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Joyce K. Reynolds is an expert Business Coach who works with CEOs, Sr. Execs, entrepreneurs and countless others providing knowledge, solutions, motivation and support that assist her clientele in successfully meeting workplace challenges. Find out more about Joyce's coaching practice.

Small Company in Legal/Financial Troubles

Question: I work for a small company with one owner and report directly to him. I am approaching my 5th year anniversary and love my job and get along with everyone here. Recently, it has come to my attention that the owner of this company does not have a very good reputation within our industry. His business decisions are getting closer and closer to the edge of what is considered appropriate (and legal). My feeling is that there may be an underlying financial problem here that I don't have access to because there are no public financial statements. My questions about this are answered in generalities. I am contemplating changing positions almost on the order of "getting out while the getting is good". I am afraid that if this company folds, it will be a black mark on my resume. Do you have any suggestions for those of us working in small companies in this situation?
Julie

Answer: The saying goes – ‘When a firm’s ethics fall short, move to higher ground.’ That said, you’ll want to determine whether this means ‘higher ground’ inside or outside of your current organization. Since you’ve spent five satisfied years with this company, it would seem appropriate to make every effort to take a timely and corrective internal course of action before moving on.

First, you’ll want to ascertain the validity of any claims of inappropriate dealings on behalf of your employer – that they are not the result of a few unfortunate business decisions or simply industry gossip.

If you find that there are legitimate reasons for concern about the soundness or ethical nature of this company, before choosing to leave, you might consider pushing for much more than ‘generalities’ in answer to your questions regarding their status. This should be done in the strictest of confidence with your direct-report owner where you might have the opportunity to offer solutions or corrective measures. There are, of course, some important points that you’ll want to consider before deeply probing this issue.

If a genuine issue of deliberate mismanagement is revealed, you will be exposing an ugly problem – one that your employer may be unable or unwilling solve. If you find this to be the case, you’ll want to know you can remove yourself quickly from what will then be an openly unethical situation. Getting out for this reason is no ‘black mark’ on your record. Staying in would be.

It would, therefore, be advisable - before confronting your employer - to be armed with either a job alternative or knowledge that you can withstand a reasonable job search period should you be forced out by either your own moral code or by your now uncomfortable employer. Remember, you’ve now uncovered a serious problem and clearly revealed that your ethical standards have surpassed those of your company. Leaving would most probably be your healthiest choice if there is no agreement to correct the infractions.

If you leave as a result of this kind of confrontation, you’ll want to be very careful how you explain your departure to prospective employees or colleagues. During interviews, you can circumspectly offer that you are looking for some specific attributes in your next organization – identifying integrity as one of the most important. Posit that you are determined to locate with a company that values a high level of ethics as well as excellent job skills. The message will be clear without having to further detail your former company’s lack of standards.

In the end if neither accountability nor solutions are offered in your current situation, your actions will serve to demonstrate your integrity. And, there’s nothing deleterious about that kind of leave taking.

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Disclaimer: The information in this column is intended to provide the reader with general ideas or concepts to be used as part of a broader base of knowledge they collect to determine their own best course of action and solutions most suitable for solving their workplace challenges. The information in this column is not guaranteed to be the appropriate solution for each individual.