Fluent Essays

In that chapter, the authors refer to the research of Rushworth Kidder, who identified four ethical dilemmas that are common to our personal and organizational experience, including three principles for resolving ethical dilemmas. Review the article Making Business Virtuous.  This exercise is an opportunity for you to deepen your understanding of this as well as future assignments.   Would a virtuous leader question the morality of an existing or potential law?  Would a virtuous leader hire a lobbyist to delay or kill costly but morally and ethically appropriate legislation? Would a virtuous leader violate virtuous principles, even if legal, when doing business in foreign countries? How is Servant Leadership related to Virtuous Business? Describe your personal experiences with one or more of the ethical dilemmas described by Kidder and how they were resolved or should have been resolved. How can an ethical and values-driven corporate culture influence the effective outcome of ethical dilemmas, and what is the leader’s responsibility in developing that culture?  Provide at least two citations from the "Making Business Virtuous" white paper which support your explanation. Although moral dilemmas like the trolley problem are useful for scholarly and heuristic purposes, the scenarios may seem far from our everyday experience. A far more common yet still challenging  ethical dilemma  involves choosing between two “rights.” Rushworth Kidder has identified four ethical dilemmas that are so common to our experience that they serve as models or paradigms: 30 · Truth versus loyalty , such as honestly answering a question when doing so could compromise a real or implied promise of confidentiality to others. · Individual versus community , such as whether you should protect the confidentiality of someone’s medical condition when the condition itself may pose a threat to the larger community. · Short term versus long term , such as how a parent chooses to balance spending time with children now as compared with investments in a career that may provide greater benefits for the family in the long run. · Justice versus mercy , such as deciding whether to excuse a person’s misbehavior because of extenuating circumstances or a conviction that he or she has “learned a lesson.” Kidder offers three principles for resolving ethical dilemmas such as these: ends-based thinking, rule-based thinking, and care-based thinking. Ends-based thinking  is often characterized as “do what’s best for the greatest number of people.” Also known as utilitarianism in philosophy, it is premised on the idea that right and wrong are best determined by considering the consequences or results of an action. Critics of this view argue that it’s almost impossible to foresee all the consequences of one’s personal behavior, let alone the consequences of collective action like policy decisions affecting society more broadly. Even if outcomes could be known, however, there are other problems with this approach. For example, would this view ethically justify the deaths of dozens of infants in medical research if the result might save thousands of others? Rule-based thinking  is consistent with Kantian philosophy and can be characterized colloquially as “following the highest principle or duty.” This is determined not by any projection of what the results of an act may be but rather by determining the kinds of standards everyone should uphold all the time, whatever the situation. In Kant’s words, “I ought never to act except in such a way that I can also will that my maxim should become a universal law.” Lofty as the principle may sound, though, it could paradoxically minimize the role that human judgment plays in ethical decision making by consigning all acts to a rigid and mindless commitment to rules absent consideration of the specific context of a decision (“If I let you do this, then I’d have to let everyone do it”). Care-based thinking  describes what many people think of as the Golden Rule of conduct common in some form to many of the world’s religions: “Do what you want others to do to you.” In essence, this approach applies the criterion of reversibility in determining the rightness of actions. We are asked to contemplate proposed behavior as if we were the object rather than the agent, and to consult our feelings as a guide to determining the best course. 152 Although moral dilemmas like the trolley problem are useful for scholarly and heuristic purposes, the scenarios may seem far from our everyday experience. A far more common yet still challenging ethical dilemma involves choosing between two “rights.” Rushworth Kidder has identified four ethical dilemmas that are so common to our experience that they serve as mode ls or paradigms: 30 · Truth versus loyalty , such as honestly answering a question when doing so could compromise a real or implied promise of confidentiality to others. · Individual versus community , such as whether you should protect the confidentiality of someone’s medical cond ition when the condition itself may pose a threat to the larger community. · Short term versus long term , such as how a parent chooses to balance spending time with children now as compared with investments in a career that may provide greater benefits for the family in the long run. · Justice versus mercy , such as deciding whether to excuse a person’s misbehavior because of extenuating circumstances or a conviction that he or she has “learned a lesson.” Kidder offers thr ee principles for resolving ethical dilemmas such as these: ends - based thinking, rule - based thinking, and care - based thinking. Ends - based thinking is often characterized as “do what’s best for the greatest number of people.” Also known as utilitarianism in philosophy, it is premised on the idea that right and wrong are best determined by considering the conseque nces or results of an action. Critics of this view argue that it’s almost impossible to foresee all the consequences of one’s personal behavior, let alone the consequences of collective action like policy decisions affecting society more broadly. Even if o utcomes could be known, however, there are other problems with this approach. For example, would this view ethically justify the deaths of dozens of infants in medical research if the result might save thousands of others? Rule - based thinking is consistent with Kantian philosophy and can be characterized colloquially as “following the highest principle or duty.” This is determined not by any projection of what the results of an act may be but rather by determining the kinds of standards everyone should uphold all the time, whatever the situation. In Kant’s words, “I ought never to act except in such a way that I can also will that my maxim should become a universal law.” Lofty as the principle may sound, though, it could paradoxically minimize the role that human judgment plays in ethical decision making by consigning all acts to a rigid and mindless commitment to rules absent consideration of the specific context of a decision (“If I let you do this, then I’d have to let everyone do it”). Care - based thinking describes what many people think of as the Golden Rule of conduct common in some form to many of the world’s religions: “Do what you want others to do to you.” In essence, this approach applies the criterion of reve rsibility in Although moral dilemmas like the trolley problem are useful for scholarly and heuristic purposes, the scenarios may seem far from our everyday experience. A far more common yet still challenging ethical dilemma involves choosing between two “rights.” Rushworth Kidder has identified four ethical dilemmas that are so common to our experience that they serve as models or paradigms: 30  Truth versus loyalty, such as honestly answering a question when doing so could compromise a real or implied promise of confidentiality to others.  Individual versus community, such as whether you should protect the confidentiality of someone’s medical condition when the condition itself may pose a threat to the larger community.  Short term versus long term, such as how a parent chooses to balance spending time with children now as compared with investments in a career that may provide greater benefits for the family in the long run.  