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Maximizing the Triple Bottom Line through Spiritual Leadership LOUIS W. FRY JOHN W. SLOCUM JR. O ne of the greatest challenges facing leaders today is the need to develop new business models that accentuate ethical leadership, employee well-being, sustain- ability and social responsibility without sacrificing profitability, revenue growth, and other indicators of financial perfor- mance. This article seeks to address top man- agers’ need to simultaneously maximize the so-called triple bottom line, or ‘‘People, Pla- net, Profit.’’ In doing so, we draw from the emerging fields of workplace spirituality, spiritual leadership, and conscious capital- ism. Research conducted with Interstate Bat- tery System of America, Inc. (Interstate Batteries) is offered as a case study of a company that may serve as a role model for spiritual leadership. We also present a general process for maximizing the triple bottom line through the development of the motivation and leadership required to simultaneously optimize employee well- being, social responsibility, organizational commitment, and financial performance. Enron Corp., Adelphia Communications Corp., Arthur Andersen, Tyco International and WorldCom Inc. are but some of the many scandals that have cast a chilling pall over the way business is conducted. These companies have given people the perception that cor- porations are amoral, corrupt, and lack both ethical leadership and a sense of social responsibility. Michael Douglas’ Oscar win- ning performance in Wall Street claiming that ‘‘greed is good’’ still appears to be the mantra of most businesses big and small. However, there are companies, such as SAS Institute, Google, Shell Oil Co., NEC Corp., and Proc- ter & Gamble Co., that have committed them- selves to a course of developing business models that accentuate ethical leadership, employee well-being, sustainability and social responsibility. These companies believe this can be done without sacrificing profitability, revenue growth, and other areas of financial and performance excel- lence. In effect, they are experimenting with new business models and adopting sustain- able business strategies that have a positive economic, social, and environmental impact, often referred to as the triple bottom line. THE CHALLENGE OF ETHICAL LEADERSHIP AND SOCIAL RESPONSIBILITY Capitalism is an economic model grounded in a worldview of self-interest. The exclusive pursuit of self-interest has been found want- ing by most ethicists. The inherent assump- tion that the liberty of individuals should be Organizational Dynamics, Vol. 37, No. 1, pp. 86–96, 2008 ISSN 0090-2616/$ – see frontmatter ß 2007 Elsevier Inc. All rights reserved. doi:10.1016/j.orgdyn.2007.11.004 www.organizational-dynamics.com Acknowledgments: Portions of this research were sponsored by a research grant from OxyChem Corporation to John W. Slocum, Jr. The authors acknowledge the incisive and helpful comments from Cecily Cooper, Don Hellriegel, Bob Giacalone, Tina Potter, Dan Pryor, William Reisel, Bob Vecchio, and Tara Wernsing. 86

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Maximizing the TripleBottom Line throughSpiritual Leadership

LOUIS W. FRY JOHN W. SLOCUM JR.

O ne of the greatest challenges facingleaders today is the need to develop

new business models that accentuate ethicalleadership, employee well-being, sustain-ability and social responsibility withoutsacrificing profitability, revenue growth,and other indicators of financial perfor-mance. This article seeks to address top man-agers’ need to simultaneously maximize theso-called triple bottom line, or ‘‘People, Pla-net, Profit.’’ In doing so, we draw from theemerging fields of workplace spirituality,spiritual leadership, and conscious capital-ism. Research conducted with Interstate Bat-tery System of America, Inc. (InterstateBatteries) is offered as a case study of acompany that may serve as a role modelfor spiritual leadership. We also present ageneral process for maximizing the triplebottom line through the development ofthe motivation and leadership required tosimultaneously optimize employee well-being, social responsibility, organizationalcommitment, and financial performance.

