Right of Way - January/February2019

Another time I was ordered to drag payables to 60 days despite contractual terms that required a 45-day payment. In this dilemma, I met with suppliers and renegotiated the contract. Some agreed to the 15-day drag. Some raised their price to cover the cost of the delay. Others needed a swing loan and I assisted by providing their bank with confirmation of a long-term contract to support the loan. Dragging the payables from 45 to 60 days without interaction with the suppliers would be unethical, but I was able to find an appropriate way to satisfy the request and honor commitments.

Peer Pressure

What if an inappropriate request comes from a peer, not a boss? There can still be perceived pressure to help them. A student told me about such an experience. On her way to a class that required students to sign in, she received a friend’s text asking that she sign her in at the class. She decided to pretend not to receive the text until after class was over.

After hearing about the dilemma, I suggested that she should not run and hide from ethical issues. Sure, these dilemmas can create considerable discomfort, but it’s best to face them head-on. These are opportunities to let others know what you stand for. She could have responded immediately to her friend saying, “No, that’s wrong.

Don’t ask me to do that. I would never
ask you to do something wrong.”
My guess is that her so-called friend
would never ask her to do that
again.

When You’re the Boss

There’s another aspect to the standing up to power dilemma. It’s when you are the power. First, don’t make unethical requests of your employees. Period. As the boss, your employees might give more deference than you deserve. Obviously, pleasing the boss is important and in that zeal, they can misinterpret questions as orders.

Once, while touring a manufacturing plant which I supervised, I asked why a wrapping machine wasn’t located closer to the shipping department since wrapping immediately preceded product shipping. I merely asked out of ignorance, but when I returned six months later, the wrapping machine was in the shipping department. I asked why and was told, “You said to move it." I learned an important rule of communication: ask the recipient to tell you what they heard. That double communication can avoid a lot of misunderstandings.

In Summary

Most organizations have ethics
resources to whom you can turn to
when you are asked to do something
wrong. Use them. Use the Compliance
Line if you cannot find the needed help
elsewhere. Progressive organizations
have integrity champions scattered
throughout the organization. Learn
who they are and meet with them.

A final word of advice is to plan ahead for the day when you are faced with this dilemma. Build friendships throughout the organization. Strong relationships are always helpful and the social capital is very helpful when standing up to power. Be ethical in little things. Habitual ethical conduct will eventually manifest itself in the big issues as well. Build a reputation for character and integrity. Attend the ethics training. Offer to teach it. Become an integrity resource for others. Your company and the entire industry will be better because of your effort. J

Brad Yarbrough is the Owner and CEO of Pilgrim Land Services, a right of way services company in Oklahoma City. With over 35 years experience in oil and gas, he has clients nationwide and an extensive network of landmen and agents.