Winners Never Cheat: Even in Difficult Times, New and Expanded Edition
Page 1
Winners Never Cheat
Even In Difficult Times
Jon M. Huntsman
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ISBN 10: 0-13-700903-8
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Library of Congress Cataloging-in-Publication Data
Huntsman, Jon M.
Winners never cheat : even in difficult times / Jon M. Huntsman.
p. cm.
Rev. ed. of: Winners never cheat : everyday values that we learned as children (but may have forgotten). 2005.
ISBN 0-13-700903-8 (hbk. : alk. paper) 1. Business ethics. 2. Success in business—Moral and ethical aspects. 3. Executives—Conduct of life. 4. Huntsman, Jon M. 5. Businessmen—United States—Biography. I. Title.
HF5387.H863 2009
174’.4—dc22
2008041502
TO KAREN,
MY PARTNER AND
BEST FRIEND.
Contents
Foreword by Glenn Beck
Introduction Good Times, Bad Times
Circumstances may change but your values shouldn’t.
Chapter One Lessons from the Sandbox
Everything we need for today’s marketplace we learned as kids.
Chapter Two Check Your Moral Compass
We know darn well what is right and wrong.
Chapter Three Play by the Rules
Compete fiercely and fairly—but no cutting in line.
Chapter Four Setting the Example
Risk, responsibility, reliability—the three Rs of leadership.
Chapter Five Keep Your Word
It’s high time to corral the corporate lawyers.
Chapter Six Why We Cross the Line
There are many temptations, but reminders help.
Chapter Seven Pick Advisors Wisely
Surround yourself with associates who have the courage to say no.
Chapter Eight Get Mad, Not Even
Revenge is unhealthy and unproductive. Learn to move on.
Chapter Nine Graciousness Is Next to Godliness
Treat competitors, colleagues, employees, and customers with respect.
Chapter Ten Your Name Is on the Door
Operate businesses and organizations as if they’re family owned.
Chapter Eleven The Obligation to Give Back
Nobody is completely self-made; return the favors and good fortune.
Chapter Twelve The Bottom Line
Acceptable values are child’s play, not rocket science.
Perspective from Larry King
Perspective from Neil Cavuto
Perspective from Wayne Reaud
Acknowledgments
I wish to convey my great appreciation to Jay Shelledy, a professional writer and editor, who challenged and organized my thoughts and helped convert them to the written word, and to Pam Bailey, my dedicated and loyal administrative assistant who eased the hassle with those astounding and generally unknown complexities of writing a book.
I also desire to thank deeply the professionals at Prentice Hall: Vice President and Publisher Tim Moore, and Associate Publisher and Director of Marketing Amy Neidlinger, for their initial faith and encouragement that I publish an updated version; and Operations Manager Gina Kanouse for her valuable suggestions on this edition. Thanks also goes to Pearson Education Senior Vice President of Sales and Marketing Logan Campbell, and Marketing Director John Pierce, for their unwavering commitment to and patience with a first-time author; Development Editor Russ Hall, for clear and candid critiques; Managing Editor Kristy Hart, and Copy Editors, Keith Cline and Sarah Kearns, for their swift, quality-enhancing suggestions to and the preparation of my manuscript; and Wharton School administrators, faculty, and students for their longstanding support in this and other endeavors.
I would be especially remiss if I did not acknowledge the contributions of Larry King, whose gracious Introduction set the tone for what follows; of Neil Cavuto, for his kind Afterword and whose own book, More Than Money, provided inspiration; Glenn Beck, for his kind and humbling Foreword; and of trial lawyer extraordinaire, Wayne Reaud, for his humbling Preface. They are more than just successful professionals, highly respected by their peers; they are friends of mine.
I am indebted to my mother and other family members—living and deceased—for providing models of kindness and decency, and to my late father-in-law, David Haight, who always believed in me.
My greatest debt, however, is reserved for my spouse, Karen, our 9 children, and 58 grandchildren for providing me with 68 convincing reasons why a person ought to stay the proper course.
—J.M.H.
