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Spirituality and Ethics in Business by Corinne McLaughlin |
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Today
there�s an emerging movement around the country to bring spiritual and
ethical values into business. Many people no longer see profit alone as
the bottom line. Instead they honor a �triple bottom line,� a
commitment to �people, planet, profit.� Employees and the
environment are seen as important as economics. And in a post-Enron
world, values and ethics are an urgent concern. What
is spirituality in business? There�s a wide range of important
perspectives. Some say that it�s simply embodying their personal
values of honesty, integrity, and good quality work. Others say it�s
treating their co-workers and employees in a responsible, caring way.
For others, it�s participating in spiritual study groups or using
prayer, meditation, or intuitive guidance at work. And for some, it�s
making their business socially responsible in how it impacts the
environment, serves the community and helps create a better world. On
a deeper level, this spirit in business movement is a practical
demonstration of the spiritual Laws and Principles which are guiding the
next step in human evolution: Right Human Relations, Goodwill, Group
Endeavor, Unanimity, Spiritual Approach, Essential Divinity. Bringing
spirit into business means developing more conscious, caring
relationships in the workplace based on a spirit of goodwill. Workers
strive together to create a common purpose - a unity of soul (which is
what unanimity means), rather than a unity of form (uniformity). They
work with a spiritual approach that honors the essential divinity in
each person, and may use prayer and/or meditation to guide their
decisions. Some
business people are comfortable using the word �spirituality� in the
work environment, as it�s more generic and inclusive than
�religion.� Instead of emphasizing belief as religion does, the word
�spirituality� emphasizes how values are applied and embodied. Other
people aren�t comfortable with the word �spiritual� and prefer to
talk more about values and ethics when describing the same things that
others would call spiritual. However, there are some people who will
talk about God as their business partner or their CEO. There�s
some fear about spiritual beliefs or practices being imposed by
employers, but to date this has been extremely rare. On the other hand,
some observers warn about the potential for superficiality and the
distortion of spiritual practices to serve greed. Key
spiritual values embraced in a business context include integrity,
honesty, accountability, quality, cooperation, service, intuition,
trustworthiness, respect, justice, and service. For example, the
Container Store chain nationwide tells workers they are �morally
obligated to help customers solve problems� � they�re not just to
sell people products. The CEO of Vermont Country Store, a popular
national catalogue company, honored (instead of fired) an employee who
told the truth in a widely circulated memo, and so increased morale and
built a sense of trust in his company. Research
on Spirituality and the Bottom Line Are
spirituality and profitability mutually exclusive? Bringing ethics and
spiritual values into the workplace can lead to increased productivity
and profitability as well as employee retention, customer loyalty, and
brand reputation, according to a growing body of research. More
employers are encouraging spirituality as a way to boost loyalty and
enhance morale. A
recent study done at the University of Chicago by Prof. Curtis Verschoor
and published in Management Accounting found that companies with a
defined corporate commitment to ethical principles do better financially
than companies that don�t make ethics a key management component.
Public shaming of Nike�s sweatshop conditions and slave wages paid to
overseas workers led to a 27% drop in its earnings several years ago.
