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Book Scan

Title

Theres No Such Thing As Business Ethics: Theres Only One Rule For Making Decisions

Author Publisher Year of publication

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John C. Maxwell Warner Books 2003

Madison Sheena Nazareno Vejerano (08B1904) MS 1111 Principles of Islamic Business Ethics Universiti Brunei Darussalam

Book Review The era of rapid development had brought changes to the world. Many of our societies are now based on the division of labour, economic complexity and impersonality. A long time ago, when societies were predominantly rural, dealings were conducted directly. Individuals communicate and things were agreed upon face-to-face. Today, most of us are living in an urban society, indirectly carrying out most of our daily activities and business transactions with other individuals. This impersonality of modern life results in many of us facing ethical issues and challenges which arise at work and in many other aspects of our life. The need to curb the moral problems, to commit ethical decisions and to live an ethical life, have led many scholars, sociologists, and leaders to conceptualise in business ethics, writing prescriptive journals, articles and books. The book entitled There Is No Such Thing as Business Ethics is written by John Maxwell (2003), a former pastor and a successful business executive. The book is dedicated to guide readers on the right track when faced with ethical dilemmas. In the books cover page is a sub-text which states that theres only one rule for making decisions. Maxwells principal idea here is to tell readers that the concept of ethics is an all-rounded thought in which no set of separate rules are laid down for different circumstances be it at work, at home or at play. Ethical rules are a set of rules that applies to every situation that we, as individuals, face in our day-to-day lives. I, personally agree with the implications that Maxwell made with the sub-text. A person who lives by his or her ethical disciplines when making personal life decisions, will nevertheless, apply exactly the same set of ethical rules when dealing with business

Madison Sheena Nazareno Vejerano (08B1904) MS 1111 Principles of Islamic Business Ethics Universiti Brunei Darussalam

transactions. Hence, a set of ethical rules aimed to focus on business alone would not be necessary because, as stated, theres only one rule for making decisions. And that same rule is applicable, no matter what situation a person is facing in his or her life. It is also remarkable how John Maxwell wrote that it is not always easy to do the right thing, and that carrying out ethical actions do not always immediately lead to advantages. The book commences with a brief narration of some of the most notorious corporate scandals that have occurred in the United States of America, involving top managers from companies such as Enron, Adelphia Communications and Tyco. It tells the stories of how the chief executives of the companies as mentioned chose the wrong decisions, leading to unethical business actions. I find Maxwells explanations about unethical practices be very appropriate. Maxwell (2003) reasoned out how we, as humans, are prone to committing unethical actions, not only in the context of business, but in other contexts as well. Maxwell (2003) believes that individuals fall off the ethical path for three major reasons. Firstly, we do whats most convenient to us. Instead of doing the right thing, we tend to do the things which can make our tasks easier to accomplish. Hence, the paths that we take are often badly judged and we ignore what is morally appropriate. This conflict among the choices may be explained by our desire to gain instant rewards and reach immediate success. Secondly, we do what we must to win. With a mindset that success is important, we then choose between being ethical and winning (Maxwell, 2003). Misperceptions appear among our choices, causing us to believe that embracing ethics would limit our opinions, our opportunities and our very ability to succeed.

Madison Sheena Nazareno Vejerano (08B1904) MS 1111 Principles of Islamic Business Ethics Universiti Brunei Darussalam