About the Author
Jon M. Huntsman is chairman and founder of Huntsman Corporation. He started the firm with his brother, Blaine, in 1970. By 2000, it had become the world’s largest privately held chemical company and America’s biggest family-owned and operated business, with more than $12 billion in annual revenues. He took the business public in early 2005. He was a special assistant to the president in the Nixon White House, was the first American to own controlling interest of a business in the former Soviet Union, and is the chairman of the Board of Overseers for Wharton School at the University of Pennsylvania, his alma mater. Mr. Huntsman also has served on the boards of numerous major public corporations and philanthropic organizations, including the U.S. Chamber of Commerce and the American Red Cross. The Business School at Utah State University is named after him, as is the basketball arena at the University of Utah. The Huntsman businesses fund the foundation that is the primary underwriter for the prestigious Huntsman Cancer Institute in Salt Lake City
, which he founded. The hospital/research facility has become a leader in the prevention, early diagnosis, genetic legacies, and humane treatment of cancer. He resides with his wife, Karen, in Salt Lake City. His oldest son, Jon Jr., is governor of Utah.
Foreword
There is a good chance that you’ve never heard of Jon Huntsman. He shuns the spotlight, doesn’t like to talk about himself, and likes it even less when others talk about his good works. If you’ve ever used a plastic plate, bowl, dish, or Styrofoam take-out food container, you have Jon Huntsman to thank. His company was the first to develop these products, along with the first plastic egg carton, the original Big Mac container, and plastic fork and spoon. The small business he started with his brother in 1970 became the largest privately held chemical company in the world.
Jon Huntsman’s true legacy, however, isn’t the multi-billion dollar company he built or how he revolutionized how we live with what he created, but his unwavering honor, integrity, and generosity in every aspect of his professional and personal life. In an era of high-priced lawyers and accountants always looking for the latest legal loophole or tactical advantage, Jon Huntsman has done business on a handshake. Deals valued in the hundreds-of-millions of dollars were negotiated and concluded, literally, with nothing more than both parties looking each other in the eye and shaking hands. That is Jon Huntsman’s reputation and legacy.
To many people, this will be nothing more than a quaint anecdote or a nostalgic reminder of how life used to be. They argue that Jon Huntsman is a man made for a different and simpler time. I would argue that we are a people out of place. Jon is currently living the life that all of us want to live, but somehow too many people have convinced themselves that business and relationships just aren’t conducted this way anymore.
They couldn’t be more wrong!
I first met Jon Huntsman on a visit to Utah when a mutual friend arranged for us to have lunch together. I really didn’t know a lot about Jon Huntsman, but I knew he was a self-made man and a multi-billionaire. How could I turn down lunch with a multi-billionaire? When I was told we would be having lunch at a hospital cafeteria, I thought it wasn’t exactly the lifestyle of the rich and famous, but I soon came to realize that the cafeteria at the Huntsman Cancer Institute is not your typical cafeteria.
Some of the best prime rib I have ever eaten was during that lunch. How could hospital food taste so good? I learned that prior to the opening of the Huntsman Cancer Institute, Jon Huntsman battled cancer. During his hospitalization and course of treatment, Jon and other cancer patients would be hungry at 3 o’clock in the morning or 9 o’clock at night, but the kitchen was closed, and when it was open, the food was bland. So when Jon opened up his cancer center, he decided to have “five-star” dining for everybody. The patients can order whatever they want, whenever they want it, because Jon doesn’t want them or their families worrying about being hungry or eating bland food while fighting cancer. They have other things to focus on.
The Huntsman Cancer Institute is a marvelous and beautiful facility. As we walked through the buildings, I learned that its entire design is geared toward providing comfort, warmth, and compassion to the patients. The medical team and technology are unrivaled and unsurpassed. Halfway through our walk, Jon stopped and looked me in the eyes and said, “We’re going to cure cancer here and then I’m turning this into a Ritz Carlton.” I laughed and he replied, “I’m serious. We’re going to cure cancer here.” I believe him.
I met several grateful patients and their families. Their feelings and praise for the Huntsman Cancer Institute were universal. One patient explained how his son had been diagnosed with an aggressive form of cancer and was scheduled to fly from Philadelphia to the Huntsman Cancer Institute for an initial evaluation and treatment. They arrived at the Philadelphia Airport only to be told that all flights to Salt Lake City were cancelled due to a heavy snow storm. As this father relayed his story to me, he broke down in tears. He told me that every delay in obtaining treatment resulted in the spread of cancer in his son’s body. He telephoned the Huntsman Cancer Institute and advised them of the delay and his ongoing attempts to reschedule the flight. The father was told to continue with those efforts and that the medical team would get back to him. After a few moments, a heartbroken father received a call from the Huntsman Cancer Institute. He was told that Mr. Huntsman was sending his private jet to Philadelphia to pick up both him and his son to fly them directly to Salt Lake City. If Jon Huntsman had his way, this story would not be unique—it would be a regular occurrence.
