Is It Time to Apply the Golden Rule in Business?
By Bruce Bolger
Why the Decline of the Golden Rule
The Benefits of the Golden Rule for Business
The Application of the Golden Rule to Business
How to Use the Golden Rule as a Standard of Business Conduct
Promoting the Golden Rule
A fundamental, universal principle existing in both religious and lay teachings has languished in the modern era that has had an impact on business. According a 2023 survey commissioned by Character.org and conducted by Ipsos, “Less than one in five parents (14%) use the Golden Rule phrase with their children. Over a quarter of all parents (28%) say they are unfamiliar with the meaning of the Golden Rule.”When people inside business ask me to explain the implementation process of stakeholder capitalism in business, I usually describe it as total quality management for business: enhancing returns only by creating value for the customers, employees, distribution and supply chain partners, and communities without whose engagement no organization can maximize results. When asked by people outside of business, my answer is that it is the application of the Golden Rule to business.
Based on its long history, the underlining principle of stakeholder capitalism is that it is simply better business. In fact, a growing body of research supports the hypothesis that any organization whose stakeholders are highly engaged in its purpose, goals, objectives, and values are more likely to outperform those with less engaged stakeholders, and that the effect is causative, not correlative.If CEOs and other leaders do not practice the Golden Rule, or don’t even know that it exists, that might explain why capitalism is getting an increasingly bad
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rap. They will see it as another check-off-the-box compliant issue rather than as a fundamental source of value creation.By advocating for shareholder primary, shareholder capitalism by definition is not consistent with the Golden Rule, because it permits trading off the interests of the stakeholders who create the value for the benefit of the investors who finance it. There is no law or even ethical obligations for shareholder capitalists to accept the Golden Rule as an ethical North Star.
While the Enterprise Engagement Alliance is secular and non-partisan, this focus on the Golden Rule was inspired by a recent YouTube show, "Introduction to Faith-Based Capitalism," with Davin Salvagno, Founder of the upcoming The Purpose Summit in Charlotte May 13-15; Mike Sharrow, CEO of C12, holding its summit April 23-25, and JC Hite, founder of the Scale With Stability summit, April 24-26 in Searcy, AR.
Based on this wisdom, and the importance of applying is principles to business, the EEA is incorporating free information, speaking, and facilitation services on the Golden Rule into our services.
Why the Decline of the Golden Rule
The lost wisdom of the Golden Rule may not only help explain the decline of civility in society, it has implications for business leadership.
In an edition of University of California at Berkeley Greater Good publication, the authors ascribe the decline to several factors:
1. It’s not hip: it’s too old-time. People prefer to use such terms as empathy, fairness, respect, etc
2. While the wisdom is hailed as nearly universal, different countries have different ways of expressing it.
3. Narcissism is ascendant today. It’s more about “me-first.”
4. The collapse of close-knit communities, making it easier for the me-first approach to thrive.
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5. A tendency to blame others. While parents in the above-referenced survey admitted that their children had lied or perhaps stolen something, they were much more likely to ascribe such tendencies to other peoples’ children.
Why is the lack of understanding about the Golden Rule or the existence of a simple, commonly accepted principle so important? Without a clear ethical North Star, how can any individual and organization create and implement a meaningful purpose statement that harmonizes the interests of all stakeholders? The challenge is that most ethical standards come from individual religions, so that while the wisdom may be universal the theological origins create divisions.
The Benefits of the Golden Rule for Business
The Golden Rule is an ideal ethical North Star because:
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1. It is universal. While almost every religion makes reference to it, and it is certainly part of the teachings of Christ, Buddha, and other prophets, its origins predate any known religion today. No one can claim it as their own. There can be no legal or ethical objective to hanging any Golden Rule signs in any culture. 2. It’s optional. Consistent our tradition of libertarianism, no law or regulation specifically requires its application.
3. There is no woke or anti-woke controversy. Because it is a foundational part of broadly accepted ethics, no one can reasonably object to its principles. Those who prefer the "eye for an eye, tooth for a tooth" or otherwise survival of the fittist ethic has every right to pursue it as along as done so legally.
4. It is difficult to debunk. What debate exists is usually around the proper means of stating it. Is it
do not treat others differently than you would wish to be treated,' as some might say. Or is it, 'what you wish upon others, you wish upon yourself.' Immanuel Kant, the 19th century philosopher, probably an atheist, preferred this moral governing principle: "Act only according to that maxim whereby you can at the same time will that it should become a universal law."
5. It is simple. Many purpose driven organizations come up with simple acronyms or slogans to keep people focused on their purpose. For instance, at the Wegman’s grocery chain, it’s: Care, High Standards, Make a Difference, Respect, Empower. How about this for an even simpler mission statement that says almost the same thing: The Golden Rule practiced here.
6. It is practical. By making the Golden Rule a foundational principle, it can quickly be used to discourage unproductive or hostile language in e-mails and at meetings, or to help weigh difficult business decisions. It can also help with creating or reframing an organization’s purpose, goals, objectives, and values, and even in performance appraisals.
7. It makes an interesting topic of discussion. Many people do not know of its ancient history or of how it is manifested in so many religions and cultures. Discussing how to apply it to real-life business and other choices makes for engaging interactions as well as a way of practicing its application in discourse.
