I recently applied and was accepted to attend Thunderbird School of Global Management and pursue their Global MBA. This question was asked in the admissions process:
Both on the job and beyond the workplace, Thunderbirds have long contributed to making the world a better place - not only for themselves but also for others. In your opinion, what companies or organizations have shown a strong commitment to “making the world a better place”? How do their practices align with your personal views of ethical behavior? Please choose companies and organizations for which you have never worked when answering this question.
This was my response (please excuse MS-Word formatting), January 15, 2010:
When I first set out to illustrate a reasonable response to this question, I approached it like a shallow, witty character whose efforts were directed at answering “correctly”. I actually completed the entire essay, 1,394 words in all. You may read it if you like. The paper contained excerpts from Forbes Most Admired Companies and Who Gave the Most lists. I may sound partially bitter, I don’t intend to. As the Admissions Committee evaluates the caliber of person I am, I hope to present myself honestly and sincerely. That is why I’ve decided to outline more clearly who I am, my ethics, and which companies I truly believe commit to making the world a better place.
I feel this question of my personal views of ethical behavior should be addressed first. There is one story that I’d like to share with you that defines my ethical foundation. In the story of the Good Samaritan a lawyer questioned Jesus:
25On one occasion an expert in the law stood up to test Jesus. “Teacher,” he asked, “what must I do to inherit eternal life?”
26“What is written in the Law?” He replied. “How do you read it?”
27He answered: “Love the Lord your God with all your heart and with all your soul and with all your strength and with all your mind; and, Love your neighbor as yourself.”
28“You have answered correctly,” Jesus replied. “Do this and you will live.”
29But he wanted to justify himself, so he asked Jesus, “And who is my neighbor?”
30In reply Jesus said: “A man was going down from Jerusalem to Jericho, when he fell into the hands of robbers. They stripped him of his clothes, beat him and went away, leaving him half dead. 31A priest happened to be going down the same road, and when he saw the man, he passed by on the other side. 32So too, a Levite, when he came to the place and saw him, passed by on the other side. 33But a Samaritan, as he traveled, came where the man was; and when he saw him, he took pity on him. 34He went to him and bandaged his wounds, pouring on oil and wine. Then he put the man on his own donkey, took him to an inn and took care of him. 35The next day he took out two silver coins and gave them to the innkeeper. ‘Look after him,’ he said, ‘and when I return, I will reimburse you for any extra expense you may have.’
36Which of these three do you think was a neighbor to the man who fell into the hands of robbers?”
37The expert in the law replied, “The one who had mercy on him.”
Jesus told him, “Go and do likewise.” New International Version, Luke 10
Jesus told him, “Go and do likewise.” New International Version, Luke 10
Like I mentioned, this verse helps define my ethics. Some people have a foundation of ethics from theories like Darwinism, Confucianism, Humanism, metaphysic theories, and some have none at all. What I believe is that businesses are groups of people, creating an edifice; in turn the ethics of the people involved will determine those of the business. In the Parable of the Good Samaritan, Jesus tells his tester that if he were to treat other people like he does himself, then he could go to heaven. Simple as that, Jesus granted someone access to heaven solely on the conditions of helping your neighbor, and loving God. Personally, by Jesus qualifying someone to heaven based on that behavior, I am reassured to consider it at least ethical.
The passage above illustrates another type of person besides the ethical one. The group of robbers the traveler encountered on his journey stole what they wished from the man they encountered. They resemble a typical “taker” in society. Furthermore, the priest and the Levite, both Jewish, took the opportunity to cross on the other side of the road to avoid a fellow countryman (it is very likely this beaten man was Jewish, traveling between two Jewish cities). The priest and Levite, who ironically were both in positions of servitude, did not care about anyone but themselves and would be considered very arrogant and self-righteous. The incredible feature of this story is that the Samaritan, a person despised by the Jews, stopped to rescue and serve just that, a Jew. In conclusion, my personal views on ethical behavior are servitude, humility, and integrity. How these views translate to the business world is simple and yet unconventional at the same time.