I could spend a day sharing with you all that I learned in that short afternoon with Jon Huntsman, but it would take me a year to share with you all the things that I would like to learn from him. The way Jon conducts his business and lives his life will not only inspire you to be a better person, citizen, and entrepreneur, it also will give you hope that the good guys don’t finish last.
As you read this book, I know you will feel as I did when I first read it. I hope you’ll also feel compelled to share it with as many people as you can. I have never in my life purchased any book by the case, except for this one. As I meet people who question if business can be done with honesty and integrity, I send them a copy of this book to remind them that the answer is “yes,” not only can it be done, it is being done.
This isn’t a book limited to doing business. This isn’t a book about a company that introduced the world to plastic egg cartons, plastic plates, or plastic knives and forks—this is a book about the man behind it. This is a book about life, about principles, and how success is a by-product of living those principles. This is a book about how success and blessings will rush to you by doing good first. Just ask Jon Huntsman if you’ll be able to give away the money and blessings of success quickly enough.
In today’s world where too many people try to grab and hoard as many dollars as they can, where politicians do anything to cling to power, where we mistakenly believe that business can no longer be done with a look in the eye and a handshake, it is time that we remember the values of honesty, integrity, and generosity. Like George Washington was in his time, Jon Huntsman is our time’s “indispensable man.” Look to Jon Huntsman, as he is still showing us the better way.
Glenn Beck
Glenn Beck talk show, CNN’s Headline News
Introduction
Good Times, Bad Times
Circumstances may change but your
values shouldn’t
When I wrote the original edition of this book in the fall of 2004, I had experienced four decades in the business world. My life had been enriched in every aspect. Like others before me, I discovered that “happiness is not the absence of conflict, but the ability to cope with it.” I had witnessed it all: the greed, the cheating, the lying, and the selfishness. And the triumphs, the miracles, the rages-to-riches, and the flim-flam folks.
Or so I thought. It turned out I was wrong. There have been sequels galore on the downside (and a few on the up). As I write these lines in the fall of 2008, ethical corner-cutting has risen faster than the price of a gallon of gas. Even those tough, cold winters in rural Idaho were easier to swallow than some of today’s Wall Street trickery. Traditional values appear to be as in vogue as a subprime loan.
The good times of 2004 to 2007—record markets, sizzling real estate, easy credit, relatively acceptable energy costs—conspired to make us morally flabby. It is easy to take the high road when the route is leading to better times. Generosity isn’t difficult when money flows.
Historically, positive economic scenarios are followed by painful downturns. The result presents new temptations to bend rules, to hoard material possessions, and to dismiss decency as being so last year. Born of anger, fear, stress, and frustration, the temptation to cut a corner is strong and persuasive. For the honest of heart—life’s real winners—times like this are just another passing test.
When reaping an abundant harvest, most of us keep our senses—the common variety and
in relation to fair play. Yet, it is quite apparent, given the amount of irresponsibility, cheating, fraudulent behavior, and pure greed that has recently been exposed, that not everyone was playing by the rules. Indeed, the breadth and depth of abhorrent behavior from this minority were startling. From subprime loan scams to speculation on the oil markets to crises in the insurance and financial sectors to falsifying the financial conditions of companies, ethical abuses, and the scope of government bailouts have been jaw-dropping.
Unfortunately, doing it the “right way” seldom cushions economic blows. Such letdowns can leave one confused and angry, but it is no time to panic, to lose track of our moral compass. On my mother’s tombstone in Fillmore, Utah, are etched Shakespeare’s immortal words: “Sweet are the uses of adversity.” Surefire winners understand this adage. Crises must and can be resolved in moral ways. In so doing, keep in mind two things:
1. The situation hardly ever is as bad as it seems. It will pass. Better times are ahead. If nothing else, history tells us that. Americans inherently tend toward optimism. It is in our genes. The fact is, the past 20 years, overall, have been fairly good to us.
2. Prosperous times are no guarantee we will adhere to a morally righteous path. Most people strongly adhere to a fixed code of ethics whether the economy is up or down, but some feel a sense of need for even more financial gain, regardless of the consequences.
The subprime mortgage and energy price debacles were conceived in a bed of raw greed, from a dream of getting something for nothing. They were born with illusions of easy, riskless, endless money. The erosion of moral values is the natural progression of this mindset. Such obsessions require the redrawing of ethical boundaries. This sort of greed destroys the financial and emotional underpinnings of others. For some, the idea of finding a morally acceptable alternative is placed on “call waiting” until the nefarious goal is reached.