Enron Corp., Adelphia CommunicationsCorp., Arthur Andersen, Tyco Internationaland WorldCom Inc. are but some of the manyscandals that have cast a chilling pall over theway business is conducted. These companieshave given people the perception that cor-porations are amoral, corrupt, and lack both

ethical leadership and a sense of socialresponsibility. Michael Douglas’ Oscar win-ning performance in Wall Street claiming that‘‘greed is good’’ still appears to be the mantraof most businesses big and small. However,there are companies, such as SAS Institute,Google, Shell Oil Co., NEC Corp., and Proc-ter & Gamble Co., that have committed them-selves to a course of developing businessmodels that accentuate ethical leadership,employee well-being, sustainability andsocial responsibility. These companiesbelieve this can be done without sacrificingprofitability, revenue growth, and otherareas of financial and performance excel-lence. In effect, they are experimenting withnew business models and adopting sustain-able business strategies that have a positiveeconomic, social, and environmental impact,often referred to as the triple bottom line.

THE CHALLENGE OF ETHICALLEADERSHIP AND SOCIALRESPONSIBILITY

Capitalism is an economic model groundedin a worldview of self-interest. The exclusivepursuit of self-interest has been found want-ing by most ethicists. The inherent assump-tion that the liberty of individuals should be

Organizational Dynamics, Vol. 37, No. 1, pp. 86–96, 2008 ISSN 0090-2616/$ – see frontmatter� 2007 Elsevier Inc. All rights reserved. doi:10.1016/j.orgdyn.2007.11.004www.organizational-dynamics.com

Acknowledgments: Portions of this research were sponsored by a research grant fromOxyChem Corporation to John W. Slocum, Jr. The authors acknowledge the incisive and

helpful comments from Cecily Cooper, Don Hellriegel, Bob Giacalone, Tina Potter,Dan Pryor, William Reisel, Bob Vecchio, and Tara Wernsing.

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maximized is well documented in the latestchief executive officer (CEO) severancepackages. The $210 million dollar severancepaid to Bob Nardelli by Home Depot Inc.’sboard of directors is just the latest example.

Ethical values, leadership, and trust arekey issues confronting executives attemptingto effectively respond to the emerging andexponentially accelerating force for global,societal, and organizational change. Ethicsis primarily concerned with exploring thequestion of what are the values and princi-ples of morally good behavior, of what is‘‘the good life’’ in terms of happiness andwell-being, and providing justification thatmight help senior managers make moraldecisions. The Dalai Lama, in Ethics for theNew Millennium, notes that at no time inhuman history has it been more essential thatwe reach a consensus about what constitutespositive and negative conduct and to ulti-mately answer the question that confronts usall: ‘‘How can I be happy?’’ The desire to behappy and avoid pain and suffering knowsno boundaries.

Corporate Culture , Leadership,and Performance

People bring to work values and attitudesthat drive their behavior. Core values reflectthe moral principles that an individual con-siders to be important and act as guidelinesfor his or her decisions. These core valuesgreatly determine what a person considers tobe good or bad. In turn, they make up thefoundation for moral principles that collec-tively form an organization’s ethical system.

Corporate culture stems from fundamen-tal ethical values of top managers that affectemployees’ behaviors. World renownedorganizational psychologist Edgar Scheindefines corporate culture as the learned pat-tern of shared basic assumptions thatemployees and groups hold. Organizationalculture significantly influences the waythings are done. It influences the range ofbehaviors that members view as appropriateand provides them with a framework thatinfluences their thinking and behavior. Cul-

tures that are based on values of dishonesty,deceit, favoritism, and greed (e.g., Enron,WorldCom and Tyco International) can leadtop managers to make choices that are injur-ious to key stakeholders. When altruisticvalues of respect, fairness, honesty, care,compassion and the like are integral partsof an organization’s culture, a culture of trustemerges. The Container Store, Stride-Riteand Johnson & Johnson, among others, havesuch cultural values. Senior managers inthese organizations have made decisionsbased on moral principles that are the foun-dation of all the world’s major religions.

Once formed, a corporate culture is tena-cious and difficult to change. A culture tendsto go into survival mode and engage inrationalization and denial in the face of exter-nal threats and internal failures. This wasevident in the National Aeronautics andSpace Administration’s (NASA’s) Challen-ger and Columbia disasters, as well as theEnron and Arthur Andersen debacles. Thou-sands of NASA workers would have nevercondoned sending the Challenger andColumbia astronauts into space in a craftwith known flaws that would compromisesafety. Yet NASA’s bureaucratic culture andcost-cutting decision protocols overrodetheir decision-making.

