SOURCE: Capital Genesis LLC

August 31, 2006 06:00 ET

The Courage to Balance Ethics and Corporate Profit

TAMPA, FL -- (MARKET WIRE) -- August 31, 2006 -- Research shows that a CEO is more vulnerable to being fired and replaced if the stock price of the company continues to lag behind the S&P 500 by an average of 2 percent once occupying the top job.

This ominous reality is foremost in the mind of every CEO. How they respond or react to this reality is the difference between an outstanding CEO and all the rest.

Back in the 80s and 90s, a charismatic, celebrity CEO was the way to go if you wanted to grow a successful business. The problem was that several (but not all) of these charismatic CEOs used their influence and egos to either engage in ethically questionable practices, stubbornly ignore warning signs of trouble or focused too heavily on short-term up-ticks in share price with little focus on long-term, organic growth.

As 2000 came and the stock market went, everyone started to sober up, ask questions and began to look very closely at company financial statements. They soon discovered that several companies had been fudging and in some cases, out right lying about the numbers. As a result, courage and ethics have returned to their rightful place as the preeminent qualities of corporate stewardship.

What concerns do today's CEO and senior executives need to summon bravery for to face in today's market place? Here is a brief list:

--  Organic growth, essential to any company's future success, is not a
    quick fix; it often happens very slowly.
--  Environmental & corporate social responsibility can both reverse
    damage to the planet and be a huge competitive advantage, but starting such
    initiatives can be intimidating.
--  The performance assessment of the CEO is very much tied to the current
    share price, but how can the CEO strike a balance between short-term
    results and substantial long-term success, pleasing both shareholders and
    securities analysts?
--  Globalization is an opportunity to expand market share, but how can
    you expand in a way that supports and not destroys indigenous cultures?
--  How do you demand the highest level of performance from your people,
    but not burn them out?
Negotiating these daunting realties demand courage and a strong ethical core. Sarbanes-Oxley, lost confidence in the stock market and increased levels of cynicism directed towards business is the net effect we all endure when courage and passion are lacking in today's corporate leaders.

Capital Genesis LLC is a management consulting firm specializing in strategic planning, leadership development & corporate social responsibility, serving businesses internationally. Visit us at and call us at (813) 907-6426.

Contact Information

    Christopher Gayle
    (813) 907-6426
    (813) 404-6699
    Email Contact