The third reason that Maxwell (2003) stated was that we rationalize our choices with relativism. We, as humans, have our reasoning based on our own thoughts and standards, which change throughout different situations. Because ethics have become flexible with individual decisions, Maxwell (2003) contends that ethical chaos have taken place. From what I have understood, this situation has occurred because we continue to indulge in our decisions by comparing it to a decision that is worse or more unethical than our decisions. In general, to make ourselves feel better about our unethical practices, we justify ourselves based on our good intentions while we judge others through their worst actions. The author then illustrates a few solutions that have been exercised to try to curb the problem of dishonesty among the corporate world. Maxwell (2003) specified the following as measures taken to fight unethical practices: teaching remedial ethics, performing an ethical dip, and relying on the law. However, he criticised these measures and felt that it does not really remedy the situation of ethical chaos faced by the corporate world. Even so, in my point of view, these measures are helpful solutions, in a context that they direct the solutions towards the external factors of the ethical chaos. The author, I reckon, preferred a more direct approach by tackling ethical dilemmas from within. John Maxwell (2003) argued that ethics is neither a business issue nor a social issue nor a political issue. Instead, ethics had always been a personal issue it was clearly a matter of choice among each individual to maintain honesty and integrity in their day-to-day activities. Yet, honesty and integrity may be the hardest part for a person to maintain. Because our lives are surrounded all the time by the need to do what is most convenient, the need to win and the need to rationalise choices with relativism, it is much harder to embrace ethical behaviours in our own lives.
Madison Sheena Nazareno Vejerano (08B1904) MS 1111 Principles of Islamic Business Ethics Universiti Brunei Darussalam

For ethics to be practised, the foundations of moral character must be built beginning with each individual moving on to the organisation as a whole. On this ground, Maxwell(2003) proposed the Golden Rule one guideline to govern all ethical decision making and a standard that will apply in every situation. The Golden Rule asks the question How would I like to be treated in this situation? I find it impressive that in the book were included different verses that show variations of the Golden Rule. The verses from Christianity to Islam, from Zoroastrianism to Confucianism, and from Bahai to Yoruba, reveal that the Golden Rule does cut across cultural and religious boundaries and that it is embraced by people from nearly every part of the world. Maxwell (2003) asserts that there are solely two major criteria when it comes to ethics: a standard to follow and the will to follow it. The former involves the ability to discern right from wrong, good from evil, and propriety from impropriety. The latter, on the other hand, involves the commitment to do what is right, good and proper. Maxwells proposal about adopting the Golden Rule is in my perception, very well explained. He illustrated how the Golden Rule can be used to create common ground with any reasonable person. Because any reasonable person wish to be treated well by others around him, the answer to the question that the Golden Rule asks integrates the whole of the community, providing consensus among the people. Maxwell (2003) also explains that the Golden Rule is a moral compass that gives solid, predictable direction every time it is used. Moreover, the Golden Rule is easy to understand. Many people mistakenly believe that involving themselves with ethics is complex and intangible because it deals with complicated rules and different situational approach. As many of us are searching for simple and practical guidelines to live ethically, we could see that the Golden Rule provides a basis
Madison Sheena Nazareno Vejerano (08B1904) MS 1111 Principles of Islamic Business Ethics Universiti Brunei Darussalam

for us to mobilise from the mostly ethical to always ethical, and also close the gap between the two. Also, the Golden Rule, as stated by Maxwell (2003), is a win-win philosophy. Following the Golden Rule does not lead to a race between individuals, neither does the Golden Rule result to one person exploiting the other. Given the question of How would I like to be treated in this situation? Maxwell asserts that in every situation where the Golden rule is applied, everybody wins. I, on the other hand, doubt the truth of the last point put forward by the author. As we all know, different individuals have different perceptions about things. Some people strongly demand others to treat them well, despite not doing anything in return. Many tend to be selfish and never reciprocate to the good deeds done by others to them. Even with the question of How would I like to be treated in this situation?, I am certain that some people would remain stubborn and think that allowing a win-win situation would be an imposition to their success. Nevertheless, I am glad to know that in the subsequent chapter of the book, Maxwell (2003) have concentrated on the similarities among us individuals, instead of dealing with our unique differences. The author presented a list of things that he believes all human beings had in common when it comes to how we want to be treated. It tells that everyone of us wants to be valued, appreciated, trusted, respected and understood. It also tells how none of us wants to be taken advantage of. With these points enumerated, we rediscover the importance of valuing others, and make changes to promote good relationships among each other. The book then focuses on the building of an individuals character. It is interesting to hear the story of Mark Richt, a head coach on the football program in the University of Georgia. Richt could impact others and gain their respect, not only because of winning games
Madison Sheena Nazareno Vejerano (08B1904) MS 1111 Principles of Islamic Business Ethics Universiti Brunei Darussalam

