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Amy Klemm Verbos, Joe S. Gladstone and Deanna M. Kennedy
Inclusive Virtuous Circle

Native American Values and Management Education: Envisioning an

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1University of South Dakota, Vermillion, SD, USA
2New Mexico State University, Las Cruces, NM, USA
3University of Washington Bothell, Bothell, WA, USA

Corresponding Author:
Amy Klemm Verbos, Beacom School of Business, University of South Dakota,
414 E. Clark Street, Vermillion, SD 57069, USA
Email: Amy.Verbos@usd.edu

Native American
Values and Management
Education: Envisioning
an Inclusive Virtuous
Circle

Amy Klemm Verbos,1 Joe S. Gladstone,2
and Deanna M. Kennedy3

Abstract

Circles are symbols of interconnectedness. Behavioral circles can be vicious
or virtuous. Many American Indians are caught in a vicious circle of exclusion
from the purported benefits of Westernization, entrapment in its negative
elements, and the ongoing undermining of their culture and thus their identi-
ties. Yet Native Americans, along with many indigenous peoples the world
over, are holding fast to traditional values. Indigenous knowledge systems
include spiritual orientations that, in the face of the social and environmental
issues facing humanity, may provide an alternative set of values for generating
life-enhancing business behavior. The authors introduce management educa-
tors to Native American values generally and specifically to four traditional
Lakota values: bravery, generosity, fortitude, and wisdom. Management
education might move toward to an inclusive, virtuous circle through respect
for Native American values as an equally valid alternative to dominant
management values.

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Verbos et al. 11

Keywords

Native American values, American Indian values, vicious circles, virtuous
circles, diversity, indigenous perspectives

Introduction

The greatest principle the circle symbolizes for me is the equality
that applies to all forms of life . . . we are all part of a larger com-
munity, the largest of all: the Circle of Life. (Marshall, 2001,
pp. 225-226)

Circles symbolize relationships, interconnectedness, and are a positive part
of cultural and spiritual Native American traditions (Marshall, 2001; Mattern,
1999). Virtuous circles explicate increasingly positive human behavior in
social systems, whereas vicious circles explain pathological negative spirals
(Maruyama, 1963; Weick, 1979; Wender, 1968). Unresolved historical grief
attributable to past traumatic events, including genocide through warfare,
massacre, and disease, loss of homelands, and cultural genocide, holds many
American Indians in a vicious circle of dependence, poverty, substance abuse,
and hopelessness today (Juntunen & Cline, 2010; Yellow Horse Brave Heart
& DeBruyn, 1998). A Native American temporal perspective encompasses
past, present, and future (see, e.g., Verbos, Kennedy, & Gladstone, 2011),
so historical traumas hold present meaning (Jervis, Beals, Croy, Klein, &
Manson, 2006). As a result of this vicious circle, American Indians have
fewer formal qualifications, lower employ ment rates, lower incomes, and
higher poverty rates than the overall U.S. population (Cornell & Kalt, 2007;
Ogunwole, 2006). They share these unenviable characteristics with indige-
nous peoples the world over (United Nations, 2009).

Indigenous peoples demonstrate a remarkable resilience in the face of
generalized devastation and a determination to thrive with their unique iden-
tities intact (see, e.g., Denham, 2008). Together with many other indigenous
peoples, Native Americans express a deeply founded spiritual relationship to
Earth. In fact, reestablishing American Indian identity and spiritual practices
are key to healing multigenerational grief and its consequences (Gone, 2009).
Importantly, traditional Native American spirituality holds that all creatures
and natural phenomena are animate, connected, and worthy of respect (see,
e.g., Garrett & Garrett, 1994; James, 2004; Verbos et al., 2011). These sys-
tems of knowledge may hold crucial insights toward more sustainable and

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12 Journal of Management Education 35(1)

humane global business practices countering myopic tendencies in manage-
ment toward values neglect (Swanson, 1999).

Once almost the sole domain of critically oriented management scholars,
there is now a more widespread call for change in management education
most explicitly articulated in the United Nations’ “Principles for Responsible
Management Education” (http://www.unprme.org). Critics assert that pre-
vailing values in management education perpetuate self-interested and uneth-
ical behaviors (Ferraro, Pfeffer, & Sutton, 2005; Ghoshal, 2005) and are, to
some extent, complicit in the challenges facing humanity, including human
rights violations, labor exploitation, environmental degradation, and corrup-
tion (see, e.g., Adler, Forbes, & Willmott, 2007; Delbridge & Keenoy, 2010).
At the time of this writing, BP’s catastrophic environmental disaster unfolds
in the Gulf of Mexico. A New York Times article implicates BP’s corporate
cultural emphasis on low-cost production and high profits (Nocera, 2010).
This profit-at-any-cost dictum comports with dominant values in manage-
ment education but is contrary to Native American beliefs that human inter-
actions with natural systems must be brought into balance.

Values such as balance may hold key insights for global application.
Economic development initiatives consistent with tribal values are finding
success in Indian Country1 (Cornell & Kalt, 2007; Reyner & Eder, 2004).
Although a number of these values appear common among indigenous peo-
ples the world over, we emphasize that even Native American tribal identi-
ties are unique and quite diverse. Native American adaptation, resistance to
assimilation, and work to preserve endangered cultures and languages are
testament to the resilience of the people who uphold these values in the face
of intensifying Western economic rationalism.

America’s indigenous people are virtually invisible in U.S. management
education and literature. Native Americans are the smallest and most under-
represented minority group in business schools (Diversity PipelineAlliance®,
2007; Ogunwole, 2006). We suggest that inclusion of traditional Native
American values may contribute to a virtuous circle to be developed for
management education. As a contribution to the greater inclusion of indig-
enous wisdom in the education of management students, we explain how
traditional Native American values may open a door to different business
ideas and practices by shifting underlying business assumptions about what
is good and right vis-à-vis interconnected others, creatures, and ecological
systems. We direct attention to specific examples from some well-known
tribes. For instance, Billy Mills (Lakota and 1964 gold metal Olympian)
travels widely and speaks about Lakota values, including how living these
values in business will benefit the Earth and all its peoples. Lisa Little Chief

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Verbos et al. 13

Bryan (2004), a Lakota entrepreneur, colleague, and friend of the first
author, further elaborated on these values in business. We have been touched
and inspired by them. Also, writings by Lakota authors may be more widely
available to management educators interested in reading more about spe-
cific values.

From Vicious to Virtuous Circles
For thousands of years before contact with Europeans would change the tra-
jectory of their destiny, hundreds of groups of people who inhabited the
landmass now known as the United States of America had their own names
for homelands and themselves as peoples (Brown, 1971; Stuckey & Murphy,
2001). For our kin, these names were Bodewadmi, Pikuni, and Aniyvwiyai
(also known as Potawatomi, Blackfeet, and Cherokee, respectively). Today
the words indigenous, American Indian, and Native American conflate more
than 500 unique and diverse groups of people across the United States.
“American Indian” is a socially constructed racial category. It originated with
Columbus, who thought he had reached the Indies (Stuckey & Murphy,
2001). His appellation was one of myriad misunderstandings that fol-
lowed. “Native American” is used somewhat interchangeably with
American Indian and generally appears in diversity literature. The word
“Indigenous” is used in a global context for original inhabitants of a particular
place. For example, the United Nations Declaration on Rights of Indigenous
Peoples and the call for papers to this Special Issue refer to “indigenous”
peoples in this way.

Names often carry dire consequences. According to Johnson (2006), racial
categorization serves to stratify people so a dominant race can oppress others.
In the context of American history, claiming all Indians as an alien threat has
justified massacres and forced removal to reservations (Brown, 1971).
Subsequent government policies overtly attempted to destroy indigenous cul-
tures and to force people to assimilate into a largely hostile foreign culture that
viewed them as inferior (Prucha, 1986; Stuckey & Murphy, 2001; Ward,
2007). Deep bonds to land were severed by removal, enforced assimilation,
“and by almost total eradication of an economic relation to it as a material
provider of sustenance” (Pommersheim, 1995, p. 33). Many American Indians
engaged in agriculture and trade prior to forced geographical confinement to
reservation lands held in trust and managed by the government (Brown, 1971;
Prucha, 1986). Without freedom to live or move about on their own terms,
they became dependent on the U.S. government for an inadequate subsistence
living. Further losses ensued. Trust lands, for example, were allotted to

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14 Journal of Management Education 35(1)

individual Indians and sold as surplus lands to non-Indians under the Dawes
Severalty Act of 1887, eroding tribal land bases from 138 million acres in
1887 to 52 million acres in 1934 (Pommersheim, 1995; Prucha, 1994).
Conflating tribes into a single category obscures their uniqueness and facili-
tates practices against their flourishing.

For policy makers, officials, and even in various tribes, deciding who is an
American Indian is complicated. U.S. government agencies officially recog-
nize 562 Indian tribes (U.S. Department of the Interior, Bureau of Indian
Affairs, 2007). Descendents from tribes terminated under federal law, how-
ever, are not recognized. Blood quantum criteria originated in federal Indian
policies based on race are not an indigenous practice, although some tribes
making per capita casino profit distributions prefer blood quantum standards
for tribal enrollment (Kalt, 2007). Such a blood quantum standard creates an
intergenerational racial separation by excluding future generations from the
tribe. Moreover, individuals with a multitribal heritage may be ineligible to
enroll in any tribe. Other tribes base enrollment on ancestry, favoring inclu-
siveness. Neither standard is perfect since subsequent generations may have
little connection to the community.