Justice versus mercy, such as deciding whether to excuse a person’s misbehavior because of extenuating circumstances or a conviction that he or she has “learned a lesson.” Kidder offers three principles for resolving ethical dilemmas such as these: ends- based thinking, rule-based thinking, and care-based thinking. Ends-based thinking is often characterized as “do what’s best for the greatest number of people.” Also known as utilitarianism in philosophy, it is premised on the idea that right and wrong are best determined by considering the consequences or results of an action. Critics of this view argue that it’s almost impossible to foresee all the consequences of one’s personal behavior, let alone the consequences of collective action like policy decisions affecting society more broadly. Even if outcomes could be known, however, there are other problems with this approach. For example, would this view ethically justify the deaths of dozens of infants in medical research if the result might save thousands of others? Rule-based thinking is consistent with Kantian philosophy and can be characterized colloquially as “following the highest principle or duty.” This is determined not by any projection of what the results of an act may be but rather by determining the kinds of standards everyone should uphold all the time, whatever the situation. In Kant’s words, “I ought never to act except in such a way that I can also will that my maxim should become a universal law.” Lofty as the principle may sound, though, it could paradoxically minimize the role that human judgment plays in ethical decision making by consigning all acts to a rigid and mindless commitment to rules absent consideration of the specific context of a decision (“If I let you do this, then I’d have to let everyone do it”). Care-based thinking describes what many people think of as the Golden Rule of conduct common in some form to many of the world’s religions: “Do what you want others to do to you.” In essence, this approach applies the criterion of reversibility in SPRING/SUMMER 2017 A C O N V E R S AT I O N W I T H CHIEF EXECUTIVE OFFICER, POPEYES LOUISIANA KITCHEN, INC. The life and legacy of James F. DeVoe Sr. Business and Community: The Oaks Academy Changing the World Through Business Hardwork, Faith & Family: TH E D EV O E R EPO RT | SPRIN G / SUM M ER 2017 FOR MORE INFORMATION CONTACT 765-677-2103 | ronblueinstitute.com [email protected] [email protected] [email protected] NEW RON BLUE INSTITUTE PUBLICATIONS • Biblical Financial Planning: An Introduction to a Biblical Worldview, by Ron Blue and Justin Henegar (Pearson 2016) - a textbook • Master Your Money: A Step-by-Step Plan for Experiencing Financial Contentment, by Ron Blue and Michael Blue (Moody Publishers, 2016) • God Own It All: Finding Contentment and Confidence in Your Finances, by Ron Blue with Michael Blue (LifeWay Press, 2016) • Never Enough? Three Keys to Contentment, by Ron Blue with Karen Guess (LifeWay Press, 2017) • Mastering Personal Finances: A Biblical Approach, by Ron Blue and Boyce Smith (BVT Publishing, 2017) – a textbook BIBLICAL FINANCIAL CURRICULUM, COACHING AND COUNSELING • NEXUS Peer2Peer Financial Discipleship Center at IWU • Biblical Stewardship Curriculum Unit, for Christian High Schools • First Year Co-curricular Experience for Biblically- based Personal Finance • RBI LifeData App F i n d i n g CONTENTMENT a n d CONFIDENCE i n y o u r f i n a n c e s . Thrivent Financial is the founding sponsor for the Ron Blue Institute for Financial Planning.Define Yourself indwes.edu | 866.498.4968 SOME PROGRAMS ARE ALSO OFFERED Online Degree Programs ASSOCIATE • BACHELOR’S • MASTER’S • DOCTORATE ACCOUNTING | ATHLETIC TR AINING | BUSINESS COMMUNICATIONS | COMPUTER SCIENCE | COUNSELING CRIMINAL JUSTICE | EDUCATION | HEALTH SCIENCES MARKETING | MINISTRY | MANAGEMENT | NURSING OCCUPATIONAL THERAPY | PSYCHOLOGY | SOCIAL WORK ...AND MORE! INDIANA OHIO KENTUCKY Onsite IWU Adult & Online @IWUOnlineAdult @IWUOnlineAdult with a degree from IWU https://www.facebook.com/IWUOnlineAdult/ https://twitter.com/iwuonlineadult http://www.imgrum.net/user/iwuonlineadult/1636748521 https://www.indwes.edu/ ore than 30 years ago, Indiana Wesleyan University made a bold and ground- breaking commitment to serving adult learners with the launching of the dynamic LEAP (Leadership Education for Adult Professionals) program. The innovative approach to serving diverse learners had an initial focus on business education programs, which would lead to the formation of what is now the DeVoe School of Business, one of the Midwest’s largest and most influential business schools. The DeVoe School of Business has served learners through providing a faith-based business education which sharpens skills, clarifies reasoning, and helps students to further define personal and professional calling. Today, the DeVoe School of Business delivers education onsite at 16 regional education centers and online nationwide to thousands of learners across the landscape of the marketplace. With an alumni base numbering in the tens of thousands, the DeVoe School of Business has influenced the leadership of many business leaders throughout the nation. A hallmark of the DeVoe School of Business from its inception is the commitment to reach learners by taking the educational experience to them, from manufacturing plant floors to office buildings. This inaugural edition of The DeVoe Report is no different. We are continuing to find new ways to take education directly into the marketplace to increase business professionals’ access to valuable learning. It is my hope that you find the content of this reader helpful to your daily work. I am grateful to the many business leaders and industry experts who have partnered with us to bring this publication together. We look forward to sharing future editions with you. President Indiana Wesleyan University DR.DAVID WRIGHT Alumni Spotlight Donna Meiser 7 Hardwork, Faith, & FamilyRyan DeVoe The Bible & Business Leadership Jerry Pattengale 14 10 A Conversation with Cheryl Bachelder Kneeland C. Brown 20Business & CommunityGreg Enas 24 Something Different is NeededDebbie Philpott CONTENTS How Some Corporations Have a Soul & Why It Matters for Modern Society and Economics Rebecca Samuel Shah 28 48 Changing the World Through Business Duane Kilty 44 Financial Accountability Justin Henegar 36Choosing a Financial Advisor Justin Henegar 40 How Are You Set For Your Next Batch of LeadersMichael Chase 52Quantitative Decision Analysis Justin Henegar 56 Virtuous Leaders & Organizations Mark Brooker & Jeffrey W. Boyce 62 72Alumni SpotlightDonna Meiser 68Gary Wilkinson & Tom Vogel Gary Wilkinson, Kevin Cabe, Marcus Myers & George Howell authors DeVoeREPORTTH E Jeff Boyce, Ph.D., is the Assistant Dean for Curriculum and Operations for the DeVoe School of Business at Indiana Wesleyan University. He earned his Bachelor of Science in Physics, his MBA in Executive Management, and his Ph.D. in Organizational Management. Dr. Boyce was also a graduate in Lean Manufacturing from JCIT. Mark Brooker, Ph.D., is the Assistant Dean of Teaching Faculty at DeVoe School of Business at Indiana Wesleyan University. Dr. Brooker has served as a manager and corporate officer in private business, as well as an economist in public government. He lives near Wilmington, Ohio with his family. Kneeland Brown, Ed.D., serves as the Dean of the DeVoe School of Business at Indiana Wesleyan University. Dr. Brown holds a Doctor of Education degree with an emphasis in Higher Education Administration and resides in Indianapolis with his wife Tearrah and their four children. Dr. Brown has spent more than a decade in higher education administration and has a passion for increasing the affordability and accessibility of higher education. Kevin Cabe, BS, MBA, DBA, is an Assistant Professor with the DeVoe School of Business at Indiana Wesleyan University. Working in a liberal arts Christian higher education setting brings two of his passions into convergence: developing highly proficient business students who can reason from a Christian worldview and magnifying the glory of God in and through Jesus Christ. Dr. Cabe’s interests include accounting ethics, business as mission, and personal finance. Michael Chase, Ed.D., is an Associate