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184 PART 3: THE PERSONAL SIDE OF LEADERSHIP
each of them as human beings with feelings. Because the workers recognized that
layoffs were a last resort and the executive team was doing everything they could to
save as many jobs as possible, they rededicated themselves to helping save the divi-
sion. A buyer was found and the company had the opportunity to rehire half of those
who had been laid off. Everyone contacted agreed to come back because the humane
way they had been treated overcame negative feelings about the layoff. For Peace,
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the courage to practice moral leadership gained respect, renewed commitment, and
higher performance, even though he suffered personally in the short run.

Whistleblowing
Whistleblowing Opposing Unethical Conduct Requires Courage Whistleblowing means emp -
employee disclosure of illegal,
employee disclosure of illegal, loyee disclosure of illegal, immoral, or unethical practices in the organization. One
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immoral, or unethical practices
immoral, or unethical practices
in the organization recent example of courage in this area is Colleen Rowley, the Minneapolis FBI staff
in the organization
attorney whose whistleblowing letter called attention to agency shortcomings that
may have contributed to the September 11, 2001, terrorist tragedy. A colleague of
Rowley’s said, “She always does what is right, even when no one is watching.” 62
Whistleblowing has become widespread in recent years, but it is still highly
risky for employees, who may lose their jobs, be ostracized by coworkers, or be
transferred to undesirable positions. Consider David Windhauser, the former con-
troller of Trane, a heating and cooling company owned by American Standard,
who was fired after reporting that managers were fraudulently reporting expenses

on financial statements. The 2002 Sarbanes-Oxley Act provides some safety for
whistleblowers like Windhauser. People who have been fi red for reporting wrong-
doing can file a complaint under the law and are eligible to get back pay, attorney’s

fees, and a chance to get their old job back, as Windhauser did. Yet Trane fought the

court order for months and finally settled with the former employee out of court.
Many whistleblowers, like Windhauser, fear that they will experience even more
hostility if they return to the job after winning a case under Sarbanes-Oxley. 63

Most whistleblowers realize they may suffer financially and emotionally from
their willingness to report unethical conduct on the part of bosses or coworkers.
They step forward to tell the truth despite a jumble of contradictory emotions and
fears. Choosing to act courageously means confl icting emotions— whistleblowers
may feel an ethical obligation to report the wrongdoing but may also feel dis-
loyal to their bosses and coworkers. Some may do battle within themselves about
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where their responsibility lies. As a result of widespread corporate scandals
in recent years, smart companies are beginning to see whistleblowing as a ben-
efit rather than a threat, however. One survey found that 88 percent of respon-

dents agreed that whistleblowing is good for business. Many companies, such as
Marvin Windows and Doors, use new whistleblowing software, which allows em-
ployees to anonymously report wrongdoing to top executives or outside board mem-
bers. Marvin’s leaders “want the company to do the right thing,” says manager Steve
Tourek. “And we want to give our employees a place to tell us when we aren’t.” 65

Finding Personal Courage
How does a leader fi nd the courage to step through fear and confusion, to act de-
spite the risks involved? All of us have the potential to live and act courageously,
if we can push through our own fears. Most of us have learned fears that limit
our comfort zones and stand in the way of being our best and accomplishing
our goals. We have been conditioned to follow the rules, not rock the boat, to go
along with things we feel are wrong so others will like and accept us. There are a
number of ways people can unlock the courage within themselves, including com-
mitting to causes they believe in, connecting with others, welcoming failure as a
natural and benefi cial part of life, and harnessing anger.