Starbucks Chairman Howard Schultz once asked the question: If an organization wins the world and loses its soul, what will it end up getting? The answer is "there's not much left.". There is a controversial saying that "organizations have souls," but there is now growing evidence that mental strength is an important factor in the long-term success of organizations.
So if you want to help organizations establish ethical responsibilities and leaders set moral role models, every organization needs to pursue a deep moral and spiritual core.
If an organization wins the world and loses its soul, what does it end up with?
In starbucks chairman Howard Schultz's view, the answer is "there's not much left." In 2007, he asked the exact same question in a memorandum to all employees of the company.
Over the years, corporate scandals have been rife around the world. How should managers and organizations respond to this wave of moral decay?
We firmly believe that ethics and morality should be rooted in the soul, which contains the fundamental beliefs and core values of human beings. Next, we'll explore why the soul is so important, how it sustains faith, and how it motivates people to behave morally. We will then present a colorful picture of leadership ethics.
The soul and spirit of the organization
If we compare Enron (once one of the world's largest energy, goods and services companies, ranked seventh in Fortune's "U.S. 500", filed for bankruptcy protection in 2001 due to a financial scandal, the second largest corporate bankruptcy in U.S. history) and one of the most successful companies in the United States, pharmaceutical giant Merck, it is obvious what Enron lacks.
Merck's core value is to improve the quality of human life, which is more important than profit. The realm is high, but is this idea reflected in major decisions and daily behavior?
In most of the behavior, they did, although Merck has drawn criticism in recent years for having problems with some of its best-selling drugs, such as Vioxx, a painkiller. But Merck also has plenty of examples of companies that align with the company's core values and put the interests of patients first, such as selling drugs at a loss-making price or distributing them for free.
There is a famous example.
Merck was faced with a decision about whether to develop and sell drugs to treat river blindness. Many poor people in third world countries suffer from the disease. From a cost-effective point of view, the answer is simple – the drug will not make money. For companies that value bottom-line profits, you don't have to think about what to do. However, Merck, who truly believes in the supremacy of human health, developed the drug and distributed it free of charge.
"Thinking about the company's values, it's easy to make a decision." Merck's CEO later said so.
In contrast, "Enron is full of smart people, but there is no wise man, and no one stands up and says, 'Enough is enough, stop it.'" Some people have a strong sense of morality and it doesn't matter where they work, but most people are more hesitant in their hearts and are more susceptible to their peers. Enron lost its moral purpose and failed to provide employees with a protective fence for integrity. Many people went to jail, and many more had their futures ruined.
"Organizations have souls", many people dispute this statement, but there is increasing evidence that mental strength is an important factor in the long-term success of organizations. For an organization, group, or family, the soul can also be seen as a manifestation of character, a firm belief in who we are, what we care about, and what we believe in. Merck had a soul, Enron didn't, and Starbucks feared losing it.
Why should organizations—say, a company, a school, or a government department—care about the soul? Many organizations, and the vast majority of management writers, either scoff at this view or ignore it.
For example, some management strategists attribute Southwest's remarkable achievements to outstanding strategies. The "Spirit of Southwest Airlines", that is, the soul of the company, is rooted in the hearts of everyone in the company. Founder Klech said the company's most important group is the "Cultural Council", with 70 members from all departments of the company, passing on the company's values and spirit.
▲Southwest Airlines
Many were skeptical, but after Kellech passed the seat to his chosen successor in 2001, Southwest's growth and profitability remained at the top of the industry, every year.
More and more successful leaders identify with Kellech's philosophy. Ben Cohen, one of the founders of the ice cream company Ben & Jerry Home Manufacturing, found, "You give love and you get love." I firmly believe that, just like life, there is a spiritual dimension in the business world. ”
Starbucks' Howard Schultz also echoes Cohen's point of view, emphasizing culture and the heart. And, evidence suggests that digging deeper into the energy level pays off: The book "Evergreen Foundation" describes that companies that thrive through storms have core values, emphasize that "something is more important than profit" and provide "guidance and encouragement" for company members.
The soul and ethics are inseparable. In recent years, scandals have been repeatedly broken by some well-known large companies, and what they have done is a violation of moral code, if not illegal. The ethical efforts of management have also ebbed and flowed.
A remedy has been proposed — the importance of ethics is emphasized in corporate training programs. There were also suggestions that companies should introduce an "ethics manifesto," which caused a stir. There are also calls to speed up the development of laws and regulations, but these are important measures that touch the skin.
Robert C. Solomon (1942-2007, world-renowned philosophy teacher and speaker, professor at the University of Texas at Austin) called for the deepening of "Aristotle ethics":
Too little attention is paid to the pleasures of business itself (the main virtue implied in the metaphor of 'game'), business is not vulgar selfishness, but an integral part of the public good, and the virtues that people are proud of in their personal lives, such as honesty, reliability, bravery, loyalty, integrity, are the same qualities required by a good business... The key is to think of life as a whole, not to pit concepts into two opposites – public and private, work and private life, responsibility and fun.