Professor of Business at Indiana Wesleyan University. He earned his Bachelor of Arts at Spring Arbor University. He also holds a Master of Science in Administration from Central Michigan University and a Doctor of Education in Organizational Leadership from the University of Sarasota. Ryan DeVoe is the CEO of DeVoe Holdings. Its companies include auto retail, finance, insurance, portfolio servicing, building supplies, and construction. Ryan earned his Bachelor of Science degree from Miami University. He spends his free time watching sports and his kids’ events. Greg Enas, Ph.D., is the President of Trinity Fellows Academy and serves on the board for The Oaks Academy in Indianapolis. Dr. Enas holds a Ph.D. in Biostatistics and earned his Bachelor of Science in Mathematical Sciences. Dr. Enas and his wife, Kim, have three sons. He enjoys running, biking, and basketball. Justin Henegar, Ph.D., is the Executive Director for Research and Scholarship at the Ron Blue Institute for Financial Planning at Indiana Wesleyan University. Dr. Henegar earned his Ph.D. in Personal Financial Planning, during which time he focused his research on financial literacy being taught by homeschooling families. He also holds a Master of Business Administration in Leadership and Organizational Development. George Howell, DBA, is an Professor at the DeVoe School of Business in the College of Adult and Professional Studies at Indiana Wesleyan University. Prior to being an associate professor, Dr. Howell worked in several leadership positions within the school. He holds a BA in Economics from Ripon College, an MBA from Indiana Wesleyan University, and a DBA from Anderson University. His interests include marketing, management, services marketing, customer satisfaction, and adult education. Duane Kilty, Ph.D., is the Scholar in Residence for the DeVoe School of Business at Indiana Wesleyan University. He holds a CFP, a CPA, a Master’s degree in both Accounting and Business Administration, and a Ph.D. in Business Administration. In his free time, Kilty and his wife love to travel and spend about 125 nights a year on the road in their RV. Kilty also loves to play golf and recently played Bethpage Black in New York, which was the location of the 2002 and 2009 U.S. Open Golf Tournament. Donna Meiser is the Alumni Relations Coordinator for the College of Adult Professional Studies at Indiana Wesleyan University. Donna also serves as the worship minister at Florida Station Church of God. She earned her master’s degree in Management from Warner University. Meiser pursued higher education as an adult student. She received her undergraduate degree alongside her son and her graduate degree alongside her oldest daughter. Marcus Myers, BA, MBA, Ph.D., is an Assistant Professor at the DeVoe School of Business at Indiana Wesleyan University. Dr. Myers’ professional experience includes serving as Development Officer for the College of Business Administration at Cleveland State University and the Director of Development for EMERGE Ministries. He has contributed to multiple presentations and papers. Jerry Pattengale, Ph.D., is author of more than twenty books, has co-developed a top-ten-visited website, and has generated significant funding for projects. Indiana Wesleyan University named him its first University Professor (2014). He holds various distinguished appointments and awards—including USC’s National Student Advocate Award, AP’s Hoosier State Press Association (2015 and 2016), and the National Endowment of Humanities. Dr. Pattengale serves on several boards and was the founding director of the Scholars Initiative and the Education Department at Museum of the Bible. Debbie Philpott, Ed.D., CPA, CMA, SPHR, SHRM-SCP, CGW, is a professor in the DeVoe School of Business at Indiana Wesleyan University. Dr. Philpott’s research interests include human resources management, faith at work, biblical integration, work-life balance, and micro-entrepreneurship. contributors Kneeland C. Brown, Ed.D. Editor-in-Chief The inaugural edition of The DeVoe Report is a significant milestone in the life of the DeVoe School of Business. The establishment of this publication is reflective of the school’s positioning as a thought-leader, delivering life changing business education rooted in biblical principles and sound practice. The culmination of this magazine would not be possible without the help of many devoted faculty, staff, friends, and partners of the DeVoe School of Business. For each of your contributions, I appreciate you and pray God’s richest blessings upon your lives. Let’s continue forward in preparing world changers for a life of service and leadership. Lauren Young MANAGING EDITOR Jay Hein SENIOR EDITOR Jerry Shepherd CHIEF MARKETING OFFICER Heather Snodgrass CREATIVE DIRECTOR Evan Eikenberry DIRECTOR OF DIGITAL STRATEGY Jenne Logsdone SENIOR DESIGNER Laura Matney PRODUCTION COORDINATOR Rachel Ashley EMAIL MARKETING & CONTRIBUTING EDITOR BOARD OF ADVISORS Ilene Bezjian- Chair Ian Blair Ron Brumbarger Cynthia Booth Ryan DeVoe Greg Enas Sarah Lacey Pete Ochs Knut Olson Raul Soto P. Douglas (Doug) Wilson DeVoeREPORTTHE ` Rebecca Samuel Shah is a research professor at the Berkley Center for Religion, Peace, and World Affairs and an associate scholar with the Berkley Center’s Religious Freedom Project. Rebecca is the project leader of a research initiative on religion, entrepreneurship, and economic development funded by the Religion and Innovation in Human Affairs program of the Historical Society in Boston. Rebecca has conducted research for Berkley Center’s Religious Freedom Project, the John Templeton Foundation, and Cambridge University. Rebecca earned a Bachelor of Science in Economics and Economic History as well as a Master of Science in Demography both from the London School of Economics. Tom Vogel, BA, MS, MBA, is a key adjunct faculty member of the DeVoe School of Business at Indiana Wesleyan University. He has taught with IWU since 1989, during which time he took an eight-year reprieve to live and work in Dallas, Texas. Tom owns and manages 12 grain farms in western Ohio and has three livestock operations in Ohio. He has a keen interest in the area of faith and economics, and strongly believes an economic system works best with faith-based principles. Gary Wilkinson, Ph.D., is a professor of Business and Faculty Emeritus for the DeVoe School of Business at Indiana Wesleyan University where he teaches economics. Prior to full-time teaching at Indiana Wesleyan University, he worked for 27 years at GTE Corporation. Dr. Wilkinson is a past president of the Indiana Economic Forum and has served IWU as Faculty Chair for the non-residential college, Chair of the University Faculty Relations Council, and Chair for the DeVoe School of Business. He lives in Indianapolis and actively attends St. Marks United Methodist Church. He and his wife have four children and eight grandchildren. David Wright, Ph.D., serves as President at Indiana Wesleyan University. Dr. Wright was Provost and Chief Academic Officer for five years prior to his election as president in May 2013. Before coming back to IWU in 2008, he was Dean of the School of Theology at Azusa Pacific University. Dr. Wright has served in several other positions at Indiana Wesleyan University. Dr. Wright earned his Ph.D. in Educational Policy Studies and Evaluation from the University of Kentucky. He has published three books, numerous articles, and contributed chapters to several professional books. Dr. Wright and his wife Helen have been married since 1977. They have two adult daughters and 3 grandchildren. Copyright 2017 DeVoe School of Business. Indiana Wesleyan University. All rights reserved. Subscription Services: DeVoe School of Business Email: [email protected] HARD WORK FAMILY ARDWORK, FAITH, AND FAMILY. These three qualities form a single portrait of one of America’s most innovative auto industry executives, my father, James “Jim” F. DeVoe Sr. Born on March 14, 1943, in Carmel, California, Dad’s family relocated to Indiana when he was a toddler and they settled in Marion, IN in 1962. His commitment to hardwork showed up early in life. As a boy, he had a local paper route. He took a special interest in giving the very best service he could and won the respect of the many wealthy