Institutional ethics as a condition for personal development

Abstract

Antonio Valero founded IESE Business School, where he was also a professor of general management. The present chapter summarizes the main elements of Valero's philosophy of the firm and his "Enterprise Politics Model" (EPM). Valero's proposal manages to harmonize both personal and institutional ethics, while recognizing that it is not enough to foster personal virtues: the commercial firm requires a solid institutional framework and qualified individuals in order to be sustainable. The EPM considers the firm as a community of persons that is also an intermediate social institution that contributes to the formation and continuity of a good society; it stresses the relevance and responsibility of senior management in integrating justice and efficiency, as well as emphasizes the practical nature of management and the manager's need for specific skills, moral character and practical wisdom. The EPM sees the firm as a political reality, a community of free and intelligent people under a given form of government following a common aim. Consequently, senior management should possess knowledge and skills of a political and technical nature. The EPM's political procedure includes the philosophy of the firm, programs of actions, policies and objectives. The model involves four areas of government: (1) business activity; (2) structure; (3) institutional configuration; and (4) living together with a professional commitment.