Description
Review the seminal Hein and Wilkerson (2015) white paper(PDF document) on the Virtuous Business Model.Write a short paper, 350-500 words in length, that considers the implication of the Virtuous Business Model to the knowledge creation process by addressing the following questions:
Is everything that can be researched worthwhile to do so? Why or why not? How do values such as those expressed by the Virtuous Business Model impact the knowledge creation process? As you consider your own research, such as your Applied Doctoral Project (ADP), how might the Virtuous Business Model inform or alter your approach?Your paper should be properly formatted per APA guidelines. Robustly support your points with appropriate sources. Cite these sources and provide a correctly formatted reference list.
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Assignment (25 points)
Course: 3WI2024 Found of Doctoral Research (BADM-702-01B)
Criteria
Quality of
Content
Excellent
Competent
Needs
Improvement
Inadequate/Faili
ng
Criterion Score
18 points
16 points
14 points
10 points
/ 18
(17-18 points)
(15-16 points)
(11-14 points)
(0-10 points)
Thoroughly
addresses the
prompt(s).
Adequately
addresses the
prompt(s).
Clearly
demonstrates
understanding
of relevant
course
concepts using
course
materials and
additional
resources (with
Demonstrates
a basic
understanding
of relevant
course
concepts using
course
materials and
additional
resources (with
Partially
addresses the
prompt(s) or
addresses only
some of the
prompts.
Minimally
addresses or
does not
address the
prompt(s).
citations and
references).
citations and
references).
Provides clear
evidence of
critical
thinking.
Provides some
evidence of
critical
thinking.
Demonstrates
a limited
understanding
of relevant
course
concepts using
course
materials and
additional
resources (with
citations and
references).
Provides
limited
evidence of
critical
thinking.
Does not
adequately
demonstrate
an
understanding
of relevant
course
concepts or
provide
evidence of
critical
thinking.
Criteria
Written
Communicati
on and
Organization
Excellent
Competent
Needs
Improvement
Inadequate/Faili
ng
Criterion Score
7 points
6 points
5 points
4 points
/7
Written
communication
is easy to read
and
understand.
(0-4 points)
Appropriately
Written
Written
communication communication
is readable.
is not as clear
due to a few
Communicates issues with the
clearly through effective
the control of
control of
grammar and
grammar and
spelling, with
spelling.
only minimal
errors.
Attempts to
use APA for
Appropriately
citations and
uses APA for
references, but
uses APA for
citations and
citations and
references.
No attempt to
use APA
Communicates
clearly through
the effective
control of
grammar and
spelling.
errors are
present.
references.
Paper is
carefully and
logically
organized.
Key points are
clear and
robustly
supported with
high-quality
sources.
Total
No
communication
or written
communication
is not as clear
due to many
issues with the
effective
control of
grammar and
spelling.
appropriately.
Paper is
organized
logically and
key points are
supported and
Paper has
organizational
issues that
make it
difficult to
Paper is poorly
organized and
key points are
difficult to
easy to follow.
follow the key
points, which
follow or not
supported.
are not well
supported.
/ 25
Overall Score
Excellent
Competent
Needs Improvement
Inadequate/Failing
23 points minimum
21 points minimum
19 points minimum
0 points minimum
Jay Hein and Gary Wilkerson
Introduction
This paper speaks to the growing disenchantment of capitalism and introduces
virtuous business as the only antidote capable of restoring trust in the free
market system. What is recognized is that now, more than ever, there is need for
a clear distinction between values-neutral capitalism and virtuous business. Two
case studies are exampled. The first showcases how The Andersons, Inc.
maintains a culture of ethical decision making, even amidst growth through
acquisitions. The second case covers Tyco, and how new leadership
approached the rebuilding of company culture following massive fraud.
Finally, the paper posits that the objective of becoming or remaining a virtuous
business is the overarching goal for a business. It is always a work-in-progress, an
aim never totally achieved; but, an organization that steadfastly strives to be
virtuous gains the greatest opportunity for longevity and provides the greatest
benefit to society.