professionals he delivered papers to. Faith&& & H Ryan DeVoe IWU | THE DeVoe REPORT 7 Jim F. DeVoe, Sr. He took his work ethic to Indiana University where he graduated with honors in 1966 with a B.S. in Business Finance and Management. It even took the same persistence and hard work for him to win the heart of his college sweetheart, Andrea (Andy). His hardwork paid off when he graduated with an MBA from IU and married Mom during the summer of 1967. Dad’s success was not built on hardwork alone, however. He had a belief in becoming the best by learning from the best, and he selected his role models very carefully. He read books about successful people and learned how they faced struggles and how they got through them. If you spent enough time with him, you would often hear him listening to his collection of cassette tapes which featured audio biographies of corporate executives, often telling of their humble beginnings and journeys to towering success. He would learn these stories, repeat these stories, and embrace these stories. Soon, he would be one of those stories himself. Dad not only set his gaze upon many corporate executives but, more importantly, he set his sights on God as his ultimate role model. Even before his formal confession of Christian faith, Dad read the Bible and strived to live a principled life to the best of his abilities. During their dating experience, Dad and Mom often spent time reading devotionals, which focused on the Bible, and praying together. Dad gave his life to Christ and began his Christian journey at a conference at Oral Roberts University. It was this faith in Christ which served as the foundation of Dad and Mom’s marriage and family. It also guided them in the parenting of their six children, the loving of their many grandchildren (each of whom had a special nickname from Grandpa), and ultimately their legacy in business. The Business Early in their marriage, Dad and Mom decided to return to Marion, IN to take responsibility for the family’s Chevy- Cadillac car dealership. Dad led the dealership effectively and thrived while selling new cars to the residents of Grant County and beyond. His financial acumen, innovative mind, and entrepreneurial bent would serve him well in the economic market insecurity which defined the early-to-mid 1980’s. With oil embargos driving gas prices further upward and interest rates on a steady climb, the market demand for expensive, big bodied new American vehicles subsided significantly. It was these market conditions that led to the launch of a start-up used car business on the lot next door to the new car business in 1987. Understanding the need for affordable, fuel-efficient and reliable vehicles, while also being mindful of the difficulty many of his potential customers had financially, he developed the nation’s first “buy here, pay here” car sales system. Dealership owners and managers flew in from around the globe to attend seminars in Marion, IN and learn about his “auto credit” system which was triggering so many sales. Soon, more than 750 new car dealers had gone through his seminar and launched used car businesses. In the midst of the training, his business continued to flourish to the point that franchising became the most effective means of sustaining ongoing growth. In 1989, he formalized this innovative credit system under the J.D. Byrider brand. It was a walk of faith, coupled with a lot of hardwork, and the active involvement of his growing family that helped facilitate the success. While the business continued to grow, Dad held onto his Christian values, treating customers with respect and dignity while ensuring that employees were treated well. J.D. Byrider would eventually total 168 franchises nationwide in 28 U.S. states under his committed leadership and care. The DeVoe School On March 23, 2006, Dad would transition from earth to heaven in a private plane crash near Melbourne, FL. While this was an untimely and tragic event, it is certainly not the end of his legacy of hardwork, faith, and family. In 2013, Indiana Wesleyan University (IWU) completed a $5 million gift agreement, one of the largest donations received in its history, which led to the naming of the DeVoe School of Business (DSB). The gift came from our family in Dad’s memory; however, it was not a gift intended to enshrine his name. Rather, it was a gift meant to inspire others to embrace their purpose. Mom hopes that students and alumni of the DeVoe School of Business “combine both their talents and their God-given gifts with the guidelines and principles that He has set out in His Word as their foundation: to guide them, to direct them, to hold to them, to trust them, to go forward during times when they can’t go forward, to restore them…He is able when you are not able. When you are weak, He is strong.” These are profound words from my mother and a fitting tribute to Dad’s faithful story. t IWU | THE DeVoe REPORT 9 BIBLE BUSINESS LEADERSHIP: Perspectives from the Shadows of Geniuses -JERRY PATTENGALE ’m old enough to know that some of the youngest men and women in our midst may join their ranks. These traits have already begun to show themselves. My forthcoming book, Borrowed Intelligence: Working in the Shadow of Geniuses, contains a litany of lessons learned from working for, and alongside of, some of these special people. Below are lessons gleaned from time spent in the shadows of three of them and their families – successful not only financially but philanthropically. Two of these men started with nothing. David Green, founder of Hobby Lobby, slept in the kitchen of his parents’ tiny parsonage, with two cabinet drawers serving as his dresser. E. Thomas Arington, the pioneer of Authorized Generics and founder of Prasco Laboratories, began working at eight years old--sweeping a drugstore next to his grandparents’ home where he stayed. The third, the late Robert Van Kampen, progenitor of Van Kampen Merritt, enjoyed initial family funding but veered into totally new areas. His wealth came by revolutionizing investment firms through insured trusts. He saw what others missed and creatively monetized and leveraged what others only valued existentially. These three men are as different as HBO’s John Oliver and the Senate’s Orrin Hatch, but they share a common thread—a driving passion to serve God in everything. For them it’s not the Bible and business, but the Bible in business. The undergirding dynamics of wealth accumulation intrigues me. It’s the purposeful use of it that excites. In the case of these three men, the two merge in an irrevocable, unabashed business purpose of honoring God. Some people are smarter than others. Some work harder. Some are more creative. Some have greater discernment of character. Some an uncanny insight into business trends. And some, while possessing one or more of these traits, are also Bible-believing billionaires or on their way there. Each picture affords a glimpse of the rather tangible expressions of their commitments to this singular end. Numerous others could be listed for each person. The Museum of the Bible is one of numerous projects launched by David Green’s family—one currently rich with media coverage due to its magnitude. The entire project—building and programs—is estimated at $1 billion. I’ve been privileged to help develop and lead the initiative from the beginning, being among the first three hired to dream and to execute such a plan. It now includes access to more than 40,000 ancient biblical texts and related artifacts associated with the programs, and hundreds of thousands of others through partnerships. We are looking forward to its opening in November 2017. It will attract millions to its DC facility, and exponentially more will benefit from the museum’s interactive Bible curriculum, traveling exhibits, and a host of other venues 1An overview is either found on the Museum of the Bible’s site under “Education,” and full downloadable version at the App store (late December, 2016). See: https://www.museumofthebible.org/curriculum. I MUSEUM OF THE BIBLE 10 THE DeVoe REPORT | IWU PRASCO LABORATORIES BIBLE BUSINESS LEADERSHIP: Perspectives from the Shadows of Geniuses internationally. Recently at a Willard Hotel event (November 2016), David and Barbara Green reminded the audience of their