Core Value: Integrity

By integrity we mean a personal inner sense of wholeness, deriving from honesty and rightness of character. 

Integrity is a deeply personal value, so how does it guide our business practices? In a business context, integrity is about being honest about what we’re doing, and doing what we say.

In our relationships with each other, with our clients, with the public we should be honest and respectful.

Last year I read about two, shall we say, entrepreneurial young men who gained licenses to operate a number of public pay phones. As licensees they would be able to choose where to install the pay phones and they would earn some percentage of every quarter that people spend when making their calls. Moreover, licensees also earn a small fee – 10 cents/call - each time someone dials an 800 number from one of their phones. If these two men could identify the best locations to install these pay phones, they could earn a handsome profit from these payphones. It seemed to be all about finding the perfect location. 

However, these two fellows soon discovered that it wasn’t so easy to make a living off of a handful of pay phones scattered around the city. As more and more people were using cell phones, these payphones were collecting more dust than quarters.

Frustrated, they determined to rob the telephone company. They brought all of their pay phones back to their apartment and clustered them out around their home office. I think there were 20-40 phones crammed into this place.  Then they proceeded to connect each phone to a small network of computers. The computers were programmed to make outbound calls from the payphones. But, not just any calls: 1-800 calls. The computers cycled through a long list of 1-800 numbers, dialing various companies across the country, calling everyone from American Express to 1-800 Got Junk, to 1-800 Flowers, to 1-800 Contacts, to 1-800 Go FedEx.  Each time they made a call to an 800 number they earned 10 cents.

Their scheme worked. Over the next few months their computers made, literally, millions of calls and they earned nearly $1 million in fees from the telephone company.

There’s innovation, but there is not integrity.

It didn’t take long for them to get caught. The telephone company discovered that they were dialing for dollars and called the police. Last I heard, the two were trying to defend themselves in court.

Now, it turns out that while they were prosecuting their evil plan, they discovered that the telephone company was actually not paying them for all of the calls that they had made to 1800 numbers. Their computers had kept perfect logs of each and every call, marked with a time and date stamp. They discovered that the telephone company was systematically underpaying their licensees. A licensee really has no idea how many people make 1-800 calls from their pay phones, and it appears that the telephone company was only paying for about 50% of the calls that are actually being placed.  Now there is a class action lawsuit against the telephone company for systematically stealing small amounts from a very large number of licensees. 

What’s interesting is that the telephone company had been doing this for years before getting caught. The two guys got caught in a matter of months. Why the difference? The two guys stole a large amount from one company. The telephone company stole very small amounts from a very large number of people. That’s why they didn’t get caught sooner.

Unfortunately, many businesses earn a margin by weaseling small amounts from a very large number of clients. 

In our industry, click fraud is an issue of great importance. People write programs that simulate clicks on ads, charging advertisers for useless clicks. The issue is just now starting to boil over. In the past couple weeks there have been more than 45 news stories that deal with click fraud. When we started the business back in April 2001 we observed that some pay-per-click search engines were riddled with click fraud. Many are still doing it today. They are either actively doing it themselves, or allowing it in their network and not doing all they can to stomp it out.

We have always taken a very proactive stance on click fraud. We have a number of filters in place to protect our advertisers from bogus clicks. I think we have been rewarded for holding firm on the issue of click fraud: our average CPC is higher than most other bid-for-placement networks. Yet, the fraudsters keep trying. And we need to keep ahead of them.  Not just because it’s good for business, but because it’s good.

That’s just one example of an area of our business where integrity provides a guide to action. 

To paraphrase Henry Ford: "Integrity means doing the right thing, even when no one is looking."

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