The Value of Integrity and Trust in Personal and Organizational Spheres

Does integrity still matter? The thought came up over a cup of coffee while thinking about how there exists difficult to measure constructs because they are primarily latent functions (You have to measure them in multiple ways to help define the concept because you can't observe directly. Economics also has latent functions that are not easily observable because economics is a study of human choice/behavior.). As I take a sip of my black coffee, no sugar, I realize there are very core truths in human exchange that lay the foundation for cooperation and economic performance (We have thus far touched upon values, beliefs, oaths, and other foundational concepts of social-economic engagement. Social Exchange Theory)

It depends on who you talk to and whether or not they respect the value of integrity for a purpose beyond simple lip movement and public display for others. From an organizational and societal point of view, integrity still matters. It matters because all organizations are collectives of people, and they share information and knowledge through a medium of trust. When you are trusted you have more influence and that becomes increasingly important for leaders and executives (Your handshake should mean something because if people know it does, then connections influence reach because people minimize risk by doing business with you.)

Don't believe?

Let us use two example lenses where integrity of an executive, decision maker, or leader would create trust because they do what they say and say what they do even when no one is looking (Internal consistency of behavior and pronouncement.). The very nature of leadership and/or leadership teams/managers is to provide direction to others. High or low integrity perception will have an impact an organization at different levels. It may be subtle but the impact can make or break the long term financial health viability of the whole because engagement/exchange increases or decreases transactions (...organization as a formal collective. i.e. firm). 

Example 1 of Organizational Integrity: Implement a completely unfair rule no one understands or expects into the mix and watch the social and performance outcomes (must be short and long-term performance). Just because no one says anything to the boss doesn't mean there hasn't been a shift in patterns (i.e. all people who wore brown ties or green shoes are fired or all people who have 03 in their birthdate get demoted). While people will hang on for dear career they also will adjust much of their behavior to match the new risks and that will limit knowledge sharing and collaborative effort. Likewise, they will look to join the competition or start their own businesses where the environment is more stable (i.e. risk reduction strategy). It sounds like lack of integrity would not be a good outcome for competitive reasons.

Example 2 Playing Favorites: One of dangers of people who hold little integrity is that they may profess one thing but then do the opposite making a separation between what is and what is not. However, there are short term gains to playing favorites as short term loyalty rises but ultimately it caches you as the broader social structure of people adjust behavior based on the outcomes.  Equity Theory.

Integrity is a trust issue. Integrity means that you say what you believe, are transparent in those beliefs and will act to support those beliefs despite the personal consequences. Definition of Integrity (One can be ethical or unethical but still have integrity if they do what they say they will do.) Since it is an essential glue of human interaction most people start learning about it at an early age despite one's occupation, culture, belief or background (i.e. a universal truth/value/form). You can find an example in Montessori Integrity

Managerial integrity often takes into account interactions, norms, culture and values of managers/decision makers in a business setting. It is a little wider conception of the same idea. Managing for Organizational Integrity

Interestingly, one can actually hire for and screen candidates for integrity. One should understand that no psychological test can be 100% correct because they often measure the bell curve, and neural diversity can be a good thing for a species and competitiveness of an organization (One wouldn't want to hire cookie cutter characteristics that have limited utility under various market factors. If the market shifts you won't have the variability to deal with it.). There is a role for good judgement, instinct, and experience in hiring. If it ends in a handshake then there has been trust built that comes with an underlining truth and expectation (The power of the bond is based in part on an underlining expectation. Integrity allows you to build those bonds even with people who might not be your #1 fan because they expect people will act in alignment with words.). 

A Few Factors that Lead to Academic and Business Success

Let us think about some of the areas where people can focus their personal development efforts that will help to create higher success rates in school and in business. The same skills that one would learn in academia can be applied to business success because they are part of how a person approaches challenges. Those factors include grit & consistency, focus & goals, willingness to learn and strategic thinking.

Grit & Consistency: The ability to stay at tasks even when it’s difficult. Requires a level of emotional intelligence and task commitment.

Focus & Goals: Staying focused on key goals and objectives leads to efficiency and effectiveness of effort.

Willingness to Learn: Without the ability to understand your industry, gain new knowledge, and apply that knowledge people will be bested by others who are more competitive.

Strategic Thinking: Evidence based strategic thinking leads to minimizing risk and increasing probabilities of success.

