The power of principle

"A people that values its privileges above its principles soon loses both."

Dwight D. Eisenhower

"Back of every noble life there are principles that have fashioned it."

George Lorimer

A few days ago I was reflecting on corporate vision statements. At the close of that post was this sentence, "Of course, that brings me face-to-face with what-should-come-next. But I'll tackle that one later."

Later has arrived.

What-should-come-next simply has to be corporate principles. At least I think so. It turns out, however, that searching on "corporate principles" delivers only a hodge-podge of anecdotal references to specific statements by individual companies. There is no clear evidence from the engine-of-all-knowledge that there exists a coherent sense that a business should be "principled."

"Well, well," he said sarcastically. "Isn't that a great big surprise?"

Corporations are carefully designed to limit the personal liability of the people who own them. The very same mechanisms that protect investors from undue business risk, also nicely protect them from inconvenient responsibilities. When Union Carbide managed to kill thousands of people in Bhopal, India, none of its actual owners lost a single penny beyond their loss in the value of the Union Carbide shares they had purchased on the New York Stock Exchange.

Here are two examples of public statements of principle by corporations.

RTI International - Corporate Principles

As we pursue our mission of improving the human condition, we adhere to the values that have served as RTI's foundation throughout our history: integrity, excellence, innovation, respect for the individual, respect for RTI, fiscal responsibility, and objectivity.

Balfour Beatty - Guiding Principles

    * To fulfil our responsibilities to shareholders, customers, suppliers, employees and the wider community.
    * To treat all groups and individuals engaged in or affected by the business with the highest standards of integrity.
    * To conduct all aspects of our business at the highest level of excellence and professionalism and have regard to the traditions and practices of the markets in which we operate.
    * To pursue our financial performance goals without losing sight of longer term objectives or of the wider context in which our business operates.
    * To seek continuous improvement in all aspects of the way in which we operate and do business.
    * To ensure we conduct our business and make our decisions within a clear ethical framework.

Call me crazy, but I just don't believe that these go far enough. Mentioning a clear ethical framework is good; but what, pray tell, are the specifics of that framework?

Tim Ferris, in his bestseller, The 4-Hour Work Week, speaks proudly of winning a kick-boxing championship by circumventing the spirit of the rules of the competition. His triumph denied some other kickboxer a trophy. Loosely-regulated financial institutions, in a frenzy born of unfettered greed, precipitated a global economic disaster. Union Carbide killed people. The only difference among these three events was the scale of the unfairness.

As an entrepreneur, you are preparing to launch your own company. Perhaps you have already launched. In either case, I encourage you to weigh in heavily on the side of broad responsibility for future corporate actions. Here are some principles to consider, tweaked for appropriateness to the business context:

The fundamental importance of honesty, integrity, and responsibility;
The inherent worth and dignity of every single person;
The importance of justice, equity, and compassion in all relationships;
The enlightening power of a continuing, free, and responsible search for truth and meaning;
The right and the responsibility of each individual to act in good conscience in moderating behaviors, both personal and corporate;
Respect for the interdependent web of all existence upon which we all depend for survival.

By the way, upon reflection, I would have to say that a clear statement of principles should precede composition of a vision story. I had the order wrong. And this time I know what comes next - commitment. More later.