As a values-based leader, I strive each day for a balanced perspective. I take very seriously the words of St. Francis of Assisi in seeking first to understand others, rather than trying to make myself understood. Within today’s polarized world, a balanced perspective is the only way to find any common ground.
At the same time, my values also compel me to speak up about what I believe deeply. This is one of those times.
Fairness and respect. Valuing diverse ideas, thoughts, and experiences. Bringing out the best in others. Understanding how individual contributions contribute to the company’s overall goals. Making everyone feel that they belong. Responsibility for the environment and society. Good governance.
These phrases express what I believe are the right things for values-based organizations to do. For example, it only makes sense that companies whose operations impact the environment should take responsibility for mitigating and preventing any damage. In the same way, companies that recognize the benefit of recruiting people from different backgrounds—whose experiences, ideas, and perspectives enrich innovation and thinking within the organization—would seek to recruit and develop a diverse workforce.
Today, however, such values are under attack at the highest levels of government.
Diversity, equity, and inclusion (DEI) is being vilified by the Trump administration. Government agencies and organizations that receive federal funding are scrambling to distance themselves from the principles and programs they proudly instituted. One of the latest is the National Academies of Sciences, Engineering and Medicine, which is independent and not a governmental arm. According to the New York Times, after the agency received a “stop work” order from the Trump administration, it closed its Office of Diversity and Inclusion and removed from its website links to its DEI work.
Dozens of organizations are scrambling to eliminate language that can be construed as pro-DEI, words like fairness, inclusion, women, underrepresented. Grant applications and program descriptions are being scrubbed by software and sometimes by hand to be “compliant” and avoid retribution by the White House. Similarly, companies that once took pride in their DEI programs are now scaling back in the wake of an executive order that could lead to federal investigations into so-called “illegal DEI.”
It should come as no surprise that, in the current political climate, another type of values-based initiative is under fire: environmental, social, and governance (ESG). In essence, ESG seeks to promote stewardship of resources, care for the planet, social justice and fairness, and responsibility in governance. Some of those who once championed ESG are turning away from it. They’re even attacking the academics, such as my Kellogg colleague Aaron Yoon, who have devoted themselves to showing that ESG principles can be good for business and shareholder returns.
Such destruction of values amid an atmosphere of fear and retaliation sickens me. What is really disturbing is how quickly this has all happened, in less than two months of the Trump administration taking office.
The road we are now on in America moves us backwards—as a society, as organizations, and as people.
How do we, as values-based leaders, respond? We start, once again, with a balanced perspective. We acknowledge that there is a full spectrum of views on ESG and DEI, including extremes at both ends.
At one extreme is the focus solely on programs and initiatives such as ESG or DEI to the exclusion of everything else, including a company’s obligation to generate a return for its shareholders. At the other extreme is the focus solely on generating a return without any regard for the impact on people, the environment, or society.
Values-based leadership provides an excellent way forward that does both. Without question, organizations must uphold their fiduciary responsibilities to all stakeholders, including investors, employees, suppliers, and customers. At the same time, values-based organizations can conduct business responsibly, equitably, and with respect for all.
To call ourselves values-based leaders, we must be accountable not only to shareholders, but also hold ourselves to higher standards in the way we treat people, provide opportunities, and care for the planet we all share.
It’s that simple really: we do the right thing and do the best way can.
No matter which way the political winds blow, we stand strong in our values and what we know to be true.
Thank you so much – as you know this is a time, perhaps like no other where we are “those guys”. Support and appreciate every word of this!
YES HARRY!!!!!
PLEASE POST THIS EVERY WHERE YOU CAN!
BRING IT TO THE WSJ and NYT! ANY MEDIA OUTLET!!
THE URGENCY IS CRITICAL!
Thank you Harry! Thank you for your moral leadership!
Toni Pristo