For tribal people, “Indianness” is cultural, based on ties to homeland, val-
ues, cultural practices, and worldview (Juntunen et al., 2001; Mihesuah,
1999). In contrast, U.S. government policies prior to late 20th century pro-
moted assimilation; that is, American Indians would vanish into White soci-
ety (DeJong, 1993; Ward, 2007). Historically, government boarding schools
implemented “subtractive” education (Reyner & Eder, 2004), forbidding
Native languages, tribal rituals, and cultural practices (DeJong, 1993;
Grover & Keenan, 2006; Ward, 2007). Traditionally, Native Americans
value self-identity including tribal history, ancestry, and stories (DeJong,
1993; Pommersheim, 1995). Some children whose home environment was
not nurturing benefited from boarding schools. But children lost cultural edu-
cation, care, and acceptance from their extended families during their devel-
opmental years (DeJong, 1993). As a result, some Native Americans view
“education” with caution or hostility.

Nevertheless, American Indians overall favor schools when the goal is
“additive,” including both Native and non-Native elements (Reyner & Eder,
2004). Relational education preserves differences while advancing mutual
respect, understanding, and well-being (Pommersheim, 1995). Tribal com-
munity colleges provide an essential partial solution: access to culturally
appropriate education and support for Native American language sustenance
efforts in often remote communities (DeJong, 1993; Reyner & Eder, 2004).
Strengthening entrepreneurship education at tribal colleges is an important

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Verbos et al. 15

goal pursued by the Gonzaga MBA in American Indian Entrepreneurship
(AIE) degree program (Stewart & Pepper, 2011). However, to truly imple-
ment a relational solution with mutual benefits, we cannot simply look to tribal
colleges.

Today, Native Americans are underrepresented in higher education at all
levels, a problem exacerbated by high undergraduate attrition rates (Shotton,
Oosahwe, & Cintron, 2007). In the 2000 Census, only 11% of American
Indians reported at least a bachelor’s degree, compared with 24% of the over-
all population (Ogunwole, 2006). Perceived or actual discriminatory treat-
ment marginalizes and isolates Native American students in predominantly
White universities (Lin, LaCounte, & Eder, 1988; Pewewardy & Frey, 2004).
Non-Indian educational institutions, including those in higher education, often
denigrate traditional American Indian culture (DeJong, 1993; Reyner & Eder,
2004). As such, Native American students may feel their cultural identity
threatened at predominately non-Indian colleges and universities (Buckley,
2004; Lin et al., 1988).

To envision management education as furthering a virtuous rather than
vicious circle, we recommend additive, relational solutions. Furthermore, we
suggest the importance of bridging differences between dominant values in
management education and Native American values.

Contrasting Values Perspectives

We all come from the same root, but the leaves are all different.

—John Fire Lame Deer, Lakota

According to Clegg and Ross-Smith (2003), U.S. management knowledge
is constructed with “glacierlike stability” in its underlying cultural assump-
tions. Business schools tout their value to students as a path to financial gain
(Pfeffer & Fong, 2004) consistent with the norm of self-interest prevalent in
Western cultures (Miller, 1999; Ratner & Miller, 2001). Economic theoreti-
cal models assume rational, self-interested, and maximizing human behavior
(Ferraro et al., 2005; Jensen & Meckling, 1994). Such assumptions are anti-
thetical to traditional Native American values as summarized in Table 1.
Dissonance theory (Festinger, 1957) predicts that individuals seek to affirm
their beliefs and avoid conflicting beliefs (Fiske & Taylor, 1991). Thus, the
values that dominate management education may cause some American
Indian students as well as others who hold similar values to opt out of business
school. Of course, individual Native Americans may differ and cultures are

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16 Journal of Management Education 35(1)

not uniform (Worthington, Flores, & Navarro, 2005). Yet more inclusive
values may be a key to more responsible management education.

Rational self-interest and individual achievement are inconsistent with
traditional American Indian values of humility, modesty, and equality
(Badwound & Tierney, 1988; Garrett & Garrett, 1994). Likewise, they do not
hold a place in the four greatest Lakota values—bravery, fortitude, generos-
ity, and wisdom (Lame Deer & Erdoes, 1972; Pommersheim, 1995)—which
provide a different way of living (Marshall, 2001). Four is the most powerful
number for Lakota people; exemplified by the medicine wheel, a circular
representation of creation, intersected by four lines that represent the four
directions (North, South, East, and West), four seasons, and mental, physical,
emotional, and spiritual realms (Marshall, 2001; Mills & Sparks, 1990).
Lakota values handed down through oral storytelling by elders and cultural
advisors are a key to healthy and vibrant Native communities (Little Chief
Bryan, 2004).

Table 1. Values Differences

Dominant Values in Management
Educationa

Traditional Native
American Valuesb

Human behavior Rational, self-interested Generous, modest
Individual motivation Maximize self-interest, money,

status
Contribute to well-being

of family/tribe; respect
and humility

Environment Natural resources to be
exploited for profit

Nature as spiritual and
practical; maintain
harmony and balance

Self-construal Individualistic Collectivistic; respect for
elders

Decision making Made through formal authority Reflective, participative
Property rights Formal, based on title Based on use or communal
Organization Hierarchical; formal (pyramid) Greater egalitarianism

(circle)
Organizational goals Efficiency, effectiveness, profits Provide jobs and enhance

community value

a. See, for example, Badwound and Tierney (1988), Ferraro et al. (2005), Ghoshal (2005),
Ghoshal et al. (1999), Mintzberg et al. (2002), and Pfeffer and Fong (2004).
b. See, for example, Badwound and Tierney (1988), Garrett and Garrett (1994), Juntunen et al.
(2001), and Ward (2007).

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Verbos et al. 17

Generosity is a timeless virtue favored over material accumulation
(Marshall, 2001; Pommersheim, 1995). “The false lesson is that he or she
who has the most is the best” (Marshall, 2006, pp. 43-44). The Lakota belief
in generosity is that “the Earth Mother gives us all that she has” (Marshall,
2001, p. 190), so people must do likewise. Generosity is integral to the every-
day operation of an ethical and socially responsible business. Research by
Juntunen et al. (2001) found that to Native Americans career success means
to contribute to the well-being of one’s tribe, family, or future generations.
As a result, many Native Americans reject material gain as a reason to pursue
a career (Juntunen et al., 2001). One’s extended family and tribe are stronger
sources of identity and worth than career (Miller & Brown, 2005).

Any challenge in life, including a business challenge, invites bravery
(Marshall, 2001). Fortitude is strength of heart that helps a person to persevere
through adversity (Marshall, 2001, 2006). Native American entrepreneurs
exercise bravery and fortitude in starting businesses to support their families
and communities (Little Chief Bryan, 2004). Bravery and fortitude in a man-
agement context are elements of moral courage and long-term thinking.

Research by Garrett and Garrett (1994) and Marshall’s (2001) Lakota sto-
ries attest that Native Americans prefer participative decision making, coop-
erative behavior, and a deep respect for elders. Native American business
people are less concerned about maximizing profits than about providing
jobs and contributing to the community (Garsombke & Garsombke, 2000).
For example, Ho-Chunk, Inc. (2007), a successful, diversified holding corpo-
ration established by the Winnebago Tribe of Nebraska, meets social needs
as a part of its overall strategy (Begay, Cornell, Jorgenson, & Kalt, 2007).
Lance Morgan, CEO and President of Ho-Chunk, Inc., defines success as
profits, jobs, and community development:

We define success slightly differently than a non-tribal corporation
because we are so much more. We are a means of escaping the cycle
of poverty. We are an opportunity for individual growth. We are a
chance to put your education to work in a tough and competitive but
nurturing environment. But most of all, we are a corporation that cares
about people. That is not just some slogan. It is in fact our reason for
existence. (Ho-Chunk Inc., 2007).

Wisdom is when a person uses knowledge of what is right and true to
make good decisions (Marshall, 2001). Wisdom requires generosity because
it is a gift that must be given away (Marshall, 2006). American Indians con-
sider people as part of a greater interdependent whole, as opposed to a group

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18 Journal of Management Education 35(1)

composed of individual members (Garrett & Garrett, 1994). That “whole”
includes nature and the entire circle of life (Marshall, 2001). Traditional
Native Americans live in harmony with natural systems and prefer sustainable
uses and practices that do not injure land, ecosystems, or are harmful to the
balance between man and nature (Garrett & Garrett, 1994). This is because
humanity is equal rather than superior to other forms of life (Marshall, 2001).
Values work in concert to help a person travel life’s path with wisdom.

Traditional Native American values hold promise as a different lens for
viewing business, including how to conduct business in an ethical, sustainable
manner. Some examples are that humility and equality promote diversity,
whereas modesty and participative decision making promote teamwork.
Lakota values support positive management practices such as mentoring, sus-
tainable business practices, and attention to stakeholder concerns. Each of
these values holds potential benefits in the context of management education.

Envisioning an Inclusive Virtuous Circle

If we listen to each other, we will not necessarily erase difference;
rather, we may use it to our mutual advantage. (Pommersheim, 1995,
p.199)

A virtuous circle begins with a change that generates positive deviation–
amplifying feedback (Maruyama, 1963; Wender, 1968). Within Indian
Country, the Indian rights movement culminated in the Indian Self-
Determination and Education Assistance Act of 1975 (Prucha, 1986). Now,
tribal governments exercise their rights to promote long-term economic
growth and social development (U.S. Department of the Interior, Bureau of
Indian Affairs, 2007; Jorgenson, 2007; Kalt, 2007). The Harvard Project on
American Indian Economic Development has studied economic development
processes in Indian Country since 1986 (Jorgenson, 2007). It focuses on insti-
tutional structures and policies that serve as bases for nation building efforts
(Cornell & Kalt, 2007). The Harvard Project finds that successful governance
and development structures are consistent with a specific Native nation’s
culture (Begay et al., 2007). In contrast, unsuccessful efforts impose dominant
culture’s ideas or a one-size-fits-all approach to governance and development
(Cornell & Kalt, 2007). A thread runs consistently through literature about
Native American careers, law, education, and economic development: To
meet the needs of this population, it is necessary to develop programs that are
culturally appropriate and consistent with traditional values (Badwound &

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Verbos et al. 19

Tierney, 1988; Begay et al., 2007; Buckley, 2004; Duffy & Stubben, 1998;
Garrett & Garrett, 1994; Muller, 2000; Pommersheim, 1995).

