Virtuous Business Model
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Virtue is the quality of being morally acceptable. Therefore, a virtuous person can be described as a morally excellent person (Hein &Wilkinson, 2015). Businesses are also working hard to instill virtues in organizational cultures. This will be the only way to restore trust in the free market and consequently have significant benefits to society. The purpose of businesses is to provide goods and services to customers in an ethical manner while also providing a sense of well-being to the employees (Hein & Wilkinson, 2015).
Businesses also have the responsibility of supporting the livelihood of families and enhancing the community’s economy while at the same time obtaining reasonable returns for the stakeholders to gain profits from running the business. A functional virtuous business model will ensure that morally acceptable values govern all the business operations carried out. This will also impact the knowledge creation and management process of the business.
Virtuous businesses are characterized by high integrity in all the operations being carried out, excellence in all the services and products provided, excellence management by leaders, cooperation and collaboration from all the stakeholders involved, and a culture of open communication (Rhodes, 2015). To achieve such, organizations have to come with a culture of ethical behavior that is embedded in the organizational structure to govern all the activities carried out in the organization.
Ethics are morally acceptable values in society and are used to guide people’s behavior. Business ethics are vital in making decisions and actions that will generally affect many people, such as investors, consumers, employees, and partners. For a virtuous business model, ethical policies must be created for organizations to follow (ISWSA.ORG, 2018). This will help in the creation of an ethical character among all the employees to follow.
Organizational knowledge creation is the process of making available and amplifying knowledge that has been created by individuals and connecting it to the organization’s knowledge system (Rhodes, 2015). The purpose of the organizational knowledge creation process is to capture and utilize resources and best practices in order to gain a competitive advantage. The knowledge acquisition process and management also help in boosting the efficiency of the organizational decision-making process.
All employees can have access to expertise held in the organization, and a smarter workforce is built. Employees with the required knowledge can make quick and informed decisions to benefit the organization (Rhodes, 2015). Innovation is more comfortable to be manifested in the organization because of continuous acquisition and incorporation of new knowledge.
The process of knowledge acquisition involves four stages, knowledge acquisition, which facilitates the acquisition of tacit knowledge, knowledge creation, which involves conversion and combination of different knowledge, knowledge reuse, and knowledge sharing between employees in the organization (ISWSA.ORG, 2018). Therefore, having a virtuous business modeling can directly impact this process of knowledge acquisition in the organization. Leaders are required to demonstrate the virtues that the whole organization is supposed to follow.
Virtues such as integrity and honesty can be incorporated in the process of knowledge creation to make sure that the new knowledge that will be utilized by the employees will abide by the ethical principles of the company. As different companies are striving to be virtuous, leaders should guide the employees on how to incorporate morally right ethics in the work environment and ensure that all the processes carried out benefit all the stakeholders.
References
Hein J. & Wilkinson G. (2015). MAKING BUSINESS VIRTUOUS. Retrieved from https://www.indwes.edu/academics/caps/devoe-school-of-business/white-papers-pdf/the-virtuous-business-devoe-white-paper.pdf
ISWSA.ORG, (2018). THE DIFFERENT STAGES OF KNOWLEDGE MANAGEMENT. Retrieved from http://www.iswsa.org/the-different-stages-of-knowledge-management/
Rhodes K. (2015). Six Characteristics of Virtuous Organizations. Retrieved from https://gbr.pepperdine.edu/2015/06/six-characteristics-of-virtuous-organizations/