The Virtuous Organization

The following sections are included:

• DEDICATION

• ACKNOWLEDGMENTS

• CONTENTS

Even though the concept of virtues may seem more at home in philosophy, religion, and social services than in the for-profit world of business, The Virtuous Organization focuses on virtuous practices in work contexts. Much attention has been paid to values in organizations, of course, but the definition and roles played by virtues in organizations differ from values. We briefly discuss the concept of virtues in organizations and differentiate it from the concept of values with which it is sometimes confused. This will serve as a backdrop to the contributions made by the various chapters contained in this book.

In this section, the authors discuss the role of virtues and virtuousness under conditions of crisis. Brockner and James (2008) identified the five main ingredients of crisis in organizations as: (1) a highly ambiguous situation, (2) with a low probability of occurring, (3) offering little time to respond, (4) often coming as a surprise to organizational members, and (5) requiring a decision or judgment intended to improve the organization. Crises are often watershed events for organizations. They typically pose challenges in which much is at stake, for many constituencies, and in both the short- and long-term. Whereas, crises frequently give rise to a threat-rigidity response (Staw et al., 1981), to organizational deterioration (Cameron et al., 1988), and to the mitigation of opportunities for organizations to flourish, this section highlights the opposite consequences. In this section, the authors identify the role that virtuousness plays during crisis conditions which produces positive organizational performance…

This chapter examines how organizations heal after major trauma. The authors introduce the concept of organizational healing and differentiate it from resilience, adaptation, and hardiness. Healing refers to the actual work of repairing and mending the collective social fabric of an organization after experiencing a threat or shock to its system. Using a qualitative research method, the chapter uncovers four themes of organizational healing that reflect an organization's capacity for virtuousness: reinforcing the priority of the individual, fostering high quality connections, strengthening a family culture, and initiating ceremonies and rituals. These themes emerged from narrative accounts of the shooting incident in a Midwestern university.

This chapter analyzes how members make sense of organizational actions after a crisis. All individuals have developed “virtue frames,” or categories of interpretation that determine the extent to which actions are judged to be morally good and right. This chapter examines the effects of these virtue frames on members' identification with and attachment to their own organization as a result of that organization's responses to the events of September 11th. The authors explore the use of three virtue frames — humanity, justice, and courage — to identify the effects of interpreted virtuousness on identification and attachment. These effects are mediated through members' emotions, self-construals, and overall images of the organization.

This chapter explores different ways of how forgiveness is manifest in people who experience perceived offense or harm. Forgiveness is rarely considered in management research, yet it has particular relevance to the health and functioning of interpersonal connections which allow organizations to thrive. Interviews conducted in a unionized trucking company — faced with tensions, conflicts, harmful relationships, and perceived injustices — uncovered three primary responses to perceived injury and offense. One is a begrudging response, where forgiveness is an illusion. The second is a pragmatic response, where forgiveness is viewed as a necessity. The third is a transcendent response, where forgiveness is viewed as a way to help another flourish.

This chapter examines the failure of success, the corruption of triumph, and the danger of celebrity. It explains why the contemporary business press and academic studies are replete with examples of previously acclaimed leaders who slipped into situational narcissism leading to distorted decisions and subsequent public embarrassment. Every person playing a leadership role or attaining a position of notoriety is tempted by hubris, or the development of pride and dominance. The chapter explains why these outcomes are common and introduces the classic virtues of humility and love as offsets and counter-tendencies that can protect leaders from such falls from grace.

In this section, authors discuss the role of organizational virtues and virtuousness during ordinary times. At this point in our history, bombarded daily by instantaneous media coverage and global Internet accessibility one might wonder whether there remain moments which can truly be thought of as “ordinary”. Ongoing terrorist attacks around the globe, seemingly random mass murders in homes, schools, and businesses, venues once thought to be safe havens, and increasing threats to the environment which supports our very life on this planet make it harder to maintain the stable rhythm and the daily routine of “ordinary times.” And yet, despite reports of such alarming atrocities occurring every day somewhere in the world, we must still get up each morning, kiss our loved ones goodbye and continue to function within our own organizations. They are typically not in the crisis mode described in detail in the previous section, nor are they experiencing the bounty of exemplary times to be addressed in the following section, where there are more than enough exceptional opportunities to go around…

The virtuous organization is made up of people whose virtuous behavior emanates from a rich diversity of sources, each with its own language and beliefs. The language of virtues is suggested as a means to: (1) harness the power of each individual's unique reasons to act in a virtuous manner; and (2) translate these ideas into an inclusive public language that can be expressed in a public classroom or corporation. Tested in the classroom and the organization, virtues such as compassion, integrity, and courage offer terms that transcend source differences and help organizations discuss how the presence of such activity in the organization can support employee satisfaction and the bottom line. One activity found to be useful in making this transition is an exercise designed to show how spiritual or virtuous, values and business values can be reconciled.

Psychological Capital is introduced as an important asset that can be leveraged to enhance the virtuousness of organizations. Psychological capital is defined as a state of development characterized by self-efficacy, optimism, hope and resilience, though there are many other similar resources. The authors examine empirical studies showing promise that psychological capital can be translated from moral goals to bottom line results. It is proposed that the relative stability and certainty of ordinary times offer the optimal conditions for developing psychological capital that can enhance the virtuousness of the organization when circumstances are less predictable.

