5 assignment

rganizations
LEADERS

Virtuous
Mark Brooker • Jeffrey W. Boyce

56 THE DeVoe REPORT | IWU

rganizations

orld business leaders have
emerged as the first global

citizens. Engaged in commerce,
business leaders understand

the interdependence of nations,
and that the health of society and

the preservation of our earth are
important to the future prosperity of the business
enterprise. Business fosters economic and cultural
interdependence and has helped to create the
awareness of one humanity, on one planet, all sharing
a common fate. And, as the dominant institution on the
planet, business holds the key to the transformation
of our global society, away from intractable problems,
and toward a world that works for everyone.

Around the globe we are witnessing a fundamental
questioning, both individual and institutional, of
our most basic assumptions about who we are, the
world we live in, and what is ultimately important.
Increasingly, the leading thinkers of our day are
describing this phenomenon as being driven by an
emerging new paradigm—a new understanding of
reality—which is shaking our traditional assumptions
and intuitions to the roots. The World Business
Academy (http://worldbusiness.org/) arose out of
the conviction that the shape of the future is our
choice, and that business, if it adopts a new tradition
of responsibility for the whole, can be the major
contributor to a future that is economically, socially,
and ecologically viable for all.

Yet the question remains as to how and to whom
businesses will be held accountable. Secularists
respond that the answer is clearly government. Yet
the Christian knows that governments, despite their
God appointed role, are made of people, and absent
the influence of God, are just as vulnerable to sin,
corruption, and oppression as any business
(1 Chronicles 14:7).

The answer to the question then lies in recognizing
that businesses and business leaders are ultimately
answerable to God, not man and that He calls us
to lead our organizations in an ethical and virtuous
manner that glorifies and honors both God and man.

IWU | THE DeVoe REPORT 57

WHY VIRTUOUS BUSINESS?
Recently, there has been a lot of debate about the actual

objective of “the organization.” In the Western World, the
prevalent view over the last decades has been that its
objective was maximizing shareholder value above any
other consideration. In other words, the HOW, (whether or
not a company is virtuous in accomplishing objectives),
did not matter. As such, employees, managers and society
were simply considered as means to reach this “superior”
objective. Virtues were off the corporate radar, and business
ethics were, at most, something to comply with.

But more recently, research is now recognizing that the
HOW does matter. Pawar (2016) showed a relationship
between workplace spirituality and employee performance.
Caldwell and Hayes (2016) argued that values-based leaders
were more effective, and Yaacoub (2016) demonstrated a
relationship between values and long-term sustainability.
Business ethics is now a required subject in business
programs (ACBSP, 2016) and business is under increasing
scrutiny from both the marketplace and governments.
Character, it seems, does count.

Numerous leadership models have been developed to
help promote leadership and organizational effectiveness.
First on the scene in leadership history was the Great
Man Theory which viewed great leaders to be men of
greatness. Trait theory came into being when birthright was
questioned as being the only source for great leaders. The
next leadership theory to happen on the historical scene
was behavioral theory. Contingency theory holds that the
leader needs to alter his or her approach, calling upon a
particular leadership style to fit the situation. Transactional
theory provides that people are motivated by punishment
and reward and that central authority, power, and decision
making resides with the leader. Lastly, transformational
theory seeks to bring balance to the power relationship
between the leader and those who follow. Community
and cooperation are hallmarks of this leadership theory
(Northouse, 2016).

A major disadvantage of these models is that they do
not have a Christian perspective inherent in its framework.
Many of these models identify excellent means for developing
ethical leaders based on the concepts of character,
competence, and actions, but without first having a central
focus on God, such models and theories—no matter how
good—fall short of God’s ideal aim for us. For without
God as our central focus, “all our righteous acts are like
permanently stained rags” (Isaiah 64:6 GW).

In addition, static models driven by rules tend to be less
effective in fast changing times. Models that are based on
principles, particularly the timeless principals of scripture,
provide tools that can then be applied to the changing
environments business experience today.