It is a positive sign that a small sample of American Indians report that
Indian culture and traditions do not impede business growth and success
(Stewart & Schwartz, 2007). Gonzaga University’s MBA in AIE is one pro-
gram responding to a need for more entrepreneurial and management exper-
tise (Stewart & Pepper, 2011). Non-Native business schools can also meet
these needs and increase Native American presence in management educa-
tion. Increasing presence will, in turn, increase the relevance of Native
American perspectives, expanding a virtuous circle.

As enrolled tribal members with a commitment to the flourishing of indig-
enous peoples and integration of life sustaining values in the wider educa-
tional system, we call on management educators to respect Native American
values as an equally valid viewpoint. Faculty and students alike in Gonzaga
University’s MBA in AIE degree program expressed that cultural values
present important challenges and learning opportunities (Stewart & Pepper,
2011). We understand that change requires bravery, fortitude, generosity, and
wisdom. We suggest four possible ways in which this strategy may enrich
management education.

First, it would increase cultural intelligence. Cultural intelligence is a
capacity to understand and appropriately interpret interactions with others
who differ in cultural values, practices, and behaviors (Earley & Ang, 2003;
Lévy-Leboyer, 2007). Cultural intelligence builds wisdom by facilitating
broader conversations that critically examine dominant assumptions about
business and its key objectives. Cross-cultural benefits were evident as Muller
(2000) recounted an experimental class she facilitated at the University of
New Mexico that examined how Native American business differed from the
mainstream business models. Exposing students and faculty to cross-cultural
perspectives can encourage creativity and innovation in organizational forms
and management practices.

Second, economic development and processes under tribal law encourag-
ing citizen entrepreneurship throughout Indian Country are creating greater
business and management opportunities for Native Americans (Cornell,
Jorgenson, Record, & Timeche, 2007; Duffy & Stubben, 1998). However,
Native Americans report being misunderstood and alienated in universities
(Lin et al., 1988; Pewewardy & Frey, 2004). A commitment to respect
Native American values will benefit a chronically underrepresented and
economically disadvantaged minority group that is, at present, underserved
by U.S. business schools. Moreover, increased acceptance of different

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20 Journal of Management Education 35(1)

perspectives could go a long way to welcoming all people who appreciate a
more inclusive vision of business.

Third, although diversity is an important issue in contemporary manage-
ment education, the American Indian perspective is not. Previous research
stresses the importance of MBA programs recognizing workforce diversity
(Cooper, Massey, & Graham, 2006; Gatenby & Humphries, 1999). Many
AACSB-accredited business schools espouse diversity goals and maintain
membership in the PhD Project, which has its mission to increase business
education for Native Americans and other underrepresented minority groups
(Stewart, Williamson, & King, 2008). It was discouraging that Stewart et al.
(2008) excluded Native Americans from their study of the PhD pipeline due
to statistically insignificant numbers. Ethical commitments to diversity
should include respect for Native American perspectives.

Finally, including Native American perspectives is consistent with calls
for a paradigm shift in management education and scholarship. A myopic
focus on economic rationality may cause good people to self-select out of
business careers.

Management education is driven by, and drives, such ideas of efficient,
free-market, rational, profit-maximizing organizations, where relation-
ships and intersubjective meaning are powered by a dominant dis-
course of hierarchical power relationships. Management scholars are
rarely cognizant that they do so from an ideologically driven basis.
(Pitsis & Clegg, 2007, pp. 410-411)

Ferraro et al. (2005) contend that this worldview, institutionalized into
management education, creates a self-fulfilling prophecy to our detriment.
This view also constrains management education from achieving its full
potential to teach critical thinking skills and instill a value of lifelong learn-
ing (Pfeffer & Fong, 2004). Business schools need to broaden their appeal
to improve management practice (Ghoshal, Bartlett, & Moran, 1999; Mintzberg,
Simons, & Basu, 2002).

Native American values provide a basis for creating wiser organizational
structures and management practices. Values are why we do what we do and
are critically important to developing wisdom (Fukami, 2007). Wisdom as a
Lakota value comes from life experience. Wisdom is “absolutely critical in
the conceptualization and execution of one’s life and work” (Kessler &
Bailey, 2007, p. xvii). We may teach with greater wisdom if we critically

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Verbos et al. 21

examine how to expand values in management education beyond the domi-
nant paradigm.

Concluding Thoughts
Our brief foray into history provides only a glimpse of devastation wrought
by naming America and the vicious circles that remain. Indigenous people
the world over are in similar straits. To honor our elders, their wisdom, and
resilience, we present Native American values as a different perspective to
generate a virtuous, inclusive circle within management education. This
circle may increase cultural intelligence, benefit an underrepresented minority
group, fulfill commitments to diversity, and contribute to wisdom in man-
agement education. Respect for these values in management thought may
lead to better decisions. Imagine, for instance, if society, and by extension,
BP decision makers, held an animate view of the Gulf of Mexico. Perhaps
society might have truly moved “beyond petroleum” by now. At a minimum,
reflecting on these values will help educators to better understand the United
Nations Principles of Responsible Management Education and businesses to
follow through with the promises in the United Nations Global Compact. We
encourage readers to reflect and consider business exemplars of bravery,
fortitude, generosity, or wisdom for stories that will teach students to value
more than efficiency and profit in business—to “manage” flourishing in the
circle of all life.

Acknowledgements

We are grateful to Lisa Little Chief Bryan for inspiring us to examine Lakota values,
sharing her unpublished work, and providing valuable comments on the manuscript.
We thank Maria Humphries, Dale Fitzgibbons, and three anonymous reviewers for
their supportive, constructive comments. We thank the Management Doctoral
Student Association of the PhD Project for bringing us together. Finally, we acknowledge
our respective tribes: the Pokagon Band of Potawatomi Indians, the Cherokee Nation
of Oklahoma, and the Blackfeet Nation and Nez Perce tribes.

Declaration of Conflicting Interests

The authors declared no conflicts of interest with respect to the authorship and/or
publication of this article.

Funding

The authors received no financial support for the research and/or authorship of this
article.

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22 Journal of Management Education 35(1)

Note

1. Indian Country is a general term used by American Indians to refer to their social
spaces, whether geographical and physical, cultural, or psychological.

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18
The Art and Ethics of Business:
Through African (Yoruba) Lenses
Kemi Ogunyemi

18.1 Introduction

A traditional African understanding of the way to do business has
contributed, and still has a lot to contribute, to the running of business
today, especially with regard to the practice of management. This contri-
bution, as one would expect, is multifaceted, not least because Africa (and
each of its countries) is vastly multicultural and multicontextual. Each of
its countries (54 fully recognized territories and 10 non-sovereign territo-
ries) has its own numerous and diverse stores of time-honored knowledge.
Given the impossibility of the task, this chapter does not attempt to touch
on all aspects of African wisdom. Rather, it offers the reader selected insights
into traditional management philosophy from the Yoruba ethnic group
of Nigeria,1 thus providing an example of the role of adages and wise
sayings in communicating and developing values (Fasiku, 2006). Esusu (a
cooperative financing model)2 and a few other traditional structures and
concepts (leadership; mentoring and people management and development;
the importance given to family and relationships) are also touched upon, but
only very briefly, to ensure the chapter has a clear focus.

The face of business has changed enormously over time. The earliest trade
involved bartering goods and services, for the sake of immediate and foresee-
able future needs of the parties and based on a high level of trust. Bartering
still exists, its inefficiencies smoothed out and complemented with modern
trimmings. For example, at times large Nigerian firms trade the provision
of community infrastructure for land equal in value. However, money and
its more sophisticated proxies are now the standard medium for transacting
business. Enderle (2011, p. 232) has identified three challenges to business

The author would like to express heartfelt gratitude to Mrs. Mary Arulogun and
Mr. Charles Oriade for their invaluable help in the process of writing this chapter.

230

R. J. Blomme et al. (eds.), Another State of Mind
© Palgrave Macmillan, a division of Macmillan Publishers Limited 2014

Kemi Ogunyemi 231

and economic ethics in the coming years: ‘(a) a rich and comprehensive
understanding of wealth creation as the purpose of business and economics;
(b) the guarantee of securing all human rights to all people; and (c) the active
involvement of the world’s religions in meeting the challenges of creating
wealth and securing human rights.’ The three are related, and perhaps it is
time to return to traditional wisdom to find ways of building a sustainable
world.

Traditionally, the wisdom of the Yoruba is preserved in proverbs, adages
and storytelling passed down orally through the generations (Fasiku, 2006;
Fayemi, 2010). In the two case studies in this chapter, some of the wise say-
ings from this part of Africa are illustrated as they pertain to managing a
business successfully and sustainably. It will be immediately clear that the
values expressed in the proverbs and wise sayings combine the determina-
tion to create wealth with a sense of respect for others’ rights and a strong
sense of religion. Many challenges to business in Nigeria today derive from
a loss of regard for such tenets of traditional wisdom.

While traditions vary across each country on the continent as well as
amongst the countries, businessmen and women who have had interactions
and operations in several African countries have commented that a good
number of the underlying values are the same, even when expressed differ-
ently.3 In section 18.2, we offer brief preliminary reflections on the purpose
of business and on the character of a manager. This is followed by a discus-
sion of wise sayings, grouped according to the values they propose. The case
studies are then presented, relying on quotations from interviewees inter-
spersed with comments that highlight how the wise sayings are supported
by the qualitative data. Following this, some other African management
practices are briefly described.

