THEHIPPOCRATICOATHOFTHEMANAGER:

GOODORBADIDEA?

BySeanD.Jasso,Ph.D.

PhilosophyforBusiness,January2010,Issue56

In a 2009 Financial Times commentary, Michael Skapinker addresses a growing movement of business
school students taking formal oaths promising to pay equal attention to shareholders, coworkers,
customersandthesocietyinwhichweoperatei.Inessence,newMBAsaffirmtoadheretoastakeholder
approachtomanagementasopposedtotheageoldshareholderfirstphilosophy.Theoathisintended
tomirrortheHippocraticOathtakenbythenewlygraduatedmedicaldoctor,theattorneysoathtakenby
the newly appointed lawyer to the bar, or the oath taken by the new CPAii. The MBA Oath received
momentum recently at Harvard Business School through the scholarship and inspiration of professors
RakeshKhuranaandNitinNohriainwhichthetwoarguethattheanswertobusinessscrisisistoturn
managementintoaprofessionlikemedicineorlawiii.KhuranaandNohriasvisionisnobleindeed,but
nobility and practicality are not always aligned nor may they always be prudent. Skapinker remains
skepticalaboutthetrendofMBAoaths,buttheapparentmovementopensthedoorforseriousreflection
anddiscussionaboutwhatmanagementreallyisandcanorshouldpractitionersofmanagementpublicly
affirmprimumnonnocere?aboveall,notknowinglytodoharm.

WhatisManagementReally?

This question has been defined, grappled, adjusted, improved, refined, and customized for over a
hundred years. Harvard, for example, just recently celebrated the centennial of its Business School in
2008 and is often considered the epicenter for management higher education. A wide literature
addresses management from various schools of thought from the scientific, behavioral, to the
organizational to name just a few. Among the more famous and perhaps practical philosophers of
managementisPeterF.Druckerwhoidentifiedmanagementasbothadisciplineandpracticeindeednot
easy to master due to the nonlinear complexity of producing what management is designed to do
produceeffectiveresults.Amongthegreatinnovationsofthelasthundredyearsthathavemovedsociety
forward is in fact management. At the same time, many other thinkers in the field believe that
management has become out dated and has a wide canvas to improve its very meaning. Scholars like
Gary Hamel for example, see the necessity for management as a technology where not only is the
stakeholderapproachanorm,butmoreimportantly,strategicdecisionmakinguptoandincludingCEO
succession can happen at the employee level indeed, revolutionaryiv. No matter what school of
SeanD.Jasso,Ph.D.

TheHippocraticOathoftheManager:GoodorBadIdea?

thought,managementremainsthecornerstoneoforganizationalproductivityandprogress.Simplyput,
withoutit,entrepreneurshipcouldneverflourish,organizationswouldflounder,andresourceswouldbe
squandered. Indeed, fueling the need for management is competitionv the energy that forces
organizationstostrivetocreatethebestvalueforallofitsstakeholderswiththeaimofearningvaluefor
itself.

Withinthiscompetitiveenvironmenttherearewinnersandlosersandthewinnersmostoftenowetheir
achievementtoeffectivemanagement.Attheveryfoundationofmanagementliesthevirtueandreality
oftheforcesofmarketstheeconomicarenawhereriskandstrategybarefruitorfailure.Thereislittle
debate that markets which are well regulated and open to competition have borne results for the
stakeholder environment wealth for owners and investors, employment opportunities for the best
qualified and innovative products and services for customers around the world. Most scholarship and
practicing managers would agree that the successful organization that produces goods and services for
society has evolved into a stakeholder entity. Most managers, employees, educators, policy makers,
owners, investors, suppliers, and customers would sensibly agree that the enterprise of the 2000s can
only flourish when all of the various stakeholders listed above are perceived as partners in the
organizations sustainabilityvi. In fact, the shareholder first approach to running a business has seen
alternativemovementsthatputthecustomerfirstwherebyprovidingaworldclasscustomerexperience
yields customer loyalty anda higherprobability of sustainable revenues. We haveeven seen trends in
putting the employee first, the nation first, and the environment first. All of these firsts are
admirable,butintheendnonearesustainablewithoutthebroaderstakeholderapproach.Regardlessof
thetrend,atthecenterofanyenterpriseisitspurposeusuallycreated,defined,andmobilizedbyan
entrepreneur and grown by the manager. Most support the idea that the worlds great products,
services,andsolutionshavebeencreatedbyentrepreneursenergizedbyafreedomofrisktaking,fueled
by the virtue of competition, launched by practitioners of management to facilitate the growth of the
idea,andyessupportedbyareturnoninvestmentforallengagedinthegame.

ManagementAProfession?

