The Integrity of CEOs

I attended a three day seminar recently on "Speaking Truth to Power" with a group of very high achievers from universities and government agencies. I was the only business executive. This became very clear to me when I introduced myself and was immediately challenged to explain the dishonesty of CEOs. The Enron case and Ken Lay's testimony was dominating the news so the topic was 'top of mind' and I passed it off as strangers trying to find common ground for conversation.

We did move on. But in reflecting back I realized that there was a genuine mistrust of CEOs generally in this group. And it is so wrong!

As the founder and chairman of CEO Roundtable I have worked very closely for over ten years with the finest group of people in the country, the CEOs of small companies. My friends in the universities and government do not understand the basic demographics of businesses in this country. Over 95% of companies in this country have less than 100 employees; most have less than 10. These companies create all of the new jobs. These companies are started and run by entrepreneurs who have a passion for their business and its mission that is fundamental to their being.

In our monthly peer group meetings I've seen these CEOs agonize over very hard decisions - the hardest being those that will adversely impact their employees. They always look for the alternatives that will minimize impacts on the individuals and the group - sometimes waiting too long to take an action. They always display the highest integrity in making decisions concerning customers and suppliers, frequently accepting a short term 'hit' to build better long term relations. These CEOs don't spend time 'gaming the system'. They are too busy creating real wealth the old fashion way, by working for it. They are involved with their communities, supporting the important volunteer and non-profit organizations that depend upon their generosity and talent. And, they are about evenly (and respectfully) divided between political parties.

These CEOs are the real heart and soul of American capitalism. It is the thousands of independent decisions that these CEOs make every day that drive the economy and power innovation in our country. Their companies pay taxes, create jobs, provide benefits, train employees, build new industries, fail and start over again.

To my friends in the universities and government I speak this truth: Your visceral mistrust and dislike of CEOs as a group is wrong-headed. Get over it. Move on.

Loren G Carlson
Chairman
CEO Roundtable, LLC
117 Bridle Path
North Andover, MA 01845
(978) 685-8743
lgcarlson@CEO-Roundtables.com
www.CEO-Roundtables.com

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