Jay Hein
President, Sagamore Institute
Gary Wilkinson, Ph.D.
Endowed Professor
DeVoe School of Business
Indiana Wesleyan University
©
DeVoe School of Business. All Rights Reserved 2015
Table of Contents
Making Business Virtuous
………………………
1
Business Was Birthed in Virtue
………………………
2
Virtuous Business
………………………
3
Leadership and Organizational Challenges
to Become or Remain Virtuous
………………………
5
Organizational Structure to Support an
Ethical Culture
………………………
7
Virtuous Leadership is the Foundation of
a Virtuous Corporation
………………………
8
Implementing an Ethical Organizational Structure
………………………
10
The Andersons, Inc.
………………………
12
The Tyco Corporation
………………………
16
Conclusions
………………………
18
References
………………………
20
About the Authors
………………………
23
A Note of Thanks
………………………
24
Case Studies
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Making Business Virtuous
“There is no right way to do the wrong thing.” This was a core operating
principle for Dayton Molendorp, whose decade as CEO of OneAmerica
increased assets from $15 billion to more than $36 billion (Swiatek, 2014).Notably,
much of that growth occurred during the 2007- 09 recession.
Molendorp’s leadership suggests that old-fashioned values can translate into
success in the new economy. And he is not alone. Former Pepsico chairman
and Wake Forest School of Business Dean, Steve Reinemund, said in an interview
with Seattle Pacific University’s (SPU) Center for Integrity in Business:
…the purpose of business is to provide goods and services for society in an
ethical manner that provides a sense of well-being for employees, supports a
livelihood for families, enhances the economy of communities, and provides
a reasonable return for owners. (Erisman, n.d.).
Reinemund notes that business education in America does not produce
such leaders today (Erisman, n.d.). The modern push for more rigor in business
education has fueled a transition from “soft skills,” such as leadership, to more
technical skills-based curriculum. As described in this DeVoe white paper on
business education, Indiana Wesleyan University (IWU) is delivering what
Reinemund calls for—a return to a business schools’ emphasis on leadership
(Erisman, n.d.).
This paper will consider the growing disenchantment to capitalism and
introduce virtuous business as the only antidote capable of restoring trust in the
free market system. IWU’s conference on Adam Smith (London, October 2011)
!2
established the intellectual foundation for this section of the paper: the
economic order described in Smith’s book, Wealth of Nations (1776), only works
when practicing the values described in his other book, The Theory of Moral
Sentiments.
Business was Birthed in Virtue
It’s worth noting that the modern practice of business was indeed birthed in
virtue. In his classic book, The Protestant Ethic and the Spirit of Capitalism, Max
Weber (1921) writes that the rise of capitalism is attributable to faith-based
ethics. As the Protestants taught individual responsibility, so the market
benefitted from honest dealing and a network of trust that serves as glue for the
free market.
“Self-discipline, a sense of justice, honesty, fairness, chivalry, moderation,
public spirit, respect for human dignity, firm ethical norms—all of these things
which people must possess before they go to market and compete with
each other. These are the indispensable supports which preserve both
market and competition from degeneration. Family, church, genuine
communities, and tradition are their sources” (Ropke, 1960, p. 125).
Catholic philosopher, Michael Novak (1982), picked up the same themes in
his book, The Spirit of Democratic Capitalism. Whereas, his book advances our
understanding of virtuous business, his other writings have illuminated the virtues
of business. Just as Adam Smith (1776) was the first to conceive of a world
without poverty, thanks to the rise of wealth creation Novak (1982) contrasts the
Asian and African experience over the past several decades as empirical
evidence of capitalism’s blessings to the poor.
As China and India adopted capitalist economic methods since the early
1980s, they have combined to raise more than a half billion out of poverty.
