Moral Intelligence

Leadership behavior at Enron, Tyco, WorldCom and other scandal-ridden organizations has brought issues of morality to the attention of American business interests as well as the general public. While Europe has experienced similar scandals, as evidenced by the collapse of Parmalat, the topic has drawn significantly less interest. This may be due to a different business climate where fewer senior executives have wide name recognition or extravagant, highly-visible compensation packages. There was some temporary interest in Percy Barnevik, a European business icon who returned a half of his €140 million pension package following a protest by shareholders and the public. However, this seemingly did not generate a broad indictment of executive morality.
In the U.S., on the other hand, these scandals have been kept in the public eye by court cases, aggressive prosecutors and shareholder class action suits that have stimulated an active interest in business ethics and a stream of literature on the topic. Among the most prominent is the work of Joseph Badarraco (Leading Quietly) previously featured in Manageris. Lennick and Kiel join the chorus and attempt to frame the ethical issues with a construct similar to the widely-accepted formulation of Emotional Intelligence. The authors do not simply present the ethical component as a unique ""intelligence"" that can be exercised by developing certain skills. They also assert that there is a set of universal values governing the application of this intelligence. The latter argument becomes less compelling to the European reader as all of the examples are drawn from an American context. As a result, the illustrative material may be viewed as ""foreign"" and consequently difficult to understand. At the extreme, this may cause readers to discount the basic reasoning employed by the authors. Similarly, those hoping to discover valid philosophical arguments may also be disappointed, as the authors are fundamentally pragmatic, arguing that ethical conduct enhances organizational performance. Those seeking a more complete explanation of universal moral principles might wish to consult the writings of Lawrence Kohlberg to find a stronger theoretical basis for this assertion. Indeed, it is unfortunate that the authors do not cite this earlier work and relate it to their own efforts.
However, this book does represent a noteworthy attempt to articulate a new approach to moral leadership in a form accessible to practicing executives. Although the style and choice of examples may put off some readers, the underlying logic represents a positive approach to understanding and developing moral judgment. The argument against moral relativism offers a strong counterpoint to assertions of cultural or ethnic differences in this domain. The establishment of fundamental competencies - integrity, forgiveness, etc. - represents a first attempt at defining the components of the moral framework. The concept of alignment is then used to define how one might apply the universal principles to the specific goals of the organization in a morally intelligent manner. The authors' interesting exploration of such issues as honesty and trust is also useful, even if one does not accept the broader argument.
In conclusion, I would argue that Moral Intelligence is an imperfect book about an important subject. Although it will probably provide a lot of ammunition to those who wish to criticize the American concept of political correctness, it still represents a very promising first step for those who are struggling with the difficult and complex issue of morality in the business world.