18.2 Tradition, the purpose of business and the person of the
manager

Material and spiritual wealth

Business is often regarded as being aimed simply at providing material
wealth. At the same time, because it is a profession that human beings
undertake and because human beings aim to find fulfillment in their daily
work, business can be regarded as one way to attain fulfillment for those who
engage in it. This is expressed in various ways: people are happy to produce
and distribute goods and services that respond to the needs of others; peo-
ple are happy to go out of their way to help customers and colleagues even
when there is no financial benefit to themselves in doing so; people are, at
times, happier to work in organizations that have attractive core values or
lofty ideals while making money than in others that are merely focused on
profit.

232 Creating the Right Conditions

Private and public wealth

Businesses can provide both private and public wealth, in the sense of
serving the common good and well-being of everyone around them. They
contribute to the economic growth and development of individuals and of
entire nations. Traditionally, this has also been the case: farmers produce
food for the whole village; welders produce and sharpen the implements;
hunters go out to get venison for everyone; and there is a sense of service
behind the work of each artisan.

Sustainable wealth

In earlier times, communities faced fewer challenges concerning the
sustainability of the wealth generated by business than they do at present.
There is much more complexity now. However, this should not lead one to
lose sight of the need to ensure that created wealth is distributed equitably
among the present generation and lasts beyond it.

Positive personal values, which can also be called virtues when they are
habitual dispositions, are important for managers. According to Nedelko and
Potocan (2011), changing the personal values of managers influences the
way an organization embraces innovation. Cirnu and Kuralt (2013) similarly
found that personal values influence managers’ attitudes toward sustainable
development. This could also apply in the case of moral values, in the sense
that the moral values held by managers go a long way in determining what
kind of people they are and what kind of companies they run. African wis-
dom has always emphasized positive personal values, through proverbs and
stories. Sets of values or virtues that have been given great priority among
the Yoruba include those laid out in section 18.3.

18.3 African wisdom and values for the modern manager

Honesty, integrity, truth-telling, good reputation

Integrity is respected as an essential attribute of a good person and, hence,
of a good manager. A person who does not have integrity cannot lead him-
or herself, nor lead or manage others. Such a person would not have the
respect of followers and, therefore, would be unable to inspire the confidence
required for others to follow where he or she leads.

Eni to gbin ogorun ebe, to ni oun ghin igba, to ba je ogorun isu tan, aa je ogorun
iro – ‘If a person plants a hundred yams and claims that he planted two
hundred, when he has eaten the hundred yams, he will have to eat a hun-
dred lies.’ ‘Truth will out,’ as is said in other cultures, or, deception never
pays. The person who tries to deceive others will end up having deceived
themselves and will eventually have to confront the truth.

Bi o laya, ki o se’ka; bi o ba r’iku Gaa, o o s’ooto – ‘Be wicked if you dare to be;
when you experience Gaa’s death,4 you will have to tell the truth.’ Yoruba

Kemi Ogunyemi 233

traditionally abhor deceit and wickedness. This is a warning that Nemesis
will catch up with wrongdoers.

Ohun ti a ba se loni, oro itan ni b’o d’ola – ‘Our actions today become tomor-
row’s stories.’ We create and build our reputation and brand with what we
do today.

A kii ni otito n’inu k’a gb’awin ika s’orun – ‘One who is truthful cannot take
delight in evil.’ One must be consistent in making good decisions.

Perseverance fortitude patience discipline willpower

Yoruba are aware that many enterprises fail because of the lack of patience
on the part of their owners or because they lack the discipline to run the
business properly. Hence, they advise that business owners and managers
exercise a great deal of fortitude to continue going forward despite the
challenges they will surely face.

Eni t’o ba maa j’oyin inu apata; ko ni w’enu aake – ‘One who wants to feed on
the honey that comes from inside a rock cannot falter for fear that the axe
will suffer when digging it out.’ It takes effort and perseverance to achieve a
good objective.

B’o pe titi, akololo a pe baba – ‘Even if it takes a long time, a stammerer will
succeed in saying “baba” [father].’ Perseverance will yield positive returns.

Prudence circumspection

Businesspeople must be cautious in their investments and also in manag-
ing the people with whom they work and with whom they do business.
Supervision and control is important both in the private and public sphere.
For example, the old Oyo empire had management systems that were quite
sophisticated, with a number of controls and checks and balances on the
Alaafin’s power,5 and on the vassal states.6

Eni ti o l’oluranlowo kii ru eru s’oju ona – ‘One does not deposit one’s load
by the roadside if one does not have a helper.’ In other words, one needs to
calculate the means and resources before adopting a plan of action.

Gbogbo alangba lo d’aya de’le; a o mo eyi t’inu nrun – ‘All lizards lie flat on
the ground; one does not know which of them has a bellyache.’ One has to
give trust cautiously and look beyond appearances.

Alagbata nii soja d’owon – ‘A [sales] agent can make goods expensive.’ This
recommends the close supervision of agents, warning that an agent sent
to market goods can easily charge a higher price to prospective buyers and
pocket the difference; or insist obdurately on high prices, pushing customers
toward competitors in situations where an owner could have discounted the
price.

Hard work, competence, objectivity, astuteness sense, of responsibility

Everyone is encouraged to work hard humbly and to expect the same from
others. Most traditional businesses had apprentices rather than employees

234 Creating the Right Conditions

and therefore pushed them hard to learn the business and to set up their
own afterwards. Hence, owner-managers would ordinarily (and expectedly)
be very demanding of themselves and everyone working with them.

Ma koja mi, Olugbala; kii s’orin akunleko – ‘ “Do not pass me by Savior”, is
not a song that one sings kneeling down.’ One has to work hard and not rely
on handouts to succeed; in order to get help, one must first make a move.
The idea here is that while a person is kneeling down and singing, rather
than actively running after the savior, the latter would have long passed by.

Epo alaimo. kan ni gbogbo eniyan ma nto. wo loja – ‘It is the palm oil of the fool
that everybody tastes at the market.’ One must have the common sense to
avoid being cheated or taken for granted when negotiating.

Eni a bat a ka fi r’atupa, t’o loun eni ajitannawo – ‘The person who should
be sold in order to buy a lamp thinks he or she deserves special regard.’ This
mocks a person who pretends to be important when they are not. This saying
highlights the importance of being a competent and hardworking person
who is of value to the community to which one belongs. It also emphasizes
the need to be objective in evaluating oneself.

Nitori ojo it omo ba maa daran ni o se ni oruko tire – ‘Each person bears
a unique name so that he or she can be identified when committing an
offence.’ Clearly, this emphasizes personal responsibility.

Ore nj’ore, ora nj’ora; eeyan kii dupe mo ta opo – ‘A gift is a gift and a sale is a
sale.’ No one thanks you for selling at a loss to yourself.

A kii fi’ni joye awodi k’a ma le gb’adie – ‘One who is accorded the sta-
tus of a hawk must be able to seize a chick.’ One should live up to one’s
responsibilities and not negate the legitimate expectations of those relying
on you.

Collaboration, cooperation, non-discrimination

Even though competition is clearly understood as one of the challenges
of business, traditional wisdom dictates that competitors are not seen as
enemies to be fought to the death. This was apparent in the attitude
of businesspeople and in how the industry worked, and was also appar-
ent in the way differences were settled. Family meetings, village meetings
and industry meetings were called to settle disputes and grievances. These
still exist today as variations of ‘town hall’ meetings held within Nigerian
organizations to promote interaction, goodwill, frank speech and ownership.

In Yoruba culture, women are expected and greatly encouraged to go
into business and also to succeed in it. In fact, historically, women were
very involved in business management and public administration and both
spheres were usually headed by female chiefs – the iyaloja and the iyalode
respectively.

Owo otun la fi nwe t’osi – ‘One uses the right hand to wash the left.’ Working
together leads to success.

Kemi Ogunyemi 235

Abanije nba ara re je – ‘He who destroys other people destroys him- or
herself.’ One who deliberately harms others becomes a worse person him- or
herself. In defaming another’s character, one destroys one’s own.

Owo omode o de pepe; t’agba o wo keregbe – ‘Whereas a child’s hand cannot
reach a high ledge, that of an adult cannot enter a gourd.’ Each person has
a role to play and something to contribute; more can therefore be achieved
by collaboration than by each on their own.

Apeepo l’ehin agba, agba ohun nbo wa kan o k’awon omode r’ohun pa – ‘One
who strips off the bark behind an elderly person will have the same done to
them when they grow old.’ A person who insults his or her bosses will, in
turn, be insulted by subordinates.

Spirit of service, generosity, people development

Perhaps one of the most striking attributes of traditional wisdom in busi-
ness is the idea of serving the community. This idea is lost when capitalist
businesses become so focused on their profits that they are ready to harm
others and destroy the common good. This is one of the areas where going
back to the roots of a nation in Africa can help to remind businesses that
they should create wealth for everyone (even if to different extents and in
different ways), respecting the rights of all.

This sense of service is also apparent in the idea of ‘people development,’
or mentoring, that permeates African businesses. As already in the subsec-
tion ‘Hard work, competence, objectivity, astuteness, sense of responsibility’,
businesses used to take on people as apprentices and not employees. Appren-
tices were part of the family in a certain sense, and therefore the employer
was wholly responsible for them, including for their character development.
They were, in essence, grooming the next generation in their trade, or their
industry, and they had to teach them to be good professionals in every sense.
Today this is called mentoring. While it was once expected, today people
have to make an effort to put such a system in place because of changes in
mentality and circumstances. A great deal of informal mentoring that goes
on in Nigerian workplaces is owed to this legacy of taking responsibility for
others.

