Silence as a Warning Sign: A Conversation with Tom Hardin (Tipper X)

Recently, I had the incredible opportunity to connect with Tom Hardin, who many of you may know as "Tipper X," the former insider trader who became a key cooperating witness for the FBI. 

Tom's story is a powerful reminder of how easily ambition and the desire to belong can lead good people down a dangerous path. In our conversation, we explored the subtle psychological traps that can result in unethical choices and the immense pressure that causes people to compromise their values. We also discussed the critical importance of fostering a culture where integrity is valued more than short-term gains. 

Think of this as your guide to invaluable insights into the subtle cues and psychological traps that can lead to unethical behavior without the actual pain of a major compliance failure at your org!

Your story highlights the "psychological traps and rationalizations" that lead to unethical choices. What are some common traps employees fall into, and how can organizations proactively build defenses against them?

The most dangerous traps are the ones that feel like nothing at all—just a small bend, a one-time exception. In my case, it began with telling myself a story: “Everyone else is doing it.” That story grew until I couldn’t hear my own values anymore.

Common traps include:

• Normalization of deviance: When small rule-bending becomes routine, people stop noticing the bend.
• Rationalization: This is perhaps the most dangerous. We rewrite our own actions to align with our self-image. “I’m not stealing, I’m just leveling the playing field.” These lies feel like truths.
• Pressure + obedience: High-pressure environments can make people feel like there's no choice, especially when direction comes from someone in authority.
• Overconfidence and moral licensing: If you’ve built a track record of being “the good guy/gal,” you might convince yourself you’ve earned the right to cut a corner.
• Diffusion of responsibility: When no one owns the outcome, no one feels accountable.

To build defenses, policies aren’t enough. Companies need to narrow the “Say-Do Gap”—the space between the values we profess and the actions we tolerate. That starts with leadership modeling self-reflection, vulnerability, and curiosity. Behavioral risk training should center on why good people make bad decisions using stories, psychological insights, and interactive exercises that make the gray zone visible.

You experienced firsthand how a desire for status and short-term gains can lead down a dangerous path. What strategies do you recommend to foster a culture where long-term integrity is valued more highly than immediate results?

What got me wasn’t greed. It was a deep, unspoken need for belonging, approval, status. Those desires, unchecked, can override judgment.

To shift culture toward long-term integrity:

• Redefine success. Don’t just say “integrity matters.” Build it into promotion criteria, performance reviews, and team rituals.
• Recognize the invisible wins. Celebrate employees who walk away from bad deals, report concerns, or raise difficult truths, even when there's no immediate upside.
• Tell true stories. Not just about misconduct, but about the internal battles people fight to do the right thing under pressure.
• Humanize pressure. Encourage leaders to name and acknowledge the tension between performance and ethics. That’s where trust is built.

And perhaps most importantly, allow room for recovery. A culture of long-term integrity doesn’t just reward perfection; it encourages people to come forward when they’ve made a misstep, without fear of exile.

Looking back, were there subtle, early warning signs of a less-than-ethical culture, and if so, what can leaders learn from your experience and ideally be trained to recognize?

The most telling warning sign was silence. Not one person ever told me to break the rules, but no one told me not to either. The absence of conversation around ethics created fertile ground for rationalization.

Other red flags I missed:

• Hero worship of high performers: When someone’s revenue protects them from scrutiny, everyone notices and adapts.
• Loyalty over honesty: When team loyalty is prized more than truth-telling, ethical behavior becomes optional.
• Avoidance of discomfort: If people can’t raise “gut check” questions, ethical erosion begins quietly and spreads quickly.

Leaders should be trained to look for what’s not being said. Where are the silences? Where do people defer too quickly or repeat the same rationales? The job isn’t to interrogate every choice, but to create space where tough conversations can happen early, before bad decisions calcify into culture.

As someone who cooperated with the FBI, you have a unique perspective on the power of speaking up. What actions would you tell leaders to take—at both the mid- and upper-levels—to support employees so that they feel safe and encouraged to report misconduct?

