 on the main stage of the 75th Anniversary National Conference of SHRM in Las Vegas, which 20,000+ people attended. We were then delighted to announce that after receiving many remarkable nominees from business and national organizations around the country, the judges were once again unanimous: Ed Bastian, Chair and CEO of Delta Airlines, is the 2023 Ethical Leader of the Year Award recipient.
Among the many reasons for the selection of Bastian is that his record of commitment to ethics and ethical leadership extends many years among the companies and organizations of which he has been a part. From those who know him and the companies he has helped lead, we heard constant references to the consistency of his commitment to ethics and ethical leadership. His commitment, of course, was never more tested than during the pandemic and its effects on the travel industry. He led the way in managing the challenges that arose, to protect his employees and his customers while still providing the essential national requirement for predictable and reliable air travel. It was not easy. People got hurt, lost their jobs, or found themselves living on reduced incomes, among many other issues.
But this is where ethics and ethical leadership enter: based on an approach of ethical decision making, what is the best decision that can be made in light of the situation at hand?
Today, Delta ranks as the most admired airline and is listed as the #1 airline by its customers.
Bastian and Lowrey serve as terrific role models for business, organizational, and governmental leaders. They are also examples of the kind of future leaders we hope MBA programs across the country will turn out. If they do, Bastian and Lowrey will attest that not only is ethical leadership the right thing to do, most importantly, it is the right business thing to do. It attracts customers, talent, and confidence from the full range of stakeholders of a company. It is why prospective employees come to a company, why they remain there, and why customers remain loyal – the essence of good business.
We need many, many more Charles Lowreys and Ed Bastians. Our MBA programs are the primary means of preparing the next generation of similar leaders.
About the Authors
William P. McGowan is Chair of The William G. McGowan Charitable Fund
Johnny C. Taylor, Jr. is President & CEO of SHRM