A kii lahun ki a n’iyi – ‘It is not possible to be both stingy and respected
and honored.’ Someone who is selfish cannot expect to inspire admiration
or respect in others. A manager must be a generous person in order to be
able to lead people and/or work with and through them.

Solidarity and community

An interest in making people feel welcome and important is an African trait.
Across the continent it is remarkable that guests are warmly received and are
offered a meal or at least water in the poorest of households. Within the con-
text of management, this translates into making employees and customers

236 Creating the Right Conditions

feel important and comfortable, not because of what one wants from them
but simply because they should be treated that way.

There is also a strong sense of family. Families marry, rather than individ-
uals. One’s brother/sister/son/daughter’s problem is one’s own problem and
burdens are to be shared. With respect to management, when there is an
issue that threatens the organization, the proper response is not to look for
someone to blame and sanction, but to come together to bear the organi-
zation’s burden and nurse it back to health. Because the organization looks
out for its people, they also look out for the organization.

Ti a ba so’ko loja, ara eni la a ba – ‘If one throws a stone in the marketplace,
it may strike one’s relative.’ One must treat others well, because the reper-
cussions of negative or thoughtless actions may come back to haunt you by
harming your family members. The idea is to avoid anything that may cause
harm to others, even if at first glance it does not appear that there is any
personal disadvantage in taking such a step.

B’omode l’aso bi agba, ko le l’akisa bi agba – ‘A child may have as many
clothes as an elderly person but will not have as many rags.’ The experience
of those who have gone before is an important source of knowledge for those
coming after.

Gratitude, appreciation, loyalty

A common African belief is that you should not bite the hand that feeds you.
Such expectations of loyalty include not poaching the clients or customers
of one’s employer. In the past it was expected that apprentices would set up
similar businesses, having been certified as competent and of good charac-
ter by their masters. The apprentice/employee was expected to protect the
relationship as best as they could, knowing that there would be plenty of
alternative and worthy avenues to make money.

Eni ba dupe ore ana, a ri omiran gba – ‘A person who displays gratitude for
yesterday’s good deed will have the favor repeated.’ It is more difficult to do
good to someone who has been ungrateful.

Ibi yiowu ki omi gba lo, ko le gbagbe orisun – ‘No matter the route a river
takes, it cannot forget its source.’ Gratitude and appreciation are owed to all
who contribute to the success of a person or enterprise.

Equity, respect for the environment

Business does not exist in isolation; it operates within an environment that
is dynamic rather than static, and sometimes its interaction with its sur-
roundings generates mutual obligations. Traditional wisdom emphasizes the
need for corporate responsibility toward society and the environment, just
as farmers have to respect the land which yields its fruits to them.

A kii ni agbari ka ma ni’pako – ‘One who has a forehead must also have a
back to their head.’ There are two sides to every story; one must hear both
sides.

Kemi Ogunyemi 237

Iya n jesin al’o njo – ‘The horse is suffering and we claim that it is dancing.’
One should not close one’s eyes to the damage done to others, or ignore
their suffering.

E je ka pajuba sile de isu olo; e je k’a je oruko to dun sile d’omo – ‘Let us
prepare the barn for the new yam; let us bear a good name to leave it behind
for our children.’ One has to live in such a way as to leave a legacy for future
generations.

18.4 Discussing insights from two entrepreneurs in Yorubaland

Case 1: Iya Olu (IO)

This was a microbusiness in the 1950s, in Sabo, Ibadan. It was run by the
owner, with her children, family and apprentices. The greatest number of
employees at any point in time was six – the owner, her ‘sister,’7 two daugh-
ters, a second cousin and an apprentice. Like similar businesses of the time,
it was as big as it needed to be to support the family and supplement the
income of the father, no more. Its aim was to sustain the family, not to
make profit for its own sake. The business lived as long as its owner. In 1988,
she left Sabo and moved to Mokola, continuing the business in front of the
house there, as Sabo was too far and transport by car was not an option at
that time. It was understood and accepted that the business would continue
until IO could no longer move around, as her mother had done before her.8

As she grew older, she gradually ‘liquidated’ the business by giving gifts, espe-
cially to her children and relatives. This was typical of her contemporaries:
‘Once they no longer need the proceeds for their sustenance, the business
would become more of a hobby that enabled them to give to others.’ ‘Chil-
dren would come with friends to pick up things – tins of beverage, and so
on.’ The idea was that it was going to be their inheritance anyway. ‘What
else would be the purpose of the business?’ (awon na ni o gba; kinni mo nta?;
owu mashini iya, o si wa n’le d’isin yi).9

The business, as for most other itinerant traders, was highly diversified,
out of prudence. The main item stocked was textiles. However, mats sourced
from Badagry, scarves which the Hausas in Sabo liked very much, knives,
sweets, groundnuts and other items were also sold. These would all be dis-
played on the ate.10 Profit from the auxiliary items would be invested in the
main business, in this case that of buying and selling textiles.

Very often, the startup funds come from the family, who contribute
to buying the initial tools; for example, a sewing machine for a fashion
designer, the goods to put in a shop, tools for a window-frame setter. They
might even sell family farmland to start the person off. This partly explains
the involvement of family in business decisions that one would ordinarily
expect to be taken solely by the owners.

IO and others around her engaged in business to provide sustenance, not
merely for the sake of doing business and making a profit. ‘Nkan taa je, taa

238 Creating the Right Conditions

mu’11 – once that was covered, they were content. ‘Community and family
consciousness’ was thus important in business. They worked at it in order
‘to cover the needs of the family.’ IO thus paid for the ‘schooling of all her
children and they lacked nothing.’ ‘Even for her funeral – some money was
taken from her own tins to cover the initial expenses.’ ‘Later on, support
from children reduces the need to support oneself and the business takes on
the characteristics of a hobby.’ ‘New needs – real and created – have done
away with the simplicity and sufficiency of those early businesses – a whole
plethora of new and varied foodstuffs, convenience items such as wipes, and
so on.’

Competitors united to get supplies:

By 1974, IO would buy a carton of fish for 6 naira, and share it with her
neighbor, a Jamaican, Iya Yemisi, and both would sell them to interested
buyers. One of them would travel to buy the bundles12 of material that
were their main merchandise (calico and satin)13 for both of them. In fact,
in Sabo, perfume sellers worked in groups. For example, five people would
contribute to sending one person to buy stock and then they would split
it. For the next purchase, weekly or fortnightly, someone else would go to
buy the stock.

Thus, they practiced cooperation instead of absolute competition.
Business was sensitive to the community’s needs. Thus, markets did not

fully operate daily even if the location remained a permanent marketplace.
Usually, they would open every five days in the same square, for example in
Ijaye Orile.14 Every farmer knew the ojo oja and even Christian pastors would
have to make a special appeal to get their congregations to go to church first
if it fell on a Sunday.15 This provided a regular opportunity for buyers to have
greater variety and choice and sellers to have more customers.

For IO and her contemporaries, a strong orientation toward people
pervaded business activity.

Its dual purpose was to serve the family’s needs and train young people in
a profession and to be financially self-sufficient. In the African tradition,
business is a school as well; and its purpose is not exclusively to make
money but rather to satisfy the simple needs of oneself and others.

The latter was what wealth meant. In return, a high standard of fidelity
and trustworthiness was expected of the apprentice. Most of the time ‘one’s
children and younger siblings would form the staff, whether all year round
or during holidays. For example, IO’s daughter would come back from the
Teacher Training College and get right down to work.’ Even when she was in
secondary school she and the other children understood that the business

Kemi Ogunyemi 239

financed their education and so they worked diligently beside their mother.
This was probably why the proceeds ‘sufficed to train the kids.’

Given the above, ‘people development was a strong part of the business.’
Apprenticeship could last up to two years, for example, in patent medicine
suppliers. An apprentice had to watch and learn by doing – ‘f’oju si bi won
se nse.’ After a while, they could be sent on buying trips, first with someone
who was more experienced and, later, on their own. After the apprentice-
ship, ‘freedom’ would be celebrated. In a similar way to graduation, the new
professionals would receive advice for starting off and be given gifts – usu-
ally tools for the business; for example, a sewing machine for a tailor. The
apprentice would also give his or her boss some presents and have a party.
They would then receive a blessing from others in the industry for their
success.

In relation to initial stocking and inventory-reordering capacity and
timing, prudence is required. IO advises that:

if given 50,000 naira to start a business, one should not use it all at once.
One should buy a little of everything, spending half of the money. The
rest should be kept so that one can replace the stock before it runs out.
Otherwise the igba will be depleted before one finishes selling the stock.16

Selling on credit – awin – is a big problem if one lacks the prudence to
recognize and manage it. Some products lend themselves more easily to this
practice; for example, raw rice and beans would usually lead to credit sales.
People would take the product and say ‘I’m coming back now to give you
the money.’ When they came to pay for one tin, they would take two more
tins on credit. ‘Aa ni roju owo ani rawin. Awin o ni sanwo’17 is the predicament
in which a businessperson finds him- or herself when the practice of selling
on credit is combined with an inability to say ‘no’ to friends and relatives.
‘An aunt could buy a dozen tins of milk and take an extra two, making 14,
for example.’ This could kill the business very quickly.

A lack of prudence might also lead to spending more in advance than the
profit eventually made. Contemporaries who did not have clear accounting
practices and simply dipped their hands into the till to supply personal needs
(‘cooking rice on milk and coke,’18 as IO put it) got their fingers burnt and
had to shut down their businesses.

‘Dishonest practices were frowned upon, such as making five extra bags
from twenty bags of rice.’ Undisciplined gift-giving (often including both
gifts to person present in front of the giver and gifts sent to others through
the person) was also discouraged. When this was done imprudently and
without regard to profit, both giver and recipients would be happy for the
moment, but the business would surely fail.

