When James F. Parker moved into the CEO post at Southwest Airlines, his No 1 mandate was: "Don't screw it up." Hit hard by the drop in travel post-September 11, most airlines responded with aggressive cost-cutting. Instead, Southwest practiced the "do the right thing" mantra that company management had always preached with three pivotal decisions: no layoffs, no pay cuts and no-hassle refunds for any customer wanting them. The result is Southwest emerged from the tumult with its profitability and reputation intact, while the market caps and revenues of its industry peers dropped. It's fundamentally true that the way you treat people determines the way they're going to treat you back and the way they treat customers.