Novak (as cited in Malloch, 2008) exclaims that “never before have so many
people emerged out of hopeless lives in so short a time” (p. xx). Africa, on the
!3
other hand, remained mired in socialist economic schemes, or simply
dictatorships, and its poor has swelled during the same time period. Consider
this, in 1970, 76% of the world’s poor lived in Asia and only 11% lived in Africa
(World Bank, 2010). Today, 15% of the world’s poor lives in Asia and 66% lives in
Africa (World Bank, 2010).
Theodore Malloch (2008) has taken the baton from Smith (1759), Weber
(1921), and Novak (1982). Malloch’s recent book, Spiritual Enterprise, builds on
their work and takes on the paradoxical realities of capitalism’s role in improving
society while society remains skeptical of it. This paradox reached its apex in the
1990s when capitalism’s triumph over communism seemed to settle the issue
once and for all; yet, within a decade, there were widespread protests in such
free market capitals as New York City and London over capitalist abuses that led
to global recession.
Virtuous Business
Now, more than ever, there is need for a clear distinction between valuesneutral capitalism and virtuous business. The former is susceptible to repeating
the 2008 crisis and the latter is the means to macro benefits such as combatting
global poverty, and micro benefits such as finding meaning and dignity in the
workplace.
Spiritual Enterprise makes two big claims in this direction. First, it uses rigorous
market analysis to determine that virtuous leadership contributes to business
success. Second, it makes the case that free enterprise capitalism is wholly
consistent with spiritual depth and moral commitment. Both of these claims rest
on the notion of virtue, which Malloch (2008) defines as “a habit of excellence,”
and his book introduces the following virtues with over 60 real-life business case
studies—each evidencing virtuous organizational practice resulting in personal
and marketplace success: faith, hope, charity, courage, perseverance,
discipline, compassion, humility, and others.
Malloch (2008) begins with a focus on the theological virtues of faith, hope,
!4
and love that form the basis of a spiritually attuned life. He then distinguishes
between the “hard” virtues (e.g., courage, discipline) that gets things done, with
the “soft” virtues (e.g., justice, compassion) that incorrectly get relegated to
“stay-at-home” situations (Malloch), although they are vital to virtuous business.
Other contemporary experts help us understand why firms should strive to be
virtuous: today’s talent demands it. The Aspen Institute surveyed nearly 2,000
MBA students from 15 business schools to discover their attitudes about business
and society (Trevina & Nelson, 2011). At the start of the 2008 financial crisis,
nearly 80% of students claimed that a well-run company “….operates according
to its values and a strong code of ethics” (Trevina & Nelson, 2011, p. 10). In
contrast, less than 50% of the students claimed that well-run companies “…
adhere to progressive environmental policies” (Trevina & Nelson, 2011, p. 10)
and little more than half required “…competitive compensation” (p. 10).
University of Chicago scholar, Amy Kass (2002) asserts that such impulses
need to be instructed. She challenges business schools to teach virtues with
such content as she gathered in her landmark book, The Perfect Gift. Christian
education has a distinct contribution to such teaching given its orientation
toward Christ-centered value over material value.
Consider today’s debate over the workplace. Gallup CEO, Jim Clifton (2011),
recently wrote a book called The Coming Jobs War. He cites Gallup’s research
of the world’s seven billion people
attitudes toward work. Of the five
“Tomorrow’s power brokers
billion aged 15 or older, 3 billion
will be job creators”
need a full-time job, but only 1.2
— Jim Clifton(2011)
billion such jobs exist in today’s
global marketplace (Clifton, 2011,
p. 2). Clifton believes that this will
lack of good, available jobs will threaten countries’ well-being and creating
good jobs will be the top leadership challenge in the new century. In other
words, tomorrow’s power Making Business Virtuous juxtaposed against this
growing demand for good jobs is the danger of placing too much of one’s self-
!5
worth in our jobs. Work should be everything it was designed to be (glorifying
God through the full use of our talents) while not allowing it to be what it was not
designed to be (the source of our identity) as John Beckett (2006) has shared in
Loving Monday: Succeeding in Business without Selling Your Soul. Tim Keller’s
(2014) faith and work ministry leaders report that much of the workplace stress
reported by congregants is fear of performance reviews. Redeemer’s
marketplace teaching team addresses this inherent insecurity with Christ’s
assurances of inherent worth (Keller, 2014).