Leaders play a major role in creating andsustaining an organization’s culture, espe-cially since the assumptions and values ofa culture are usually taken for granted. Con-sequently, leaders must do what it takes tomake clear to all stakeholders that the orga-nization’s culture and ethics are inextricablylinked. Ethical leadership rests upon threepillars: (1) the leader’s moral character, (2)the ethical legitimacy of the leader’s visionand values, which followers either embraceor reject, and (3) the morality of the choicesand actions that leaders engage in and col-lectively pursue. To be ethical, leadershipmust have a moral foundation. Additionally,leaders and followers must be willing to havetheir behavior evaluated against generallyaccepted societal values.

Corporate performance is linked to strongethical leadership. Perhaps the best evidence

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so far comes from Jim Collins’s Good to Great,a remarkable study of 11 organizations andtheir leaders to discover what creates greathigh performance organizations. Collinsdefines Level 5 leadership as leadership thattranscends self-interest through a paradoxi-cal mix of humility and professional will.Level 5 leaders display compelling modesty,are self-effacing and understated. Yet theyare fanatically driven to produce sustainedperformance excellence. They establish theirorganization’s culture by creating an envir-onment of inclusion, personal responsibilityand open and honest communication amongemployees, so that they feel empowered toraise issues and make decisions. These lea-ders create a legacy by setting up their suc-cessors for even greater success.

Level 5 leaders also create and sustainhigh performance cultures where truth isheard and the brutal facts (e.g., return oninvestment, market share) confronted. Theybelieve that leadership is a core competenceand lever for organizational effectiveness.These leaders do this by first getting the rightpeople on the bus (and the wrong people off)and then worry about developing the visionof where to drive it. In doing so, they placegreater weight on ethical thinking, integrity,the quality of a person’s character and valuesand his or her fit with the core cultural valuesof the organization than on a person’s educa-tional background, managerial competen-cies, expertise or work experience.

Corporate Social Responsibil i tyand the Triple Bottom Line

Leaders of admired organizations, such asGeneral Electric Co., Starbucks Corp. andSouthwest Airlines Co., have adopted a sta-keholder approach to managing strategicissues facing their firms. Leaders of theseorganizations acknowledge that various sta-keholders all have a legitimate moral stake inthe organization’s performance. Key stake-holders often have the power to negativelyaffect organizational performance if theirexpectations are not met. Each of these sta-keholders may have different values and

interests. The fundamental problem for topmanagement is how to maximize perfor-mance, while at the same time meeting theneeds and safeguarding the rights of its sta-keholders. To achieve such an outcome,employees must come together and coop-erate on defining the core values of the orga-nization.

A business model is a description of thevalue a company offers to one or several setsof customers. It is the architecture of the firmand the network of partners/stakeholders.We believe there is a need for developingnew business models that accentuate ethicalleadership, employee well-being, sustain-ability and social responsibility withoutsacrificing profitability, revenue growth,and other indicators of financial and perfor-mance. This means developing and adoptingbusiness models with strategies that have apositive economic, social, and environmentalimpact, often referred to as the triple bottomline. The triple bottom line – or ‘‘People,Planet, Profit’’ – encompasses an explicitset of moral values and criteria for measuringorganizational (and societal) success andwith it a need to institute triple bottom lineassessment and reporting.

Pioneering companies such as ShorebankCorp., a bank holding company establishedin Chicago in 1973, have created organiza-tional cultures that integrate for-profit ration-ality with nonprofit charity and compassion.It developed a complex subsidiary organiza-tional structure, sophisticated strategy, andinnovative product development process inresponse to a customer and community sta-keholder base with an economic and physicalinfrastructure near total collapse.

