The article entitled “How Virtuous is Your Firm?” written by Hershey H. Friedman and Linda Weiser Friedman in 2009 provides a basic checklist that can be used by your firm to determine whether or not it is “virtuous”. It’s not all encompassing, but it’s a great indicator to help you determine the general virtuousness of your business.
There’s change in the way business is being conducted in some firms. One scholar estimates 15% of all firms are concerned about values rather than focusing exclusively on maximizing profits. This new kind of capitalism considers factors such as societal needs, quality, needs of employees, and environmental sustainability in business decision making. In addition, a large number of consumers (approximately 70 million Americans), known as values-driven consumers, prefer doing business with companies that have values.
The authors of this article steer clear of God (yes, you can do good without God, but there’s no definitive way to measure “virtue” and what is truly good or bad without God) so I will assign the principles of Catholic Social Teaching to the checklist items listed in the article.
Virtuous Business Checklist:
1. How serious have you been about hiring the disabled? [ Common Good & Solidarity ]
2. Have you encouraged diversity in the workplace? [ Common Good & Solidarity ]
about supplier diversity? [ Solidarity ]
3. Are you a learning organization? Do you empower employees? [ Subsidiarity ]
Are you treating your employees well? [ Dignity of the Human Person ]
4. Does top management believe in the importance of integrity and honesty? Have conflicts of interest in the organization been eliminated? [ Common Good ]
5. Are leaders seen as servant leaders? What is the relative to the pay of the average worker in your organization? [ Solidarity ]
6. Have you helped the local community in which you conduct business? Are you helping public schools by partnering with them and/or providing internships for students?
[ Common Good & Solidarity ]
7. Is customer satisfaction important to your firm? Do you have a procedure for dealing with client complaints? Do you apologize when you make a mistake? [ Dignity of the Human Person ]
8. Have you been showing concern for the environment? [ Common Good ]
9. Are you engaging in corporate philanthropy? Have you made the world a better place?
[ Common Good & Solidarity ]
10. Does your mission statement discuss values? [ Common Good, Dignity of the Human Person & Solidarity & Subsidiarity ]