priorities: to share the Bible and its message. Barbara reminded the interview host, Bill High (National Christian Foundation), that only two things last forever, “God’s word and people’s souls.” David shared that half of their annual income goes to such causes. Hobby Lobby (only one of their many businesses) made more than $4 billion last year. While preparing this essay, I asked Steve Green (president of Hobby Lobby) what guiding principle he recalls from spending decades with this dad in business. He quickly replied, “Dad constantly said, ‘God owns it all!’” The second picture is of the impressive Prasco Laboratories complex in Mason, Ohio. Its founder is the gregarious E. Thomas Arington—an eighty-year-old teenager. Besides leading a public company, Duramed Pharmaceuticals, out from under a status of undeclared bankruptcy, he’s also been the key pioneer of Authorized Generics. He began sweeping the floors of a drugstore behind his grandparents’ humble home in Shelbyville, Kentucky, and never left the industry. One of my special memories was joining him for his first return visit to that drugstore site decades later. Standing with him at the old repurposed building’s backdoor, I gained a new understanding of his journey—across the parking lot was an unmistakable landmark of his faith, the steeple of the church from his youth. The Bible and its message was formative and now frames the entire Prasco culture, to Unlimit ™ one’s contributions through loving God and loving people. The Prasco business complex is among the most impressive in the country—including two professional- quality baseball diamonds. Recently, with his sons, brother, and loyal friends from decades of remarkable projects, he launched Aprecia—the first company to use 3-D printing in production. The Zipdose ™ technology revolutionizes the time a tablet, pill, or wafer takes to dissolve (it’s immediate). And the Arington and Prasco names are inextricably linked to ministry and community service. Tens of thousands attend their community events annually, at no charge—from hundreds of baseball games to Christmas specials, food gardens, and nutrition assistance. It’s little wonder that the “Prasco Way,” articulated on thousands of hand-out cards, carries a clear gospel message around its acronym: ISEE. “Improve daily, both personally and professionally. Serve God, family, customers, partners, fellow employees, and global 2Malcolm Evans and Jerry Pattengale, Leading Business by the Book: Principles for a Fulfilling Business Life (Marion, IN: Triangle Publishing, 2008). 3They have since appeared in a different context in The Chronicle Tribune. IWU | THE DeVoe REPORT 11 HAMPTON COURT, HEREFORDSHIRE community. Execute tasks with excellence and exceed our goals. Energize others with our prayers and passion for what we do and what we believe.” The Cincinnati Angels’ website includes Mr. Arington’s quote that he shares often: “The greatest job satisfaction comes through achievement by a TEAM committed to high standards with the WILL and INTEGRITY to win— regardless of time or level of adversity.” It’s not difficult to find the source of his philosophy, beginning with Prasco’s address, 6125 Commerce Ct., Mason, Ohio. Yes, the sixth-book of the New Testament, twelfth chapter and fifth verse (Romans 12:5). Those missing that cue won’t overlook it in Prasco’s impressive lobby. While standing on three inlaid crosses one’s eyes are immediately drawn to the large lettering across the edifice of the circular second tier: “Go therefore and make disciples of all the nations, baptizing them in the name of the Father and of the Son and of the Holy Spirit” (Matthew 28:19 NKJV). The third picture is of Hampton Court Herefordshire (on the border of Wales). I remember a moment with Robert Van Kampen: unannounced, he said, “Jerry, I just bought you a place to hold your meetings in England. It’s a castle near Hereford.” Indeed we held some remarkable events with the British Library at Hampton Court, Herefordshire—for scholarly discussions of the Bible. From the world’s leading Greek scholar, Bruce Metzger, and leader of the Dead Sea Scrolls group, Emanuel Tov, to the Vatican’s librarian, Fr. Leonard Boyle, and noted scholars such as Janet Backhouse, Walt Kaiser, and Edwin Yamauchi, in-depth discussions marked our days. Bob afforded this benevolence through an ingenious small-stock idea. Within a few years, he became the progenitor of the Van Kampen Investments brand. And from Nike Securities and helicopters to one of the country’s largest real estate firms (which he bought, sold for a profit, and did the same again), he made money until the day he passed. A strong man. Powerful presence. Obsessed with whatever deal he pursued. Though espousing a devout Reformed theology, his modus operandi followed none other than John Wesley—”Make all you can. Save all you can. Give all you can.” As I moved (and continue to move) in the shadow of geniuses, I tracked principles woven through their lives’ tapestries—manifest clearly in their business journeys. Space doesn’t allow us to unpack the stories behind some of the principles listed below. … Page 2 © DeVoe School of Business. All Rights Reserved Making Business Virtuous MAKING BUSINESS VIRTUOUS Jay Hein & Gary Wilkinson, Ph. D. 10/26/2015 Abstract This paper speaks to the growing disenchantment of capitalism and introduces virtuous business as the only antidote capable of restoring trust in the free market system. What is recognized is that now, more than ever, there is need for a clear distinction between values-neutral capitalism and virtuous business. Two case studies are exampled. The first showcases how The Andersons, Inc. maintains a culture of ethical decision making, even amidst growth through acquisitions. The second case covers Tyco, and how new leadership approached the rebuilding of company culture following massive fraud. Finally, the paper posits that the objective of becoming or remaining a virtuous business is the overarching goal for a business. It is always a work-in-progress, an aim never totally achieved; but, an organization that steadfastly strives to be virtuous gains the greatest opportunity for longevity and provides the greatest benefit to society. Page 3 © DeVoe School of Business. All Rights Reserved Making Business Virtuous Presented by: Page 4 © DeVoe School of Business. All Rights Reserved Making Business Virtuous Making Business Virtuous “There is no right way to do the wrong thing.” This was a core operating principle for Dayton Molendorp, whose decade as CEO of OneAmerica increased assets from $15 billion to more than $36 billion (Swiatek, 2014).Notably, much of that growth occurred during the 2007- 09 recession. Molendorp’s leadership suggests that old-fashioned values can translate into success in the new economy. And he is not alone. Former Pepsico chairman and Wake Forest School of Business Dean, Steve Reinemund, said in an interview with Seattle Pacific University’s (SPU) Center for Integrity in Business: ‘…the purpose of business is to provide goods and services for society in an ethical manner that provides a sense of well-being for employees, supports a livelihood for families, enhances the economy of communities, and provides a reasonable return for owners.’ (Erisman, n.d.). Reinemund notes that business education in America does not produce such leaders today (Erisman, n.d.). The modern push for more rigor in business education has fueled a transition from “soft skills,” such as leadership, to more technical skills-based curriculum. As described in this DeVoe white paper on business education, Indiana Wesleyan University (IWU) is delivering what Reinemund calls for—a return to a business schools’ emphasis on leadership (Erisman, n.d.). This paper will consider the growing disenchantment to capitalism and introduce virtuous business as the only antidote capable of restoring trust in the free market system. IWU’s conference on Adam Smith (London, October 2011) established the intellectual foundation for this section of the paper: the economic order described in Smith’s book, Wealth of Nations Page 5 © DeVoe School of Business. All Rights Reserved Making Business Virtuous (1776), only works when practicing the values described in his other book, The Theory of Moral Sentiments. Business was Birthed in Virtue It’s worth noting that the modern practice of business was indeed birthed in virtue. In his classic book, The Protestant Ethic and the Spirit of Capitalism, Max Weber (1921) writes that the rise of capitalism is attributable to faith-based ethics. As the Protestants taught individual responsibility, so the market benefitted from honest dealing and a network of trust that serves as glue for the free market. “Self-discipline, a sense of justice, honesty, fairness, chivalry, moderation, public spirit, respect for human dignity, firm ethical norms—all of these things which people must possess before they go to market and compete with each other. These are the indispensable supports which preserve both market and competition from degeneration. Family, church, genuine communities, and tradition are their sources” (Ropke, 1960, p. 125). Catholic philosopher, Michael Novak (1982), picked up the same themes in his book, The Spirit of Democratic Capitalism. Whereas, his book advances our understanding of virtuous business, his other writings have illuminated the virtues of business. Just as Adam Smith (1776) was the first to conceive of a world without poverty, thanks to the rise of wealth creation Novak (1982) contrasts the Asian and African experience over the past several decades as empirical evidence of capitalism’s blessings to the poor. As China and India adopted capitalist economic methods since the early 1980s, they have combined to raise more than a half billion out of poverty. Novak (as cited in Malloch, 2008) exclaims that “never before have so many people emerged out of hopeless lives in so short a time” (p. xx). Africa, on the other hand, remained mired in socialist economic schemes, or simply dictatorships, and its poor has swelled during the same time period. Consider this, in Page 6 © DeVoe School of Business. All Rights Reserved Making Business Virtuous 1970, 76% of the world’s poor lived in Asia and only 11% lived in Africa (World Bank, 2010). Today, 15% of the world’s poor lives in Asia and 66% lives in Africa (World Bank, 2010). Theodore Malloch (2008) has taken the baton from Smith (1759), Weber (1921), and Novak (1982). Malloch’s recent book, Spiritual Enterprise, builds on their work and takes on the paradoxical realities of capitalism’s role in improving society while society remains skeptical of it. This paradox reached its apex in the 1990s when capitalism’s triumph over communism seemed to settle the issue once and for all; yet, within a decade, there were widespread protests in such free market capitals as New York City and London over capitalist abuses that led to global recession. Virtuous Business Now, more than ever, there is need for a clear distinction between values-neutral capitalism and virtuous business. The former is susceptible to repeating the 2008 crisis and the latter is the means to macro benefits such as combatting global poverty, and micro benefits such as finding meaning and dignity in the workplace. Spiritual Enterprise makes two big claims in this direction. First, it uses rigorous market analysis to determine that virtuous leadership contributes to business success. Second, it makes the case that free enterprise capitalism is wholly consistent with spiritual depth and moral commitment. Both of these claims rest on the notion of virtue, which Malloch (2008) defines as “a habit of excellence,” and his book introduces the following virtues with over 60 real-life business case studies—each evidencing virtuous organizational practice resulting in personal and marketplace success: faith, hope, charity, courage, perseverance, discipline, compassion, humility, and others. Page 7 © DeVoe School of Business. All Rights Reserved Making Business Virtuous Malloch (2008) begins with a focus on the theological virtues of faith, hope, and love that form the basis of a spiritually attuned life. He then distinguishes between the “hard” virtues (e.g., courage, discipline) that gets things done, with the “soft” virtues (e.g., justice, compassion) that incorrectly get relegated to “stay-at-home” situations (Malloch), although they are vital to virtuous business. Other contemporary experts help us understand why firms should strive to be virtuous: today’s talent demands it. The Aspen Institute surveyed nearly 2,000 MBA students from 15 business schools to discover their attitudes about business and society (Trevina & Nelson, 2011). At the start of the 2008 financial crisis, nearly 80% of students claimed that a well-run company “….operates according to its values and a strong code of ethics” (Trevina & Nelson, 2011, p. 10). In contrast, less than 50% of the students claimed that well-run companies “…adhere to progressive environmental policies” (Trevina & Nelson, 2011, p. 10) and little more than half required “…competitive compensation” (p. 10). University of Chicago scholar, Amy Kass (2002) asserts that such impulses need to be instructed. She challenges business schools to teach virtues with such content as she gathered in her landmark book, The Perfect Gift. Christian education has a distinct contribution to such teaching given its orientation toward Christ-centered value over material value. Consider today’s debate over the workplace. Gallup CEO, Jim Clifton (2011), recently wrote a book called The Coming Jobs War. He cites Gallup’s research of the world’s 7 billion people attitudes toward work. Of the 5 billion aged 15 or older, 3 billion need a full-time job, but only 1.2 billion such jobs exist in today’s global marketplace (Clifton, 2011, p. 2). Clifton believes that this will lack of good, available jobs will threaten countries’ well-being and creating good jobs will be the top leadership challenge in the new century. In other words, tomorrow’s power Page 8 © DeVoe School of Business. All Rights Reserved Making Business Virtuous brokers will be job creators. Juxtaposed against this growing demand for good jobs is the danger of placing too much of one’s self-worth in our jobs. Work should be everything it was designed to be (glorifying God through the full use of our talents) while not allowing it to be what it was not designed to be (the source of our identity) as John Beckett (2006) has shared in Loving Monday: Succeeding in Business without Selling Your Soul. Tim Keller’s (2014) faith and work ministry leaders report that much of the workplace stress reported by congregants is fear of performance reviews. Redeemer’s marketplace teaching team addresses this inherent insecurity with Christ’s assurances of inherent worth (Keller, 2014). So what are the characteristics of a virtuous business? Companies that meet the increasing demands of global competition for market share with an ethical culture and human capital development focus will have a competitive edge in the new economy. Virtuous firms are characterized by having high integrity, a striving for excellence in their provision of products and services to consumers, in addition to excellence in business leadership and management practices, a culture of open communication, cooperation and collaboration, and a system of measurement and accountability throughout the organization. Leadership and Organizational Challenges to Become or Remain Virtuous In the previous sections, the characteristics of a virtuous corporation and the reasons why firms should strive to become or to remain a virtuous corporation have been discussed. This section will describe the leadership and organizational challenges in the process. It is not an elusive process, but it does require fortitude. To create a culture of ethical behavior requires an organization committed to ethical decision making, a system of training and mentoring to build “Tomorrow’s power brokers will be job creators.” ~ Jim Clifton (2011). Page 9 © DeVoe School of Business. All Rights Reserved Making Business Virtuous ethical character among the employees, and the necessary incentives and checks and balances to make it happen. Of course, no organizational structure ensures ethical decisions. But an organization with leaders—servant leaders—who set an example of ethical conduct, and a structure established to provide proper incentives for ethical decisions with appropriate checks and balances, training, and communication, are key components of a