Other companies, such as Nike Inc., NewBalance and The Walt Disney Co., have rea-lized that failing to account for the environ-mental and social costs of doing business canthreaten the viability of the company. Unfor-tunately, traditional financial measures (e.g.,return on investment, return on equity, andreturn on assets) do not fully reflect a com-pany’s performance in the environmentaland social arenas. Many companies, includ-ing Unilever PLC, General Motors Corp.,

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Dow Chemical Co., Amoco Corp. and FordMotor Company, are taking in-depth exam-inations of how they view their triple bottomline. They’ve created education programsand new executive positions, such as vicepresident for sustainable development, toimplement the triple bottom line, accordingto Thomas Gladwin, professor of sustainableenterprise at the University of Michigan.

WORKPLACE SPIRITUALITY,SPIRITUAL LEADERSHIP ANDCONSCIOUS CAPITALISM

Patricia Aburdene in her recent book Mega-trends 2010, states that the focus on spiritual-ity in business is becoming so pervasive thatit stands as ‘‘today’s greatest megatrend.’’She contends that the power of spiritualityis increasingly impacting our personal livesand is spreading into organizations to fostera moral transformation. More and more peo-ple are making choices in the marketplace as‘‘values-driven consumers.’’

Feature articles from Newsweek, Time,Fortune, and Business Week have chronicledthe growing presence of spirituality in cor-porate America. A major change is takingplace in the personal and professional livesof many CEOs and leaders as they aspire tointegrate their spirituality with their work.In many cases, this has led to very positivechanges in their interpersonal relationshipsat work and their organizations’ effective-ness. Further, there is evidence that work-place spirituality programs not only lead tobeneficial personal outcomes, such asincreased positive human health and psy-chological well-being, but that they alsodeliver improved employee commitment,productivity and reduced absenteeismand turnover. Companies perform betterif they emphasize workplace spiritualitythrough both people-centered values anda high-commitment model of attachmentbetween the company and its employees.There is mounting evidence that a morespiritual workplace is not only more pro-ductive, but also more flexible and creative

and a source of sustainable competitiveadvantage.

Advocates of workplace spirituality pro-pose that people bring unique competenciesto the workplace. They are also highly moti-vated by their spiritual needs to experience asense of transcendence and community intheir work. According to George Platt,CEO of ViewCast Corporation, ‘‘People don’tcome to work to be No. One or Two or to get a25% return on net operating income. Theywant a sense of purpose and come to work toget meaning from their lives.’’ Spiritual lea-dership involves motivating and inspiringworkers through a vision and a culture basedin altruistic values to create a more moti-vated, committed and productive workforce.In such an organization, where employees’spiritual needs are met and aligned withorganizational objectives, this higher motiva-tion, commitment and productivity have adirect impact on the bottom line.

Employees who view their work as acalled vocation are likely to approach theirwork very differently from employees whosee work primarily as a means to satisfy theirpecuniary needs. There is emerging evidencethat spirituality provides competitive advan-tage on organizational performance. Work-place spirituality incorporates those valuesthat lead to a sense of transcendence andinterconnectedness such that workers experi-ence personal fulfillment on the job. Thissense of transcendence – of having a callingthrough one’s work (vocationally) – and theneed for membership, community, or socialconnection provide the foundation for a the-ory of workplace spirituality.

Workplace Spiri tuali ty andReligion

The study of workplace spirituality hasbeen relatively free of the denominationalpolitics in which arguments are frequentlycloaked. In fact, religious ideology has beenvirtually disregarded. The issues that havesurfaced regarding workplace spiritualityhave avoided any mention of a compara-tively right and wrong ideology. Viewing

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workplace spirituality through the lens ofreligious traditions and practice can be divi-sive. To the extent that a given religion viewsitself as the only path to God and salvation, itexcludes those who do not share those par-ticular denominational traditions. Religioncan lead to arrogance. Translating religionof this nature into workplace spirituality canfoster zealotry at the expense of organiza-tional goals, offend constituents and custo-mers, and decrease morale and employeewell-being.

