My first job out of college was in mergers and acquisitions on Wall Street. I was thrilled when I had the opportunity to work with some of the greatest financial names of the era, like Carl Icahn and T. Boone Pickens. Then, it got even more exciting when the movie Wall Street was filmed in my office, and I got to pester Oliver Stone about the now-famous line, “Greed is good.”
This phrase highlights the problem that we are motivated by our desires, but we are also challenged not to succumb to them. That is what good character is all about. While there may be arguable benefits to a discompassionate marketplace, I also came to recognize that good things happen when we strive to be better than our basest instincts. When we prioritize character, we can avoid the bad outcomes caused by our selfish nature.
Once my eyes were opened, I couldn’t see my purpose for working on Wall Street. I realized how deeply unfulfilled I was. I also agreed with Mr.Stone that selfishness and greed were the primary motivators of my industry and that even the best of them, like Warren Buffet, don’t create or produce anything. So, based on Mr. Stone’s advice, I quit to go to film school, and it changed my life.
After a career of creating in film and television, meaning was still a driving motivator, and I ended up working for Character.org. Once there, I happily noticed a new financial language is emerging—one that transcends traditional metrics and speaks to the essence of corporate existence—Character-nomics, where strength of character becomes a significant force shaping the bottom line.
Let’s dive into how fostering a culture of character isn’t just a Hollywood happy ending; it’s a strategic move with tangible impacts on financial success, spotlighting real-world examples that redefine the rules of corporate success. It also champions a new era that rallies around the idea, “Being good is good for business.”
Character-nomics in Action: From the Boardroom to the Balance Sheet
Conventional wisdom viewed character as an intangible; now, it’s the driving force shaping tangible financial outcomes and long-term business health. A Wall Street Journal expose, coupled with insights from renowned writer Daniel Goleman and corroborated by success stories from industry leaders, spotlights how companies prioritizing character witness tangible impacts on their financial health (Brown, 2012; Goleman, 2017). But what are some real-world examples of Character-nomics?
Collaboration and Humility: Lessons from MICROSOFT
Since becoming CEO in 2014, Satya Nadella has transformed Microsoft’s culture from one of “know-it-alls” to “learn-it-alls.” He emphasizes the importance of continuous learning and growth, encouraging employees to embrace a growth mindset. This shift has led to increased collaboration, both internally and with former rivals, and this cultural shift enabled the company to regain its innovative edge, leading to significant successes like adopting cloud computing services and a soaring stock price. Microsoft’s commitment to curiosity, collaboration, integrity, and ethical conduct became its financial armor as the market gyrated. The result? Not just survival but a thriving bottom line that defied the odds.
Happiness and Positive Energy: Lessons from ZAPPOS
Under CEO Tony Hsieh, Zappos fostered a culture that delivers happiness and promotes positive energy. This included unconventional practices like offering new hires $2,000 to quit if they felt the company wasn’t a good fit, emphasizing core values such as “Create fun and a little weirdness,” and investing heavily in employee development. The result was a highly engaged workforce and exceptional customer service, which became Zappos’ key market differentiator. This character-driven culture led to significant business outcomes, with Zappos growing from almost no sales to $1 billion in annual revenue within a decade. Ultimately, Zappos’ character-centric model proved so valuable that Amazon acquired the company for $1.2 billion in 2009, allowing it to continue operating autonomously to preserve its distinctive culture.
Sense of Purpose and Mission: Lessons from PATAGONIA
Patagonia exemplifies a strong sense of purpose through its deep commitment to environmental sustainability, integrating this ethos into its core business practices. The company pledges 1% of sales to environmental causes, promotes product repair and reuse, and even runs a “Don’t Buy This Jacket” campaign to encourage reduced consumption. This bold approach has translated into significant financial success, with annual sales reaching approximately $1 billion in recent years. Patagonia’s sustainability focus has fostered strong brand loyalty, attracting environmentally conscious consumers to pay premium prices for durable, ethically produced goods. This strategy has helped the company weather economic downturns better than many competitors and positioned Patagonia as an industry leader, influencing broader sustainability trends in the outdoor apparel market and beyond.
Shared Leadership – Responsibility: Lessons from W.L. GORE & ASSOC.
W.L. Gore & Associates, known for products like Gore-Tex, operates with a unique “lattice” organizational structure that eliminates traditional hierarchies and managers. Employees, called “associates,” are self-motivated and take initiative aligned with the company’s mission, with leaders emerging organically based on their ability to gain followers and contribute to company goals. This shared leadership approach has fostered innovation and high employee engagement, contributing to Gore’s consistent ranking as a great workplace. Since its founding in 1958, Gore has grown into a global enterprise with annual revenues exceeding $3 billion, maintaining profitability for over 60 consecutive years and never having a layoff. The innovative culture has led to developing over 3,000 inventions across various industries, ensuring continued growth and market leadership.
Charting a New Financial Frontier: The Rise of Character-nomics
As Wall Street navigates the complexities of a changing world, where investing looks more like betting, and the next financial crisis seems unavoidable, character-nomics emerges as the new frontier. It’s time to recognize that living out character-centered principles powers financial resilience, attracts top talent, and redefines success. Core values aren’t just window-dressing for an Annual Report but a strategic advantage.
Companies are witnessing a financial and cultural transformation by living their core values and hiring for character. This transcends the balance sheet, proving that character isn’t just good for the soul—it propels corporate prosperity and serves as a bulwark against the inevitable storms of the marketplace. Good people make good decisions. They make good team members who take responsibility for their actions. They make great leaders who address the bottom line but are fair, think of others first, and attract top talent. Being Good Is Good For Business!
Character-nomics Catalyst: The Role of Character.org
Character.org is the unsung hero in the narrative of character-nomics. With our 11 Principles as the framework, we provide a way forward for companies eager to navigate the uncharted waters of character-driven success. From instilling ethical leadership to fostering a culture of continuous improvement, Character.org’s 11 Principles provides the roadmap for businesses aiming to infuse character-nomics into their DNA. If you want to learn more about how your company can start deploying character-nomics, contact me at: john@character.org.
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