{"id":290,"date":"2014-03-27T15:45:14","date_gmt":"2014-03-27T14:45:14","guid":{"rendered":"https:\/\/blog.iese.edu\/ethics\/?p=290"},"modified":"2015-04-08T16:51:02","modified_gmt":"2015-04-08T15:51:02","slug":"organizations-and-the-virtuous-circle","status":"publish","type":"post","link":"https:\/\/blog.iese.edu\/ethics\/2014\/03\/27\/organizations-and-the-virtuous-circle\/","title":{"rendered":"Organizations and the Virtuous Circle"},"content":{"rendered":"

Recently, there has been a lot of debate about the actual objective of \u201cthe\u00a0organization.\u201d<\/strong>\u00a0 In the Western World, the prevalent view<\/strong> over the last decades has been that its objective was maximizing shareholder value above any other consideration<\/strong>. In other words, the HOW, (whether or not a company is virtuous in accomplishing objectives), did not matter<\/strong>. As such, employees, managers and society were simply considered as means to reach this \u201csuperior\u201d<\/i> objective.\u00a0 Virtues were off the corporate radar, and business ethics were, at most, something to comply with.<\/b><\/p>\n

\"Virtues<\/p>\n

The Heliotropic Effect: Reaching new Heights<\/b><\/h3>\n

Some relevant scholars like Kim Cameron, Jane Dutton and Bob Quinn \u2013 founders of Positive Organizational Scholarship<\/strong> (POS)\u00a0 \u2013 are starting to find strong evidence of the importance of virtuousness at work and its positive impact on performance<\/strong>: \u00a0Doing good for the sake of doing good may actually have a positive impact on performance <\/span><\/a>.<\/p>\n

POS supports the idea that for organizations to reach their best \u2013 also in terms of results \u2013 they have to foster virtuousness <\/span><\/a><\/strong>. For Cameron, \u201cPositive Leadership is oriented toward developing what Aristotle labelled goods at first intent or to \u2018that which is good in itself and is to be chosen for its own sake.\u2019\u201d<\/p>\n

The hypothesis is simple, and comes from the observation of nature: The so-called \u201cHeliotropic Effect.\u201d<\/b> This effect is defined as the tendency of all living systems toward that which is life giving. For instance, in nature we can observe how plants lean toward the light.<\/p>\n

Virtues and their Psychological Ingredients<\/b><\/h3>\n

POS is also connected to Martin Seligman\u2019s Positive Psychology and its VIA Classification of Virtues<\/strong>, developed as a common language for describing one\u2019s best qualities. VIA originated from the review of over 200 works of philosophers, theologians, educators and scholars of all times. The six virtues VIA considers as universal are: Wisdom and Knowledge, Courage, Humanity, Justice, Temperance and Transcendence.<\/b><\/p>\n

These virtues \u2013 or human goodness \u2013 are displayed thanks to some psychological ingredients called character strengths<\/b>. These character strengths are capacities such as cognition, conation, affect and behaviour.<\/p>\n

\"Virtues<\/a><\/p>\n

 <\/p>\n

Impact on Organizational Performance<\/b><\/h3>\n

<\/b>By fostering gratitude, kindness, compassion, care and forgiveness we can dramatically impact individual and organizational performance.<\/b><\/p>\n

Gratitude<\/strong> for instance, when done in a concrete way \u2013 not generic \u2013 creates a stream of positive energy<\/strong> and feelings and fosters others to express their gratitude. Thus it creates a better atmosphere at work<\/strong>, which in turn impacts productivity<\/strong>, among other things.<\/p>\n

Forgiveness may be very relevant when difficult situations<\/strong> (like cutbacks, for example) are taking place.\u00a0 However, it is also has an important role when we need to foster creativity<\/strong>, for mistakes have to be used for collective learning, rather than as an excuse to judge others. If we create an environment where we face mistakes in a positive manner, creativity may increase dramatically. <\/span><\/a>\u00a0<\/span><\/p>\n

Compassion may heal people<\/strong>, increase positive emotions at work and connections among co-workers, reduce anxiety and increase attachment to organizations.<\/p>\n

Implementing these and other virtuous practices is positively related to individual and organizational performance <\/span><\/a>. Relevant impact has been found – across many different industries and companies \u2013 on variables such as profitability, productivity, quality, innovation, customer satisfaction and employee retention, among others.<\/p>\n

As a leader, start by asking yourself some questions about yourself, your organization<\/b> or your group.<\/p>\n

    \n
  1. \u00a0How do we face mistakes or difficult situations?\u00a0\u00a0Do we forgive and take advantage of mistakes as a way of learning or create a culture of fear? <\/span><\/a><\/strong><\/li>\n
  2. Is gratitude fostered in my team \/ organization? <\/span><\/a><\/li>\n
  3. How can I demonstrate and encourage the public expression of compassion?<\/li>\n
  4. Do I feel I display virtuousness at work across its different dimensions?<\/li>\n<\/ol>\n

    A Final Word: Results, Always?<\/b><\/h3>\n

    It is difficult to avoid thinking about results when we are in the corporate world. Virtues should be pursued just because they are good<\/strong>. The positive thing is that this is good for us \u2013 we become better \u2013 and for our organizations <\/span><\/a>. But this pursuit of excellence has to be authentic<\/strong>. Just saying thanks to our co-workers to see if that improves their performance is a poor way of thinking about virtues.<\/span><\/p>\n

     <\/p>\n","protected":false},"excerpt":{"rendered":"

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