virtuous business. By example, Jesus taught the disciples about servant leadership by serving them (John 13:1-17). He role-modeled the desired attitude and behavior, and deeper still, he imparted wisdom. “The primary perspectives of the servant leader are twofold: When his people achieve their full potential so will his enterprise. When they have all bought-in to a common and shared purpose, a goal that transcends their own functional objectives and which is about serving God, they will work coherently, cohesively and collaboratively towards the achievement of that purpose, for themselves, for the enterprise and for God” (Waddell, 2014, p.10). This section will first describe some fundamental organizational requirements for promoting ethical decision making, and, secondly, discuss how individual decision makers must correctly frame business problems. Finally, the need for planning, open communication on ethical issues and necessary checks and balances within the organization will be addressed. The objective is to implement an organizational structure which fosters ethical decision making. It is an objective that is within the direct control of the firm’s leadership, and one that recognizes that the execution of ethical decision making by individuals within the organization can be influenced by the example of leadership, training and continuous reinforcement, and incentives which reward ethical behavior. Page 10 © DeVoe School of Business. All Rights Reserved Making Business Virtuous One of the troubling features of many corporations is that they have the goal of being an ethical corporation in their mission statements and a code of conduct to support it, but they never develop a corporate culture of ethical conduct. In a 2012, Wall Street Journal blog post titled “Survey Finds Unethical Business Practice on the Rise,” Chris M. Matthews (2012) spotlights one of the findings which claims that “Of the more than 1,700 executives polled by Ernst & Young for its annual fraud survey, 15% said they were prepared to make cash payments to win business, up from 9% in the previous survey” (para. 1). Within this sample, 81% of the business executives knew that their firms had anticorruption practices (Matthews, 2012, para. 4). However, less than half of the respondents could recall if any discussion or training on these practices (Matthews, 2012). With cases of corporation fraud such as Enron and World Com, where thousands of people lost jobs and investments were lost, there is still considerable work to be done within both the areas of improved organization and improved decision making of individuals within the firm. Organizational Structure to Support an Ethical Culture As with most management challenges, the organizational structure to support an ethical culture can be easily described but it is difficult to implement and maintain. The firm must purposefully and intensely focus on assuring that an ethical framework influences all decision making within the organization. This requires that the firm’s leadership must: - Set the standard that ethical considerations are part of every major business decision and constantly communicates that decision-making framework to the organization. - Establish an employee incentive system that clearly demonstrates that ethical behavior is required, valued and rewarded and that unethical behavior (even if this behavior may result in short-term benefits) is not tolerated. Page 11 © DeVoe School of Business. All Rights Reserved Making Business Virtuous - Ensure the organization has established a system of checks and balances on decisions which bring additional views into the decision-making process. - Implement a measurement system for measuring how well decisions align with the firm’s values. - Have a planning system in place which provides lead time for major decisions, so that a systematic review of ethical issues is always part of the decision process. The modern basis for the argument that business ethics is essential for the proper functioning of an economy is in the writing of Adam Smith. Prior to writing his famous book The Wealth of Nations (1776), he wrote a book called the Theory of Moral Sentiments (1759) where he argued that an economic system must be based upon moral principles. This formed the basis for Smith’s argument that competition and the so called “invisible hand” would provide benefits to society, but only if firms were committed to moral principles in their conduct. Thus, the objective for a business is to craft an organizational structure which responds to the myriad of challenges associated with running a profitable organization, while abiding by ethical principles. Smith (1759) based his view of moral sentiments on Biblical principles and this was the early bridge which merged the need for Christian ethics with sound business management for the benefit of society. Virtuous Leadership is the Foundation of a Virtuous Corporation “Business direction is defined not only by a clear vision but by a set of core values. If well thought out and effectively communicated, such values are a powerful means of focusing the energies of an organization. They become the channel markers guiding the corporate ship toward the fulfillment of its vision” (Beckett, 2006, p. 148). Page 12 © DeVoe School of Business. All Rights Reserved Making Business Virtuous The foundation of a virtuous corporation is virtuous leadership. This leadership must establish the corporate values of ethical decision making and demonstrate a steadfast commitment to these values by their collective actions. Virtuous leaders recognize that organizations are more than just financial in nature; organizations also have a social and spiritual component. Virtuous leaders are committed to the premise that organizations need to develop, not only financial capital, but social capital as well as spiritual capital. Financial capital is generally understood by the business community; capital is developed from the excess of financial revenues over expenses; financial capital, therefore, deals with how organizations (and individuals as well) handle their property and profits. Social capital deals the relational aspect of the stakeholders; building social capital requires prioritizing relationships with employees, customers, shareholders, communities, and others. Operationally, building social capital requires acknowledging and supporting the four institutions established by God that provide for the relational needs of people: the church, government, business, and the home. Building spiritual capital requires acknowledging that there is a higher authority than simply man. For the Christian, this higher power is God and building spiritual capital means that individuals and organizations make decisions and behave in ways consistent with biblical principles with the goal of honoring God. To this end, a clear statement and commitment to the organizational values and objectives are needed. But this is just the first step. Although business leaders would like to think that all employees will make ethical decisions, the fact is that leadership must continually communicate that ethical decision making is the highest priority for the firm, establish employee conduct standards and incentives which match the values of the firm, put in place the organizational checks and balances on the decision making process, and implement a system of measurement and reporting to evaluate how well the Page 13 © DeVoe School of Business. All Rights Reserved Making Business Virtuous firm is doing. All of these steps are needed to make ethical standards a part of the corporate culture. Unfortunately, many have a clear understanding of financial and operational goals and objectives, but only a vague notion of how ethical considerations must be part of the decision making process. A corporate culture, which has established a vocabulary and process for open discussion and collaboration on issues of ethics, must be established by the leaders and fostered throughout the organization. There have been too many instances of firms with noble mission statements which never guided the day-to-day decision making of the employees. Perhaps the most egregious example was in the case of Enron. The mission statement of Enron advocated ethical conduct