You may be interested in reading this research study that does include similar ideas. Academic Diligence Success

Connecting Veterans to a Community: Free Veteran Pizza Party April 17th, 2025 5-7PM Escanaba

Veterans are important members of any community and a source not only inspiration but also a resources for reminding us what is important. Locally there has been a lot of veteran activities that includes the UP Military Museum, a new Escanaba Veteran Center, and some renewed interest in veteran organizations like the one below. These organizations have been around for decades and people spend time there socializing. It is important for veterans to socialize with each other because they are the one's who understand each other's experiences. Amvets is open to veterans, family and grandchildren. Know someone then let them know. Escanaba Amvets

Ports from San Diego to Escanaba Have Economic Value (Cluster Theory Development)

Boats are beautiful and if you spend enough time on the water you begin to see the beauty of living on the coasts whether that a Great Lakes coast or the Pacific Coast (btw you can actually surf both). Thinking about Escanaba and San Diego I realize there are significant economic benefits to being on the water that could possibly be transported to other places.

The world needs to move products and they need ships to move them (..also roads, rail, T1 lines, etc.). The U.S. has struggled to increase ship building and need to think of new ways to maximize opportunities. At the same time it must also think about improving the way in which people live their lives and the overall health of communities (It is possible to connect quality of life and economic growth in resilient cluster development).

Escanaba

I then came across the following report about the economic benefits of San Diego ports and started thinking a little about my home town Escanaba (...with really good people.) and whether they could benefit. Ports in alignment with the town's history might provide some of those opportunities that keep people here instead of having them move away for jobs.

(It would be interesting if you could partner some of the businesses between San Diego and investment in local business start ups in Escanaba to create a new cluster that helps further both's interests. Heck even a direct flight would be nice with about 5 hours flight time. We can dream!  or in this case theorize. 💨 Keep in mind that everything in this article and blog is more or less just theoretical discussions of "what ifs". It is interesting to think about.).  

Let us continue the discussion,....

The economic benefits of San Diego ports include 41% economic increase 2019 to 2023   San Diego Port Generates $14 Billion. Local ports helped weather COVID downturns and much more. That resilience mixed with a diversified cluster could help shield a community like Escanaba from various market up and down swings. One would expect the benefits to get more robust. The economic sectors include,

Tourism & Commercial Industry(40%)
Industrial & Wholesale Industry (23%)
Maritime Trade & Cargo Handling (32%)
Cruise Industry (1%)

You will notice the improved infrastructure and logistics of ports in the study below. One in Escanaba would likely have a significant impact on wages and tax revenue but also on the economic health of the UP and part of Wisconsin. That is dependent on size and nature. (Within the study they have some interesting charts and graphs.) The Impact of Ports and Logistics

Thoughts about investing in a port in Escanaba has been going on for a long time. It was once an important port town with fisheries and there was various efforts to rekindle. Times have changed and there are significant pressures on why it could possibly work. You may be further interested in some 2018 Escanaba Port Plans . Some plans have been in the works for a long time and there has been a discussion as a distribution area since 2004. Federal Reserve Bank Escanaba Shipping Hub 2004.

(One might think about how a lucrative port might also improve the health of local fish and related clusterable industries. I would totally love to see more stocking of fish to support tourism and the redevelopment of commercial fish stock that have disappeared from the area.. As an example small % of profit put back into ecological health, research and fish stocks perceptual development. I would love to see our local Native American populations and small fishing vessels from Escanaba earn a living from lakes again. If operations and permits are kept small the wealth could be more dispersed locally to support families. The benefits reach beyond another revenue source to retention and the deals that are made on the water, in the taverns and over a great locally caught meal. Related in part to a transactional rapid innovation cluster theory. Commercial Fishing Great Lakes History)

There are other things to think about in terms of exploring locally made products, training and hiring locals (...and some younger families that bring kids), increasing tax revenues, encouraging investment in infrastructure, and maximizing education and quality of life. If there is an increase in local/regional industry development, bumps in tourism, investment in beautification, and improvement in downtown entrepreneurship then there could be some interesting outcomes. 

*Side note: This is more about theory development and possibilities of "what ifs" but if there is the will there is the way. Its just an idea to be consumed or rejected.   I'm just sort of bored so I do theory development for fun. 

Stakeholder Collaboration for Inter-Industry Innovation Networks (Welding Center Example)

Countries that seek to develop leading edge technologies and products that drive economic growth need to develop the right environment where the highest growth probabilities are likely. A level of coordination between industry, government, academia and the community can foster these innovative networks. The more collaboration around shared interest, the more likely such network density will be deepened.