So what are the characteristics of a virtuous business? Companies that meet the
increasing demands of global competition for market share with an ethical
culture and human capital development focus will have a competitive edge in
the new economy. Virtuous firms are characterized by having high integrity, a
striving for excellence in their provision of products and services to consumers, in
addition to excellence in business leadership and management practices, a
culture of open communication, cooperation and collaboration, and a system
of measurement and accountability throughout the organization.
Leadership and Organizational Challenges
to Become or Remain Virtuous
In the previous sections, the characteristics of a virtuous corporation and the
reasons why firms should strive to become or to remain a virtuous corporation
have been discussed. This section will describe the leadership and
organizational challenges in the process. It is not an elusive process, but it does
require fortitude. To create a culture of ethical behavior requires an organization
committed to ethical decision making, a system of training and mentoring to
build ethical character among the employees, and the necessary incentives
and checks and balances to make it happen. Of course, no organizational
structure ensures ethical decisions. But an organization with leaders—servant
leaders—who set an example of ethical conduct, and a structure established to
provide proper incentives for ethical decisions with appropriate checks and
balances, training, and communication, are key components of a virtuous
business.
!6
By example, Jesus taught the disciples about servant leadership by serving
them (John 13:1-17). He role-modeled the desired attitude and behavior, and
deeper still, he imparted wisdom:
The primary perspectives of the servant leader are twofold: When his people
achieve their full potential so will his enterprise. When they have all bought-in
to a common and shared purpose, a goal that transcends their own
functional objectives and which is about serving God, they will work
coherently, cohesively and collaboratively towards the achievement of that
purpose, for themselves, for the enterprise and for God (Waddell, 2014, p.10).
This section will first describe some fundamental organizational requirements
for promoting ethical decision making, and, secondly, discuss how individual
decision makers must correctly frame business problems. Finally, the need for
planning, open communication on ethical issues and necessary checks and
balances within the organization will be addressed. The objective is to
implement an organizational structure which fosters ethical decision making. It is
an objective that is within the direct control of the firm’s leadership, and one
that recognizes that the execution of ethical decision making by individuals
within the organization can be influenced by the example of leadership, training
and continuous reinforcement, and incentives which reward ethical behavior
One of the troubling features of many corporations is that they have the
goal of being an ethical corporation in their mission statements and a code of
conduct to support it, but they never develop a corporate culture of ethical
conduct. In a 2012, Wall Street Journal blog post titled “Survey Finds Unethical
Business Practice on the Rise,” Chris M. Matthews (2012) spotlights one of the
findings which claims that “Of the more than 1,700 executives polled by Ernst &
Young for its annual fraud survey, 15% said they were prepared to make cash
payments to win business, up from 9% in the previous survey” (para. 1). Within this
sample, 81% of the business executives knew that their firms had anticorruption
practices (Matthews, 2012, para. 4). However, less than half of the respondents
could recall if any discussion or training on these practices (Matthews, 2012).
!7
With cases of corporation fraud such as Enron and World Com, where thousands
of people lost jobs and investments were lost, there is still considerable work to
be done within both the areas of improved organization and improved decision
making of individuals within the firm.
Organizational Structure to Support an Ethical Culture
As with most management challenges, the organizational structure to
support an ethical culture can be easily described but it is difficult to implement
and maintain. The firm must purposefully and intensely focus on assuring that an
ethical framework influences all decision making within the organization. This
requires that the firm’s leadership must:
• Set the standard that ethical considerations are part of every major
business decision and constantly communicates that decision-making
framework to the organization.