One successful company that has gener-ated some controversy in this area is Chick-fil-A—a privately held franchise chain with$2.3 billion in system-wide sales from 1,300franchised stores in the U.S. It has the lowestturnover rate in the industry (5% vs. over 60%)and is a strong advocate of lifetime employ-ment. The only company mandate is to ‘‘glor-ify God.’’ Franchisees want married workersand hire their family members. They arerequired to close on Sunday so employeescan go to church. Managers are encouragedto host Bible study groups, and market theirrestaurants through church groups. Founderand chairman S. Truett Cathy says, ‘‘You don’thave to be a Christian to work at Chick-fil-A,but we ask you to base your business onBiblical principles, because they work.’’Although there are no federal laws that pro-hibit companies from asking personal ques-tions about religion and marital status, mostcompanies don’t, because it can open them upto discrimination claims. Chick-fil-A has beensued at least 12 times since 1998 on charges ofemployment discrimination and might havefaced more lawsuits if its franchisees were notindependent contractors and didn’t screenpotential hires and operators so carefully—aprocess that can take up to a year and includedozens of interviews.

It is important, however, to note that thereis a distinction between spirituality and reli-gion. Religion is concerned with a system ofbeliefs, ritual prayers, rites and ceremoniesand related formalized practices and ideas.Spirituality, instead, is concerned with quali-ties of the human spirit. This includes positivepsychological concepts, such as love and com-

passion, patience, tolerance, forgiveness, con-tentment, personal responsibility, and a senseof harmony with one’s environment. Spiri-tuality is the pursuit of a vision of service toothers; through humility as having the capa-city to regard oneself as an individual equalbut not greater in value to other individuals;through charity, or altruistic love; andthrough veracity, which goes beyond basictruth-telling to engage one’s capacity for see-ing things exactly as they are, freed fromsubjective distortions. From this perspective,spirituality is necessary for religion, but reli-gion is not necessary for spirituality. Conse-quently, workplace spirituality can beinclusive or exclusive of religious theoryand practice.

Spiri tual Leadership

Spiritual leadership involves motivatingand inspiring workers through a transcen-dent vision and a corporate culture based onaltruistic values to produce a highly moti-vated, committed and productive workforce.Having a sense of calling through one’s workand for a social connection at work is centralto spiritual leadership. Essential to spiritualleadership are the key processes of:

1. Creating a vision wherein leaders andfollowers experience a sense of calling so thattheir lives have meaning and make a differ-ence; and

2. Establishing a social/organizationalculture based on the values of altruistic lovewhereby leaders and followers have a senseof membership, feel understood and appre-ciated, and have genuine care, concern, andappreciation for BOTH self and others.

Spiritual leadership therefore requires,‘‘doing what it takes’’ through faith in a clear,compelling vision which produces a sense ofcalling—that part of spiritual well-being thatgives one a sense of making a difference and,therefore, that one’s life has meaning. Visionand hope/faith add belief, conviction, trust,and action to achieve the vision. Thus, spiri-tual leadership generates hope/faith in the

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organization’s vision that keeps followerslooking forward to the future. It also requiresthat an organization’s culture be based onvalues of altruistic love. This must be demon-strated through leaders’ attitudes and beha-vior and produces a sense of membership—that part of spiritual well-being that gives onea sense of being understood and appreciated.The dimensions of spiritual leadership andthe process of satisfying spiritual needs forspiritual well-being and positively impactingkey organizational outcomes are shown inFig. 1.

SPIRITUAL LEADERSHIP INPRACTICE

Over the last eight years, we have extensivelyresearched our ideas about spiritual leader-ship theory with hundreds of leaders in over100 government and for-profit organizations.Here, we offer Interstate Batteries as anexample of a company that embraces spiri-tual leadership and the triple bottom line.

Interstate Batteries : A Study ofSpiri tual Leadership,Organizational Commitment andPerformance

Interstate Batteries, founded in 1952, is aleader in battery marketing and distribution

with a network that provides consumerswith ‘‘Every Battery for Every Need.’’ Itprovides more than 7,000 types of batteriesfor households and businesses. The Dallas-based company has revenues of over $700million and holds the largest share of thereplacement car-battery market. In 2002, itwas the only recipient of the Toyota Excel-lence Award. The award acknowledgedInterstate as a top supplier, based on opera-tional and product quality and support indemonstrating ‘‘sustained effort, uncompro-mising attention to detail, and a commitmentto performance excellence.’’ More than 300franchise distributors service Interstate Bat-teries’ 200,000 retail dealers, who provideautomotive, commercial, marine/RV, motor-cycle, lawn and garden or specialty batteriesmost anywhere in the U.S., as well as inCanada and select international locations. Italso sponsors the highly successful InterstateBatteries Winston cup team and an NHRAFunny Car Team.

