Ethics and Excellence: Cooperation and Integrity in Business by Robert C. Solomon (1992) – Summary

In his seminal work “Ethics and Excellence: Cooperation and Integrity in Business,” Robert C. Solomon delves into the often contentious intersection of ethics and business performance. Unlike the approach that segregates ethics from business, Solomon advocates for a more integrated, virtue-based approach favoring the indivisibility of good character and professional effectiveness. The book emphasizes several key points, supported by thorough examples and actionable advice:

Major Point: Solomon builds his argument on the foundation of virtue ethics, asserting that qualities such as honesty, courage, compassion, and fairness are indispensable in the business realm. According to him, these virtues are not extrinsic to business but are integral to achieving long-term success.

Actionable Advice: Cultivate and reflect on virtues in daily business conduct. For example, an executive should prioritize transparency in communications, even when delivering unfavorable news. This not only builds trust but also fosters a culture of openness.

Example: The book discusses a company facing a financial downturn. Instead of hiding the reality from employees, the management honestly shares the situation, which subsequently galvanizes the workforce to come together, generating innovative solutions to mitigate the crisis.

Major Point: Integrity is portrayed as the cornerstone of ethical behavior in business. Solomon argues that integrity involves consistency of actions, values, methods, measures, and principles. It means maintaining moral and ethical standards even when faced with adverse circumstances.

Actionable Advice: Develop and adhere to a personal code of ethics. For managers, ensure that business practices transparently reflect these moral commitments. This means actively resisting the temptation to cut corners or engage in dishonest practices to achieve short-term gains.

Example: Solomon provides an account of a pharmaceutical company that resists the pressure to falsify test results for quicker market approval, even when competitors engage in such unethical practices. The company’s long-term integrity pays off in sustained customer trust and regulatory goodwill.

Major Point: Trust is depicted as the glue that holds business relationships together. Without trust, cooperation disintegrates, severely hampering business operations. Solomon emphasizes that trust is built through consistent ethical behavior and mutual respect.

Actionable Advice: Managers should foster trust by ensuring their actions consistently align with their words. Facilitating open dialogue and being receptive to feedback can cultivate a trusting environment.

Example: A case of a tech start-up is used, where the founder regularly engages with both employees and clients to discuss the company’s progress and challenges. This openness fosters a sense of community and collective responsibility, enhancing mutual trust.

Major Point: Solomon highlights the critical role of corporate culture in embedding ethical behavior. He argues that companies with a strong ethical culture are better prepared to handle challenges sustainably.

Actionable Advice: Develop a corporate culture that prioritizes ethics through clear policies, regular training, and leadership example. Hiring practices should also focus on cultural fit, ensuring new employees resonate with the company’s ethical values.

Example: The book examines a manufacturing firm that implements rigorous ethical training programs and encourages employees to voice ethical concerns without fearing reprisal. This culture of accountability prevents major ethical breaches and promotes loyalty.

Major Point: Solomon promotes the idea that businesses should focus on shared goals rather than purely competitive achievements. When employees see themselves as part of a greater mission, it fosters cooperation which is vital for ethical business practices.

Actionable Advice: Create and communicate a compelling vision for the company that emphasizes shared goals and collaborative success. Recognize and reward team achievements to reinforce this collective mindset.

Example: An advertising agency restructures its reward system to focus on team success rather than individual accolades. This shift results in more cohesive campaign strategies and exemplary teamwork, enhancing the agency’s reputation and client satisfaction.

Major Point: Ethical leadership is pivotal according to Solomon. Leaders set the tone for the entire organization, and their commitment to ethics can inspire the same in others.

Actionable Advice: Leaders should practice ethical decision-making and serve as role models. Incorporate ethical considerations into strategic planning and daily operations. Leaders should be visible examples of integrity and virtue at all levels of the organization.

Example: The book profiles a CEO known for personally returning overpayments to clients and admitting errors publicly. This ethical leadership sets a powerful precedent and instills a culture of honesty and accountability within the company.

Major Point: Solomon stresses businesses’ responsibilities towards broader society. Companies should not only be profit-driven but must also consider their impact on stakeholders, the environment, and society.

Actionable Advice: Implement corporate social responsibility (CSR) initiatives that align with the company’s core values. This can include sustainable practices, community engagement, and ethical supply chain management.

Example: He provides an instance of a clothing retailer that shifts to using sustainable materials and fair-trade suppliers. This decision, driven by ethical considerations, eventually translates into a strong brand identity and loyal customer base.

Major Point: Solomon asserts that ethical behavior and profitability are not mutually exclusive. Contrary to the maxim often cited that ethics can hinder competitiveness, he provides multiple instances where ethical practices have led to greater long-term profitability.

Actionable Advice: Conduct business strategies analysis to identify where ethical choices bring long-term benefits. Avoid cost-cutting measures that compromise ethical standards. Integrate ethical audits into regular business reviews.

Example: An energy company opts for more expensive, eco-friendly practices. Although this initially increased costs, it ultimately resulted in regulatory benefits, consumer support, and increased profitability as environmental consciousness rose globally.

Major Point: A structured approach to ethical decision-making is suggested, emphasizing reflection, stakeholder considerations, and long-term consequences over immediate gains.

Actionable Advice: Develop a decision-making framework that incorporates ethical questions at every critical juncture. Encourage employees to ask, “Is this the right thing to do?” and consider the impact of business decisions on all stakeholders.

Example: A software company implements a decision-making protocol that includes ethical review boards to evaluate major projects. This ensures that new projects align with ethical policies and societal values.

Major Point: Solomon includes various case studies and real-world examples to illustrate the practical application of his concepts. These examples demonstrate how virtues, integrity, and ethical practices can be successfully integrated into business.

Actionable Advice: Regularly review case studies similar to your industry to understand the application and benefit of ethical practices. Use these as benchmarks to shape policies and practices within your organization.

Example: He discusses a financial institution that transformed its operational model after studying ethical failures in other firms. By learning from these case studies, the institution avoided similar pitfalls and built a robust, ethical financial framework.

Conclusion

In “Ethics and Excellence,” Robert C. Solomon challenges the reader to view ethics as an essential component of business excellence. Through a detailed exploration of virtue ethics, trust, integrity, and corporate culture, he presents a compelling argument that ethical business is sustainable and profitable. The book provides actionable advice and concrete examples that illustrate these principles, making it a vital resource for anyone aiming to align their business practices with ethical values.

By incorporating these principles, managers, leaders, and employees can foster a business environment that not only excels in performance but also stands as a pillar of ethical integrity. The long-term benefits of such an approach extend beyond mere profitability to include sustained trust, loyalty, and respect from all stakeholders involved.