By Oluwole Dada
Leaders must be extremely careful and circumspect as they approach the zenith of their career. In the fast paced business world where results are expected at the speed of light, it is imperative to balance the desire for impact with the consideration for reputation that has been built over the years with a lot of hard work. We have seen time and again where promising careers of the mightiest in the corporate world have been destroyed because of a mistake or an error of judgement. You must do everything possible to prevent a scandal in your career. This career could be political or professional.
Warren Buffett once said, “It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently.” This statement becomes more important especially in the digital media age where news spreads across continents within seconds and this leads to a shift in public opinion.
Carlos Ghosn, former CEO and chairman of Nissan, Renault, and Mitsubishi was once hailed as one of the most powerful leaders in the automobile industry. He was credited with turning around Nissan’s fortunes and creating a powerful global alliance. His glowing career came to an abrupt end in 2018 when he was arrested on the 19th November, 2018 in Tokyo on the allegations of underreporting income and his salary over a five year period as well as breach of trust considering that he was said to have diverted Nissan’s funds to his own investment vehicles. He resigned 23rd January, 2019. He escaped Japan to Lebanon in 2019 and continued to live there. His fall from grace not only affected his personal reputation but also sent shockwaves through the companies he led, demonstrating how a leader’s scandal can have far-reaching consequences.
Elizabeth Holmes, founder and former CEO of Theranos, was once lauded as the youngest self-made female billionaire in America. Her promise of revolutionary blood-testing technology attracted high-profile investors and board members. However, when it was revealed that the technology didn’t work as claimed, the scandal didn’t just end Holmes’ career – it affected everyone associated with Theranos.
Employees lost their jobs, investors lost millions, and even reputable board members faced questions about their judgment. This is another case illustrating how a leader’s ethical lapse can have a devastating domino effect on countless others.
When a leader falls, they rarely fall alone. The repercussions often extend to their team, their organization, and sometimes even their entire industry.
We are human and we are all prone to errors however you must be on guard to avoid all forms of temptation that may destroy all that you have built over the years. It takes 20 years to build a reputation but a scandal can destroy it in 2 minutes. Protect your reputation at all cost.
There are leaders who have been careful to avoid any scandal in their professional life.
Indra Nooyi, former CEO of PepsiCo, is renowned for her ethical leadership and commitment to sustainability. Her “Performance with Purpose” initiative not only drove PepsiCo’s financial success but also inspired employees to think beyond short-term gains. Under her leadership, PepsiCo’s revenue increased from $35 billion in 2006 to $63.5 billion in 2017 and annual net profit rose from $2.7 billion to $6.5 billion. Years after her departure, her ethical approach continues to influence PepsiCo’s corporate culture, demonstrating how a leader’s integrity can have a lasting positive impact.
Leaders must be vigilant against the many forms of temptation that can lead to scandal. These might include financial impropriety, abuse of power, or personal indiscretions.
One other way to avoid a scandal is your ability to manage crisis. James Burke, former CEO of Johnson & Johnson was able to use transparency, accountability and respect for stakeholders to manage a crisis that could have ended his career. During the Tylenol crisis of 1982, when seven people died after taking cyanide-laced Tylenol capsules, Burke’s transparent and ethical handling of the situation became a case study in crisis management. By prioritizing public safety over short-term profits, Burke not only saved the Tylenol brand but enhanced Johnson & Johnson’s reputation for corporate responsibility.
As a leader, you are a model. Your reputation is a sum total of what people perceive about you. Your team members watch you and you must consciously protect them not to see you fall. Your fall as a leader could have an effect on them hence protect yourself and protect your team members by avoiding scandals.
Oluwole Dada is the General Manager at SecureID Limited, Africa’s largest smart card manufacturing plant in Lagos, Nigeria.
