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Explore the importance of organizational soul and spirit in creating a strong ethical foundation. Learn from Enron's downfall due to lost values and Merck's success rooted in its core ideology. Discover the crisis of meaning in modern organizations and the essential values leaders should uphold. This chapter emphasizes the significance of ethics rooted in the soul for sustainable success.
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Chapter 19 Reframing Ethics and Spirit
Reframing Ethics and Spirit • Soul and Spirit in Organizations • The Factory: Excellence and Authorship • The Family: Caring and Love • The Jungle: Justice and Power • The Temple: Faith and Significance
Soul and Spirit in Organizations • Organizational soul: bedrock sense of identity, clarity about core ideology and values • Core ideology emphasizing “more than profits” key to highly successful firms (Collins and Porras, 1994) • Enron • Rapid shift from pipelines to deal-making produced enormous growth -- for a while • In the process, Enron lost a sense of core identity and values (“lots of smart people, but no wise people”) • Merck • Core purpose: not profit but “preserve and improve human life” • Developed and gave away river blindness drug
Conclusion • Organizational ethics ultimately need to be rooted in soul • Modern organizations suffer a crisis of meaning and moral authority • Leaders need to hold and model values like excellence, caring, justice, faith