Solomon reminds us that ethics and the soul are extremely important for a full life, as are they for organizational management. We have found four models that can help create an ethical society and awaken a sense of moral responsibility for leadership.
Reinventing ethics
Factory: Excellence and initiative
When it comes to organization, the most familiar picture is the factory and the production line. Raw materials (steel, peanuts, or 5-year-old schoolchildren) go in from this end and the finished product (refrigerator, peanut cream or Biason) comes out. At the heart of the factory's ethics is the pursuit of excellence: getting the job done as quickly and well as possible and producing high-quality products.
One reason for the disappointment is that the pursuit of excellence requires more than just passionate evangelism from executives, it requires commitment at all levels of the company and autonomy.
How can company leaders develop such dedication? As we once said, "To lead is to give." Leadership is an ethic, a dedication to oneself. "The key to creating excellence and maintaining a standard of excellence is to give the initiative to employees: giving the initiative to employees is equivalent to creating space within the box.
Southwest Airlines is a great example.
The company encourages employees to show their true disposition, find fun in their work, and use a sense of humor. Only on Southwest Airlines planes can you hear the FAA (Federal Aviation Administration) safety instructions that have been changed to popular songs, or funny versions. ("For passengers who want to smoke, you can sit on the couch on the wing, where you can also enjoy the classic film Gone with the Wind.") Safety instructions should be serious, is it too frivolous to broadcast in this way? The result is the opposite, and it just reminds passengers to pay attention to what is usually deaf.
Of course, this is also the crew looking for fun, playing creative in the work, rather than rigidly following the script every day.
Family: A place to convey love
Care is not only the true meaning of the family, but also the ethical glue that maintains the relationship between family members. Parents care for their children, and in turn, children will eventually care for their parents. A caring family or community needs servant-type leaders who care about the needs and aspirations of their members and stakeholders. This is no small challenge, requiring leaders to understand the members of the organization and take good care of the needs of the public. The contribution of servant leaders is love.
In most modern businesses, love is really a scarce thing. The vast majority of managers speak ill of the word "love," and they are ashamed of the deep emotions of the word, afraid of its power, and afraid of its risks.
Caring begins with understanding; it requires listening carefully, understanding carefully, and accepting with an open heart. As emotions deepen – appreciation, respect– eventually become love. Love means being willing to open your heart to others. And the open heart is fragile and vulnerable. Confronting this vulnerability allows us to dare to take off our masks, compare hearts to hearts, and become gifts in the lives of others. We get a sense of wholeness and enjoy this spontaneous, human-to-human interaction.
It is this feeling that shapes the "soul of the community."
People at Southwest airlines are not shy about talking about love. As President Colleen Barrett said,
The word "love" is rarely used in the American business community, but at Southwest Airlines, we've said it since day one.
The word "love" has become deeply embedded in the company's culture. Their first flight took off at Dallas's "Love Field" airport: their ticker symbol on the New York Stock Exchange was LUV (Love); the employees' internal communication was called "Love Wire"; and the company's 20th anniversary slogan was "Love You for 20 Years." Every year, they hold a "True Heroes" award ceremony to reward those who have performed beyond the company's requirements (Southwest's requirements are high enough).
Of course, which family has not experienced ups and downs, the aviation industry naturally has. There are triumphs and lows in life, and it is love that binds people together – including employees and passengers – in a caring society.
A jungle full of competition: justice and power
Now let's look at the third image: the "jungle" side of the organization. The famous director Woody Allen took the essence of it and vividly described this picture of the weak and the strong: "The lion and the calf may lie together, but the calf will not sleep peacefully." As this metaphor says, the jungle is a conflict-ridden environment in which the characters are pursuing self-interest.
In today's world, the pursuit of interests is becoming more and more urgent, resources are becoming more and more scarce, and people are forced to make trade-offs and choices. No one can meet all the needs of all, but it is possible to promote the value of fairness in deciding who to get what. Solomon believed that the ultimate virtue of a company is justice, because fairness —that is, giving employees, customers, and investors what they deserve—is the glue that sustains everything.
Robert C. Solomon, American philosopher
Justice has always been a difficult concept to define, and debate is inevitable about how to achieve justice. In the quest for justice, the key thing a leader can do is to decentralize power.
People who have a voice in major decisions must have a higher sense of fairness in their hearts than those who do not have a voice. Leaders clinging to power can only foster weak organizations. People who have been stripped of power will find ways to fight back: deliberate destruction, passive sabotage, anger, or simply walk away.
Decentralization stimulates productivity. If employees start thinking about efficiency and have the ability to influence their own world, they will most likely devote their energy and wisdom to contributing rather than causing trouble.
Decentralization moves people towards a common goal. However, this can also lead to tough choices. If leaders grasp power too tightly, they are prone to despotism, but if they are too loose, it is easy to put the mission of the organization in danger.
In the Reagan era, House Speaker Thomas O'Neill was like a "thorn in the head" around the president, but they came to a neutral agreement: they would fight relentlessly for their own interests, but would seek justice as much as possible. Their credo was: "When we arrive at 6 p.m., we are friends, no matter what differences occur during working hours." The two men gave each other gifts of power.