And recently, the shocking disregard of ethics and subsequent scandals
led to financial disaster for Enron, Arthur Anderson, WorldCom, Global
Crossing, and others. Business
Week magazine reported on recent research by McKinsey and Company in
Australia that found productivity improves and turnover is greatly
reduced when companies engage in programs that use spiritual techniques
for their employees. In
researching companies for his book, A Spiritual Audit of Corporate
America, business professor Ian I. Mitroff found that �Spirituality
could be the ultimate competitive advantage.� A
study reported in MIT�s Sloan Management Review concluded that,
�People are hungry for ways in which to practice their spirituality in
the workplace without offending their co-workers or causing acrimony.�
The word �spirituality� is used generically and seems to emphasize
how one�s beliefs are applied day to day, rather than �religion�,
which can invoke fears of dogmatism, exclusivity and proselytizing in
the workplace. Research
by UCLA business professor David Lewin found that �companies that
increased their community involvement were more likely to show an
improved financial picture over a two year time period.� A two year
study by the Performance Group, a consortium of seven leading European
companies such as Volvo, Monsanto, and Unilever, concluded that
environmental compliance and eco-friendly products can increase
profitability, enhance earnings per share and help win contracts in
emerging markets. Investment returns on the Domini 400 Social Index
(publicly traded, socially responsible, triple bottom line companies)
have outperformed the S&P 500 over a ten year period ending last
year. Business
Week reported that 95% of Americans reject the idea that a
corporation�s only purpose is to make money. 39% of U.S. investors say
they always or frequently check on business practices, values and ethics
before investing. The Trends Report found that 75% of consumers polled
say they are likely to switch to brands associated with a good cause if
price and quality are equal. A
Growing Movement A
proliferation of book titles (currently over 500) reflects a growing
national movement to bring spiritual values into the workplace: The Soul
of Business, Liberating the Corporate Soul, Working from the Heart, The
Stirring of Soul in the Workplace, Jesus CEO, What Would the Buddha Do
At Work?, Spirit at Work, Redefining the Corporate Soul, The Corporate
Mystic, Leading with Soul, etc. Some books on this theme, such as
Stephen Covey�s pioneering The Seven Habits of Highly Effective
People, have sold millions of copies. There
are several national newsletters and associations based on spirituality
at work, as well as dozens of national conferences on this theme,
including one I organized in Washington in 1998 with over 50 leaders,
including many from local businesses such as Marriott International and
Riggs Bank. The prestigious American Management Association held a
conference on �Profiting from a Values-Based Corporate Culture� - on
how to tap into the fourth dimension of spirituality and ethics as
crucial components for success. To
the surprise of many, this movement is beginning to transform corporate
America from the inside out. Growing numbers of business people want
their spirituality to be more than just faith and belief - they want it
to be practical and applied. They want to bring their whole selves to
work - body, mind and spirit. Many business people are finding that the
bottom line can be strengthened by embodying their values. They can
�do well by doing good.� People
at all levels in the corporate hierarchy increasingly want to nourish
their spirit and creativity. When employees are encouraged to express
their creativity, the result is a more fulfilled and sustained
workforce. Happy people work harder and are more likely to stay at their
jobs. A study of business performance by the highly respected Wilson
Learning Company found that 39% of the variability in corporate
performance is attributable to the personal satisfaction of the staff.
Spirituality was cited as the second most important factor in personal
happiness (after health) by the majority of Americans questioned in a
USA Weekend poll, with 47% saying that spirituality was the most
important element of their happiness. Across
the country, people increasingly want to bring a greater sense of
meaning and purpose into their work life. They want their work to
reflect their personal mission in life. Many companies are finding the
most effective way to bring spiritual values into the workplace is to
clarify the company�s vision and mission, and to align it with a
higher purpose and deeper commitment to service to both customers and
community. Why
Spirituality Is Popular Why
all the sudden interest in spirituality at work? Researchers point to
several key factors. Corporate downsizing and greater demands on
remaining workers has left them too tired and stressed to be creative -
at the same time that globalization of markets requires more creativity
from employees. To survive into the 21st Century, organizations must
offer a greater sense of meaning and purpose for their workforce. In
today�s highly competitive environment, the best talent seeks out
organizations that reflect their inner values and provide opportunities
for personal development and community service, not just bigger
salaries. Unlike the marketplace economy of 20 years ago, today�s
information and services-dominated economy requires instantaneous
decision making and building better relationships with customers and
employees. Also,
