When smart leaders with good intentions still fail the IRL test of morality
In the bargain or hungry world of real estate, it can be easy to focus on the bottom line (closing the deal and your commission). But the recent dip in the seemingly unrelated pop trend provides a stark reminder that how we achieve success is just as important as the success itself.
A new Netflix documentary, which pulls back the curtain on America’s Next Top Model (ANTM), serves as a sad “good” example of why every business leader (including real estate agents, loan officers, analysts, and business owners) should revisit their basic lessons in business ethics.
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At first glance, the worlds of high fashion and real estate seem miles apart. However, the documentary highlights the failure of three key pillars of sustainable business management, which I teach MBA students, and which translate directly to the real estate industry:
- Business Ethics,
- Change Management, and
- Leadership/Team Strengths
Let’s dive deeper into the business ethics aspect.
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The show’s creator and host, Tyra Banks, has proudly earned her management certificate from Harvard Business School over the years, which speaks volumes for her hard work and business acumen. She created a platform with an undeniably brilliant vision, which was to democratize access and opportunity for women who did not conform to the conventional way of modeling. Tyra’s brilliant and brilliant vision saved the network and became a worldwide success after its first season.
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However, as the Netflix documentary (Reality Check Inside: America’s Next Top Model) shows, two things can be true at the same time. While making history and building an empire, the narrative suggests a disconnect between academic theory of ethical leadership and actual reality. It begs the question for us as professionals:
Are we so focused on numbers that we can’t resist the impact of our methods on our team, our customers, our communities, and our reputation?
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The documentary alleges that important goals of business studies, such as accountability, effective communication, transparency, and balancing profit and social responsibility, were absent. For real estate professionals, these are not just buzzwords; they are the foundation of customer trust and team cohesion
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Accountability means having an appraisal faux pas or covering up a delay when dropping the ball
Effective communication means clearly explaining complex negotiation terms and tight deadlines to a nervous home-starter.
Transparency means disclosing all payments upfront, ensuring your client knows exactly what they are signing.
If these elements are missing, even the most lucrative deal can cause long-term damage to your reputation, your team’s morale, your community’s home ownership opportunity, and may even result in a lawsuit (yes, with an “s”).
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This situation reminds us of Audre Lorde’s profound wisdom: “The King’s Tools Will Never Tear Down the King’s House.”
Tyra’s business idea was to break down the stereotypes of the modeling industry. However, based on the documentary’s alleged narrative, the tools he used (promoting insecurity, lack of transparency, and unilateral control because why would anyone need to widen the gap between his teeth!) epitomized the very degrading practices he sought to overthrow.
This is the ultimate ethical challenge.
In real estate, are we trying to “change the game” by using old hacking tactics?
Are we committed to a “customer first” approach while still prioritizing our work over their financial well-being and access to fair housing?
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If our goal is to create a fair housing market, we cannot rely on tools of exclusion and transparency. An example includes agents secretly directing a hunter by saying, “Oh, that place (or school district) is not for someone like you.” Or, directing neophyte home buyers to mortgage or finance products that will cost more with worse terms just because the commission is so lucrative.
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As you move on to the next stage, let this documentary serve as a warning for your actions. Do you balance profit maximization with your ethical obligations to your customers, team, and community? Are you creating opportunities for others without forcing them to endure the same toxic situations that you might struggle to escape?
Tyra Banks is an undeniable superstar who has hurt some of those we originally wanted to elevate. Similarly, in the world of real estate, where people’s homes and lives are at stake, we can’t help but be humane in our business decisions. Let’s make sure that when we post our codes of conduct, the living reality of those actions is actually in the room with us.
Dr. Lee Davenport is an attorney and fair housing educator.
This column does not necessarily reflect the opinion of HousingWire’s editorial department and its owners. To contact the editor responsible for this piece: [email protected].
