Chapter 8: The Integrity Dividend and “Doing Good”

The integrity dividend is the measurable bottom-line-benefit of having employees see that their bosses live by their word. Does that boss consistently keep promises? And does she demonstrate the values she espouses for others? I call this perception behavioral integrity (Simons, 2002) and it is not the same as doing good, or being ethical, or even being a good leader. It is, though, a central ingredient of all of them. These other ideas are important, and I value them deeply. But they are not the topic of this essay. This essay focuses simply on the perception of word-deed alignment or behavioral integrity. Excellent behavioral integrity is extremely challenging to maintain, and it has profound, measurable performance consequences. It is a necessary prerequisite for any excellent leadership, and any aspiring manager does well to devote considerable attention and effort to developing and maintaining this quality.