Back in my days as a college football coach we taught players the difference between right and wrong and the importance of always trying to do the right thing. To us, that difference between right and wrong was as stark and easy to define as the difference between black and white. Life was simple in those days: winning was good and losing was bad, but you could lose and still keep your dignity. Fighting hard on the field against a tough opponent was the right thing; running up the score against a weaker opponent was the wrong thing.
It wasn’t until I ventured into the business world that I began to understand that there is in fact a gray area between right and wrong. It is hard to describe and even harder to define; every single individual has their own personal lines designating where the clearer “right” and “wrong” begin and end, and where the murky gray area falls. One thing does seem to be universal about this gray area, however: I’ve found that when things venture into the gray area is generally when the lawyers get called in.
I was talking with a friend of mine recently who found himself in a gray area through no fault of his or his firm. His firm had recently terminated their leasing agreement with a large commercial real estate brokerage firm. They then hired a new firm to take over their leasing assignment. In situations like this, the original brokerage firm is usually entitled to compensation on transactions that take place during the transition period between the two brokerage firms. In this case, the original firm had done a huge amount of work on the transaction, but the deal was completed shortly after the “transition period” had ended.
Here was my friend’s dilemma: did he pay the commission to the original firm, which had done nearly all of the work on the deal, even though he was not legally obligated to do so? Or did he pay the commission to the new firm which had not done as much work on the deal but was legally the only firm entitled to the money?
I’ve known my friend for quite a while and have done a lot of business with him. I’ve learned a lot about his background, including the fact that he was raised by his father, the minister for a large congregation. I knew my friend would find a way to do the right thing, even if it was also the more difficult thing to do.
After debating the situation for several weeks, my friend finally came to a conclusion: his firm would pay the full commission amount to both brokerage firms. Not split it between the two firms – each firm would get the full amount, so my friend’s firm was paying double the commission they would have otherwise paid. I’m sure this was a tough decision for him, but in the end he did the right thing. He paid each firm the money they had earned, rather than only paying what he had to under the law.
I have found that when you are in tough spots, if you try to do the right thing it can bring about some good results. The most important one is the demonstration of your character, which can greatly add to your reputation.
Also, you’ll sleep better at night. And who among us couldn’t use some more sleep?
Have a great weekend,
Ro