Aforiti – ‘fortitude’ was one of the strongest virtues recommended to and
by IO. Challenges abound. One has to resist the influence of customs that

240 Creating the Right Conditions

would lead to spending indiscriminately; for example, the custom of aso
ebi whereby people were expected to m’aso – have a specially chosen out-
fit made for every occasion. Another challenge was managing employees,
usually apprentices and a good number of family members.19 ‘The owner-
manager would have to combine strictness and discipline with understand-
ing. At times, employees would steal from the business, thereby eroding the
profit (“ke to pa 500 naira, won a ti ji nkan 1,000 lo” – before the business
makes a profit of 500 naira, goods worth 1,000 naira may have been pur-
loined) by directly pocketing profit or by selling on credit and collecting the
receivables.’ Business owners needed patience to deal with such situations
and still remain driven and optimistic. ‘A niece teaching in private school
wanted to start dealing in oil and flour and needed start-off funding. She got
it and started, but she gave up and liquidated at the first sign of trouble.’ The
attitude of ‘if it doesn’t work, liquidate,’ demonstrates a lack of aforiti. ‘O se
suke suke pa ‘gba ti,’20 said IO – but the strong ones persevere and succeed.

Dimensions of courage in business included the ability to say ‘no’ and
resist when necessary. According to IO, one must be able to m’oju kuro – look
away from many things in order not to bite off more than one can chew. She
called this am’oju kuro: the ability to say ‘No, I will not,’ ‘mi o ta’ or ‘mi o ra.’

People skills were needed to manage staff and staff issues, especially where
relatives were concerned, since the whole extended family were then rec-
ognized as stakeholders. Family meetings could be convened to solve people
problems at work. If there had been a case of theft, the family might promise
to pay. They might not actually manage to do so but that would be the end
of the matter.

Vigilance and supervision were important – ‘alagbata nii soja d’owon,’ the
owner takes the best selling decisions. ‘An agent cannot do as well as the
principal in exercising discretion.’ ‘An agent could insist that an item costs
15 naira where the owner might have sold it at 10 or 12 naira, deciding
how much profit suffices. Or agents could sell at 15 naira and pocket 5
naira, giving only 10 naira back to the owner.’ This concern is reminis-
cent of modern-day efforts to ensure that employees develop a sense of
loyalty, to mediate the conflicts of interest foreseen in agency theory due
to information asymmetry and gaps in trust.

Case 2: RC

The owner-manager of RC is a vibrant 60-year-old entrepreneur who is hap-
pily engaged in his current business interests across four continents – he
loves what he does. The two main business sectors are a pharmacy and super-
market and a hotel and restaurant, both currently located in Ibadan.21 The
combined staff strength is about 100 people.

The business started with a temporary overdraft for 30 days. Some bank
managers were doing this because they could, without approval from

Kemi Ogunyemi 241

their seniors or head offices. RC would take 2,500 naira at the beginning
of the month, repay it by the 26th day of the month, take another loan at
the beginning of the next month, and so on. It meant giving a post-dated
check, so that the bank could present the check for payment if the client
defaulted. They did not seem to realize that since it could take up to a
month for the check to clear, this would be late for them.22

In any case, RC was never late with a repayment, and such honesty could
not pass unnoticed. The bank authorities then recommended and processed
a proper term loan of 480,000 naira for RC. With this boost, RC went to Ife,23

to start buying cocoa products for export to Europe, which it did for about
three years. There were numerous challenges, chief among which was disloy-
alty from farmers. RC would advance them money and chemicals, agreeing
with them to buy the cocoa at a specified price per ton. However, when har-
vest time came, the farmers would sell to the highest bidder. Some would
pay back RC the exact amount it had invested; some would not even do
this. RC saw the need to get out quickly, though it still maintains a store
in the area today, managed by a friend of the owner-manager. RC then
went into the business of buying and selling pharmaceuticals. The expe-
rience has been that honesty wins the company capital each time. Banks
exchange information about people. Several banks continue to court RC,
wanting to be a part of the business. Being honest and not giving up in spite
of obstacles were thus two traditional traits that helped RC to survive and
succeed.

In RC’s experience, the cultural beliefs of Ghana and Nigeria are very close:
‘There is an emphasis on honesty and consistent hard work. Money was not
seen as a priority until modern influences eroded the traditional culture.
It is now a priority to most people, even professionals such as doctors, and
corruption in Nigeria has risen to an all-time high.’

‘Traditional wisdom warned against wasteful spending, imprudence and
betrayed trust. People even tended to marry with a view to having the
support of a good woman and trusted partner in running their farm or
business.’

RC has not found it easy to find ‘honest and good workers; it continues
trying, as this is a big problem.’ RC wishes to achieve congruency in its val-
ues, and this is part of the reason why the company stayed small, managing
its growth in order to avoid perceived ‘dangers in future – human capital is
a problem.’

Someone who is consistent and who really is honest will make it. Such
a person will become genuinely rich and have no limits, except those
they set themselves. These are people who know how to say ‘no’ when
it is good for them. Some are good and honest but lack the strength
to say ‘no.’ They keep on working to amass wealth until they have

242 Creating the Right Conditions

health problems or relatives and workers trying to loot and bring the
business down.

RC has said ‘no’ to various opportunities in the past, including two big
ventures recently, in order not to compromise on values.

RC also believes that an honest reputation ‘attracts capital, including from
foreign countries.’ Thus, it sees honesty as a very important traditional value
that needs to be preserved and restored. ‘A good reputation means that offers
come to the company due to the trust already built.’

‘To have a successful business, one has to face a lot of failures. Forgetting
this, Nigerians change from one business to another just because of one
failure. A lack of perseverance means the person does not succeed at the
end of the day.’ This underlines the need for fortitude and patience.

For a long time, RC’s importation business was not working; the accoun-
tant kept complaining about the losses. Now that arm of the business
makes two million naira monthly in pure profit [after all deductions].
If RC had not persevered, this would not be the case. Now people even
pay part in advance to get their purchases.

According to RC, ‘one has to know when to say “no”,’ explaining that
it is not pride or ingratitude. RC prefers to let others ‘take the opportu-
nity to grow and overtake them.’ This response would be unusual for most
companies that do not have a traditional approach to competition that
incorporates a willingness to share the market rather than fight, at times
unscrupulously, to control it.

18.5 Traditional business practices

The esusu or ajo is a good example of traditional financing systems. In the
past, it helped many small traders save and build businesses. People would
contribute money on a regular basis to a common purse, and each month
one contributor would have the option of withdrawing from the capital
saved to make a large investment in their business or for some other per-
sonal or capital expense. In this way, a service similar to the mediation of
present-day banks was provided – people were able to save their money and
had access to credit facilities thus generated. That the borrowers had to pay
little or no interest was an added bonus. Esusu groups, at times with other
names, are still in operation today in Nigeria and various other African coun-
tries. There are many stories of people who were excluded from formal credit
channels, due to an inability to provide collateral or to meet other condi-
tions, being helped to realize their dreams through the esusu system. The
system relies heavily on trust and it works.

Kemi Ogunyemi 243

Leadership is often traditionally set up in a stratified manner, since the
chief aim is to gain maximum participation from all stakeholders. Thus, for
example, a town could be divided into clans, settlements, even age levels,
and the leaders of these subgroups would have a say in deliberations on
issues affecting everyone. The leader (the town’s ruler or king) would then
make the town’s policies based on feedback received from the king’s Cabinet,
which would have received feedback from clan/divisional leaders, who in
turn would have received feedback from their different unit leaders.

The importance given to expertise and experience meant that elders would
usually be placed in positions of leadership. Rather than this being simply
a matter of deferring to age, it was, in essence, an acknowledgment of the
person’s wealth of experience. This is not very different from what happens
in firms today – the most qualified and experienced employees are promoted
to positions of management.

People management practices would include strategies to achieve total
employee buy-in. Traditionally, elders’ meetings would be complemented
by village square or town hall meetings, similar to present-day boardroom
meetings and staff meetings. There was a strong interest in ensuring that
everyone had a voice and an opportunity to be heard in person or by proxy.

18.6 Conclusion

As can be seen from the proverbs explained here and from the stories of the
two entrepreneurs, indigenous wisdom has a pivotal role to play in the man-
agement of business in an ethical and responsible manner. Unfortunately,
despite the best of intentions, it has not always been easy for Africans to
integrate their traditional values and belief systems into the foreign theories
and practices that they adopt in their organizations. At times, this is the rea-
son that such theories and practices fail to yield the desired outcomes – both
the adopters and the people they interact with may find it difficult to relate
to them: apparent incompatibility with the expression of traditional values
may lead to such values being jettisoned without being consciously replaced
by a coherent alternative system – a clear case of throwing out the baby with
the bath water.

The wisdom that characterized the two businesses described in section
18.4 is based on African values that include cooperation, fortitude, service
orientation/community consciousness, people development, detachment
when appropriate, and hard work accompanied by prudence. These are
responsible and sustainable business approaches and paradigms that should
be emphasized in today’s business world through training and education
within organizations and in universities and business schools.

African proverbs and folktales form a repository of wisdom that can enrich
personal lives and organizational entities, whether private or public, micro,
small, medium or large scale. Since they are mostly recorded orally, their

244 Creating the Right Conditions

transmission has been adversely affected by many factors, such as the edu-
cation of children far from home or the migration of people seeking jobs
far from home. The systematic documentation of this wisdom, as a vehicle
for the transmission of management philosophy, should be undertaken as it
remains relevant and applicable to the world of business today.

The crises occasioned all over the world by firms that have adopted short-
term and selfish attitudes toward profit-making, taken as their sole raison
d’être, can serve as a reminder that there were, and are, alternative paradigms
that should be explored to enrich our understanding of where and what
business might be in the near future, especially with regard to its role within
society.