• Establish an employee incentive system that clearly demonstrates that
ethical behavior is required, valued and rewarded and that unethical
behavior (even if this behavior may result in short-term benefits) is not
tolerated.
• Ensure the organization has established a system of checks and balances
on decisions which bring additional views into the decision-making
process.
• Implement a measurement system for measuring how well decisions align
with the firm’s values.
• Have a planning system in place which provides lead time for major
decisions, so that a systematic review of ethical issues is always part of the
decision process.
The modern basis for the argument that business ethics is essential for the
proper functioning of an economy is in the writing of Adam Smith. Prior to writing
his famous book The Wealth of Nations (1776), he wrote a book called the
Theory of Moral Sentiments (1759) where he argued that an economic system
must be based upon moral principles. This formed the basis for Smith’s
!8
argument that competition and the so called “invisible hand” would provide
benefits to society, but only if firms were committed to moral principles in their
conduct. Thus, the objective for a business is to craft an organizational structure
which responds to the myriad of challenges associated with running a profitable
organization, while abiding by ethical principles. Smith (1759) based his view of
moral sentiments on Biblical principles and this was the early bridge which
merged the need for Christian ethics with sound business management for the
benefit of society.
Virtuous Leadership is the Foundation
of a Virtuous Corporation
“Business direction is defined not only by a clear vision but by a set of core
values. If well thought out and effectively communicated, such values are a
powerful means of focusing the energies of an organization. They become
the channel markers guiding the corporate ship toward the fulfillment of its
vision” (Beckett, 2006, p. 148).
The foundation of a virtuous corporation is virtuous leadership. This leadership
must establish the corporate values of ethical decision making and demonstrate
a steadfast commitment to these values by their collective actions. Virtuous
leaders recognize that organizations are more than just financial in nature;
organizations also have a social and spiritual component. Virtuous leaders are
committed to the premise that organizations need to develop, not only financial
capital, but social capital as well as spiritual capital.
Financial capital is generally understood by the business community; capital
is developed from the excess of financial revenues over expenses; financial
capital, therefore, deals with how organizations (and individuals as well) handle
their property and profits. Social capital deals the relational aspect of the
stakeholders; building social capital requires prioritizing relationships with
employees, customers, shareholders, communities, and others. Operationally,
building social capital requires acknowledging and supporting the four
!9
institutions established by God that provide for the relational needs of people:
the church, government, business, and the home.
Building spiritual capital requires acknowledging that there is a higher
authority than simply man. For the Christian, this higher power is God and
building spiritual capital means that individuals and organizations make
decisions and behave in ways consistent with biblical principles with the goal of
honoring God. To this end, a clear statement and commitment to the
organizational values and objectives are needed. But this is just the first step.
Although business leaders would like to think that all employees will make
ethical decisions, the fact is that leadership must continually communicate that
ethical decision making is the highest priority for the firm, establish employee
conduct standards and incentives which match the values of the firm, put in
place the organizational checks and balances on the decision making process,
and implement a system of measurement and reporting to evaluate how well
the firm is doing. All of these steps are needed to make ethical standards a part
of the corporate culture. Unfortunately, many have a clear understanding of
financial and operational goals and objectives, but only a vague notion of how
ethical considerations must be part of the decision making process. A corporate
culture, which has established a vocabulary and process for open discussion
and collaboration on issues of ethics, must be established by the leaders and
fostered throughout the organization. There have been too many instances of
firms with noble mission statements which never guided the day-to-day decision
making of the employees.
Perhaps the most egregious example was in the case of Enron. The mission
statement of Enron advocated ethical conduct throughout the firm, but the
corporate culture not only tolerated, but encouraged, unethical accounting
and operational decisions which increased short-run profits. However, this culture
without ethical checks and balances eventually destroyed the firm, as well as
the accounting firm of Arthur Andersen. Within Enron, the highest-level check
for decision making within the firm, the corporate Board of Directors, proved
!10
inadequate. Information flow on decisions having vital ethical consequences
was restricted, and the independence of their external auditors, Arthur
Andersen, was clearly compromised. The Enron collapse was one of the major
reasons for the Sarbanes-Oxley legislation, which was intended to bring greater
accountability and transparency to corporate decision making (Sims &
Brinkmann, 2003).