The mission statement of the companystarts with ‘‘To glorify God . . ..’’ It is clearfrom its mission statement that InterstateBatteries has found a way to incorporate faithand business:

To glorify God as we supply ourcustomers worldwide with top qual-ity, value-priced batteries, relatedelectrical power-source products,

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and distribution services. Further,our mission is to provide our part-ners and Interstate Batteries Systemof America, Inc. (IBSA) with oppor-tunities which are profitable,rewarding and growth-oriented.

The company is also an active laboratoryfor the implementation of workplace spiri-tuality through Norm Miller’s spiritual lea-dership, one that we have had the goodfortune to study and research in our spiritualleadership program. Norm Miller, Inter-state’s chairman, is a devout Christian andbeliever in God’s power to change lives. Hechronicles his journey in his book, Beyond theNorm, which details his beginning as a tra-veling salesman, his conversion experience,how he turned his will and his life over toGod after his third DWI, and how he createdInterstate Batteries. In his book, Miller writes,‘‘The bottom line of Interstate is to lovepeople and try to meet their needs, all inthe context of top performance and reason-able profitability.’’ At Interstate, Miller andInterstate’s workers do not hide their faith(predominately Christian) but, he insists,neither do they want to ‘‘cram religion downanyone’s throat.’’ There is a corporate cha-plaincy program that is available for ministryto employees and customers. Any timeemployees or visitors gather to eat, there isa prayer. The company sponsors Bible andother spiritual studies before and after workand it maintains an e-mail prayer chain.Employees may elect to have up to fivedollars a paycheck deducted for a cata-strophic relief fund administered by the cor-porate chaplaincy. These funds are used tohelp Interstate employees who need tempor-ary financial assistance. A company librarylends employees reading material and video-tapes. A monthly pizza get-together hostsspiritual speakers and offers employees freepizza.

We were asked to work with Interstate tohelp them conduct a study of spiritual lea-dership to capture and examine any differ-ences in spiritual leadership betweencorporate headquarters and the growing

number of company-owned distributor-ships. At the time, only 43 of the over 300distributorships were owned and operatedby Interstate, but the company is pursuing astrategy of owning distributorships. Topmanagement felt confident that there was ahigh level of spiritual leadership amongemployees at their corporate headquarters,which is housed in an office complex in northDallas. They were less sure of the level ofspiritual leadership across the distributor-ships, which ranged in size from five to 27employees and were scattered throughoutthe United States.

Our sample consisted of 347 workersemployed in 43 company-owned wholesaledistributorships who serviced automotive,commercial, marine/RV, motorcycle, andlawn and garden retail dealers and 388 work-ers at the home office. The three dimensionsof spiritual leadership (e.g., hope/faith,altruistic love, vision), two spiritual well-being dimensions (calling/meaning andmembership), and organizational commit-ment and productivity were measured. Inaddition, two measures of performance wereprovided from each distributor—percentageincrease/decrease in sales and profit.

Referencing the spiritual leadershipmodel in Fig. 1, the averages of the spiritualleadership variables (vision, altruistic love,and hope/faith) were all significantly higherfor corporate headquarters employees thanthose in the distributorships. Headquartersemployees also reported being more under-stood and appreciated than distributorshipemployees. There was no difference in thelevel of reported meaning/calling. The find-ings provided empirical support for topmanagement’s view that there was a needto establish a baseline to assess the effective-ness of future organizational developmentstrategies to more closely align corporateand distributor vision and culture.

