Archive for the 'Ethics / Integrity' Category

Apr 29th 2009 Do you have your client’s best interests at heart?

In 1959, Play of the Week, an icon of civilization on television, was at risk of being canceled. Broadcast on Channel 13, New York’s public television station, the show offered high-quality theater week after week — including works by such writers as Eugene O’Neill, John Steinbeck, and Jean-Paul Sartre, with top talent. But the ratings were low, and sponsors were dropping out.

Ogilvy was looking for a television opportunity for his client Standard Oil Company of New Jersey (then known in the industry as “Jersey,” and later to be renamed Exxon). The company was headed by Monroe (Mike) Rathbone, who had become a friend. They worked well together. Now they had a chance to do a good thing together. Rathbone wanted to sponsor a television program that would reflect “Jersey’s” own high standards and prestige (it was the second-biggest industrial company in the world) and was not about to share the stage with TV spots for yogurts, bras, and denture cleansers. Ogilvy agreed and told the sponsors at Channel 13 he thought he could find a single company to underwrite the whole program — but only the whole program.

People at the agency and at Channel 13 went to work to persuade the few remaining underwriters to swap their spots for another program or simply cancel, so the show could go on. Company after company and agency after agency responded favorably — with one exception. Representatives of the agency Lennen & Newell Inc., which had bought one or two spots for the Lorillard Tobacco Company, balked at the request, arguing that they had made a good buy, their sole responsibility was to their client, and they would hold Channel 13 to its contract.

Ogilvy stepped in, calling a Lennen & Newell executive he knew. He went through the history of the project and made every argument he could think of, including an appeal to public spirit: It was “in the national interest” that Play of the Week should survive. The executive said he could not interfere and hung up. The program appeared to be doomed. Ogilvy sat for a moment, then picked up the phone and got the Lennen & Newell man back on the line.“

Go to your chairman immediately. Tell him that our agency will pay Lennen & Newell all the commission that will accrue [to Ogilvy & Mather] from Play of the Week sponsorship over the next two years. I will wait for your answer.”

Within five minutes, the executive was back. “You’ve got a deal.”

Gone were protestations of representing client interests. Gone were arguments about the value of the spots. Gone was any semblance of honor for the Lennen & Newell agency. But Play of the Week survived, its rescue front-page news in the New York Times. Life magazine said if there were a congressional medal for business, it should go to Standard Oil. The New York Post credited Ogilvy with the decisive role, saying his heroic save would “enshrine him in the hearts of the literate public at which he has often aimed his commercial arrows.” The tone was set at the top.

Source: The House That Ogilvy Built by Kenneth Roman | strategy+business

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Dec 22nd 2008 Confusing What is Truly Ours and What Others Grant Us

Almost one thousand years ago, in Moslem Spain, there lived a Jew named Rabbi Samuel the Prince. He was very wise, and rose to great power, becoming the Sultan’s treasurer. This aroused the jealousy of the other ministers, who planted rumors that Rabbi Samuel was embezzling money from the royal treasury.

The Sultan decided to put Rabbi Samuel to the test. One day, without warning, he called for Rabbi Samuel, and asked him to make a complete accounting of his personal wealth. Rabbi Samuel was taken aback, but he could not refuse the Sultan’s request. He sat at a table, asked for a quill and parchment, and began writing feverishly. After half an hour, he stopped, reviewed the list silently, and handed it to the Sultan.

The Sultan read the inventory carefully, and slammed it down angrily on the table. ‘Why, this is only a fraction of your wealth. I personally have given you far more than what you list here as your salary. This is a brazen lie! My advisors are correct – you have been dishonest with me in your monetary affairs. I shall personally confiscate everything you own. Guards, take this man away!’

‘Your Majesty’, responded Rabbi Samuel, ‘you asked me for an accounting of my wealth. As you can plainly see, my worldly possessions are not truly mine. At any time, they could be taken from me by robbers, war or natural disaster. In fact, your Majesty has just taken them from me with a single command.’

‘The only possession I truly own is that money which can never be taken from me – the money I have given to charity. You see, a Jew is commanded by the Torah to give one tenth of his income to those in need. The figure I gave you, your Majesty, was the total of all the moneys I have given to charity. That is my true wealth, for the benefit from that money remains mine forever, and can never be taken from me.’

The Sultan was impressed by this profound truth, and promoted Rabbi Samuel to even greater power in his kingdom.”

Rabbi Samuel has hit upon a fundamental aspect of human nature – we are easily confused between what is truly ours and what others grant us. The same is true of corporations. Our stock price is soaring, but that is something that is granted by investors, and could be taken away from us tomorrow by those very same investors, based on factors that are entirely out of our control. What, then, is truly ours? It’s our loyal, highly skilled employees, and the passion and innovation that they bring to their jobs. They are our true strategic assets, and they are what will keep us successful for years to come.

Source: An Introduction to Hasidic Management by Moshe Kranc

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Dec 15th 2005 Honesty and Integrity Build a Foundation of Trust

Seven-year-old first baseman, Tanner Munsey, fielded a ground ball and tried to tag a runner going from first to second base. The umpire, Laura Benson, called the runner out, but young Tanner immediately ran to her side and said, “Ma’am, I didn’t tag the runner.” Umpire Benson reversed herself, sent the runner to second base, and Tanner’s coach gave him the game ball for his honesty. Two weeks later, Laura Benson was again the umpire and Tanner was playing shortstop when a similar play occurred. This time Benson ruled that Tanner had missed the tag on a runner going to third base, and she called the runner safe. Tanner looked at Benson and, without saying a word, tossed the ball to the catcher and returned to his position. Benson sensed something was wrong. “Did you tag the runner?” she asked Tanner. “Yes,” he replied. Benson then called the runner out. The opposing coaches protested until she explained what had happened two weeks earlier. “If a kid is that honest,” she said, “I have to give it to him.”

Source: Honesty and Integrity Build a Foundation of Trust

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