Ethics and Values: January 2007 Archives

There is an interesting guest column at Inc.com on religion and work written by Alan Wolfe, Director of the Boisi Center for Religion and American Public Life at Boston College. Wolfe writes the following:

Workplaces are not public in a legal sense and, because they are not, courts will generally allow companies room to find their own ways of accommodating the rights of believers. But workplaces are public in a social sense; they are composed of groups of people, and the larger the groups grow, the more likely there will exist religious differences among them. There is an implicit bargain here for private companies to accept. Make room for diversity and tolerance, and few will object to religious expression in the workplace. Confine the right to expression only to select groups, however, or use one faith to browbeat others, and those others will rightly object. The choice is up to each company.

I believe that Wolfe has missed an important part of this issue by looking at this only from the position of the individual employee and to define it only in terms of evangelization toward a specific religion. There are many privately owned businesses in which the owners have used the core values of their faith to shape how they start and grow their companies. They build their values into the policies and practices, and into the culture of their companies, that govern everyday activity in their businesses.

These entrepreneurs are not doing this to convert their employees nor to make their firms an extension of some particular church. They do this because their faith is based on integrity. What is good and what is right does not change once they walk into the door of their businesses. And they find ways to integrate this into how they run their companies. It shows up in compensation systems, job design, employee ownership programs, policies governing customer relations -- the list goes on and on. It is not a matter of using their businesses to save others souls, but to act in ways that assure that their own souls do not become compromised by how they act in their business.

The specific religion that these entrepreneurs practice becomes inconsequential, as does the religious tradition of their employees. My experience and the results of the interviews we have conducted for our forthcoming book suggest that because the focus is on how the entrepreneurs' faith and values guide their actions, these businesses become good places that are valued by employees of all faiths. They are companies that treat all employees with dignity, fairness, and respect, that treat their customers well, and that have a truly good culture.

An entrepreneur's vision should communicate what her business can become. It paints a clear and compelling picture for employees, investors, suppliers, and other stakeholders of what they are buying into at a time when the business has little or nothing to show. But to be complete, this vision should describe more than the product the business will make and market it will serve. It should also paint a picture of how the entrepreneur intends to conduct herself as she starts and grows her business.

The entrepreneur's values should also be reflected in her vision for the business. How will she conduct herself as she starts and builds her business? How does she want to treat her employees? How does she want those employees to treat the customer? What are the principles that will shape how her employees act in her business?

The values she brings to her business should be the same values that guide her life outside her business. This is what creates true integrity in her life. Each action in her business will shape her character. The opportunities she pursues, who she chooses to do business with, who she hires, how she treats each stakeholder of her business, all develop her character just as much as her actions in her family and in her community.

So her vision will not only guide her business strategically, but also guide the development of its culture. And it will also help shape who she becomes as a person.

There are three key questions that every entrepreneur should ask while assessing to see if an idea is a real business opportunity. Is there really a market? Is there enough margin to make the business feasible? Is this business really for me in terms of my passion and my experience? Answering these questions is a process that entrepreneurs should go through with every idea they are seriously considering for a new business. As I have written earlier, answering these questions is a step long before pen is put to paper to write a business plan or a dime of money is raised. My students sometimes refer to this as answering the "3 M's".

There is also a fourth "M" that should be assessed, That is the morality of the business idea. Now what is moral is a tricky issue. But if we are going to be serious about running an ethical business, shouldn't it begin at the very first steps of the start-up? But what makes a business moral?

The morality of a new business relates to two issues. First, do we have a vision to build a good business? Do we intend to business that creates a good culture for its employees? Do we intend intend to treat our external stakeholders, such as customers, suppliers and investors, with integrity and honesty?

The second part of building a good business from the very beginning relates to product or service that we offer to the market. Does our business idea make a positive contribution to society? I am not saying, for example, that only entrepreneurs who make new medical devices that save millions of people's lives is the only type of moral businesses. That is not the point. Rather, do we have a vision to offer a product or service that in some way will make peoples lives a little bit better, even if in some small and insignificant way.

In many ways the issue here comes down to intent. The same business concept can be moral when implemented by one entrepreneur and not moral when started by another. Let me offer an example, but please know that I am not suggesting that I know the intent of either of these entrepreneurs nor pretend to know what is in their hearts and minds, for that is where this ultimately rests.

These examples come from a recent story in US News on genetic screening for the potential to come down with severe genetically related diseases. On the surface this sounds like a pretty good thing to offer to the market. Some of the companies offer this service in a way that clearly is intended to first and foremost help their customers. They only offer tests that are scientifically validated and do so with one-on-one genetic counseling as part of the service. Some other companies in this story offer tests that are of questionable validity and reliability and provide the results with vague and, according to the US News story, potentially misleading written explanation of the results. Again I do not pretend to judge what either entrepreneur intended here, but in looking at their actions and how they implemented the same basic concept, one can infer some possible differences in their visions for this same business concept.

A few years ago I was team-teaching this concept with my co-author Mike Naughton from the U of St. Thomas. One of our students asked us if his family business was a good business, a moral business. After all, their business simply planted bushes and tress along state and county highways. What did that really contribute to society, he asked? But Mike assured him that indeed this business could be good, as long as their vision included good intentions for their customers, their market and their community. The student said that they took pride in making people's long and often tedious commutes a bit more pleasant and enjoyable.

"Then that is indeed a good business," Mike assured him.

Blog header by John Price @ johnpricephoto.com

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This page is a archive of entries in the Ethics and Values category from January 2007.

Ethics and Values: December 2006 is the previous archive.

Ethics and Values: March 2007 is the next archive.

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