Do the right thing
"I’ve been giving a lot of speeches recently about doing the right thing," Anderson says when asked about the business issues that occupy his time. "I was slated to speak before the Southern California Honda dealers. One week before the speech, they called and asked if I would speak to them on business ethics.
"I explained to them that in my businesses, I look for leaders who will treat their employees and customers with integrity. I don’t try to dominate. My role is to support them [my senior management].
"They know I want them to do the right thing; to run a business like it’s their own, but run it right. You’ve got to have guys that lead by the work they do. Work ethic and integrity are two things I look for in my hires. I don’t want a goof-off and I don’t want somebody I can’t trust."
Integrity comes into play when something inevitably goes wrong — a mistake is made, problems occur with a customer or a deal falls through. When that happens, Anderson doesn’t sugar-coat the problem or try to hide it.
"If something’s wrong, you’ve got to cure it," he says. "And cure it quickly."
In his 50-plus years in business, Anderson has earned a reputation as an honest businessman. When he gives his word, he follows through. Recently, he purchased an office building in Beverly Hills that has a unique architechtural design, sits back off the street in a wooded area and has a waterfall and fountain on the grounds. The previous owners were looking for a new owner who would keep the design and green space intact, Anderson says.
Although he didn’t submit the highest offer, Anderson says he landed the deal by pledging to preserve the property. Two weeks later, he received an angry phone call from another suitor.
"I pick up the phone and the voice on the other end says, ‘Damn you, John Anderson, I offered $750,000 more for the building than you did,’" Anderson says. "And I said, ‘So why do you think you didn’t get the deal?’"
The angry competitor said the only reason he was given by the sellers for their decision was that they knew Anderson would do what he said he would — keep the property intact.
"So I said to him, ‘Isn’t that what you’re supposed to do in business? Be honest?’ The next thing I heard was a loud boom — the sound of him slamming down the telephone– in my ear. I never found out who it was."