spending more time at work means there is less time available for
religious activities. The New York Times recently reported that a
growing number of companies are allowing employees to hold religion
classes at work. This accommodates busy professionals who are pressed
for time and afraid they have abandoned their faith. Many people are
feeling more comfortable in the public expression of their faith. Another
factor in the popularity of spirituality at work is the fact that there
are more women in the workplace today, and women tend to focus on
spiritual values more often than men. The aging of the large baby boom
generation is also a contributor, as boomers find materialism no longer
satisfies them and they begin to fear their own mortality. 95%
of Americans say they believe in God or a universal spirit, and 48% say
they talked about their religious faith at work that day, according to a
1999 Gallup poll published in Business Week. Prayer
and Meditation in the Workplace Many
people use prayer at work for several reasons: for guidance in decision
making, to prepare for difficult situations, when they are going through
a tough time, or to give thanks for something good. Timberland Shoes CEO
Jeffrey B. Swartz uses his prayer book and religious beliefs to guide
business decisions and company policy, often consulting his rabbi. Kris
Kalra, CEO of BioGenex uses the Hindu holy text, The Bhagavad-Gita,
to steer his business out of trouble. The
ABC Evening News reported that The American Stock Exchange has a Torah
study group; Boeing has Christian, Jewish and Muslim prayer groups;
Microsoft has an online prayer service. There is a �Lunch and Learn�
Torah class in the banking firm of Sutro and Company in Woodland Hills,
CA. New York law firm Kaye, Scholer, Fierman, Hays and Haroller features
Talmud studies. Koran classes, as well as other religious classes, are
featured at defense giant Northrop Gumnan. Wheat International
Communications in Reston, Virginia has morning prayers open to all
employees, but not required. Spiritual study groups at noon are
sometimes called �Higher Power Lunches��instead of the usual
�power lunches.� The
Los Angeles Times reported that Marketplace Ministries of Dallas placed
freelance chaplains at 132 companies in 38 states. Fellowship of
Companies for Christ International based in Atlanta has 1500 member
companies around the world. They promote �The importance and practice
of prayer in company decisions; a commitment to excellence; following
Jesus� example of focusing on people, not things. �Do unto others in
the workplace as you would have them do unto you,� is what they strive
for. Fast food companies such as Taco Bell and Pizza Hut hire chaplains
from many faiths to minister to employees with problems, and credit them
with reducing turnover rates by one half. In
addition to prayer and study groups, other spiritual practices at
companies include meditation; centering exercises such as deep breathing
to reduce stress; visioning exercises; building shared values; active,
deep listening; making action and intention congruent; and using
intuition and inner guidance in decision-making. According to a study at
Harvard Business School published in The Harvard Business Review,
business owners credit 80% of their success to acting on their
intuition. Apple
Computer�s offices in California have a meditation room and employees
are actually given a half hour a day on company time to meditate or
pray, as they find it improves productivity and creativity. A former
manager who is now a Buddhist monk leads regular meditations there.
Aetna International Chairman Michael A. Stephen praises the benefits of
meditation and talks with Aetna employees about using spirituality in
their careers. Avaya, a global communications firm that is a spin-off of
Lucent/AT& T, has a room set aside for prayer and meditation that is
especially appreciated by Muslims, as they must pray five times a day. Medtronic,
which sells medical equipment, pioneered a meditation center at
headquarters 20 years ago, and it remains open to all employees today.
Prentice-Hall publishing company created a meditation room at their
headquarters which they call the �Quiet Room, where employees can sit
quietly and take a mental retreat when they feel too much stress on the
job. Lotus
founder and CEO Mitch Kapor practices Transcendental Meditation and
named his company after a word for enlightenment. A research project by
Prof. Richard Davidson at the University of Wisconsin at Pomega, a
biotechnology company that had a very high-stress workplace, found a
mindfulness meditation training produced astonishing results in reducing
stress and generating positive feelings. Paula
Madison at WNBC TV in New York City prays before each show and says she
became the number one news show in the area when she increased coverage
of spiritual stories. Apparel manufacturer Patagonia provides yoga
classes for employees on their breaks, as does Avaya telecommunications.
A Spiritual Unfoldment Society has been meeting regularly at The World
Bank for years, with lectures on topics such as meditation and
reincarnation. Executives
of Xerox have gone on week-long retreats led by Marlowe Hotchkiss of the
Ojai Foundation to learn a Native American model of council meetings and
experience vision quests. The vision quests inspired one manager with
the idea to create Xerox�s hottest seller, a 97% recyclable machine. The
CEO of Rockport Shoes, Angel Martinez, talks openly of the spiritual
mission of his company and encourages employees to spend work time
envisioning ways to express their deepest selves in their work.