Like I mentioned above, I originally researched companies that were “socially responsible” to figure out the best answer to the question of “which companies are making the world a better place?”. What I failed to do was properly establish my ethical foundation; I just chose the companies who donated the most dollars to charity. The truth is, economically, one of the most ethical behaviors and responsibilities businesses have is to stay in business. This may sound simple, but just imagine if businesses were not sound and able to operate efficiently for more than a few years, could they donate money to charity? Would they be able to benefit millions of people around the world with employment? Could they provide food, clothing, shelter, and other necessities so the masses of people could survive? How about medicine, vaccines, and doctors? The truth is that the biggest responsibility businesses have is to stay that way—in business!
Milton Friedman wrote in a New York Times article, and also later in his bookCapitalism and Freedom, “There is one and only one social responsibility of business–to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engages in open and free competition without deception or fraud” (Friedman). The dualism in the Nobel laureate’s book title, Capitalism and Freedom, is that businesses have a responsibility of capitalism, and they have the freedom to do more, give more, and help society even more than they already do, while being ethical (without the deception of fraud).
I think one of the most wonderful things about Berkshire Hathaway is the fact that Warren Buffett is their chairman and CEO; what a fantastic person he is. Most people view Mr. Buffett as the greatest investor the world has ever known, but what’s even greater is that, even on his Wikipedia page, he is introduced as “an American Investor, businessman, and philanthropist” (Wikipedia). What really intrigues me is the word, philanthropist. Not only has Mr. Buffett successfully operated one of the world’s most successful companies, he gives to the needs of others as much as anyone on the planet. In 2006, in one act of charity Mr. Buffett donated $10 million to the Bill and Melinda Gates Foundation (Harris). He also has consented to give away eight-five percent of his net worth from now on, until he leaves this planet.
With that in mind, I cannot think of another company than Berkshire Hathaway to choose as being committed to making the world a better place. Not only does the company donate a lot of money to “help their neighbor”, albeit indirectly through Mr. Buffett’s profits, but their business model shouts social responsibility according to Mr. Friedman. The investment strategy of Warren Buffett and Berkshire is one that invests directly into companies, by owning stock or the entire entity. They are in the business of keeping their and other businesses profitable and “in business”! Can you imagine the magnitude of their efforts? Berkshire owns stock or the entire entity of companies in the following industries: insurance, utilities, energy, manufacturing, apparel, building supplies, flight services, retail, finance, investments, and on and on. The group owns nearly forty well-known companies including GEICO, Dairy Queen, See’s Candies, Fruit of the Loom, and Helzberg Diamonds. It’s not to say that companies must have ownership of other companies to improve their social responsibility score, but the ethical leadership and guidance of Berkshire has improved the business models of a multitude of companies that also serve their neighbors around the world.
Any company can give a lot of money away each year, and a lot do—philanthropy is a wonderful thing that helps millions of people around the globe. Well noted philanthropists and socially responsible groups are thankfully abundant in the world: Microsoft, Apple, Starbucks, and Google to name a few. But Berkshire Hathaway and specifically Warren Buffett has influenced more businesses in a positive manner than any other. Remember, these businesses sell products and services people need, as well as make enough profits to give money to charities and foundations, and have the margins to choose distributors and partners that are “good” and “green” to make the world a better, more responsible place. In this regard, I am very pleased to know that my ethics, both social and economical, line up with those of a great man like Warren Buffett and the company he chairs.
Works Cited
Friedman, Milton. The Social Responsibility of Business is to Increase its Profits.The New York Times Magazine. September 13, 1970.http://www.umich.edu/~thecore/doc/Friedman.pdf.
Harris, Dan. Warren Buffett’s Unprecedented Generosity. June 26, 2006. ABC News. http://abcnews.go.com/GMA/MellodyHobson/story?id=2118501&page=1.
Holy Bible, The. Book of Luke. New International Version. http://www.biblegateway.com/passage/?search=Luke+10&version=NIV
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