SELF-GOVERNANCE ON THE SHOP FLOOR

We have three compelling reasons to embrace the idea of governing through culture: We can, we must, and we should do so.

We Can

The evolution in transparency and communication, the breakdown of the fortress, and everything else we have discussed about the new conditions in the twenty-first century enable us to see and affect culture on every level. We can identify, quantify, and systematize the dimensions of culture as never before, allowing us a unique opportunity to unleash its power and efficiency.

We Must

When I was asked to testify before the U.S. Federal Sentencing Commission when the committee was considering revisions to the Federal Sentencing Guidelines, I made a passionate argument about the centrality of culture to business governance.¹ The committee heard from many other experts as well, and they incorporated these ideas into their new recommendations to judges dealing with corporate malfea-sance.² The newest guidelines direct judges determining a company's culpability for wrongdoing to evaluate an organization's commitment to “promote an organizational culture that encourages ethical conduct and a commitment to compliance with the law.”³ The U.S. Department of Justice, interpreting the committee's findings, made it even more clear, saying, “A corporation is directed by its management and management is responsible for a corporate culture in which criminal conduct is either discouraged or tacitly encouraged.”⁴ [italics added]