7. It is optional. No law requires it. Companies are free to tout any legal alternative.
The Application of the Golden Rule to Business
Whatever nuanced view one might have of the different phraseology used to explain the Golden Rule, most people understand the fundamental concept:.png)
don’t do anything to others that you would find offensive if done to you. Put another way, the fundamental concept is based on reciprocity or what used to be called “win-wins”. It is core to the idea of sustainability in that it holds that organizations do not do on to their stakeholders and the environment that they would not have done on to themselves or their own property.The concept is embedded into the concept of stakeholder capitalism. Early stakeholder capitalism founders Peter Drucker and W. Edward Demings both built reciprocity into the foundation of all management principles. A leading stakeholder capitalism organization, founded by Mars, is known as the Economics of Mutuality. Another, created by Michael Porter and colleagues, at Harvard University, is known as Shared Values.
The concept is also exemplified, while not intentionally, in the concept of double-materiality, created by the European Union as a means of helping organizations better understand the risks and opportunities they create for all stakeholders and the environment, and in turn the risks and opportunities those stakeholders and factors create for their organizations.
How to Use the Golden Rule as a Standard of Business Conduct
Practicing the Golden Rule is not easy, which may be why the concept has fallen into disuse. On the one hand, it has remarkable benefits in terms of universality, simplicity, and lack of controversy giving it a remarkable advantage over other North Stars upon which to base an organization’s culture. On the other, it does not magically eliminate the pain of the inevitable almost daily tradeoffs confronted in business, not to mention life and politics. 
The Enterprise Engagement Alliance is creating the Golden Rule resource center recognizing that the Golden Rule is the foundation of stakeholder capitalism: reciprocity. It is about enhancing returns for investors only by creating value for customers, employees, distribution and supply chain partners, communities, and the environment. Without understanding those fundamental values, stakeholder capitalism risks becoming another form of virtue-signaling. Making money by squeezing employees on pay, benefits or safety; misleading customers; taking advantage of distribution and supply chain partners, and communities, etc. clearly does not align with the principles of the Golden Rule. On the other hand, organizations are founded to generate profits and cannot prosper without doing so. Without management who fully understand how the Golden Rule is source of value creation, and not compliance, it will just hang like another poster on the wall or worse. This is where the application of business operating systems comes in, covered in the Enterprise Engagement Alliance’s curriculum. Stakeholder capitalism isn't a responsibility, it's an opportunity.
Because of its simplicity and universal origins, the Golden Rule creates a useful standard by which to determine any type of conduct. Of course, it is not a perfect compass and sometimes can offer little more than the best lousy solution, but it is arguably better than applying no moral compass at all.
The major challenge related to the practice of the Golden Rule is that free enterprise, as well as war, sports, and all undertakings, confronts people and organizations every day with ethical and other trade-offs, even when seeking to be consistent with the purpose, goals, objectives, and values. Sometimes, layoffs are necessary for the survival of the firm. Sometimes a business must be shut down or sold to less than a desirable buyer. Facing unexpected financial shortfalls, organizations need to determine whom to pay, when, or how, or not at all.
Here are some examples of ways to apply the Golden Rule to business:
- Treat your customers, employees, distribution and supply chain partners, and communities the way you would wish to be treated. When you cannot, do your best to make it up to them in a manner that would satisfy you in a similar situation.
- When writing an email or speaking in a meeting, are you communicating in a manner that you would prefer to be communicated with. What would you do if someone communicated with you that way.
- When negotiating, look for win-win solutions. That not only builds trust from the very start of the process, it reduces the risk of post-deal conflicts. Trust is a better way to get a good deal than a basis of distrust.
- When gauging tradeoffs with stakeholders, ask what you would do if someone asked such tradeoffs of you. If those tradeoffs are inevitable, ask yourself how you in that situation you might be made to feel better.
- When recruiting or managing employees, consider how you would feel if those policies were used with you. How would you act if someone acted that way with you? Give that consideration to designing any incentive, learning, training, or other engagement development program. How would you react to it?
- When deciding upon who to lay off and how, what process would you hope to be used if you were on the receiving end of that situation? Understanding the potential financial challenges, what would you hope the organization do to consider your needs?
- Establish your sustainability standards based on the pollution or leftover industrial debris you would wish to have adjacent to your family home. What would you do if someone polluted or damaged your property in some way?
- When having to make tough decisions and tradeoffs, consider how you would implement them if you were in the position of those on the other side of the table. How would you wish to be treated, and what you would you likely do if you were mistreated. That will tell you what you can expect from others.
- During bankruptcy or in the final stages to avert it, what priorities would you wish the company to make in deciding where to cut services or quality—the boss’ income, shareholders, big companies owed money, employees, customers?
Promoting the Golden Rule
As part of its free education program, the Enterprise Engagement Alliance will shortly launch a web site offering free information, customizable signage, and simple learning exercizes for business, family, and politics for use at home, the office, or meetings.
In the meantime, the EEA has created Facebook and Linkedin communities for those who wish to share positive examples of the application of the Golden Rule in business or their lives.
- Consistent with the Golden Rule, social media moderators will remove any weopanization of the Golden Rule against anyone, public or not. Only positive examples of its practice or construction discussions about the validity or meaning of the Golden Rule will be permitted.
- Those who wish to use the Golden Rule to call into question of any individuals or organizations are asked to do so on currently available social media forums in a spirit consistent with the Golden Rule.
- Those who wish to provide a constructive alternative to the Golden Rule, or object to its validity, are free to do so as long as consistent with the spirit of the Golden Rule.
- Comments may not 'do onto the recipients of their messages what they would not want done on to them.'
For More Information
Bruce Bolger, Founder
Enterprise Engagement Alliance
914-591-7600, ext. 230
Bolger@TheEEA.org