Note

1. The Yoruba are the most populous ethnic group in southwestern Nigeria (Fasiku,
2006) and there are also Yoruba in some other African countries; for example, in
West African countries such as Togo and Sierra Leone and even in non-African
countries such as Brazil and Cuba.

2. All non-English words in this chapter are written in the basic Latin alphabet.
3. Traditional African prose, poetry and literature also support this by emphasizing

these values in their diverse expressions; for example, Chinua Achebe’s novels as
they pertain to the management of people and the environment.

4. An infamous historical character in Yorubaland who was much hated for the
atrocities he committed against the people while in power.

5. The traditional title of the king of the Oyo empire.
6. As did the Mali and Songhai kingdoms, the Benin kingdom, the Ijebu empire, the

Igbo wandering trader-groups and others.
7. ‘Sister’ or ‘brother’ in Africa does not traditionally strictly mean siblings – this

may have been a cousin.
8. Her mother ran her business from Ayeye, and then Mokola, and in later life,

Alekuso – different districts of Ibadan. In the end she sold firewood in Alekuso.
It was typical of the time that people worked hard all their life, even if they no
longer needed the money. Work was fulfillment and also an opportunity to give
to others.

9. ‘The goods are for their benefit; what am I doing business for? The machine thread
being sold by mama is still at home today.’

10. A tray or kiosk for displaying wares.
11. ‘What to eat and drink.’
12. A bundle was 10 yards.
13. Calico was called teru while satin or white poplin was called mantin and the word

for a bundle of 10 yards was igan.
14. One of the suburbs of Ibadan.
15. The market day.
16. Display tray.
17. ‘ . . . neither seeing the cash nor the receivables; creditors that never pay . . . ’
18. She asked the rhetorical question: ‘How many crates of drinks does one sell in

a day in order to justify living on the products, spending faster than the money
trickles in . . . ?’

Kemi Ogunyemi 245

19. ‘Gbigba omo s’odo’ literally means ‘taking a child to stay with oneself.’
20. ‘The lady shuffled the business to a halt.’
21. A town in western Nigeria.
22. Today, this is no longer the case – checks can be tracked and traced immediately.
23. A town in western Nigeria.

References

C.E. Cirnu and B. Kuralt (2013) ‘The Impact of Employees’ Personal Values on
their Attitudes Toward Sustainable Development: Cases of Slovenia and Romania,’
Management, 18(2), 1–20.

G. Enderle (2011) ‘Challenges for Business and Economic Ethics in the Next Ten Years:
Wealth Creation, Human Rights, and Active Involvement of the World’s Religions,’
Business and Professional Ethics Journal, 30(3–4), 231–252.

G. Fasiku (2006) ‘Yorùbá Proverbs, Names and National Consciousness,’ The Journal of
Pan African Studies, 1(4), 50–63.

A.K. Fayemi (2010) ‘The Logic in Yoruba Proverb,’ Itupale Online Journal of African
Studies, 2, 1–14.

Z. Nedelko and V. Potocan (2011) ‘The Role of Personal Values for Managerial Work,’
International Journal of Management Cases, 13(4), 121–131.

INTRODUCTION

great thoughts about business, ethics, and the good life. The philosopher’s responses to
your questions and opinions on various ethical issues and problems in business appear in
various boxes throughout the text, providing you with some wise reflections from great
thinkers past and present. Think of these boxes and others in the text as those occasional
email messages you receive from friends that provide you with thoughts and an occasional
laugh while you study for your courses and for your future career.

Three Questions for Thinking About Ethics

The most difficult ethical problems are not black or white. Moral problems tend to have
three facets to them that are more or less captured in some of the ethical theories you will
run across in this book. We offer these three simple questions to help you organize your
thoughts when you make ethical decisions or analyze the ethical behavior of people and
organizations. In the first person they are:

Am I doing the right thing?
Am I doing it the right way?

Am I doing it for the right reasons?

In short, ethical behavior is generally about doing the right thing, the right way, for the right
reason. Nonetheless, sometimes people do the right thing the wrong way, for the wrong reason;
or the wrong thing, the right way, for the right reason, etc. Often the most difficult ethical L’ ‘”” the ones where people can only answer “yes” to one°’ two of the three questions.

Robert Audi
Some Approaches to Determining
Ethical Obligations

xxv

Robert Audi is the John O’Brian Professor of
Philosophy at the University of Notre Dame.

options which is best from the twin points of view
of increasing human happiness and reducing human
suffering:

UTILITARIANISM

For John Stuart Mill (the greatest nineteenth-century
English philosopher), the master utilitarian principle
is roughly this: choose that act from among your

The creed which accepts as the foundation of morals
“utility” … holds that actions are right in proportion
as they tend to promote happiness, wrong as they
tend to produce the reverse of happiness. By happi-
ness is intended pleasure, and the absence of pain.

John Stuart Mill, Utilitarianism, Oscar Priest, ed. CNY: Macmillan, 1957, p. 10.

xx vi

This form ula does not tell us when an act is right,
period; but the idea is that right acts contribute at
least as favorably to the “proportion” of happiness
to unhappiness (i n the relevant population) as any
alternative the agent has. Thus, if one act produces
more happiness than another, it is preferable, other
things equal. If the first also produces suffering,
other things are not equal. We have to weigh good
consequences of our projected acts against any bad
consequences and, in appraising a prospective act,
subtract its negative value from its positive value.

Utilitarianism calls for maximization. To see why
producing even a lot of good may not be not ethically
sufficient, consider two points: (1) the more we have of
what is good-good in itself, basically good-the bet-
ter; (2) it is a mistake to produce less good than we can
or, correspondingly, to reduce what is bad less than we
can. Arguably, no good person would act suboptim ally
if this could be avoided. Ideally, then , we would simul-
taneously produce pleasure and reduce pain. Often we

A

good i
3

very js
good

E

Happiness

doubly
good

fNTRODUCTION

cannot do both. A situation may be so dire that reduc-
ing pain is all we can do. For utilitarianism, although
some people are better candidates to be made happy-
or less unhappy-everyone matters morally.

On the plausible assumption that total happiness
is best served by maintaining minimal well-being for
the worst off, utilitarianism supports welfare capital-
ism. But it does not automatically support any highly
specific position on the obligations of business. One
might think otherwise if one identifies utilitarian-
ism with the idea that ethics requires our produc-
ing the “greatest good for the greatest number.” One
reason utilitarianism does not imply any such thing
is that great benefits (hence much good .) to some,
say college students, could quantitatively outweigh
even the greatest benefits a business or government
could provide for a larger number of people, say by
tax cuts for the whole population. Figure 0-1 makes
this clear: the former, educational policy, could raise
the overall happiness level (or lower the unhappiness

. doubly
bad

Unhappiness
B

– 3 i bad
F l 5+

better
than E

FIGURE 0-1 Utilitarianism: Six types of act scored in terms of maximizing the “ratio” of the good (represented by the lighter
shading) to the bad (represented by the darker shading).The containers represent the “quantities” of the good (happiness) and
the bad (unhappiness) in the population (possibly all persons) whose well-being concerns the utilitarian. The letters represent
acts considered; the length of the accompanying arrows- and the positive or negative numbers beside the acts-represent
the positive or negative change in quantity of well-being the acts produce in the indicated direction. Act A is good; B is bad
(hence its negative score). For acts C and D, let the left arrow represents the change produced in the unhappiness level and
the right arrow represents the change produced in the unhappiness level. C, then, is doubly good, si nce it both increases
happiness and decreases unhappiness; Dis doubly bad, since it does the opposite. E is better than A, since it produces more
happiness. Our obligation is to maximize the difference between the levels, favor ing happiness (the lighter shading) over
unhappiness (the darker shadi ng). For a qualified utilitarian view that weights reducing unhappiness higher than increasing
happiness, F might be better than E even if they produce the same net change in the ratio of the good to the bad.

INTRODUCTION

level, or both) more than the latter, tax relief legisla-
tion, regardless of the smaller number of beneficia-
ries of the educational policy.

How utilitarianism apparently supports wel-
fare capitalism over other economic systems needs
explanation. Here is a possible account. Arguably,
businesses will contribute most favorably to human
happiness (roughly, to the proportion of happiness to
unhappiness in the world) by simply making a profit
in a fair system of competition and paying taxes at a
level high enough to support effective welfare pro-
grams and low enough to preserve incentives to gain
wealth. For-given the incentives this arrangement
might provide for talented people-it might not only
support welfare programs but also lead to miracle
drugs, fuel-efficient cars, superior fertilizers, and the
like. Utilitarians may also argue that-at least if busi-
ness leaders are utilitarians-then for both economic
and ethical reasons, businesses operating in a welfare
capitalist system will also contribute to the overall
well-being of society through voluntary contributions,
such as support for community projects, education,
and the arts.

ACTS

xx vii

RIGHTS-BASED ETHICS

A very different ethical approach takes off from
the idea that the main ethical demand is that we act
within our rights and accord other people theirs.
On this view, right action is simply action within
one’s rights, whereas wrong action violates rights.
Rights may be negative, for instance rights not to be
harmed or deprived of free expression, or positive,
say rights to be given what is promised you, includ-
ing such things as emergency medical treatment if
the government has guaranteed it. Roughly speaking,
negative rights coincide with liberties, positive rights
with entitlements to benefits.

From this perspective we can see how someone
might ask: Why should businesses have to contribute
to the well-being of society by doing anything posi-
tive for society? What right does government have to
force taxation for this purpose, as opposed to police
and military protection? Granted, our property rights
are limited by obligations to support some govern-
ment programs, most notably policing and defense,
but once businesses pay their fair share of taxes for
these, why should they do more?