BeforewegettothebottomofgoodorbadideaofMBAstakingoaths,thefirstquestioniswhetherthe
MBAmightinfactalreadyberecognizedasaprofessionakintomedicine,laworaccounting.Properly
defined,aprofessionisanoccupationthatrequiressignificantstudy,preparation,andspecializationofa
particular field. Like the noted professions, the MBA does require significant study of a wide field of
knowledge.Thefieldofbusinessadministrationispurposelygeneralhence,thegeneralmanager.
TheMBAisauniquedegreeexposingstudentstothewidescopeofallofthemajorskillsrequiredtorun
an organization economics, law, accounting, finance, marketing, operations, quantitative analysis,
organizationalbehavior,strategyandethicsareamongthestandards.Programshaveevolvedoverthe
yearstoincludeemphasesineachoftheaboveaswellasleadership,entrepreneurship,globalissues,and
an array of electives upon demand. Upon successful completion of the masters in business
administrationisthenewMBAwhoseacademic,occupation,anddemographicbackgroundisamongthe
SeanD.Jasso,Ph.D.

TheHippocraticOathoftheManager:GoodorBadIdea?

mostdiversestudentbodiesoftheprofessionalschoolprogramsofmostuniversities.Itisnotuncommon
toseeyoungandoldergraduateswhohavelittletoadvancedexperienceineveryfieldimaginableata
traditionalMBAcommencement.

Professionsarealsocharacterizedaspracticesforexample,adoctorpracticesmedicineandalawyer
practiceslaw.Theimplicationisthattheprofessionismoreofanartneverfullyperfectedandnever
fullyevolved.SchoolsofbusinesslikeHarvardarewellknownfortheirapproachtoteachingbusiness
closertoascienceratherthananart.ThecasemethodaHarvardsignatureapproachtoteachingisa
scientificmodelthatteachesstudentstofollowatemplatebasedonrealscenarios.Toprovidefurther
intellectual diversity for students seeking business education, many schools over the years recognize
managementtobetheartandbusinesstobethescience.Isuggestanartfulbalanceofboth.

AddingsupporttotheideaofthepracticeofmanagementisthewellknownphilosophycoinedbyPeter
Drucker himself. Drucker professed that management was to be viewed and practiced as a liberal art
because the effective manager must use a wide set of liberal skills from politics, sociology, history,
philosophy,topsychology,amongmanyothers,tomakethebestdecisionfortheorganizationvii.Likethe
artofmedicineandlaw,themultitudeofvariablesimpactingamanagementdecisionisalwayschanging
requiringartfuladaptationbyaprofessional.Sotothisend,Iwouldarguethatmanagementisalreadya
profession whether one has an MBA or not. One is not required to have a certification to be an
entrepreneurortoevenrunacompanythisisthegreatbeautyandflexibilityofthemarketsystemand
itsbountyofcreativeopportunity.However,thevalueoftheMBAisthatonehassuccessfullycompleted
therigorousandformalprocessoflearningthecriticalandanalyticalthinkingrequiredofmanagers.Can
theseskillsbelearnedindependentlyofthebusinessschool?Perhaps.Butsocietyhasandcontinuesto
putsignificantvalueupontheindividualwithformal,certifiedmanagementtraining.Thisisevidentinthe
traditional marketbased salaries for MBAs that remain competitive even at all levels of the economic
business cycle. Most importantly, however, the MBA who has critical thinking skills the product of a
rigorousuniversityprogramcontinuestobethehighestvalueaddedresourcewithinanyorganization.

TheMBAOathYesorNo?

NowtothequestionofwhetherthenewMBAshouldtakeanoath.Indeed,anoathcanaddsymbolic
meaningtothecommencementofanewjourney.Mostwouldagreethatamarriagewithoutavowis
notamarriage,newcitizenshipwithoutanoathisnotofficial,andapresidentialinaugurationwithoutan
oath (though mandated by the Constitution) is simply impossible to imagine. Returning to Skapinkers
commentaryintroducedabovehisFinancialTimesarticledoesincorporateabalanceddebate.Where
the Harvard management professors assert that the MBA should be a professional license to practice
management, Skapinker counters this idealism with a dose of reality suggesting that any trend toward
SeanD.Jasso,Ph.D.

TheHippocraticOathoftheManager:GoodorBadIdea?

HippocraticOathsofMBAsisonlyasgoodasthemovementgrowsbeyondtheuniversity.Infact,thereis
noapparentsweepingdemandfromthelargestakeholderenvironmentmandatingmanagerstohavea
certificateorlicenseontheirofficewallaffirmingonesoathtodonoharm.Moreover,andperhapsmost
relevant, there exists no authentic regulatory board (analogous to the medical, legal, and accounting
professions) to monitor the fair practice and fiduciary responsibility of the oathmandated manager.
Rather, stakeholders simply want to see results attained within the rule of law, within the good
governance of the firm, and within the fair playing field of the marketviii. Indeed, the purest moral
certificationisbeyondeventheMBAdegreeandthepracticingmanagerwhobaresitsname.Asnoted
above,itremainsthesimpleinfluenceofcompetitionfair,dynamic,andvaluecenteredthataffirmsall
thecertificationneededwherebuyersandsellersnegotiateandmakedealsbasedongoodinformation,
product utility and price. When this exchange is pure, the ethic of commerce and the morality of the
marketrequirenooathotherthanasimplehandshakeix.Whenthissacredexchangeisbrokenbyfraud,
complacencyorincompetence,consumerswillsimplydemandnewmarketstoreplacetheold.

