The catastrophic shortage of water in California has prompted rationing and the looming prospect of permanent changes to the state’s economy and lifestyle. Yet this week a citizen with a cellphone captured video of California Department of Transportation sprinklers sewing the precious fluid along a freeway…as a light rain fell following a night of showers. Meanwhile, along the freeways, message boards are warning motorists of the importance of responsible water use in the drought, stating “Severe Drought. Limit Outdoor Watering.”

In my business and corporate ethics programs, I often use a hypothetical based on a true incident at the U.S. Chamber of Commerce, in which the staff was told that there would have to be a freeze on raises and new hiring because of financial challenges facing the association. They were told that everyone would have to sacrifice for the vital mission of the Chamber. That same week, the General Counsel’s office received a long-delayed remodeling, with expensive new furniture, artwork and carpeting. Morale plummeted, and the absence of trust in management was palpable. I use the incident to demonstrate the consequences of leadership hypocrisy and absence of integrity, when those in power hold themselves to different, and lower, standards than they claim to champion.

What California did was far, far worse. Continue reading →