Top managers in public and private organizations are those who promote and maintain an ethical work climate. An ethical work climate is defined as one of openness, respect, and dialogue. Exemplary leaders are those engaged in "moral processes" such as doing the right thing in the course of daily work, telling the truth, treating others fairly and discouraging prejudice. It was not only what these leaders did on a daily basis, but how they did it. "The organizational good" is a continuous process of practicing the basic rules of human conduct. These administrators were also actively and visibly involved in "moral projects" such as recruiting underrepresented minorities and women, supporting ethics training for all employees (including themselves), and seeking out and eliminating corruption. Where organizational leaders clearly practiced "the organizational good," a positive culture permeated the entire organization.

Exemplary leaders maintain congruence between what they say they will do and what they actually do. This is the real test of "the organizational good." Behavioral congruence should exist throughout an organization if what people do meshes with what the organization stands for. “The organizational good" is embedded in the organizational structure. Consistencies and discrepancies between what is said and done is noticed in organizations. When discrepancies occur, the virtues and bottom line of the organization are questioned. For example, why are some people rewarded for behavior that is ignored or sanctioned for others? Criteria for following "the organizational good" must be fair to all members of an organization. If the CEO exempts himself from following these criteria, he or she signals to everyone in the organization that "the organizational good" is merely public language. Perhaps the best example is that CEO's across the country continue to give themselves exorbitant salary increases (in 2002 the median annual salary for CEO's rose to $13.4 million) while they are laying off employees to cope with decreases in production and stock value.

Organizational good is about character. There are fewer difficulties in modeling character than in teaching it. Boards of Directors hire CEO's who will: 1) carry out their wishes or directives (depending on the degree of autonomy of the board), and 2) model the principles the organization stands for. Usually the CEO is accountable for numbers, that is, profitability, expanding market share and keeping stockholders happy. It is human nature that we tend to look for our qualities in others. Perhaps this is why, in hiring CEO's, boards often overlook or minimize character flaws. As the late Senator Daniel Patrick Moynihan said, "We are getting used to a lot of behavior that is not good for us."

Aaron Feuerstein, the CEO of Malden Mills, a Massachusetts textile manufacturer who values employees and risks profits on their behalf showed his character in 1995 when, just before Christmas, his factory burned down. He pledged to keep paying all 3,000 of his employees while he rebuilt the factory rather than relocate it. Four months after the fire, with more than 70 percent of his employees back on the job the company has exceeded its pre-fire levels of production with $100 million in sales. The new factory has incorporated more energy-efficient manufacturing processes, day lighting and air handling systems, and the development of an upholstery fabric that is fully recyclable.

Sam Walton had a simple dream of giving people high value, low prices, and a warm welcome. Today, Wal-Mart Stores, Inc. employs more than 1.2 million associates worldwide. The company has more than 4,000 stores internationally. It also has expanded online. Customers return to Wal-Mart for more than the prices and selection. It is also because of the people who work there. Prompt, friendly service is a serious matter. This commitment to people means that Wal-Mart takes its responsibilities as a corporate neighbor seriously. Local Wal-Mart stores underwrite college scholarships, raise funds for children's hospitals, participate in recycling and has a "Green Coordinator" that makes each store environmentally responsible, and sponsors a community matching grant program.

Walton built a culture on the simple principle of making the customer No. 1. He had a charm and charisma that made people feel welcome and important. He asked associates to make a pledge: "1 want you to promise that whenever you come within 10 feet of a customer, you will look him in the eye, greet him, and ask if you can help him." This pledge became known as the "10-Foot Attitude." Walton said he learned that one of the secrets of leadership was simple: Speak to people before they speak to you.

In these examples organizational leaders did uncommon things with common values, but most striking is their commitment, tenacity, and zealousness in incorporating values in every facet of their organization. They countered resistance and criticism with enhanced determination. Whether it was textiles or a big-box store, these leaders with strong character were inspired and rewarded by doing good.

Companies that are successful decade after decade, such as Johnson and Johnson, have one thing in common: they have core values that are supported from the top. Companies like Procter and Gamble decided in its infancy during the Civil War not to gouge the military with low-grade soup and candles. Procter and Gamble still thrives. The structure and leadership of organizations change, but core values endure change as long as the organization has leaders who advocate and model them.

If CEOs, managers, and members of organizations were screened using character as a major factor there would be less time spent on perfecting methods to measure accountability and more time spent on developing top performers. Everyone in an organization needs to be held accountable for their performance and productivity, but most Boards of Directors soft pedal their oversight of the CEO's behavior, and managers work to quantify accountability in general, to protect them from appeals, grievances and lawsuits. When confronted, it is likely a member will defensively respond to the supervisor saying "I am only doing the right thing" or "Everyone's doing it." It is not surprising; therefore, that managers and supervisors usually avoid discussions of behavior with a member, unless it is overtly egregious and disruptive. Yet, managers and supervisors are supposed to give "honest" evaluative feedback to members of the organization so they can use the information to improve. Performance appraisals are often used to cover harmful character flaws of members from the top down rather than to improve individual or group performance.

Organizations that practice "the organizational good" connect ethics with accountability. Too often performance accountability is discussed and ethical accountability is assumed in hiring CEOs. Board of Directors usually hire CEOs they deserve. If the bottom line to the Board is increasing productivity, market share, and stock value, that will be what the Board will look for. This kind of bottom line has been a public disappointment in the behavior of CEOs of late. They have been found to practice the ethic of "everyone's doing it" to justify what they consider "doing the right thing."

The surreptitious move by former American Airlines CEO Don Carry, to increase pay and retirement benefits for top management while demanding steep pay cuts from workers enraged labor unions, pushed the organization toward bankruptcy, and resulted in his forced resignation. Furthermore, the American Airlines Board approved the management package. The Board of Delta Airlines approved similar retirement benefits for its executives. Enron's Board of Directors overlooked 30 sham partnerships to defraud stockholders. Tyco's Board of Directors failed to question a provision in the CEO's contract that stated a felony conviction was not grounds for dismissal. The former CEO was accused of stealing $600 million from Tyco.

These are but a few current and unfortunately common, examples of the failure to connect ethics with accountability. But they are also disturbing examples of the character flaws of the Boards of Directors and the leaders they hired. These Boards knowingly hired CEOs who would ignore the ethic of the common good.