Ethical Leadership in the Organization

Ethical Leadership in an Organization: Donald Trump -- the man, the mogul, the reality TV series ... The fragrance?

How can an organization behave as an ethical entity when is headed by an individual whom is not only an organizational leader but is himself a prominent figurehead? Can Donald Trump give opinions on ethical behavior to numerous eager apprentices and millions of television viewers, and still be an ethical and profitable leader of his own organization? The issues raised by Donald Trump's prominence from the popular reality TV hit series the "Apprentice" are not only specific to his organization but to the business world at large. When a brand name such as Martha Stewart, Rosie O'Donnell, or Oprah is synonymous with the President and CEO of the company, when that individual acts in a certain fashion, ethically or otherwise, it impacts the entire organization and thus the fate of all of the organization's shareholders, employees, and investors.

"The Apprentice" and the example of Donald Trump is particularly interesting, though, because it not only highlights the unique importance of personal ethics in any organization with a prominent CEO such as Trump's, but the fact that Trump so often makes ethics a feature of the show. He stresses ethical behavior amongst his potential employees, although he also encourages aggressive behavior as well, rebuking one 'project leader' when he agreed to 'take a fall' for his team's failure. Constantly, he stresses in the television show's boardroom, who he would like to have working for his organization, and who he would not, and ethical considerations are one, if not the only one of many considerations brought to bear upon a potential candidates' survivability.

Donald Trump thus has made himself a figurehead for business ethics and success. But perhaps this is inevitable, given he runs a real estate organization. Real estate is a profession where personality and ability are not easily separated, as even a part-time real estate broker knows -- one's personality, personal scheme of ethics, and the relationship one generates of trust is essentially one's bond. Thus, unlike Oprah or Martha, Trump might argue that his social and personal prominence is a necessary part of his profession, of selling highly coveted and luxury priced homes and commercial properties.

But is Trump as successful as he has been 'selling' himself to the public, and is this ethical? One recent positing on the Motley Fool's website notes, "Trump claims his Atlantic City casinos are the elite casinos in the city. The reality is they have been in decline for years and have been usurped by newer, better-managed properties. Oh, and by the way, they're also almost $2 billion in debt." (Paradiso, 2004)

In other words, it is alleged that Trump, through the use of his celebrity, creates the appearance of being a good businessman, rather than being a truly successful real estate broker. "Among numerous annoying traits Trump simply isn't that good a businessman. Unless being a world-class snake oil salesman qualifies one to be considered as an elite business executive." (Paradiso, 2004) How different is this inflating corporate profits through accounting fraud, as did Enron, one might ask? Trump sells himself and his organizational leadership, but without producing results on the balance sheets, the allegations run.) It has become a common joke among some real estate industry insiders that Trump would be fired from his own show.

Selling one's personality in real estate, however, is nothing new. A Trump loyalist could counter that if Trump keeps promoting his own success, even in the face of setbacks, perhaps salesmanship of the man will translate into salesmanship of the property. Witness any missive one receives in one's mailbox from a local real estate broker, regarding selling or buying one's home -- the photograph of the soliciting agent is always smiling forth from the flyer, reminding the prospective buyer or seller that real estate is about salesmanship and showmanship as much as actual quality. Even if the market is poor, and the house is not desirable, so long as the agent does not misrepresent the actual property, there is nothing unethical about using personal charisma to draw potential customers to look at a home.

Despite his recent financial difficulties, Forbes labeled "Mr. Trump" as "the very definition of the American success story. His fame grew with his fortune and now 'Donald Trump' has become a mega lifestyle brand," including a foray into Armani fragrances. Doing so has made buyers more willing to pay more for his properties, the article suggests, and thus Trump is doing his ethical job. "From his real estate and hotel empires to the hottest reality television show of the moment, Donald Trump has found the secret to success." (Forbes.com, 2004) Although his luxury casinos, golf courses, and entertainment venues, so prominently publicized and receiving of free advertising during last season's "Apprentice" finale may be floundering, surely it is the ethical responsibility of a leader to make use as much of promotional opportunities as they come his way? Is what is good for Donald Trump good for the organizations that bear his name, no matter what?