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“We cannot departmentalize our thinking. We cannot think of economic principles and ethical principles. Underneath all our thinking, there are certain fundamental principles to be applied to all our problems.”
Mary Parker Follett
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Ethical creation is the intersection between what one thinks and what one does in the pursuit of value creation. It is that liminal space in which a person, who has received stimulus – knowledge, business objectives, management direction, resource availability, etc. – and they are ready to make a decision or
choice. Maybe its better said to suggest it is the space between sensemaking and choice making (apologies to Daniel Schmachtenberger because I believe this mangles his much deeper thinking on these topics). It is where what you end up creating is shaped by, well, what one views as right or wrong. The reason I see its importance residing between value creation and progress/velocity is because if an organization crafts a concept with high value, absent of ethical creation, and it moves on to the next phase and gains its likely velocity the concept shifts into high gear only amplifying its lowest aspect – lack of ethical value. In other words, velocity amplifies value whether it is created ethically or not.
To me this means the business of the future needs to embrace the idea that value creation has external consequences simply beyond sales, revenue and profit. With ethical value embedded its value carries an intrinsic benefit almost immeasurable in value. To be honest, most businesses never notice the absence of ethical value nor even recognize any value in ethical creation. To quote Futurama: “when you do it right, nobody notices.” Yet. Unnoticed, it has an impact in the home, community and society. Ethical creation is structural lift in which the value will not be found in dollars & cents, but rather a more ethical society which will end up seeking more ethical products & services as a reflection of who & what they are.
Now.
Let me be clear. I have never been a fan of Business Values statements or any simplistic desire to define ‘good behavior.’ My belief has always been to establish some principles and let people do the right things and they will invariably bend their behavior toward doing the rights things. My belief certainly lends itself more toward McGregor’s “Y” than his “X” in combination with Mary Parker Follett’s view on values and morality:
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“Morality is never static; it advances as life advances. You cannot hang your ideals up on pegs and take down #2 for certain emergencies and #4 for others. The true test of our morality is not the rigidity with which we adhere to standards, but the loyalty we show to the life which constructs standards.”
Mary Parker Follett
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Regardless. This does not mean ethics and ethical behavior should be ignored. In fact. I believe one of the outcomes of a well-implemented future business model is better ethical behavior.
So, let’s talk about “well implemented.”
From a human perspective I will not invest any energy explaining people’s desire to act ethically other than to say I believe 98% (I made that % up) of people in the workplace, left to their own devices, would act more ethically than most businesses act now. That alone would be progress.
This leads me to technology because algorithms play a significant role in the future organization business model.
While ethical creation is unequivocally a byproduct of human actions and behavior it would be absurd to neglect the role technology has in influencing or impacting human actions. As Marshall McLuhan said decades ago “a technology creates an environment” from which people will inevitably takes cues to think and do.

Yes. Technology plays a role. It plays a role because it amplifies. It is here that I will suggest that morality, ethics and empathy needs technology. Yes. I just said that. The destiny of all those things are dependent upon technology. If that is so then I imagine I could say society’s fate resides in the hands of technology. That may seem backwards in that all of these things reside in humans, not technology. Well. They do, but technology will either flatten, amplify or even extend the reach of all. I am certainly not suggesting that technology will guarantee morality or ethical behavior, but I would suggest improving ethical-ness of technology increases the likelihood that morality and ethical behavior becomes more pervasive (expansive) all of which are integral to a healthy culture.
That said. I will speak of technology’s role on ethics and ethical creations as an indirect consequence. At the core of the business model idea is conceptual thinking and at the core of conceptual thinking is better pattern recognition, better critical thinking/assessment and better knowledge (the more you learn the more ‘wise’ you get). The outcome of all of this is actually better behavior. It offers a person a broader perspective of things and consequences of not only what they do but what they think. It is the thinking version of “in and of society.”

There are dozens of thinktanks tackling the issue on ‘coding with conscience”.
