Successful Organisations & Management
Principles - A New Paradigm
Presentations at the Latvian
and Norwegian Baha’i summer
schools
Riaz Rafat
July 2004
Agenda
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1. What is EBBF?
 2. Virtues and values in business
 3. Case studies:
• VimpelCom
• Ford & Toyota

4. Successful organisations & management
principles
2
What is EBBF?

A Network of 350 men and women in 48 countries
 Founded in 1990

Vision:


To enhance the prosperity of humankind
Mission:

To promote ethical values and moral leadership in
business
EBBF home page: http://www.ebbf.org
3
EBBF’s 7 Core Values

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



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Ethical business practices
Social responsibility
Stewardship of the earth’s resources
Partnership of women and men
New paradigm of work
Consultation
Spiritual principles, or human values, to solve
economic problems
4
The Importance of Spiritual
Principles
"There are spiritual principles, or what some call
human values, by which solutions can be found for
every social problem. Any well-intentioned group
can in a general sense devise practical solutions to
its problems, but good intentions and practical
knowledge are usually not enough.”
The Universal House of Justice: The Promise of World Peace, p. 28, Wilmette, 1985
5
Business Virtues and Societal
Values
Business
virtues:
Those characteristics that contribute to the success of the
business.
Societal values:
Those qualities or characteristics that contribute to
achieving an ideal view of society, the common good of the
people.
Business virtues may coincide or contradict societal values.
The ideal business enterprise would achieve business
virtues and would simultaneously also create societal
value.
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Business Virtues & Values
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Efficiency of capital deployed – return on investment
Human productivity – output per hour/day/year
Growth in revenue, profit margin and market shares
Product and service innovation
Product or service quality – customer satisfaction
7
Ethical or Societal Values
Honesty – the foundation of all virtues
 The spirit of service
 Justice – the trainer of the world
 Consultation – decision making in the knowledge world
 Unity – the circle of commitment
 The abolition of extremes of wealth and poverty
 World citizenship – the field of action
 Universal education – building social capital

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Corruption & Other Unethical
Business practices
During the past few years, a number of leading and
previously well-respected companies have been charged
with corruption and/or other unethical business practices.
Which major values were violated?
Case studies:
• Worldcom
• Enron
• Arthur Andersen
• ABB
• Yukos
• Statoil
9
Major Principles of Business
“Every business company should be established
on divine principles. Its foundations should be
trustworthiness, piety, and truthfulness in order
to protect the rights of the people."
‘Abdu’l-Bahá
“Commerce is as a heaven, whose sun is
trustworthiness and whose moon is truthfulness.
The most precious of all things in the estimation of
Him Who is the Sovereign Truth is trustworthiness:
thus hath it been recorded in the sacred Scroll of
God."
Bahá’u’lláh
10
Moral Leadership for
Organisations
“Trustworthiness and an active morality must
become the foundation for all leadership if
true progress is to be achieved. Moral
leadership, the leadership of the future, will
find its highest expression in service to
others and to the community as a whole.”
“Valuing Spirituality in Development”, Bahá’í International Community
11
Consultation as a
Decision-Making Tool

“In all things it is necessary to consult. The
maturity of the gift of understanding is made
manifest through consultation.”
Bahá’u’lláh

“No man can attain his true station except
through his justice. No power can exist except
through unity. No welfare and no well-being can
be attained except through consultation.”
Bahá’u’lláh
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Case Studies
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VimpelCom change program
Ford vs. Toyota
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Successful
Organisations and
Management Principles
OLD PRINCIPLES:
Profit, growth
Centralized, vertical
Command and control
Scientific management
Motivation: For pay
Competition
Male domination
People as a cost
Long working hours
Capital & labour conflicts
NEW PRINCIPLES:
Maximising interests of all stake-holders
Decentralised (structure/power)
Consultation
Empowerment (e.g.: ‘lean’ production’)
For self realization (in future: for service)
Cooperation
Male & feminine balance
People as assets
Work-life-family balance
Profit-sharing – limiting
labour-union influence & strikes
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