Seven ways to determine right and wrong for your AE firm
Morrissey Goodale offers seven pieces of advice for AE firm leaders facing tough moral decisions
You’re tantalizingly close to finalizing an acquisition that would be a game-changer for your firm, opening doors to fast-growing regions, bringing in a dream team with rare and valuable skill sets, and significantly raising the ceiling for your existing staff. This isn’t just a nice-to-have-deal—it’s a must-have. Revenue has been declining, and the careers of many good people who have been with you through thick and thin are on the line. Remarkably, due diligence has been smooth as silk—yet something keeps nagging at you, making the deal feel just a bit too good to be true.
Then, at the 11th hour, your instincts prove correct when a troubling piece of information surfaces. The crown jewel in the deal has a reputation for questionable personal conduct. Specifically, it turns out he’s been involved in multiple incidents at industry events where his behavior after hours has raised eyebrows—from inappropriate comments to some uncomfortable situations with junior colleagues. When you bring it up, he brushes it off as “just socializing” and assures you it’s “all in good fun,” dismissing it as harmless.
Well, that’s just great. This home run of a deal, a mere day away from closing, is now suddenly in question. Backing out would be costly and deflating on so many levels, but going through with it just feels risky—and maybe even wrong. He’s as good as it gets in the industry and it’s clear your current staff will benefit in a huge way, but his behavior doesn’t align with the culture you’ve so carefully crafted through the years. You tell yourself you could set up guardrails and make expectations clear. Won’t that really be enough to produce the right behavior? On the other hand, is it right to expose your employees and clients to a known risk? Time’s up. You have to make your decision.
The ethical quagmire of modern AE leadership
Business ethics might not be the most talked-about subject in the AE world, but these days, it’s becoming an increasingly vital one. With economic pressures, labor shortages, increased competition, and the demands of sustainability and innovation, leaders find themselves pulled in every direction. When pressures build, the line between what’s right and what’s questionable can blur, even for the most principled leaders.
The vast majority of leaders in the AE industry genuinely want to do the right thing. The issue is not their convictions; rather, it’s the complexity of modern challenges where “right” and “wrong” aren’t always clearly delineated. When your profession centers on juggling business realities with client needs, employee well-being, community impact, and sustainability—the question is often not whether to make an ethical choice, but rather how to identify what the ethical choice actually is. Below is a discussion of a handful of principles that can serve as a compass when the ethical waters get murky.
Principle 1: Think long-term impact, not short-term gain.
When ethical dilemmas arise, a valuable approach is to consider the long-term impact of each decision. In a world that sometimes incentivizes immediate results, keep the big picture in focus. Will the decision today enhance or erode your firm’s reputation over time? Will it affect community trust or the safety and well-being of your employees, clients, and other stakeholders? Ethical leadership often involves making choices that may not be popular or profitable in the short term but build a stronger foundation for the future.
Principle 2: Balance transparency with professional responsibility.
Transparency can be a double-edged sword. On the one hand, clients and stakeholders appreciate honesty. On the other, too much disclosure without careful framing could damage relationships, incite unnecessary alarm, or even spark liability concerns. Being ethically transparent doesn’t mean airing every challenge but rather sharing key issues that might affect safety, quality, or long-term performance. So, develop a nuanced understanding of what to communicate, how to frame it, and when to act.
Principle 3: Define your firm’s ethical North Star—and follow it.
Having a defined set of ethical values can help reduce ambiguity when lines blur. At your firm, maybe it means going beyond legal compliance and actively embedding values into your culture and decision-making processes. Does your firm prioritize sustainability? Do you emphasize safety and public trust? Knowing your “ethical North Star” provides a stable reference point, helping leaders steer decisions consistently, even in tough times. For example, if sustainability is a core value, then decisions about materials, construction processes, and partnerships should reflect that commitment. It can be tempting to leave such core values behind to win a big project. But if you have clearly communicated your firm’s values—to both employees and clients—it’s easier to justify the hard choices when they arise.
Principle 4: Engage your team’s ethical voices.
The responsibility for ethical decision-making doesn’t fall on you alone. Engaging employees in discussions about ethical challenges can offer new perspectives and help build a collective sense of responsibility within the firm. Encourage the team to voice concerns and participate in decision-making processes. By fostering a culture where ethical considerations are actively discussed, you can make better-informed choices while empowering staff to uphold shared values. This collaborative approach also helps build a “check-and-balance” system within your firm, so ethical considerations don’t get lost amid project pressures.
Principle 5: Stay grounded amid competing pressures.
You are often pulled between competing pressures from just about every direction. Staying grounded means resisting the urge to appease one stakeholder at the expense of another and avoiding the pitfalls of making reactive decisions. When the pressure is on, take a step back, consult with key stakeholders, and assess the options with clarity. Giving yourself the space to evaluate all dimensions of an ethical dilemma—economic, environmental, safety, and community impact—can prevent hasty decisions and ensure that you’re keeping integrity at the core of your actions.
Principle 6: Embrace the complexity (and don’t go it alone).
Today’s ethical dilemmas are rarely black-and-white. Embrace the complexity of these situations, knowing that the best solutions may require creativity, collaboration, and sometimes even compromise. Start an advisory group, find a mentor, or bring on outside board members who can provide guidance when the ethical path isn’t clear. One of the most empowering moves you can make is to seek advice and weigh different perspectives. By engaging with others and being open to diverse viewpoints, you allow yourself the flexibility to make balanced decisions grounded in a sense of collective wisdom. Even though the responsibility rests with you, opening up ethical questions to trusted advisors can uncover nuances that may not be apparent at first glance.
Principle 7: Recognize that ethical decisions shape legacy.
Ultimately, each ethical choice becomes part of your legacy, one that shapes how you’re remembered and, by extension, how your firm is perceived. Clients and communities may never know the details of every decision you make, but they feel the impact of choices made with integrity. When facing tough decisions, consider how you’d want your firm to be regarded in the years to come.
While the pressures of today’s AE industry are substantial, they also create opportunities for you to set a higher standard. By keeping the big picture in mind, staying committed to core values, fostering a culture of transparency, and recognizing that ethical decisions are part of a larger legacy, you can navigate these challenges confidently—even when the lines seem blurred. In doing so, you’ll not only build a stronger, more resilient firm, but also help set the tone for the future of this great industry.
Original content can be found at www.morrisseygoodale.com.
Do you have experience and expertise with the topics mentioned in this content? You should consider contributing to our WTWH Media editorial team and getting the recognition you and your company deserve. Click here to start this process.