The DeVoe School of Business saw a need to merge
the best secular leadership theories and models with
the wisdom of Scripture and has developed the Virtuous
Business Model to aid in kingdom-based leadership and
organizational effectiveness development. The model
describes both the virtuous leader and the virtuous
organization; its value’s based approach works even in the
tumultuous times facing business today.

WHAT IS VIRTUE?
Virtue, by definition, is the moral excellence of a person.

A morally excellent person has a character made-up of
virtues valued as good. He or she is honest, respectful,
courageous, forgiving, and kind, for example. Because
of these virtues or positive character traits, he or she is
committed to doing the right thing no matter what the
personal cost, and does not bend to impulses, urges or
desires, but acts according to values and principles. Some
might say that good qualities are innate and developed
through good parenting, which they are, but we are not
perfect. Virtues need to be cultivated to become more
prevalent and habitual in daily life. With the habit of being
more virtuous, we take the helm of our own life, redirecting
its course towards greater fulfillment, peace, and joy .For
the Christian leader, Christ is at the center of all that is done,
and one’s will seeks to align with God’s—to prayerfully live
out the words, “Thy will be done.” Living virtuously is more
than “living the good life”; it is seeking to achieve an “on-
earth-as-it-is-in-heaven” way of living here and now (Comte-
Sponville, 1996/trans. 2001).

58 THE DeVoe REPORT | IWU

THE DEVOE MODEL OF
VIRTUOUS BUSINESS

The DeVoe Model of Virtuous Business is based upon the
“Be-Know-Do” (BKD) model of leadership development,
which has been used by the US Army for more than 50
years. The holistic notion of BKD is grasped and intuitively
recognizable by Christians because of its similar construct
with Scripture references to body, mind, and soul. “Love
the Lord your God with all your heart, with all your soul, and
with all your strength” (Deuteronomy 6:5 GNT).

The model recognizes that we not only have three aspects
of virtue (being, knowing, and doing), but also three domains
in which we interact with the world around us. The virtuous
leader interacts in the spiritual, personal, and professional
domains; the virtuous organization interacts by building
spiritual, social, and economic capital.

The center of all things, and particularly any model of
virtue, is Jesus Christ. Jesus is the example of virtuous
leadership and an understanding of virtue comes from
studying the characteristics of Jesus in Scripture. Scripture
also explains that just as God is three in one, mankind has
been created with mind, body, and soul. The corresponding
domains with the virtuous leader model are personal,
professional, and spiritual.

SPIRITUAL DOMAIN – CHARACTER, CRITICAL
THINKER, COURAGEOUS

The spiritual domain fulfills the same role in the virtuous
leader that our soul does to the tri-part man. It provides our
connection to both God and man and from the perspective
of eternity, represents true currency that can be stored up
in heaven. The three characteristics of the virtuous leader
in the spiritual domain are character (be), critical thinker
(know), and courageous (do). Character is developed by
becoming Christ-like; critical thinking is learned by study
and practice; and courage by stepping out in faith into the
unknown.

PERSONAL DOMAIN – RESPECTFUL, RELATIONAL,
RECONCILING

The personal domain corresponds with our mind and to
what we know. It also speaks to our mental attributes. The
three characteristics of the virtuous leader in the personal
domain are respectful (be), relational (know), and reconciling
(do). Respect begins with the fear and knowledge of God,
but includes respecting all people as created in the image
of God. Relational is the product of valuing people above
all other things; and reconciling is the ministry to which God
has called all believers; that is, reconciling God to man, man
to each other, and man to God’s creation.

PROFESSIONAL DOMAIN -INTEGRITY, INSPIRATIONAL,
INCLUSIVE

The professional domain corresponds with our body and
to how we act towards others. The three characteristics of
the virtuous leader in the professional domain are integrity
(be), inspirational (know), and inclusive (do). Leaders above
all must have integrity, be able to inspire, and seek to
include all of God’s creative masterwork, the human race, in
the work of business.

