Moderator: Tim C. Mazur, Vice President, Council for Ethics in Economics
U.S. business schools now offer undergraduate and graduate students sophisticated education in the subjects of business ethics and corporate social responsibility. Professor Michael Distelhorst's presentation explored several of the major themes presented in these programs. The argument was well made that M.B.A. candidates are our business leaders of tomorrow, and all of us have a vested interest in their moral development. On a more personal level, the Council's strategy of sponsoring dialogue among business people is significantly influenced by the capacity of tomorrow's managers to participate in moral conversation.
First among the themes presented is emphasis on the need for values-based vision, which focuses on the level beyond creating a mission statement. In this theme, the practice of business is changed from transactional to transformational. Values-based vision extends not only to the pursuit of the business objective but also to those engaged along the way—helping them to rise to the highest level of value-based judgment according to the vision that is being pursued. The theme's perspective, therefore, has a longer-term orientation and tends to be integrative and multidisciplinary.
With the establishment of a values-based vision, the act of honoring the vision requires integrity—living in mindfulness of one's values in every action and intention. This creates an atmosphere where legal compliance becomes as assumption rather than a goal.
If you function with a values-based vision and have the intention that it be fulfilled with integrity both at the personal level and the organizational level, then creating a "culture of substance" is required. Organizational culture provides an environment where the values implicit in the vision can be nurtured rather than subverted by distrustful attitudes by management, employees, or by the public.
A longer-term vision is also one that will foster policies of sustainability vs. exploitation. Questions raised by sustainability factors then expand horizons beyond the domestic or provincial to a global perspective. Attitudes of preservation and stewardship also emerge when a longer-term vision is adopted.
Implementing the steps to reach the chosen vision require a management style that includes interaction and dialogue. For people to take ownership in a corporate strategy, it is important they be included in shaping it. The top-down, or centralized command authority, approach does not create the environment necessary for cooperation and team-building. Those who have ownership, or stakeholders, are not just the employees. The stakeholders are also members of the greater community that is affected. This means that in addition to internal dialogues—within the organization, the concept of external dialogues in introduced. Dr. Distelhorst pointed out that Council Trustee Jim Childs has developed the Dialogical Communication Method that has been used in organizational consulting as well as for the Second International Conference on Building the Ethics of Business in a Global Economy. An aspect of the dialogical communications method is that it is a method of process. Vision is not often realized through a predetermined path with precise steps or actions—especially when working with multiple stakeholders. Discussion, reassessment and compromise are all a part of this communication process.
Establishing the external dialogue also signals the move away from isolationism towards an involvement in the greater community. When factors that affect diverse stakeholders are considered, the dialogue expands. It can be seen as a diversion from the focus of the organization, or an an opportunity for creative input from those 'outside the box'.
Discussion arose regarding how to apply these principles in real-world context of rigorous competition and ruthless practices. This integrated view represents an emerging paradigm—one that will take time to become fully integrated into society ar all levels. There are many cultural barriers to the realization of this new paradigm, however, as Edmund Burke said, "All that is necessary for the triumph of evil is for good people to do nothing".
The business leader of the future will be much more sophisticated in his or her understanding of the basic themes of ethical management. This person will also be more likely to be frustrated if all these concepts aren't aplied in the work environment. Those who work with such leaders in supportive or consultative work will have to recognize their readiness for a more sophisticated, integrative dialogue. The Council is uniquely situated to understand and provide this kind of opportunity for tomorrow's business leaders.
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