Tone at the top, a much discussed term, is vital and necessary, but it is not sufficient for an ethical culture. For that, a strong tone needs to be reinforced, up and down the corporation, with defined processes, procedures and examples. The ethical fiber of a company does not rest solely in words or codes of conduct, but in the actual behavior observed by suppliers, dealers, customers, and employees. At John Deere this is summed up in a highly visible, frequently referenced shorthand known as “the how.”
Observers need jolting evidence of the tone at the top, often a resolute willingness on management’s part to miss revenue or earnings targets — or even lose key talent — in order to do things the right way.
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