The Hungover Golf Caddy and Business Ethics
“Kenneth? Rich called.”
It’s 6:30am on a June Saturday in 1983, and I’m a college sophomore. I’ve been asleep about four hours after a night of drinking with friends. I’ve worked as a golf caddy since 7th grade, and still work at Exclusive Country Club on the weekends.
Rich, the Caddymaster, needs older guys to double bag on Saturday. I didn’t show up, so he’s called the house, where Mom wakes me up.
Now, bear in mind that it’s already 75 degrees and humid at 6:30am, and the high is expected to be 90. I drive the four miles up to the Club with a searing headache, hoping that I can get enough water (and some caffeine) in my system before the first tee.
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I learned a lot about people during all those hours on a golf course, and I’ve found that knowledge applies to business.
Founders vs. Posers
Exclusive (not the real name) is one of the most expensive clubs to join in St. Louis, and people handled themselves in different ways.
Company founders were the nicest people, without exception. While these members had wealth and status in the community, they didn’t start out that way. The founders clearly remembered what life was like before wealth, and they respected and engaged with everyone- including the Club staff.
The second generation- the founder’s children involved in the business- were generally good people, also. The founders instilled a level of personal responsibility into the next generation, and the need to represent the company brand.
Operating a 2nd or 3rd generation business- and having success- is tough. According to this source:
“The average life span of a family-owned business is 24 years (familybusinesscenter.com, 2010). About 40% of U.S. family-owned businesses transition into a second-generation businesses, approximately 13% are passed down successfully to a third generation, while 3% survive to a fourth or beyond (Businessweek.com, 2010).”
Many businesses in St. Louis are successfully managed by the second and third generation, and these owners were the exception, not the rule.
Which brings us to the posers.
Posers fall into two camps: the founder’s second or third generation children who didn’t do much of anything, and corporate memberships. It used to be easier for a company to expense a country club membership (or a portion of the membership) as a business expense.
If you’re an attorney, CPA, or a VP of sales, you can benefit from spending time with the rich and powerful- it may lead to new business. So, a number of member’s dues were paid by the employer. Many of these members were new to money, and looked down on the staff.
I still remember a family that knew me for years through my parent’s church, but pretended not to know me at the club. Seems insincere, right?
The lesson: you can’t grow a business without humility, and the ability to acknowledge people from all walks for life. That person carrying your golf bag or clearing your dinner dishes may eventually be a customer- or a great employee.
Why Players Didn’t Cheat
“Golf is a game in which you yell ‘fore,’ shoot six and write down five,” the radio broadcaster Paul Harvey said.
In my nearly 10 years of caddying (7th grade to senior year of college), I only remember one member cheating at golf. If this member’s ball was behind a tree and other players weren’t nearby, he would move it- in front of me.
So, other than the weird outlier, why did everyone else play by the rules?
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Golf has a long reputation of taking the rules seriously. It’s one of the few sports in which the player is expected to keep score, using a scorecard. In PGA events, rules officials are all over the course, to ensure that players follow the rules. Pros have incurred penalties for rules violations that cost them hundreds of thousands of dollars.
As you’ll read here, Justin Johnson held a one-shot lead at the 2010 PGA Championship, one of golf’s four most prestigious tournaments. Rules officials watching on TV (that’s right- not even on the course) saw Johnson ground his club before taking a swing in a bunker.
He was assessed a two-shot penalty and lost the tournament. Afterwards, he admitted his mistake.
The respect for the rules seemed to filter down to players at the club- they took the game seriously. When a player shot a great round, the score was legitimate.
That same outlook can be applied to business ethics. US legislation, including the Securities Act of 1933, 1934, and Sarbanes Oxley hold business owners and managers to a higher standard. As a result, executives are less likely to risk an ethical lapse.
Bottom line? I guess ethics and good behavior matter.
Ken Boyd
Author: Cost Accounting for Dummies, Accounting All-In-One for Dummies, The CPA Exam for Dummies and 1,001 Accounting Questions for Dummies
Image: The Culinary Geek (CC By 2.0)