As an example, multiple stakeholders worked together in a bi partisan manner to develop a welding training center that will further current and future industries in Delta County.  There is a high likelihood it will have a positive impact on local wages and further awareness of the location as an international shipping destination and investment hot spot. Delta County Chamber FB

According to the study below creating a strong cluster requires a level of coordination to foster network density in a way that creates relational and structural embedding of inter-industry innovation networks. 

Research on the Impact of Inter-Industry Innovation Networks on Collaborative Innovation Performance: A Case Study of Strategic Emerging Industries.

As we further our example of a new welding center it influences labor availability, industry, wages, taxes, trades education, improved physical infrastructure, digital infrastructure and much more that creates an increase of activities that help to solidify network formation. In my theory there are social and industrial networks that engage in mirotransactions that can create whole new industries unseen when semi root related but different industries are interacting in the same economic organism (organism as a cluster made of micro transactions that are an extention of human characteristics, needs, abilities, motivations, etc. Furthering, Schumpeter Creative Destruction, sociological principles and firm theory).

Investment draw, tourism interest, and quality of life has consistently grown over the past few years as people collaborate for something bigger. The people and officials picked a northern star and started walking toward it and as they did the path became clearer (As a funny note to maybe be explained later Axis Mundi.) 

Shi, J., & Xiao, Z. (2024). Research on the Impact of Inter-Industry Innovation Networks on Collaborative Innovation Performance: A Case Study of Strategic Emerging Industries. Systems, 12(6), 211. https://doi.org/10.3390/systems12060211

Tips to Creating Wisdom Through Respecting Virtue and Understanding Perceptual Lenses

We hear people talk about values and people talk about other's values regularly through a process of social evaluations. We are all guilty in one form or another of making quick judgements. That is pretty normal as we seek to gauge ourselves and others to find a type of homeostasis with our social world. There are some differences we should consider. Respecting virtue in self/others as well as understanding perceptual lenses leads to greater rational decision making.

Some people who value and respect concepts such as virtue and moral conscious are often wiser than others. These are the type of managers and executives that are less quick to judge and less likely to use lower values to assess others’ behaviors heuristically without much thought. They are in essence the wise leader. People who Value Virtue Show Wiser Reasoning

We all have lenses in which we see the world. These are a combination personal, behavioral and cultural factors in many ways learned since childhood but also influence by our biological and psychological make up. To have the metacognitive learning ability to see one's cultural lens, mold it, and improve its accuracy takes significant reflection. Social Cognition Theory

Gaining the ability to understand self means we also gain the ability to understand and predict others behaviors/goals. There are certain "truths" about human nature that transcend cultures, locality, and companies. Managing a global enterprise through different lenses requires a level of humbleness. This is why most of the exceptional people I have met who have high skill are humbler then those with lower skill sets but bigger egos. Humble People See the World Differently "The Glue"

A Few Tips:

-Understand the difference between reality in terms of physical facts and preception in terms of interpretation of reality. An evidence based approach. Know what you know and know what you don't know. Intellectual curiosity.

-Before making a decision think about what the best long term strategic outcome would be and align accordingy for maximum flexibility. Long and short term strategic thinking.

-Accept that you make mistakes but are going to do the best you can with what you have. Be humble and avoid arrogance/ego because people will trust you if that value is truely present within you. Mistakes in leadership are common so don't be quick to judge others. See and recognize yourself in others.

-Ensure you accept differences in how people process information, their level of understanding, and be a guide to their development. When you are the guide and want the best for others they will follow you anywhere. Make sure you are leading for a purpose, for them, and around certain values people can support.

Learning Lesson: Information and studies like this help us understand the difference between good people trying to do the right thing and and those who don't. Leaders and executives should have a moral and ethical component to their personality. How they decide, act, think, and encourage outcomes comes to define them and overall trust and performance.

University of Michigan Consumer Confidence Survey March 2025

Keeping up with the news leads to greater awareness of shifts, changes, and adjustments. Consumer sentiment has experienced some challenges.

University of Michigan Consumer Confidence Survey March 2025

A couple of key points in the publication:

-Yearly inflation expections moved from 4.3% to 5% inflation expectations jumped up from 4.3% last month to 5.0%.

-Long-run inflation moved from 3.5% to 4.1%

-Concerns revolved around personal finances, business conditions, unemployment, and inflation.

-Unemployment expected to rise.

*The American Association of Economists has an older publication on the relationship between consumer confidence and spending. A little discussion on what causes consumer confidence to change. Consumer Confidence and Spending