Companies such as Evian spring water have successfully used spirituality
in their advertising, as for example.: �Your body is the temple of
your spirit.� The
Service-Master Company, with six million customers world-wide, provides
cleaning, maintenance, lawn care and food services, and puts its
spiritual values upfront in its annual report. It begins with a biblical
quote, �Each of us should use whatever gift he has received to serve
others, faithfully administering God�s grace in its various forms.� People
Are the Most Important Resource Increasing
numbers of business people find that the key area for applying
spirituality is in how employees are treated. Southwest Airlines, one of
the only airlines staying profitable since the 9/11 terrorist attacks,
says that �people are our most important resource.� Company policy
is to treat employees like family, knowing that if they are treated
well, they in turn will treat customers well. They have a �University
for People� directed by Rita Bailey, and their policy is to hire
people based on their attitude and then train them for skills, rather
than the reverse. Unlike other airlines, negotiations between management
and employees for pay raises and benefits are much shorter and easier as
both sides come to the table wanting to hand write a win/win contract.
They have been named many times as one of Fortune magazine�s �100
Best Companies to Work For.� Aaron
Feurenstein, CEO of Malden Mills in Lawrence, MA, which produces popular
Polar Tec fabrics, believes labor is the best asset a company has. He
says a company has an equal responsibility to its community and to
itself, and since his town has high unemployment, he kept all 3,000
employees on his payroll after a major fire destroyed three out of its
four factory buildings. Workers repaid his generosity with a 25%
increase in productivity and 66% drop in quality defects. Anita
Roddick, founder of The Body Shop, with stores all over the world,
purposely built a soap factory near Glasgow, Scotland because it was an
area of high unemployment, urban decay, and demoralization. She made a
moral decision to employ the unemployable and put 25 per cent of the net
profits back into the community because she said this is what �keeps
the soul of the company alive.� 10,000
Marriott International employees worldwide dedicate a day of service to
their local communities each year in their �Spirit to Serve�
program. Timberland, the popular New Hampshire based shoe company, pays
employees for 40 hours of volunteer work annually. Ohio-based Zero
Casualties Inc., an urban apparel maker, donates seven per cent of its
profits to inner city charities. The company has crated a marketing
campaign based on its values of �no drugs, no violence, no racism.� IBM
funds childcare centers at 60 of its locations. Intel offers 22 weeks of
maternity leave. The Men�s Wearhouse, one of Fortune magazine�s 100
Best Companies to work for, supports homeless men in re-entering the job
market. Tom
Chappell, CEO of Tom�s of Maine, which produces soaps and toothpastes,
stays mindful of profit and the common good by giving away 10% of its
pretax profits to charities. Tom�s gives employees four paid hours a
month to volunteer for community service, and uses all natural
ingredients that are good for the environment. After studying at Harvard
Divinity School, Chappell re-engineered his business into a sort of
ministry, saying, �I am ministering - and I am doing it in the
marketplace, not in the church, because I understand the marketplace
better than the church.� Saturn
auto manufacturing says the key to their success is their experiment in
corporate democracy and participatory governance. Empowered teams make
most company decisions. 60
Minutes did a television show on SAS, a billion-dollar computer software
company that has low absenteeism and only 3% turnover, which saves them
$80 million each year in training and recruitment. Their secret? A
no-lay-off policy, 35 hour workweeks, flex time, and on-site amenities
such as a gym, a medical clinic, and massage therapists. Spiritually
oriented materials on personal change have been used in employee
training for several years at the Bank of Montreal, and Boatman�s
First National Bank in Kansas City regularly provides spiritually
oriented trainings for its top executive group. Consulting
firms using spiritual approaches are doing a booming business. The
Enlightened Leadership International in Colorado has been teaching top
executives at major companies such as GTE, Georgia-Pacific, and Lockheed
Martin how to focus on what�s positive, instead of the problems,
because our beliefs create what we experience. Other major firms such as
The Covey Leadership Center and The Center for Generative Leadership
teach Fortune 500 executives how to align their company�s mission with
their deeper values. Managers