————-Right (Permissible)
————-Discretionary (may do it and

may omit to)

Rights-Based*
(demandable by

others)

Obligatory
(must do it)

Not Rights-Based
(not demandable)

Wrong (Impermissible)

Rights-Protected
(agent has a right

to do it)

I
Not Rights-Based
(doing it does not
violate another’s
rights; abstention
not demandable)

Not Rights-Protected
(agent does not

have a right to do it)

I
Rights-Based

(doing it violates
another’s rights;

abstention
demandable)

FIGURE 0-2 This figure shows an ethical classification of acts indicating how a rights-based ethics views obligation:
our obligations lie only within others’ rights against us. Most other ethical views recognize wrongs within rights,
i.e., violations of obligations to others by acts that are not within their rights against us. Note that many right acts
are discretionary (e.g., having coffee as opposed to tea) rather than obligatory (e.g., keeping a promise). Rights-based
obligations-the only obligations under a rights-based ethics-lie in the starred category. Wrongs within rights are
shown in the rights-protected category; e.g., giving nothing to charity may be wrong, though within one’s rights and not
demandable by charities. Unlike promise-keeping, it is a non-rights-based obligation and may be wrong, though within
one’s rights and not demandable by charities.

xx viii

To this view, utilitarians and other good-based
theorists may reply that even if businesses have a
right not to do more, in the sense that their freedom
not to do more should not be abridged by compul-
sion, they ought to do more. The plausible ethical
point here is that a rights-based morality is unduly
narrow. It takes what we ought (morally) to do to
be only what we have no right not to do-presum-
ably because someone else has a right to demand our
doing it, in the sense that our not doing it violates that
person’s rights. All else is discretionary, as shown in
Figure 0-2. In reality, however, we can and do dis-
tinguish between what we ought and ought not to do
even within the sphere of our rights. Take a simple
example: relations with coworkers. Our cowork-
ers have a right to some consideration, say to being
given at least minimal cooperation, but we ought to
do more to support them than the minimum they can
claim as their right.

It is not just utilitarians who think that ethics calls
on us to do things we have a right not to do. This
will be apparent from an outline of two other plau-
sible and widely held ethical views: Kantianism and
virtue ethics.

KANTIAN ETHICS

The great eighteenth-century German philosopher
Immanuel Kant held that we should always act in
such a way that we can rationally will the principle
we are acting on to be a universal law:

So act as if the maxim of your action [that is, the
principle of conduct underlying the action] were to
become through your will a universal law of nature.

This “Categorical Imperative” implies that I should
not leave someone to bleed to death on the road-
side if I could not rationally will the universality of
the practice-say, even where I am the victim. We
would not want to universalize, and thus live by,
the callous principle: one should stop for someone
bleeding to death provided it requires no self-sacri-
fice. Similarly, I should not make a lying promise
to repay borrowed money if I could not rationally
universalize my underlying principle, say that when
I can get money only by making a lying promise,

INTRODUCTION

I will do this. One way to see why the Imperative
apparently disallows this is to note that we count on
promises from others and cannot rationally endorse
the universality of a deceitful promissory practice
that would victimize us.

Kant also gave a less abstract formulation of the
Categorical Imperative:

Act so that you use humanity, as much in your own
person as in the person of every other, always at the
same time as an end and never merely as a means.

The idea is roughly that we must treat people as
valuable in themselves, never merely as means to
some end of ours. We are never to use people-
including low-level, readily replaceable employees-
as in manipulatively lying to them. Treating people
as ends clearly requires caring about their good.
They matter as persons, and we must at times and
to some extent act for their sake, whether or not we
benefit from it.

VIRTUE ETHICS

Virtue ethics differs from both utilitarianism and
Kantianism in not being rule centered. Instead of pro-
posing rules of conduct, it demands that we concen-
trate on being good as persons. Be honest, just, kind,
and honorable, for instance. Thus, the ancient Greek
philosopher Aristotle described just acts as the kind
that a just person would perform. He did not define
a just person as one who performs just acts, nor as
one who follows certain rules. He apparently con-
sidered moral traits of character ethically more basic
than moral acts and moral rules. He said, regarding
the types of acts that are right: ”Actions are called
just or temperate when they are the sort that a just or
temperate person would do.” Similar virtue-ethical
ideas are also found in non-Western traditions, such
as Confucian ethics, especially as represented by the
ancient Chinese philosopher Mencius.

For a virtue ethics, then, agents and their traits, as
opposed to rules of action, are morally basic. Virtue
ethics would have us ask both what kind of person
we want to be and how we want to be seen by those
we care about, say friends and family. Who wants to
be (correctly) seen as cheap, insensitive, or even just

INTRODUCTION

indifferent to others’ suffering? Who does not want
to be seen as generous, caring, and fair?

One could say that virtue ethics endorses be-rules
(be just, be honest, be kind) in contrast with do-rules
(keep your promises). But, suggestive as it is, this
contrast is misleading since be-rules do not make
clear reference to how to fulfill their demands. We
cannot fulfill be-rules without some prior knowledge
of what to do. (It is because this point is understood
that virtue ethics is often seen to require a good
upbringing with definite kinds of acts prescribed for
children.) The positive idea underlying virtue ethics
is that we are to understand what it is to behave justly
through studying the nature and tendencies of the
just person, not the other way around. We do not, for
instance, define just deeds as those that, say, treat
people equally, and then define a just person as one
who characteristically does such deeds.

Thus, for adults as well as for children, and in ordi-
nary life as in business, role models are absolutely
crucial for moral learning. Virtue ethics is indeed a
kind of ethics of role modeling: good role models are
sources, as well as potential teachers, of ethical stan-
dards. Rules of action can be formulated by general-
izing from observations of virtuous agents, such as
team leaders in a sales division; but the basic ethical
standard is character rather than rules of action.

One value of the virtue approach to business
ethics is that leadership in business is partly a role-
modeling function. To call for conduct of any kind-
but especially ethical conduct-when we do not
exhibit it ourselves is at best unlikely to succeed and
often hypocritical too. Good role modeling, as any
major ethical view can stress, is both instructive and
motivating.

COMMON-SENSE ETHICAL
PLURALISM

Many readers will find something plausible in
each of the approaches just sketched. Might a less
abstract, more definite view capture much of the
best in each? Utilitarianism above all requires good
deeds; rights-based views stress respecting freedom,
keeping commitments, and protecting property;
Kantianism demands respecting others and acting on

xxix

principles that accord with this respect; and virtue
ethics demands such ethical decisions as are made
by people who are, say, just, honest, and beneficent.
There are many standards here, but they are not
too numerous to be reflected in ordinary principles
that morally decent people teach their children and
generally follow.

These ordinary ethical principles (1) prohibit
injustice, harming others, lying, and breaking
promises and (2) positively, call for doing good
deeds toward others and for efforts toward self-
improvement. They do not require maximizing
good consequences, but do require at least certain
good deeds we can do without great self-sacrifice.
Thus, fraudulent accounting, as lying, is prohibited;
providing for employees’ healthcare, up to some rea-
sonable point, is, as doing good deeds, an obligation
of most companies.

Most people find these principles intuitively plau-
sible, and the view that such principles are directly
knowable on the basis of reflection on their content-
intuitively knowable-is called ethical intuitionism.
It is considered a common-sense view because these
and a few other principles seem to be a common-
sensical core toward which the best ethical theories
converge. Since common-sense intuitionism is pre-
sented in Chapter 4, no further comment is needed
here. It must simply be included among the perspec-
tives from which to view the task of determining the
ethical responsibilities of business.

Many who reflect on ethics find something of
value in all the approaches just described, especially
virtue ethics, Kantianism, and utilitarianism. Might
a single wide principle include much of their content
and encompass much of the common-sense plurality
of obligations just indicated? There are apparently at
least three conceptually independent factors that a
sound ethical view should take into account: happi-
ness, which we may think of as welfare conceived in
terms of pleasure, pain, and suffering; justice, con-
ceived largely as requiring equal treatment of persons;
and freedom. On this approach-call it pluralist
universalism-our broadest moral principle would
require standards of conduct that optimize happiness
as far as possible without producing injustice or curtail-
ing freedom (including one’s own). This principle is to

xxx

be internalized-roughly, automatically presupposed
and normally also strongly motivating-in a way
that yields moral virtue. Right acts would be roughly
those that conform to standards-including the ones
described in Chapter 4-whose internalization and
mutual balancing achieve that end. Each value (hap-
piness, justice, and freedom) becomes, then, a guid-
ing standard, and mature moral agents will develop a
sense of how to act (or at least how to reach a decision
to act) when the values pull in different directions.

Pluralist universalism is triple-barreled. It
implies that no specific, single standard can be
our sole moral guide. This is especially so in the
case of principles (like this one) that appeal to
different and potentially conflicting elements.
How should we balance these in the triple-barreled
principle? A priority rule for achieving a balance
among the three values-and among the common-
sense principles that pluralist universalism helps to

INTRODUCTION

unify-is this Considerations of justice and free-
dom take priority (at least normally) over consid-
erations of happiness; justice and freedom do not
conflict because justice requires the highest level
of freedom possible within the limits of peaceful
coexistence, and this is as much freedom as any
reasonable ideal of liberty demands. Thus, public
sale of a drug that gives people pleasure but reduces
their freedom would be prohibited by the triple-
barreled principle (apart from, say, special medi-
cal uses); a social policy (say, draft exemptions for
all who have a high-school education) that makes
most citizens happy but causes great suffering for
a minority (who must go to war) would be rejected
as unjust. Moreover, although one may voluntarily
devote one’s life to enhancing human happiness
(if only by reducing human suffering), this is not
obligatory. Thus, coercive force may not be used
to produce even such highly desirable beneficence.