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** note: my personal favorite is The Ethics Centre in Australia. Simon Longstaff discusses ethics in this podcast with Mike Walsh: Ethics in the Age of Smart Machines and the Ethics Centre ‘Ethical By Design: Principles For Good Technology’ manifesto is a good place to begin the discussion
That said. Where I differ from many of these thinktanks is that they focus on the design and I am dubious this resolves the issues. Why?:
- Software is designed by humans who will all have some bias which will either overfit the code to some ‘ethical design’ or underfit based on the same criteria. In other words, any ethical design guardrails will be imperfect
- Imperfect code tends to amplify at scale
- Tools are designed to measure what the tools are designed to measure. In other words, well intended design is not crafted to measure bad intentional usage
- Algorithms focus on symmetrical resolutions and people are asymmetrical behavior machines or, as Brian Christian said: “When computers guess they are alarmingly confident.”
Ethics are not absolutes. Your ethics, or values, may not be mine <so maybe we should seek empathy toward other’s feelings and beliefs>. Yet. We must demand our algorithms have some absolutes in order to kill off the bad or evil we know exists. Maybe technology should be seeking what someone called “approximately moral.” This can be done in the actual outputting software (inputs to people), but it is possibly even more important in the ‘constraints’ software – the spies spying on the algorithm spies.
It is the latter point which I believe ethical technology’s hope resides. The spies spying on the algorithms. Just as diabetics have wearable tools to adjust blood sugar in real time, technology should have tools developed to attack and adjust the, well, tools. On a grander scheme, the internet as a whole, this certainly looks like a daunting task. On a smaller scheme, say a business level, it appears less daunting. Business behavior can be defined in ways to insure parameters on unethical use of knowledge and in actual practice.
I also believe the starting point for technology ethics is simpler than we tend to make it. Back in 2010 I designed an online global educational initiative directed toward 3-8 year olds and in it I suggested the United Nations Universal Declaration of Human Rights as a reasonable foundation. Interestingly, in Flynn Coleman’s fabulous 2019 book, A Human Algorithm, she suggested the same thing:
“.. using established international human rights declarations as our model for how to preserve human rights as we incorporate intelligent technology is a good starting point.”
I like this because technology includes not just software design, algorithms, but data usage as well as all artificial intelligence, all of which should be seeking to not only not infringe upon people’s rights but actually seek to augment positive behavior (morality).
Others will focus on how to demand accountability for software design, I will focus on how an organizational Knowledge Sharing software system, through algorithms, can encourage ethical behavior because, inevitably, if I am suggesting technology augments people than we should seek to augment their better business angels, i.e., responsibility, accountability and empathy with regard to consequences of choices & doing something outside the auspices of the actual business and creator.
To be clear. No algorithm will ever solve any human ethical dilemma. Period.
But an algorithm can certainly influence how one thinks about that ethical dilemma. This does not absolve software engineers of moral responsibility, it simply does not ignore the fact people are responsible for sensemaking, choice making and the consequences of things they actually do.
In other words, everyone at every level has a responsibility and of everyone is ethical, or acts within an agreed upon ethical framework, that in totality we increase the probability that ethical decisions are made and ethical doing is achieved.
I admit. I get tired of all the negative discussion with regard to artificial intelligence. I believe, developed well and used well, it feeds positive progress – not just for business, but for humans and humanity.
It seems like people don’t speak often enough about the positives of algorithms and what they can make (isolated crowd or tribe aspects) it can actually unmake. It is possible to take apart larger unhealthy ideologies, or beliefs, so that new more healthy ideologies or ways of thinking can be constructed. Algorithms can be used in a variety of ways and if we elected to create a conceptual thinking community/organizational/societal mindset embracing ethical creation at its core, it can be done – even in a competitive finite ideology world.
That said. I view a checks & balance system as not only a check on bad use of AI, but rather also an iterative positive progress mechanism. I envision a looped ethical creation system to constantly check, and place constraints, on unintended negative consequences or unethical output or use which actually frees up the type of conceptual thinking that benefits people, business & society simultaneously.

I believe this is a reasonable way to think about this mostly because:
- One need not be prescient to envision future unethical behavior
- One capable of envisioning future unethical behavior has the ability to design to manage/constrain it
- One only needs to see constraint design as an ongoing progress commitment
- ** note: “Don’t fear superintelligent AI”: Grady Booch, Tedtalk
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“I do not think we have psychological and ethical and economic problems. We have human problems with psychological, ethical, and economic aspects.”