but because of his own good character, too. From the book, John Maxwell (2003) mentioned that character is the key to living a life of integrity and ethical excellence The author articulated the point that an individuals actions are the true measure of his character. It was also mentioned that our character, together with our faith and attitude, are matters of our choice. Unlike a lot of other things that we do not have the liberty to accept or reject, our character is something that we can build upon, based on our own perceptions, needs and experiences. Our character also engenders trust, which is essential when working with people. Our character affects our credibility to other people, thus, others would trust us better if they knew they could depend on us. Another point that Maxwell (2003) discussed about is that we cannot rise above the limitations of our character. No matter how rich or talented or attractive a person is, he will not be able to outrun his character. Maxwell (2003) writes that having character is the only way to sustain success. Based on what I have learnt, this is in collaboration with the Islamic ethics, which was traditionally defined as good character (akhl q). As the author discussed how our character is of great importance towards a life of integrity and ethical excellence, he then describes ways to weave the Golden Rule into the fabric of an individuals life. Maxwell explains that if one accepts the simplicity of the Golden rule, he must also adopt the Golden Rule as the integrity guideline for his life. Now, how one makes decision and manages decision should be based on the integrity guideline. Furthermore, the Golden rule can serve as a check for accountability. Because the golden rule suggests we invite people to ensure our honesty and responsibility, we overcome the pain of exposing our actions to others. I have taken a liking to how Maxwell (2003) made his case with an individuals accountability. He took into consideration the uneasiness that we get when being under
Madison Sheena Nazareno Vejerano (08B1904) MS 1111 Principles of Islamic Business Ethics Universiti Brunei Darussalam

another persons monitor. He knew that we didnt like to be reminded of our shortcomings, but explained that if we desire to live by high ethical standards, then we should accept the idea of others holding us accountable for the actions that we do. It is also interesting and creative how Maxwell (2003) generalised five factors that most often come into play when someone compromises his ethics. As the author puts it, the five factors that undermine the Golden Rule are based on observations after working with people in just about every socioeconomic group in more than a dozen countries around the world. The five factors that he revealed were pressure, pleasure, power, pride and priorities. Despite the simplicity and the Golden Rules universal existence, the 5Ps, as how Id like to call it, obviously constitutes almost all or at least one of an individuals problem areas. As human beings, Maxwell realises how we are all susceptible to many of the factors that can tarnish the Golden Rule. With pressure, the temptation to cut corners or bend the truth surfaces. The pressure to achieve goals is within every individual the corporate executives, the salespeople, the students, and everybody else. Pressure creates tension which for some people could make way for making rash decisions, compromising the truth, letting go of commitments and breaking promises. Pleasure, as another problem area, is short-lived and rarely deliver on what they promise. Runaway debts, bankruptcy, divorce and drug-addiction are just some of the terrible legacies that the desire for pleasure leaves many individuals. The desire for pleasure clearly leads human beings into the temptation of crossing the ethical line and do things that they will regret afterwards. Power was another point discussed under the 5Ps that undermine the Golden Rule. The expression that the author has included - Having power is like drinking salt water. The
Madison Sheena Nazareno Vejerano (08B1904) MS 1111 Principles of Islamic Business Ethics Universiti Brunei Darussalam