When examining the four dimensions of national culture from an Asian perspective, Hofstede expands on his well-known measure of comparative cultural values and emerges with a new dimension unrelated to results from questionnaires designed by Western scholars. This new dimension emphasizes a Long-Term versus a Short-Term Orientation in Life. The author explores the religious and philosophical origins of these two approaches and illustrates how each views the concept of virtue differently with Western ideas of virtue tied closely to Truth, while Eastern ideas of virtue are not attached to any particular version of Truth. The implications of these differing ways of thinking on scientific inquiry, forms of government, and ways of managing are considered.

Peter Drucker, one of the great visionary management thinkers, shares his thoughts in his last published interview before he died in 2005. He credits social sector and nonprofit organizations in the U.S. for keeping the government out of their governance as much as possible and, unlike their European counterparts, utilizing volunteers. Yet Drucker criticizes this sector for focusing primarily how much money is raised while paying inadequate attention to mission and results. Another hurdle to virtuous activity in this sector is poor succession planning and professional management competencies. He ends with the possibility for mega-churches as well as hospitals and charities to have a greater impact on society when they solve the aforementioned administrative problems and focus more on virtuous behavior.

Global corporations have become more and more powerful over the past 50 years, yet CEOs of the world's largest corporations have not risen to the challenge to leverage their money and influence to perform in virtuous ways such as becoming role models for engaged global citizenship. Even worse, many of these organizations consider commitment to societal well-being to be a drain on their profits. Adler illustrates with several powerful examples how virtuous corporations can effectively partner with government, communities and other corporations to “reduce poverty, wage peace, and enhance environmental quality while making a profit.” She encourages leading thinkers to create partnerships that include the business sector.

How do we imagine “exemplary times” for our work life? Is it evidenced by windfall profits and a bulging portfolio? Does it appear as a time when everyone is enthused, creative and empowered to do their very best work? Is it when a leader of extraordinary demeanor and skill inspires others to stretch a little farther or to trust a little more? Or rather, is it a rare occasion occurring every other decade when all the stars are aligned and we feel “just right”?.

A discussion of a model for virtuous leadership is presented by Pearce, Waldman and Csikszentmihalyi. The import and interplay of work relationships and task accomplishment are considered along vertical and shared leadership connections. These authors contend that individual characteristics and cues in the environment may point to greater ethical and moral decision making as well as enhanced positive organizational learning. The idea of a continuum ranging from absence to full presence of virtuous leadership has implications for exemplary work.

Mitroff and Mitroff present a reflective account of the exemplary work and life philosophy of Fred Rogers, originator of award-winning public television children's show, “Mr. Roger's Neighborhood”. Although Fred Roger's is best known for his impact on children over the past 35 years, the Mitroffs examine his legacy on yesterday's children who are today's leaders. This “legacy look” at Rogers work is translated into seven key principles — “living virtues” — for adults which the Mitroffs frame within a lifespan perspective of learning and moral development.

Meyerson and Quinn are interested in extending a scholarly look at the complementary aspects of tempered radicals and positive deviance behaviors defined within a Positive Organizational Scholarship perspective. Tempered Radicals, as defined in Meyerson's earlier works, are those who share an outsider/insider identity in groups or organizations and who seek to make things better for themselves and others. These authors focus on the tempered radical's “subtle, incremental and long-term strategies which slowly” make a significant difference. It is this source of positive change which is undertaken “with honor” that allows for a different notion of exemplary times to be viewed as long-term and enduring.

A three-part movement begins with Neal, founder and CEO of the International Center for Spirit at Work, setting the stage for an interchange of ideas relating to virtues and leadership. Gunther, a senior writer for Fortune Magazine, is the dialogue partner. He draws upon his journalistic interviews with CEO's and especially upon the case of exemplary leader and CEO, Ricardo Levy, to examine the interaction between spirituality and business practice. The Levy case is followed up with a short interview whereby Neal asks pointed questions about the capacity of organizations to exhibit virtuousness and what may contribute to virtuous performance.

Kanter introduces the idea of a values and economic based continuum, “The Corporate Conduct Continuum,” as a means to assess corporate integrity and degree of positive engagement with communities, regions and global networks. She points to rising expectations by the general public for good to better corporate citizenship. Cases and role model companies who take innovative and highly successful steps to meet triple bottom line accountability are highlighted. Kanter contends that these kinds of exemplary efforts and effects are imperative for moving local and national interests to higher ground in the 21st century marketplace and world.

In 2000, David Whetten delivered his Presidential Address “What Matters Most” in his role as president of the Academy of Management. In the way of concluding comments for the book, this final chapter shares David's memorable speech. It is prefaced by new comments from him providing a preamble that represents some of his current thinking related to his timeless original remarks. We believe this is a particularly fitting way to end a book titled “The Virtuous Organization” and David agrees. In fact, he views the title of this volume as capturing the essence of his original vision of how a large association such as the Academy of Management might effectively support its membership with a foundation of manifest virtues such as trust, respect, civility and nurturance. We are reminded that organizations, after all, consist of people and virtue originates in the way we interact and treat one another. Ultimately, his comments leave us with a call to action. Specifically, we are exhorted to help bring to realization the spirit of virtuous organizations wherever we work and reside through the decisions we make, the actions we take, and the relationships we build throughout our lives and careers.

The following sections are included:

• CONTRIBUTING AUTHORS

• ARTIST'S STATEMENT

• SPECIAL PERMISSION

• INDEX