Implementing an Ethical Organizational Structure
Beyond setting up an organizational structure which encourages ethical
decision making, some management research from decision theory can inform
business leaders on potential problems with implementing this structure. As
Kantor (2011) described, business leaders often fail because they define their
business by financial performance and not a higher purpose. This is the issue of
framing. Kahneman and Tversky (1980) developed the concept called prospect
theory, which espouses that decision makers are often led to a particular
solution by the way the problem is framed. Frame a problem in a positive way,
and we make one decision; frame the identical problem in a negative way and
we make a difference.
The problem of incorrect framing of a
Frame a problem
decision may also involve narrowing a decision
in a positive way,
to a simple technical issue, thus avoiding the
and we make one
ethical implications. For example, the large
telecommunications firm, World Com narrowed
decision, frame
the problem of using unethical accounting
the identical
practices to increase profits to a narrow
problem in a
technical decision of whether certain costs were
negative way,
expenses or could be capitalized. A small ethical
and we make a
breach of incorrectly accounting for these
different decision.
expenses allowed for greater apparent short-run
profits. Unfortunately, this led to the “slippery
slope” of continuing the practice until the
problem was so large that it destroyed the firm.
!11
Focusing on short-run versus long-run implications of decisions also is framing
trap. In decision making, we tend to heavily discount the potential future effects
of an action compared with the immediate gratification of benefits. There have
been several well publicized instances of firms seizing upon short- term profit
opportunities at the expense of their long-run reputation. One of the causes of
the 2008 financial crisis was the bundling of complex mortgage bonds along
with the rating of these bonds by several of the major bond rating firms. This led
to a clear conflict of interest, as the firms were able to increase short run profits
by giving these bonds high ratings indicating low risk. However, history showed
that these short-run profit motivations contributed to a world-wide crisis in trust
for our financial institutions. A familiar quote attributed to investor Warren Buffet
summarizes the consequences of a short term profit focus without considering
the long term ethical considerations. Warren Buffett observed: “It takes 20 years
to build a reputation and five minutes to ruin it. If you think about that, you’ll do
things differently” (2015).
Finally, the individual decisions on behalf of the firm by managers and
leaders can be influenced positively or negatively by the formal organizational
structure as well as the informal organization. An organization which encourages
open dialogue and exchange of information improves overall decision making
and specifically the evaluation of ethical questions. It is naïve to think that
ethical decisions are easily made. Often, there are multiple possibilities and
ambiguity. The literature on decision theory informs us that we all come with
biases based upon our backgrounds and knowledge base (Bazerman, 2011, p.
37). Nevertheless, establishing a decision-making model of dialogue and
transparency gives the organization the best opportunity to abide by its goal of
being (or becoming) a virtuous business.
Case Studies
Two case studies are provided in this section of the paper to illustrate the
organizational challenges of being a virtuous business. The first details how The
Andersons, Inc. continues to focus on maintaining a culture of ethical decision
making, even amidst growth through acquisitions. The second covers the well-
!12
known example of Tyco which was rocked by a massive fraud incident. The
focus of the case is on how new leadership approached the rebuilding of
company culture.
The Andersons, Inc.
The Andersons, Inc. is a five billion dollar
diversified agricultural services company based
in Maumee, Ohio. The enterprise has five
business groups: Grain, Ethanol, Plant Nutrient,
Rail, and Retail. The company was begun in
1947 by the Anderson family, and continues driven by the same principles
initiated by its founders. “What began as a single grain elevator and one man’s
dream has grown into a publicly traded company with diverse interests (The
Andersons, Inc. 2015f, History, para.).