more you drink. The thirstier you get, had struck my attention. The next few points that follow under his discussion of power, I believe, are written very wisely. Maxwell (2003) explains that power issues typically follow a cycle of patterns. Firstly, it is a matter of reception of power. Because power could be used for both good and bad, it could be dangerous when the person that receives it is immature about power. Next would be the abuse of power, in which the sole concern of the person entrusted with the power is in keeping their power at all cost. Individuals who abuse power forgets that with power bestowed upon them, comes great responsibility and service towards other people. Disregarding this, power could lead to the compromise of all standard ethical behaviour. The last part in the cycle is the loss of power. Inevitably, anyone who abuses power loses power. Maxwell (2003) asserts that abusive CEOs, just like dictators, are living on borrowed time. In addition to the three points mentioned above is pride. Wisdom literature is filled with warnings concerning pride and its negative impact. Maxwell (2003) quoted C.S. Lewis, stating that pride leads to every other vice. He discussed how our pride, as individuals, gets no pleasure when we do not get anything thats worth more or is better than other people. This eventually counters the win-win philosophy of the golden rule. In this respect, I find the following question strikingly appropriate - How can people treat others the way they want to be treated if their preoccupation is to beat them? The last point among the 5Ps that the author illustrated is priorities. Maxwell (2003) mentioned that anytime a person doesnt know what his priorities are, he can find himself in trouble because he is liable to make poor decisions. Everyday decisions have to be managed based on priorities, and in times when defining priorities are difficult, our missteps tend to cause imbalance to our decisions which makes us fall off the ethical path.

Madison Sheena Nazareno Vejerano (08B1904) MS 1111 Principles of Islamic Business Ethics Universiti Brunei Darussalam

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Within the discussion, the author suggests ways on how to deal with each of the five factors that can tarnish the Golden Rule, and hence, compromise our values. Maxwells commendation that resonates with me is the one about priorities. The author has earned my high regard with the mention of his priorities; as he determined that God would be first in his life, his family second, and work at a distant third. In my opinion, with the hectic schedule and busy days that fill up our lives, many individuals tend to forget the Almighty. Driven by globalisation, commercialisation, profit-maximisation, single-minded fixation on wealth and many other things that undeniably aim to improve our quality of life, most people fail to invoke God in times of trouble and also, forget to submit themselves to God. Most people do not realize that amidst all the human achievements, by the end of the day, we must give praise and be grateful firstly, to God, because nothing would have been possible without divine guidance. With the analysis and easy ways to defeat the influences of the 5Ps, the author continues with a list of eight steps on how to pursue golden opportunities. This involves taking responsibility for your actions, developing personal discipline, knowing your weaknesses, aligning your priorities with your values, admitting wrongdoing quickly and asking for forgiveness, taking extra care with finances, putting your family ahead of your work, and placing high value on people. By putting forth the steps, Maxwell (2003) has emphasized that for one to find ethical serenity and seize golden opportunities, he must equip himself with an ethical framework on the inside the Golden rule which builds a strong base for character. The author also reminded us to determine between real gold and fools gold. Real wealth isnt found in what we acquire, but comes from how you interact with other people around you. The Midas touch teaches us to take the focus off ourselves, but instead direct our attention to adding value to others. Simple actions like treating people better than they treat
Madison Sheena Nazareno Vejerano (08B1904) MS 1111 Principles of Islamic Business Ethics Universiti Brunei Darussalam

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you, doing your fair share of work, helping people who cant help you, doing the right thing when it is natural to do wrong and keeping your promises even when it hurts truly constitutes the concept of Midas touch. With the Midas touch, you can impact on other peoples life positively, and by touching other peoples lives, you gain wealth which is incomparable to any other materials worth. Maxwell (2003) believes that there are two basic paths to achievement that a person could chose one where you can go for the gold, and the other where you can go for the Golden Rule. Maxwell (2003) have clearly and convincingly made a case for the Golden Rule, nevertheless, at long last, the path that we take is still within our hands. The choice to adhere to ethics, no matter how insignificant or important our role to other people is, is up to us. By my evaluation, Maxwell (2003) have successfully emphasized the title THERES NO SUCH THING AS BUSINESS ETHICS. I am grateful and am now convinced that theres only one rule for making decisions the Golden Rule! This book is a must-read not only for corporate individuals, but for anybody who desires to live a life or integrity and ethical excellence.

Madison Sheena Nazareno Vejerano (08B1904) MS 1111 Principles of Islamic Business Ethics Universiti Brunei Darussalam