Mary Parker Follett
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Ethical creation, therefore, is never dependent upon one check, but rather people, humanity, AI, output and results, are looped and iterative in terms of its feedback. I believe this thought demands some emphasis because humans really do not have a chance against the onslaught of algorithms. They are often smarter than us but, more importantly, all are embedded with behavioral trigger mechanisms to tap into our mental models to encourage us to do whatever it is they desire us to do.
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** note: what if, for businesses who seek a more measurable evaluation of ethical creation, an algorithm were designed to measure activity based on a score developed from Triple Bottom Line, Freer Spreckley, components? I envision an open source measurement feedback code which can be slightly adapted to each business’ focus/vision/purpose. For example a business focused on environmental responsibility will weight those components in its Ethical Creation value assessment versus a business which desires to focus on use of specific material resources.
I do believe the key to ethics in technology is to recognize it as a connective decision or initiative and not a specific task initiative.
I say this because I envision the conceptual thinker of the future will be connected not only to those in the group, but the organization, the cloud (knowledge and data of other unmade, ethical or unethical, humans) as well as community and society (as one’s concepts become reality). Things made cannot be unmade from an ethical standpoint – they ripple out almost infinitely. Let me say it another way. Buyer beware is unacceptable in a future business world grounded in algorithms. It cannot be.
Somewhere within my writings I have reminded everyone that the cloud, and access to knowledge, doesn’t make people smarter. While the cloud represents an almost limitless pool of ever growing knowledge and data I would be remiss if I didn’t point out that the cloud, in and of itself, can be just as stupid, if not stupider, than any one individual. More knowledge, used poorly, simply makes one stupider rather than smarter. The collective knowledge is only as good as who uses it. This is also true of ethics.
Individuals, and small groups of people, within an institution (augmented by the cloud collective knowledge) get more ethical iteratively (even if they misuse knowledge because they learn from mistakes). Conceptually they actually get more ethical than the cloud due to understanding of context.
Now.
Let me remind everyone of a slightly contrarian assessment with regard to morality I said earlier before I move on to business being in, and of, society: Morality needs technology. Yes. I said that. Technology is not going away so discussing morality in the absence of technology is a fool’s task. This means, without technology continuing to progress, morality will bend toward bad rather than good. A static technology machine will most likely degrade humanity rather than improve it – morality included. If I could ever argue for ethics in technology, this paragraph would be it. Think about ethics and morality as you ponder
Marshall McLuhan’s words” “we shape our technology and our technology shapes us.”
In the end (part 1: technology).
Ethics in technology is a given. We should stop discussing and start doing. The one thing business could teach the technology ethics people is that it will never be perfect and success is rarely found in what is initially created or offered, but rather how well what is developed improves as it faces new unforeseen contexts. Embedding ethics INTO software development, algorithms and technology, at minimum, embeds ethics into value creation at a structural level. From that point on, ethical creation is in the hands of the conceptual thinkers – the people.
In the end (part 2: people)
“Ethical is a polysemous word in that it can refer to process, outcomes, and values. The process refers to the internal procedures that are adopted by the firm to guide decision making on product/service design and development choices. The values aspect refers to the value set that is both adopted by the organization and those of the public within which the product/service might be deployed. This can include values such as transparency, equity, fairness, privacy, among others. The outcomes refer to desirable properties in the outputs from the system such as equalized odds across demographics and other fairness metrics.”
State of AI Ethics, Montreal AI Ethics Institute
We can discuss ethics and technology until we are blue in the face, but I will always, inevitably, come
down to people. People doing the right things. Creating the right things in the right way. It was, once again, Mary Parker Follett who can guide us toward the right future using her own words as she described ‘Right’:
- We do not follow right, we create right;
- There is no private conscience;
- My duty is never to “others” but the whole.
“Morality is not the refraining from doing certain things – it is a constructive force” (Mary Parker Follett). Far too often we view morality and ethics as limiting. We should not. ethical creation is freeing and a constructive force. We should stop thinking of principles as things meant to tell people what to do or how to act or even manipulate them, but rather to offer touchstones for agreed upon behavior that benefits value creation – to the individual (ethically and in meaningfulness), the community and society.
Give people some guidance for how to act in choice making situations or ethical dilemmas, not because they determine outcomes but to use as an energy to guide all elements as they face ‘the law of the situation’ (contextually what I best in that time and place which will endure in a positive way in terms of consequences).
