Executive Summary

Working For The Common Good

Robert L. Wahlstedt
President of Reell Precision Manufacturing Corp.

November 1995

Let me suggest that business can operate on four levels: 1) unbridled self-interest; 2) enlightened self-interest; 3) ethical constraints; 4) the common good.

The relationship of a business to its customers illustrates these four levels, though the principles apply to all stakeholders.

At the first level, unbridled self-interest, the business is driven by desire for immediate gain without regard for long-term effects or the interests of others. The law of the jungle prevails. Door-to-door salespersons of vacuum cleaners, I am told, do everything possible to make the sale on the first call. They believe that they have one opportunity to make the sale and care little about what happens thereafter. This may be an inaccurate stereotype, but it illustrates the meaning of unbridled self-interest. This business can only survive with an unlimited supply of new prospects.

At the second level, enlightened self-interest, the business person realizes the value of sacrificing some short-term gain to secure greater gain in the long run. A small-town grocer may go out of his way to deliver small orders to win the loyalty of customers and a good reputation to maintain his trade. There may be no outwardly discernible difference between this business and a truly ethical business when things are going well, but mere enlightenment tends to fail in times of crisis.

The third level, the level of ethical constraints, involves accepting certain limitations on behavior because of who I am or perceive myself to be. Because a person wants to be and see herself as honest, she may refund a significant overpayment even though there is no possibility of it being discovered. Businesses that operate in this manner are truly ethical but are still motivated inwardly.

On the fourth level, the common good or, in Japan kyosei, a business is committed to benefit all concerned. This business proactively seeks products, processes, policies and strategies that promote the welfare of co-workers, customers, shareholders, suppliers, and the community rather than maximizing its own profit. (Michael Naughton of the University of St. Thomas has written an excellent treatise on the Common Good Model of Management) This is the level of ethical excellence and love, what the Bible means by the commandment, you must love your neighbor as yourself.

It is apparent that everyone and every business must operate on all four levels from time-to-time. It may be more accurate to say that each level includes those below it. For example, if the building is on fire, it is neither necessary nor appropriate to give too much thought to long-term interests or ethics.

Enlightened self-interests is an appropriate basis for most business practices that do not include ethical dilemmas, and ethical constraints will provide guidance in how to behave in most circumstances. The highest level, expressed in Japan by the word kyosei, has its greatest application in defining purpose and mission.

There is an interesting parallel between these concepts and Maslow's hierarchy of motivation. At Maslow's lowest level, matters threatening survival often dictate a short-term view. When security becomes the focus, enlightened, long-term considerations prevail. Addressing social needs entails conforming to societal mores and accepting ethical constraints.

At the highest level, Maslow predicts self-actualization or we may say fulfillment or satisfaction. In business, it may be possible to be successful in a materialistic sense through the pursuit of self-interest, sometimes even in an unbridled manner. When self-interest becomes enlightened, business success is highly likely, and the business person will be respected when ethical constraints are accepted. None of these, however, assure fulfillment or satisfaction.

As Maslow, the Bible, other sacred writings teach, and experience confirms, we, as human beings, find satisfaction and fulfillment only when we reach beyond ourselves and become immersed in the pursuit of the common good.

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