The Andersons, Inc. website informs of the company’s values, mission, and
objectives, all of which have been institutionalized as part of the company
culture:
Values
• Beliefs. This company is founded on the belief that all of us are subject to a
higher and divine authority, and that we should aspire to goodness, integrity,
fairness, respect and those virtues which we think are consistent with divine
will. We believe that possession of these qualities develops self-esteem, merits
the approval of others and enhances both private and public welfare. (The
Andersons, Inc., 2015a, Beliefs, para. 1).
• Customers. Our competitive economic system makes it essential that we
place constant and primary focus on satisfying the needs of our customers.
We should not lose sight of the fact that it is the customer who pays
everyone’s salary and who decides whether the business is going to succeed
!13
or fail. Everyone in the organization should realize that the customer comes
first and that every customer is important. (The Andersons, Inc., 2015c,
Customers, Para. 1)
• Employees. We believe in the dignity of honest work and that working toward
Company goals should provide support and opportunity for each member of
the organization to establish and progress toward personal goals. (The
Andersons, Inc., 2015d, Employees, para. 1)
• Shareholders. If our Company is to continue to thrive, a fair return on
investment is essential. We are, therefore, committed to a strong and
aggressive pursuit of profit and growth. Growth in total shareholder value
should be consistent with our responsibilities to our other stakeholders but, in
the final analysis, it must occupy a position of central focus if we are to
succeed in our competitive environment. We intend our growth to be
focused and disciplined. (The Andersons, Inc., 2015e, Shareholders, para. 1)
• Communities. As we have emphasized, the primary focus of our Company is
service to our customers. If we are successful in providing our customers with
products and services that are of clear value, we have fulfilled an important
aspect of meeting our obligations to the communities in which we live and
do business. We believe, however, that both individually and collectively, our
community obligations extend considerably further.
We feel we should generously share our time, talents and financial resources
in pursuit of solutions to our social problems and in support of other
worthwhile community endeavors. We also encourage and stimulate others
to do the same.
We believe that a reasonable portion of profits should be contributed to
charitable causes. The Anderson Foundation has been established as a
major recipient of these contributions. It serves as a source of funding for a
wide variety of charitable causes. Over the years, the Company has also
funded a variety of endowments, such as the Andersons Fund Supporting
Organization, which continue to support specific or general causes–
!14
hopefully, in perpetuity. As a stimulus to personal giving, the Company has
adopted a gift-matching program wherein full-time employees may seek
matching of individual contributions which meet established criteria.
As responsible members of our community, we should take appropriate steps
to safeguard the health and safety of our employees, customers and
neighbors and to protect the quality of the environment in which we work
and live.
Finally, as good citizens, we should actively participate in, and provide
thoughtful input and support to, our political and legislative processes. (The
Andersons, Inc., 2015b Communities, para. 1-5)
• Mission Statement. We firmly believe that our Company is a powerful vehicle
through which we channel our time, talent, and energy in pursuit of the
fundamental goal of serving God by serving others. Through our collective
action, we greatly magnify the impact of our individual efforts to:
• Provide extraordinary service
• Help each other improve
• Support our communities
• Increase the value of our Company
• Stakeholders. In both the underlying philosophy and Mission Statement, the
firm recognizes responsibilities to four stakeholder groups:
• Customers
• Employees
• Shareholders
• Communities (The Andersons, Inc., 2015g, Values, para. 4)
•
Objectives. The firm established the following objectives and mission
statement:
• Business affairs reflect complete integrity.
!15
• Products and services serve useful, constructive purposes.
• Opportunities are provided for employees to progress toward personal
goals and to receive an equitable share of the income generated.
• Shareholders can realize a return on investment which is fair and
sufficient to provide for the Company’s growth and security.
• We contribute to the welfare of our communities, our nation and our
world.
• Business activities reflect a proper concern for the health and safety of
our customers, employees and neighbors and for the quality of our
environment.
• Employment in the Company enhances, rather than jeopardizes, the
proper functioning of the family, which we believe to be the foundation
of society.
• The en