Speak-up cultures aren’t built in the moments of crisis, they’re built long before. By the time I was cooperating with the FBI, I had been silent for years. I didn’t feel safe enough to raise a hand internally, even when I knew I was in trouble.

To truly support speaking up:

• Start with empathy. Train managers to respond not with suspicion or skepticism, but with curiosity and compassion.
• Respond visibly. Even if confidentiality limits the details you can share, close the loop and affirm the courage it took to raise the concern.
• Reward truth-telling. Share anonymized stories* of people who spoke up and made a difference. Normalize discomfort.
• Lead by listening. The more leaders ask, “What am I missing?” or “Is there a better way?”, the more employees believe their voice matters.

If you wait until someone is deciding whether to blow the whistle, it’s too late. The goal is to make ethical conversations feel routine, not radioactive.

* Editor’s note: Need a little help crafting your stories? Check out our Helpline Chronicles template available in Design Club! Not a member? Reach out and let’s set you up! 

Your work truly helps organizations understand and mitigate behavioral conduct risk, which is unique from legal or regulatory risk. What are some practical actions to embed ethical behavior into the workplace culture?

Behavioral risk isn’t about who knows the rules, it’s about what people feel in the moment they make a decision. It’s shaped by pressure, ambiguity, and unspoken norms.

To address it:

• Insert reflection into the workflow. Whether it’s a system prompt (“Are you sure?”) or a team pause for ethical red teaming, make space for people to think before acting.
• Create cross-functional ethics teams. Involve people from compliance, legal, business units, and HR to map where decision-making is vulnerable.
• Run ethical scenario drills. Help teams practice what “doing the right thing” actually looks like in their real-world context.
• Use pulse data to measure culture. Survey not just “did you take training,” but “do you feel pressure to compromise the rules?” or “would you feel safe reporting a concern?”

Ultimately, ethics isn’t a one-time message—it’s a muscle. And muscles need reps.

What advice do you have for a mid-level manager who's committed to fostering an ethical environment for their team but may be facing pressure from above or a broader corporate culture that isn't as committed?

You may feel caught between what’s right and what’s rewarded, but you still have influence.

Here’s what I’d suggest:

• Be real with your team. Acknowledge the pressures and show them how you’re thinking through tough decisions.
• Create a safe micro-culture. Even if the broader org isn’t there yet, your team can become a place where ethical questions are welcomed, not feared.
• Model accountability. Admit when you get it wrong. That honesty gives others permission to do the same.
• Document your decision-making. If something goes sideways, you’ll have a record of your intent and process.
• Find your tribe. Look for others who share your values, even quietly. You’re not alone, even if it feels that way.

And remember: culture change often begins at the middle. You might be planting seeds others will thank you for later.

For young professionals who are ambitious and eager to succeed, what would you say is the single most important thing they can do to navigate ethical challenges?

Here’s what I wish someone had told me:

Success earned at the cost of your integrity isn’t success—it’s a debt. And it always comes due.

You will be tempted to stay silent, to take a shortcut, to rationalize that you’re just doing what others do. In those moments, stop. Ask yourself: Would I be proud of this if it showed up on the front page?

Find mentors who care about how they win, not just that they win. Ask questions. Speak up early. And remember that the biggest decisions often come disguised as small ones.

You’re not just building a resume—you’re building a reputation. Protect it.

🫳🎤 

Tom's reflections on his own experiences provide a powerful roadmap for building more resilient and ethical cultures. His emphasis on psychological safety, leadership vulnerability, and creating an environment where difficult conversations are normalized is a crucial message for every leader and organization—but especially for E&C pros! 

What stands out for me is the idea that ethical behavior isn't just about knowing the rules; it's about building the "muscle" for making the right choices under pressure. I encourage you to think about how you can apply these insights within your teams and organizations. 

To learn more about Tom's story and his work in helping companies mitigate behavioral risk, check out his website, TipperX.com.

For tools and resources to support you on your speak up journey, join Compliance Design Club! Already a member? Reach out to me, Jaycee, or Brianna, and let’s strategize your plan!