AtthecoreoftheHarvardprofessorsvisionisaneconomywheremarketfailureiserasedorminimized
by the licensed practitioner. This is noble, but unrealistic. Additionally, the Harvard vision appears to
suggest that a fiduciary responsibility by ones managerial oath be infused as a guarantee to his or her
clients best interest which comes before individual profitx. Again, this is noble, but unrealistic. This
idealismisalreadyinfusedinawellregulatedmarketsystemwherebyprofitincentivizestheproducerto
innovate and compete for the sustainability of the organization made possible only by strategically
connectingtotheconsumerbymarketingproductsandserviceswiththerightquality,attherightprice,
attherightlocation,withintheruleoflaw.Shouldtheenterpriseseekanalternativestrategyoutsideof
thisconsumerdrivenmarket,theevidenceisstrongthatrevenueswillfall,costswillrise,andprofitswill
diminish.Nooathcanguidethisarenaofexchangebetterthantheexistingsocialcontract.

TheMBAisamanagerofriskforthebenefitofacomplex,multistakeholderconstituency.Forexample,
terminatingthousandsofemployeesforthesustainabilityofthefirmuptoandincludingmacroeconomic
developmentisoftenanecessarymanagementdecisionevenasdifficultorunpopulartheconsequences
might be. The question for society is whether a managers decision would be any different if an oath
affirming his or her honor to do no harm would make a difference and, most importantly for whom?
Skapinkersarticlebeginswithafocusonthetrendofschoolsofbusinessincorporatingtheoathintotheir
programs and the Harvard professors seem to exploit a down economy influenced by corporate
corruptionasoneofthereasonsbehindthecrisis.

In a market based economy where business, government, and society are interdependent, the idea of
requiringMBAstotakeanoathtoeffectivelymanageanorganizationsassetsandliabilitiesforthegood
ofsocietyismuchlikeaskingnewparentstotakeanoathaffirmingtheywilldonoharm,minimizerisk,
and ensure a holistic balance of the childs development for the good of humanity. Simply put, good
managerswillnavigatetheorganizationtowardresultsandineffectivemanagerswillbeexpelledbythe
most powerful measure of them all the consumer and the owner each demanding value for their
SeanD.Jasso,Ph.D.

TheHippocraticOathoftheManager:GoodorBadIdea?

investment. As stated in the opening, the purpose of this article is for all stakeholders of the business
enterprise to engage in a debate of serious reflection as to what management means in society
particularly in the society of tomorrow. There is no disagreement that the general welfare of a global
communitylinkedbymarketsrequiresgoodmanagementpracticedbyethicaldecisionmakers.Yet,what
remainstobeseenistowhatdegreeconsumersofthismarketsystemplaceontheauthenticityofthose
whoearnadegreeinmanagement.ThoughtheHippocraticOathoftheManagermayinspirenewMBAs
todonoharm,thevalidityofthegoodmanagerismuchdeeperthananyoath.Asstatedthroughoutthis
article,thewellregulated,dynamic,andcompetitivemarketwilltakecareofthebadbehavior.

At the dawn of the new decade in an era where globalization of trade and ideas shows only forward
momentum,theeffectivemanagerwillbetheonewhoembracesthefreedomofopportunitywiththe
responsibilityofmanagingriskforawidestakeholderenvironmentdependentonthefirmssustainability.
So,toanswerouroriginalriddleofthemanagementoathgoodorbadidea?Asargued,theoathneed
nottakeplaceatthecommencementofadegree,butratherinthequietofthemanagersheartbecause
themoralityofthemarketisnothingwithoutthemoralityofthegoodmanorthegoodwoman.Perhaps
thebetterquestionwemustaskofmanagersisactuallythesimplestofthemallwhatdoyoustandfor?

i
FinancialTimes,June23,2009
ii
Khurana,RakeshandNohria,Nitin(2008)HarvardBusinessReview(October),pp.7077.
iii
FinancialTimes,June23,2009
iv
Hamel,Gary(2007).TheFutureofManagement(withBillBreen).Boston,MA:HarvardBusinessSchool
Press.
v
Porter,Michael(2008).OnCompetition:UpdatedandExpandedEdition.Boston,MA:HarvardBusiness
SchoolPress.
vi
Carroll, Archie B., and Buchhotz, Ann K. (2008). Business and Society: Ethics and Stakeholder
Management,7thEd.Florence,KY:SouthWesternCengage.
vii
Drucker, Peter F. (2008) Management: Revised Edition (with Joseph A Maciariello). New York, NY:
HarperCollins.
viii
DeKluyver,CornelisA.(2009).APrimeronCorporateGovernance.Williston,VT:BusinessExpertPress.
ix
Zak, Paul J, Ed. (2008). Moral Markets: The Critical Role of Values in the Economy. Princeton, NJ:
PrincetonUniversityPress.
x
Khurana,RakeshandNohria,Nitin(2008)HarvardBusinessReview(October),p.72.

SeanD.Jasso,Ph.D.

TheHippocraticOathoftheManager:GoodorBadIdea?