In part 1, we talked about how leadership relates to freedom. Specifically, that businesses who wish to continue to enjoy operating in a free environment have a necessary self-interest in the preservation of those freedoms. Within those businesses, there is a requirement for leaders soundly grounded in morals and values. Here, we’ll look more deeply at leadership roles and the responsibility of power.
Culture doesn’t always start at the top and make its way down. That is true in society as much as it is in business. Certainly, a great leader at the top can create and guide a powerful culture. It is also true that cultural shifts, new paradigms, and evolutions can take root at the bottom or anywhere in between.
In his book “The Longer Tail,” Chris Anderson illustrates the concept of cultural changes originating from the middle in his discussion of Len Pryor’s launch of Microsoft’s Channel 9. Pryor effectively changed the internal and external culture surrounding Microsoft’s development community. It was an immense shift in Microsoft’s culture and changed the way the company related to developers. Before the introduction of Channel 9, Microsoft development was essentially a closed system. To the initial dismay of division heads and PR leaders, Len Pryor opened doors and began a paradigm shift.
This project was extremely successful, not just because he drew back the shades, but because it created a more free environment. Microsoft employees said what they wanted to say. The public development community also said what they wanted to say and both sides benefited.
This might not seem like an individual or company contributing to the promotion of freedom, but it is nothing less than that. It’s not because Channel 9 spread democracy around the world, it is, however, because it contributes to a social culture of free exchange and transparency. Channel 9 didn’t create a movement towards transparency and free exchange and that movement certainly didn’t stop there. It did make a valuable contribution though, just as so many other examples we can cite have.
Len Pryor and leaders throughout this country, that are just like him, make contributions that effect a small number of people, but in aggregate change the world. It’s not the role of the leader to only engage in activities that shift culture in one fail swoop. It is the role of leaders to constantly and consistently guard and develop the freedoms that allow companies to innovate, create, and prosper. Remember, a company without people is nothing. By leading a company to do these things, we are in fact leading the people.
It is also the role of corporate leaders to keep the free market free. If they do not, the creative forces that have made American business great will be stifled. In a perfect world, there would be no need for laws and regulation that cuff the hands of innovation by limiting how companies operate. We don’t live in a perfect world and there is a need for a certain level of regulation to protect consumers. This need was born from a failure of corporate leadership. If business leaders always did the right thing for the public and for the company, regulation would be unnecessary. Unfortunately, greed and cowardice are real human attributes. Part of protecting the freedoms we enjoy, as related to corporate leaders, is conducting business based on sound morals and values. Regulations are put into place after wrongs have been done and without those wrongs the regulations to counteract them would be unnecessary.
Just in case I’m not being clear, American businesses operate in an environment of overregulation. I absolutely concede that some regulations are necessary to protect the public from unscrupulous business practices. That said, the actions of a single individual or company should by no means result in regulation that penalizes the fair and honest businesses of this country.
It is quite fair to say that powerful people and organizations have influence in our government and our society. It is also fair to say that power, although not always, is typically derived from money. If you consider a certain position in government powerful, it is generally money that influenced the filling or election of that position. American businesses make and have a lot of money. So, big business has a lot of power. Business leaders can choose to wield that power to only benefit their company. They can choose to lobby for regulation that would benefit them and hurt their competitors. They can ask for special favors that allow them to bypass doing the right thing. Alternatively, business leaders can choose to create and nurture cultures that promote the benevolent use of corporate power to sustain and develop freedom.
Again, self interest is involved. The corporate lobbying effort to reduce or limit a regulation that stifles innovation will benefit the company and also the country. There is a level of risk involved with fighting for a more free market. It just might so happen that a company’s efforts to reopen or keep open paths of creation and innovation result in a competitor gaining the advantage. This wouldn’t be because the competitor had an unfair advantage that was gained from the efforts of the company, but simply because the competitor did something better, or faster, or closer to what the consumer wanted. Free markets don’t guarantee a win, they only guarantee we can play the game.
With power, comes responsibility. With money, comes power. Freedom requires responsibility. Freedom, makes money. It is the responsibility of business leaders to make money, to use the power gained from that money morally and ethically, and to guard and promote the freedoms of our society that allow their companies to exist.