and union workers of Southern California Con Edison attend sessions
called �The Heart Shop� with pianist Michael Jones to cultivate
compassion for each other, creativity and a new intelligence of the
heart. Boeing set up a series of weeklong trainings with poet David
Whyte for 600 of its top executives to unleash feelings, take risks, and
be excited by change - instead of terrified of it. NYNEX
established an Office of Ethics and Business Conduct to encourage
employees to live by a set of core values: quality, ethics and caring
for the individual. This new focus led to increases in profits,
productivity and product and service quality, as this affected how the
company is perceived by customers and stakeholders. Judy
Wicks, founder of the highly successful White Dog Caf� in Philadelphia,
uses her restaurant as �a tool for the common good�, raising money
for the hungry and sponsoring seminars on racism, the environment and
social change. Thanksgiving Coffee Company invests a share of its
revenues in community development among the Central American villages
that grow its coffee beans. It pays Fair Trade prices for coffee from
small farmers cooperatives, which is often three to six times as much as
regular prices. Protecting
the Environment for Future Generations Many
companies see their commitment to the environment as their spiritual
mission. A 1995 Vanderbilt University analysis found that in 8 out of 10
cases, low-polluting companies financially outperformed their dirtier
competitors. Ray Anderson, founder of Interface Carpets, the world�s
largest commercial carpeting manufacturer, trained 8000 employees in
environmental sustainability, with the goal of reducing pollution to
zero percent in the next few years. Instead of buying a carpet, you now
rent a carpet, and when it wears out, you bring it back to be recycled,
and are given a new recycled one. Anderson estimates that his accompany
has saved $185 million on waste reduction efforts alone. Home
Depot recently introduced a line of wood products grown through
sustainable forestry practices. British Petroleum renamed itself Beyond
Petroleum as it is developing alternative forms of fuel and lobbying
governments in the scientific, economic and moral reasons for climate
change so they will sign the treaty on global warming. Starbucks
Coffee has partnered with Conservation International to work with its
farmer/suppliers in Mexico to promote water and soil conservation and
reduction of chemical fertilizers and pesticides. By
reducing, reusing and recycling, Fetzer Wine has reduced its garbage by
93%, buys recycled paper, cans and glass for their products, and is
converting to all organic vineyards. Mitsubishi
Electric American specified that their suppliers could not provide them
with paper or timber from old growth forests. Once they set the example,
almost 500 other companies followed their lead, and together they saved
four million acres of forest. In
1986 The Caux Round Table, based in Minnesota, pioneered a list of
Principles for Business, an international code of ethical values
formulated by senior business leaders from Japan, Europe, and United
States and Canada. And recently, 300 multi-nationals joined the UN
Global Compact, pledging to support human rights, labor standards and
environmental protection. The spirituality in business movement is one of the hopeful signs that business, as the most powerful institution in world today, may be transforming from within. What is emerging is a new attitude towards the workplace as a place to fulfill one�s deeper purpose. As World Business Academy cofounder Willis Harman remarked, �The dominant institution in any society needs to take responsibility for the whole, as the church did in the days of the Holy Roman Empire.� Each day, more and more business people are helping to create a better world by being more socially responsible in how they treat people and the environment. They are proving that spirituality helps, rather than harms, the bottom line. As Kahlil Gibran reminds us in The Prophet, �Work is love made visible.�
Corinne
McLaughlin is co-author of Spiritual Politics and Executive
Director of The Center for Visionary Leadership in Washington, DC and
San Francisco, which offers public educational programs, values-based
leadership training and consulting services for business, government and
non-profit organizations. She formerly taught politics at American
University and coordinated a national task force for President
Clinton�s Council on Sustainable Development. She can be reached in
the San Francisco area at 415-472-2540 or at The Center for Visionary
Leadership, 3408 Wisconsin Ave. NW, Suite 200, Washington, DC 20016 website:
www.visionarylead.org. The School for Esoteric Studies invites your feedback on this article. Please click on the email address below. |
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