Our analysis also revealed that meaning/calling and membership explained 13% ofdistributor sales growth, 94% of an employ-ee’s commitment to the company, and 73% ofdistributorship productivity. Spiritual lea-dership through hope/faith in a transcen-

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dent vision and a culture based in the valuesof altruistic love positively and significantlyinfluenced spiritual well being and ulti-mately key employee and organizational per-formance variables. Distributorships withhigher levels of spiritual leadership subse-quently had employees who reported higherlevels of spiritual well-being through callingand membership (see Fig. 1) that in turnpositively impacted organizational commit-ment, productivity, and sales growth. Spiri-tual leadership is a significant source ofcompetitive advantage. If sustained andcompounded, spiritual leadership wouldresult in a 13% increase in sales growth.

CONCLUSION

Robert Fulmer, in a recent article in Organiza-tional Dynamics, explored what some key lea-ders are saying and doing to develop leaderswho manage their organizations by the triplebottom line. He found near unanimous agree-ment about the need to develop leaders whoare balanced between strong ethical sensitiv-ity and the ability to produce results.

Since customer needs and market condi-tions can change without warning, the intel-lectual capital and core competenciesrequired of employees to thrive may changeas well. By establishing a compelling vision,purpose, and mission for the organization,management has a major impact on theirorganization and, we believe, a significantsource of competitive advantage. First, thevision directs the focus of the internal assess-ment of strengths and weaknesses and theexternal analysis of threats and opportu-nities. This analysis leads to the strategicaction plans and objectives that a firm wishesto pursue. CEOs and managers must alsoprovide employees with the knowledge ofhow their jobs are relevant to the organiza-tion’s performance and vision/mission. Thisunderstanding is necessary to integrate indi-vidual jobs, teams, and business units withthe company’s vision/mission to success-fully implement strategy, and hence, surviveand thrive in today’s global economy.

Second, when combined with a sense ofmission of who we are and what we do, thevision helps shape the organization’s culturewith its fundamental ethical system and corevalues. Establishing a culture where the corevalues represent an organization’s ‘‘essentialand enduring tenets,’’ provides the contextfor intrinsic motivation and for spiritual lea-dership. Spiritual leaders make everyoneunderstand that the organization’s future isdependent on its reputation and demonstrateperseverance in uncovering problems andfinding solutions. Indicators, such asemployee commitment, psychological well-being, productivity and retention, reflecthow well a firm utilizes human resources.Regular assessment of all employees’ well-being and commitment and continuousimprovement of employee commitment isalso required to link individual, departmentand business unit efforts in a common andintegrated direction.

Like the Level 5 leaders, spiritual leadersbuild high performance companies that arepersonal and human with a focus on theimportance of the individual; every memberfeels empowered and responsible for thereputation of the company. The combinedexperiences of calling and membership resultin spiritual growth and well-being fromwhich employees can draw strength and towhich they give high levels of commitment.Spiritual leaders are like the Level 5 leadersfrom Jim Collins Good to Great in that they arehumble, motivate followers by creating avision of a long-term, challenging, desirableand different future based on high standardsof excellence and high ideals, and have fol-lowers who are committed to meeting andexceeding the performance levels required toreach the preferred future.

Finally, in the quest of the triple bottomline, it is important to avoid the negativeconsequences of a hostile work environmentthat may result when employers’ emphasizea particular religion in the workplace. Reli-gious practices often conflict with the social,legal, and ethical foundations of business,law, and public and nonprofit administra-tion. Imbuing religion into workplace spiri-

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tuality can foster zealotry at the expense oforganizational goals, offend constituents andcustomers, and decrease morale andemployee well-being. Accentuating the linebetween religion and spirituality in regards toworkplace spirituality is therefore essential.However, as our study of Interstate Batteriesdemonstrates, it is possible for companies toavoid these pitfalls through such practices as

internal groups or prayer space, on-site cha-plains, and through periodic surveys thatfacilitate openness to spirituality, religionand transcendence in full freedom throughadherence to its core values.

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SELECTED BIBLIOGRAPHY

For an overview of sustainability and thetriple bottom line, see A. W. Savitz and M.McVicar, The Triple Bottom Line: Why Sustain-ability is Transforming the Best-Run Companiesand How it Can Work (New York: John Wiley& Sons Inc., 2006).

For a further discussion of consciouscapitalism, see P. Aburdene, Megatrends2010 (Charlottesville, VA: Hampton RoadsPublishing Co., 2005).

