Integrity – The Iceberg Analogy – Above the Waterline – Part 1

What is integrity? Integrity is like an iceberg. We can easily see the visible part above the waterline, but most of it is below the water. And colliding with anyone can sink a person, an organization or an entire nation.

The visible parts of the iceberg, let’s call them written ethics, include business ethics laws, regulations and guidelines. Violating these can get you fired, fined, or thrown in jail.

Written ethics rules are often practically black and white: if there are gray areas it is because people want them to be gray. A consulting contract meets ethical standards if a true externally validated service is performed. Otherwise, it is a bribe. That is why ethical companies screen consulting contracts and do not allow payments to government officials and their families.

In my logistics and global marketing courses, we have passionate discussions about the Foreign Corrupt Practices Act. Many believe that the FCPA creates a disadvantage for American businesses. But the playing field is leveled when competitive economies join the United Nations Anti-Bribery Convention. 38 countries, including 34 OECD members, have adopted new regulations, as stringent as the FCPA. A recently adopted UK bribery bill is stricter than the FCPA and prohibits any bribery, not just government officials.

While cultures and ethical standards evolve over time, the worst happens when individuals, organizations, cultures, and entire societies lose their moral compass. The witch burnings, the great inquisition, slavery and genocide were the result of a collective moral collapse.

Sometimes the iceberg above the waterline may be shrouded in fog. So individuals and organizations believe they are untouchable, that the shards are a reward for being chosen or a legitimate cost of doing business. The mayor and president of the Detroit city council created what is now alleged to be a “criminal enterprise” demanding scraps from contractors. For Siemens (unrelated), bribes became a cost item, meticulously accounted for in good German fashion, even with a budget.

The problem with corruption is that it is a slippery slope. Corruption can create a short-term advantage. Years ago, I lost a deal with the Central Bank of Nigeria to a competitor who was willing to pay the right people. But the corruption did not end with the award of the contract; more bribes were needed to pass acceptance tests, release currency for payment, etc. In the end, corrupt businesses are often bad businesses.

The fog may never dissipate, but don’t count on it.

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