Organizations are groups of individuals collaborating
to accomplish tasks that could not be accomplished
individually. While virtuous leadership is essential for the
virtuous organization, a lack of understanding of the role
of business in God’s Word can lead to organizations that
are not kingdom building. The virtuous organization is
one that builds spiritual, social, and economic capital.
Spiritual capital is built through being centered, creative,
and compassionate. Social capital is about being sincere,
supportive, and service orientated. Economic capital is built
by being principled, proficient, and profound.

SPIRITUAL CAPITAL –
CENTERED, CREATIVE,
COMPASSIONATE

Spiritual capital is about having the right priorities; it is not
about profit, it is about people. While profit is necessary to
survive, the purpose is about people and includes a clear

IWU | THE DeVoe REPORT 59

sense of corporate values, providing comfort and strength
in meeting the challenges of life. Virtuous organizations
are as dedicated to building spiritual capital as they are to
social and economic capital. The three characteristics of the
virtuous organization related to building spiritual capital are
being centered on Christ (be), creative in problem solving
(know), and compassionate to those in need (do).

SOCIAL CAPITAL –
SINCERE, SYNERGETIC,
AND SERVICE

Social capital is about authenticity, synergy, and meeting
needs. The virtuous organization is transparent, unites
individual peoples and skills in ways the promote creativity
and innovation, and serves the people of its marketplace.
The three characteristics of the virtuous organization related
to building social capital are being sincere (be), synergistic
(know), and service oriented (do).

ECONOMIC CAPITAL –
PRINCIPLED, PROFICIENT, PROFOUND

Economic capital is built through operating with principles
centered on Christ, be proficient in what they do to be a
faithful steward of their resources, and do only what is
profound; that is what is right, good, and proper in the
eyes of God. Not everything that can be done, should be
done; virtuous organizations know the difference and act
accordingly.

CONCLUSION
The repeated moral failures of businesses in the 2000’s,

and government in the 2010’s demonstrates the folly of
removing God from the marketplace. In contrast, leaders
and organizations that honor God through virtuous behavior
build the kingdom and increase value for the company and
stakeholder. The next step in the development of the model
is to incorporate it into the curriculum of DSB and using it to
teach virtues-based business. t

REFERENCES
Caldwell, C., & Hayes, L. A. (2016). Self-efficacy and self-awareness:

Moral insights to increased leader effectiveness. The Journal of Management
Development, 35(9), 1163-1173. Retrieved from http://0-search.proquest.com.oak.
indwes.edu/docview/1826809625?accountid=6363

Comte-Sponville, A. (1996/trans. 2001). A small treatise on the great virtues.
New York, NY: Henry Holt and Company, LLC. (pp. 3-4)

Northouse P. (2016). Leadership: Theory and practice, 7th Edition. Sage
Publications: New York

Pawar, B. S. (2016). Workplace spirituality and employee well-being: an
empirical examination. Employee Relations 38.6 p. 75-994.

Yaacoub, H. K. (2016). Authenticity: Sustainable benefits beyond performance.
People and Strategy, 39(4), 47-49. Retrieved from http://0-search.proquest.com.
oak.indwes.edu/docview/1827238347?accountid=6363

Webber, M. (2008, July). Reflections on the “Be, Know, Do” model of leadership
development #1. Retrieved fromhttp://www.leadershipletters.com/2008/07/23/
reflections-on-the-be-know-do-model-of-leader-development/

Winn, B. (2012). Interview with Kim Cameron. People and Strategy,
35(4), 12-14. Retrieved from http://0-search.proquest.com.oak.indwes.edu/
docview/1498386837?accountid=6363

NOTES
(1) Thank you to those who participated on the task

force: Shelley Webb, Kevin Cabe, Mark Booker, Duane Kilty,
Jeffrey Boyce, Paul Richardson, Kneeland C. Brown, Pete
Ochs, Ilene Bezjian, and Lauren Young.

(2) Thank you to Amanda Cass for helping to create the
Virtuous Buisness Models.

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