throughout the firm, but the corporate culture not only tolerated, but encouraged, unethical accounting and operational decisions which increased short- run profits. However, this culture without ethical checks and balances eventually destroyed the firm, as well as the accounting firm of Arthur Andersen. Within Enron, the highest-level check for decision making within the firm, the corporate Board of Directors, proved inadequate. Information flow on decisions having vital ethical consequences was restricted, and the independence of their external auditors, Arthur Andersen, was clearly compromised. The Enron collapse was one of the major reasons for the Sarbanes-Oxley legislation, which was intended to bring greater accountability and transparency to corporate decision making (Sims & Brinkmann, 2003). Implementing an Ethical Organizational Structure Beyond setting up an organizational structure which encourages ethical decision making, some management research from decision theory can inform business leaders on potential problems with implementing this structure. As Kantor (2011) described, business leaders often fail because they define their business by financial performance and not a higher purpose. This is Page 14 © DeVoe School of Business. All Rights Reserved Making Business Virtuous the issue of framing. Kahneman and Tversky (1980) developed the concept called prospect theory, which espouses that decision makers are often led to a particular solution by the way the problem is framed. Frame a problem in a positive way, and we make one decision; frame the identical problem in a negative way and we make a difference. The problem of incorrect framing of a decision may also involve narrowing a decision to a simple technical issue, thus avoiding the ethical implications. For example, the large telecommunications firm, World Com narrowed the problem of using unethical accounting practices to increase profits to a narrow technical decision of whether certain costs were expenses or could be capitalized. A small ethical breach of incorrectly accounting for these expenses allowed for greater apparent short-run profits. Unfortunately, this led to the “slippery slope” of continuing the practice until the problem was so large that it destroyed the firm. Focusing on short-run versus long-run implications of decisions also is framing trap. In decision making, we tend to heavily discount the potential future effects of an action compared with the immediate gratification of benefits. There have been several well publicized instances of firms seizing upon short- term profit opportunities at the expense of their long-run reputation. One of the causes of the 2008 financial crisis was the bundling of complex mortgage bonds along with the rating of these bonds by several of the major bond rating firms. This led to a clear conflict of interest, as the firms were able to increase short run profits by giving these bonds high ratings indicating low risk. However, history showed that these short-run profit motivations contributed to a world-wide crisis in trust for our financial institutions. A familiar quote Frame a problem in a positive way, and we make one decision; frame the identical problem in a negative way, and we make a different decision. Page 15 © DeVoe School of Business. All Rights Reserved Making Business Virtuous attributed to investor Warren Buffet summarizes the consequences of a short term profit focus without considering the long term ethical considerations. “It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you'll do things differently.” (“Warren Buffet,” 2015). Finally, the individual decisions on behalf of the firm by managers and leaders can be influenced positively or negatively by the formal organizational structure as well as the informal organization. An organization which encourages open dialogue and exchange of information improves overall decision making and specifically the evaluation of ethical questions. It is naïve to think that ethical decisions are easily made. Often, there are multiple possibilities and ambiguity. The literature on decision theory informs us that we all come with biases based upon our backgrounds and knowledge base (Bazerman, 2011, p. 37). Nevertheless, establishing a decision-making model of dialogue and transparency gives the organization the best opportunity to abide by its goal of being (or becoming) a virtuous business. Case Studies Two case studies are provided in this section of the paper to illustrate the organizational challenges of being a virtuous business. The first details how The Andersons, Inc. continues to focus on maintaining a culture of ethical decision making, even amidst growth through acquisitions. The second covers the well- known example of Tyco which was rocked by a massive fraud incident. The focus of the case is on how new leadership approached the rebuilding of company culture. The Andersons, Inc. Page 16 © DeVoe School of Business. All Rights Reserved Making Business Virtuous The Andersons, Inc. is a five billion dollar diversified agricultural services company based in Maumee, Ohio. The enterprise has five business groups: Grain, Ethanol, Plant Nutrient, Rail, and Retail. The company was begun in 1947 by the Anderson family, and continues driven by the same principles initiated by its founders. “What began as a single grain elevator and one man’s dream has grown into a publicly traded company with diverse interests (The Andersons, Inc. 2015f, History, para.). The Andersons, Inc. website informs of the company’s values, mission, and objectives, all of which have been institutionalized as part of the company culture: Values. Beliefs Customers Employees Shareholders Communities Beliefs. This company is founded on the belief that all of us are subject to a higher and divine authority, and that we should aspire to goodness, integrity, fairness, respect and those virtues which we think are consistent with divine will. We believe that possession of these qualities develops self-esteem, merits the approval of others and enhances both private and public welfare. (The Andersons, Inc., 2015a, Beliefs, para. 1). Customers. Our competitive economic system makes it essential that we place constant and primary focus on satisfying the needs of our customers. We should not lose sight of the fact that it is the customer who pays everyone’s salary and who decides whether the business is going to succeed or fail. Everyone in the organization should realize that the customer comes first and that every customer is important. (The Andersons, Inc., 2015c, Customers, Para. 1) Page 17 © DeVoe School of Business. All Rights Reserved Making Business Virtuous Employees. We believe in the dignity of honest work and that working toward Company goals should provide support and opportunity for each member of the organization to establish and progress toward personal goals. (The Andersons, Inc., 2015d, Employees, para. 1) Shareholders. If our Company is to continue to thrive, a fair return on investment is essential. We are, therefore, committed to a strong and aggressive pursuit of profit and growth. Growth in total shareholder value should be consistent with our responsibilities to our other stakeholders but, in the final analysis, it must occupy a position of central focus if we are to succeed in our competitive environment. We intend our growth to be focused and disciplined. (The Andersons, Inc., 2015e, Shareholders, para. 1) Communities. As we have emphasized, the primary focus of our Company is service to our customers. If we are successful in providing our customers with products and services that are of clear value, we have fulfilled an important aspect of meeting our obligations to the communities in which we live and do business. We believe, however, that both individually and collectively, our community obligations extend considerably further. We feel we should generously share our time, talents and financial resources in pursuit of solutions to our social problems and in support of other worthwhile community endeavors. We also encourage and stimulate others to do the same. We believe that a reasonable portion of profits should be contributed to charitable causes. The Anderson Foundation has been established as a major recipient of these contributions. …