To read more on ethical leadership, see R.M. Fulmer, ‘‘The Challenge of Ethical Leader-ship,’’ Organizational Dynamics, 2004, 33, 307–317; R. Kanungo and M. Mendonca, EthicalDimensions of Leadership (Thousand Oaks: SagePublications, 1996); L. W. Fry ‘‘Toward a The-ory of Ethical and Spiritual Well-being, andCorporate Social Responsibility ThroughSpiritual Leadership,’’ in R. A. Giacalone,C. L., Jurkiewicz, and C. Dunn (Eds.) PositivePsychology in Business Ethics and CorporateResponsibility (Greenwich, CT: InformationAge Publishing, 2005, 47–83); M. Brown andL. Trevino, ‘‘Ethical Leadership: A Reviewand Future Directions,’’ The Leadership Quar-terly, 2006, 17, 595–616; J. Sonnenfeld andA. Ward, Firing Back: How Great LeadersRebound after Career Disasters (Cambridge:Harvard Business School Press, 2007).

Other work that incorporates theories ofworkplace spirituality and positive psychol-ogy that has implication for spiritual leader-ship include R. A. Giacalone and C. L.Jurkiewicz, ‘‘Toward a Science of Workplace

Spirituality,’’ in R. A. Giacalone and C. L.Jurkiewicz (Eds.), Handbook of Workplace Spiri-tuality and Organizational Performance (NewYork: M. E. Sharp, 2003, 3–28); K. Cameron,J. Dutton, and R. Quinn, Positive OrganizationalScholarship: Foundations of a New Discipline(San Francisco: Berrett-Koehler, 2003).

To read more about the state of the art ofspiritual leadership, theories, and practice,see L. W. Fry, ‘‘Toward a Theory of SpiritualLeadership,’’ The Leadership Quarterly, 2003,14, 693–727; L. W. Fry, S. Vitucci, and M.Cedillo, ‘‘Spiritual Leadership and ArmyTransformation: Theory, Measurement, andEstablishing a Baseline.’’ The Leadership Quar-terly, 2005, 16, 835–862; The October 2005Leadership Quarterly Special Issue on SpiritualLeadership; and the International Institutefor Spiritual Leadership web site (http://www.iispiritualleadership.com/).

For selected works on corporate cultureand leadership, see Edgar Schein, Organiza-tional Culture and Leadership 2nd ed. (SanFrancisco, CA: Jossey-Bass, 1992); Barry Mikeand John W. Slocum, ‘‘Changing Culture atPizza Hut and YUM! Brands, Inc.,’’ Organi-zational Dynamics, 2003, 32, 319–320; StevenFeldman, ‘‘Moral Business Cultures: TheKeys to Creating and Maintaining Them,’’Organizational Dynamics, 2007, 36 (2), 156–170; Chip Jarnagin and John W. Slocum,‘‘Creating Corporate Culture throughMythopoetic Leadership,’’ OrganizationalDynamics, 2007, 36, 288–302.

Louis W. Fry is a Professor of Management in the College of BusinessAdministration at Tarleton State University, Central Texas. He haspublished articles in top management journals such as The Journal ofApplied Psychology, Organization Science, The Academy of ManagementJournal, and The Academy of Management Review. He is a co-editor of the

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Journal of Management, Spirituality, and Religion, the founder of theInternational Institute for Spiritual Leadership, and on the editorialreview board of The Leadership Quarterly, which includes being the guesteditor for the October, 2005 Special Issue on Spiritual Leadership. He can bereached at [email protected] (Tel.: +1 254 519 5476).

John W. Slocum, Jr. is the O. Paul Corley Professor of Management in theEdwin L. Cox School of Business at Southern Methodist University. Hehas published more than 134 articles and 27 books, including Organiza-tional Behavior, 12th ed. published by South-Western, 2009. He is co-editorof the Journal of World Business, and Journal of Leadership and OrganizationalStudies, and associate editor of Organizational Dynamics. He has beenstudying and writing about leadership and corporate cultures formore than four decades. He can be contacted at [email protected](Tel.: +1 214 768 3157).

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