Power and initiative are inextricably linked, and autonomy, space, and freedom are all important in both concepts. However, there is an important difference between the two.
Artists, writers, and craftsmen can also feel initiative when working alone, but power is only meaningful when interacting with others. Power is about influencing others and achieving goals on a larger scale. The initiative without power is isolated and broken, and the power without initiative will not run smoothly and is very heavy.
At many levels, decentralization is important. On an individual level, people want to have the power to control the work environment and drive out what directly hinders them. Many traditional workplaces also put employees to death — clocks, strict rules, and dictatorial bosses.
At the group level, power faces the challenges of globalization: responding to ethical, racial, and gender issues. The pursuit of justice requires leaders to systematically empower subordinate institutions by:
• Empowerment of decision-making powers.
● Create internal support groups.
● Introduce diversity into information systems and incentive systems.
● Expand business opportunities.
This can only be achieved with unwavering support from core management – the only common denominator that researchers have found in organizations that value diversity.
Temples: Faith and Meaning
The organization can also be compared to a temple, which is a holy place, a place to express human aspirations, a monument to human faith. Temples are gathering places for people who share common traditions, values and beliefs. The members of the community may vary in many ways (e.g., age, background, financial conditions, personal preferences), but they are bound together by shared beliefs and sacred covenants.
In the workplace, if people feel that the organization is remarkable, caring, and just, then the faith is strong. After all, people need to believe that what this organization is doing is worth it and creates value for the world. Meaning has to do with the content of the work, but what is more relevant is the way the work is viewed.
There's an old story about this: Three stonemasons talk about their work. One said his job was nothing more than "masonry," another said he was "building a cathedral," and the third said, "I am serving God."
Temples need spiritual leaders. This is not to say that leaders should preach or preach some kind of theology, but that leaders should care for people's spiritual needs. The dictionary explains the word "spirit" in this way: "human consciousness, mental activity", "human or material vitality", "human moral essence".
Spiritual leaders help people find meaning and conviction in their work, helping them find answers to the most fundamental questions of humanity:
● Who am I?
● Who are we?
● What is the goal of life?
● What ethical principles should we follow?
● What can we leave behind for future generations?
Spiritual leaders give meaning to people, convinced that work is precious, and that if people are loyal and loving to an organization worthy of support, they will receive immeasurable intangible rewards. The ideal job should be full of joy and happiness, and should not be frustrated, frustrated, and exhausted. Having meaning in mind will make people hold on to faith all the time, rather than running out of energy and having to leave that meaningless job.
Shaping meaning requires the use of many means of expression, as well as forms rich in symbolic meaning, rituals, celebrations, stories, and music. The lack of tissue rich in symbolic material is pale and empty. In shaping meaning, creating "special occasions" is a rather magical way. Moments of ecstasy mark an important chapter in the fate of birth. Life without rituals and rituals is incomplete, but a series of repetitions that come and go: "Life seems to be always Wednesday, endless." ”
If the ceremonies and celebrations are properly matched, they ignite the human imagination and inspire insight to reach the depths of the soul. Celebrations weave together the past, present, and future; rituals help us face and understand the wonders, successes, and mysteries that come with life every day. Both of these ways help us to touch the web of invisible meaning that binds people together.
Stories make values and beliefs flesh and blood. There are a lot of moving stories happening every day in the organization, and there are a lot of dramatic moments. Make them into stories and add legends to the organization's treasure trove. Stories are recited over and over again, and the meaning of the work connects people.
Music captures the deep meaning of life and expresses it. When people sing or dance together, there is an indescribable emotional connection between them. The late Harry Cuadrazchi, CEO of the printing company Quadrant Drawing, holds an annual general meeting. At the meeting, a choir composed of management teams sang the "theme song" of the year. Quadrachi himself sang solo – singing the company's business philosophy.
Max Depre
Max DePree, a business leader, understands the role of faith in business: "Having faith is more important than success. Companies can and should have lofty beliefs. This is spiritual salvation. We need to illuminate behavior with the light of moral clarity and measure its weight. We must understand that realizing potential is more important than achieving goals. ”
Spiritual leaders have a responsibility to hold firm convictions and to call others to regain them when they deviate from or lose them.
Ethics and morality are ultimately rooted in the soul, that is, the organization's identification, beliefs, and values of the self. The four models discussed in this article provide an idea to help organizations establish ethical responsibilities and set moral role models for leaders. Every organization needs to pursue a deep moral and spiritual core. These patterns can provide guidance.
Author:Lee G. Borman is a professor of leadership at the University of Missouri-Kansas City's Bloch School of Business; E. Deere has taught at Stanford University, Harvard University, Vanderbilt University, and the University of Southern California
Source: Excerpt from The Organization of the Future: Vision and Strategy for a New Management Era, CITIC Press
Arrangement: Pan Xinyi
Editor-in-charge: Lu Yuan
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