Ethical creation for business should be a given. Ethical creation benefits people, business, home, community and society. Ethical creation increases value as it progresses and gains velocity. And, maybe most importantly, ethical creation, well done, actually embeds meaning, and meaningfulness into the people actually creating the value.


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The truth is in today’s shopping world a business, and its brands, maximize its value not through consistency, but coherence. This creates a somewhat tenuous inner connection of things wherein nothing can collapse; except within more of itself. What I mean by that is there is no one thing that creates the value, but a number of things linked which can shrink in on itself without nurturing. What this means is to nurture one must find ‘selective consistency’ (the structural value embedded within) and tie it to agility (the ability to be malleable to accommodate individual buyer preferences). This is where a Human Algorithm (or algorithms driven by a behavioral data lake) offers a unique opportunity. We often don’t think of a behavioral data hub or AI design as part of experiential value consistency, but we should. Often the core is not a shared strategy, but a shared engine. And, yes, through that distinctive engine you can create a distinctive “shareable” brand asset. It was Mark Ritson who suggested
the ability to not only tie their brand portfolio together strategically, but also enabled an enhanced value structure to all brands. What we mean by enhanced value is a historically coherent data transaction accumulation created a solid foundation to apply learning from one product/service transaction journey to another – lateral, or adjacent, thinking in algorithm form. It stops stratifying behavior – siloed bounded behavior – and enables incremental iterative progress from one brand to another.
Gravity. Every shopping journey has gravity. What we mean by that is left to its own devices a shopper will end up on the ground. A great shopping experience is one in which the AI sees and senses the shopper gravity in order to (a) fly or (b) simply keep things from crashing, i.e., end up in a place where preferences & expectations are not optimal. Here is the tricky part. This center of gravity is good important because, in its conserving energy, it keeps all the expended energy from flying off into chaos, albeit it can also be bad important in that it sacrifices progress in doing. Gravity keeps the shopping experience grounded, but the danger resides in that the experience only has the feeling of speed and achievements and all the while it’s just one huge hamster wheel, i.e., the shopper is spinning their wheels getting nowhere to their desired outcome.

So, let’s start with dream energy. The business world has invested a lot of energy focused on efficiency and ‘skill development’ for quite some time. In doing so they ignored the consequences, or, the truth that in doing so it came at the expense of something else. Efficacy would leave some room for dreams and imagination and potential which, if business would get its proverbial head out of its ass, are the intangibles which offer value creation – expansive not reductive. Dream energy, in business, is, and always has been, a proportional
see the measurable, tangible, ways that what you do contributes to another person at some point. Maybe not all the time on everything, but no one’s job does that, just at some point, with some action, you will have directly contributed to bettering someone else’s life. You have made a contribution to the business, to the job, to society and to a person. If you strip that away, or do not acknowledge it, a worker will only be encouraged to believe (a) they don’t contribute, (b) they don’t matter and (c) how they do what they do doesn’t really matter that much (unless it has some extrinsic KPI-ish reward). When you let meaning/mattering not mean anything or matter much, well, energy dies. Ponder.
One is not any better than the other.
What a wonderful thought and kind of a human truth before we all get battered by what society, or business, starts telling us what is right or what we should do.

I think quite a lot of business activity – is desperate to prove the efficacy of what it itself does. To me this answers, generally speaking, the question of why so many businesses are buying into the overall Purpose bullshit and ‘start with the why’ silliness. The proving efficacy’ issue has garbled the entire discussion between the purpose of business, Purpose in business and whether “Vision” has a role in this new world. To be clear. I believe business has focused on efficiency, growth and squeezing margins out of the ‘least’ to such an extent that not only has value decreased in the marketplace but people – inside a business and outside – are questioning the actual value a business offers <this ‘questioning’ bleeds into a discussion of what the purpose – not Purpose – of business actually is>. As a consequence of that fairly abhorrent misguided activity, I think the pursuit of something better has become increasingly important to an increasing amount of people. There beget the seeds of “Purpose’. And while I began this longish paragraph with ‘desperate to prove efficacy’ let me say this is also true of Purpose. Richard Shotton, in The Choice Factory, does a spectacular job of dismantling any ‘value of Purpose’ evidence discussed in Stengel’s famous book “Grow.” Once again, to be clear, I love the discussion of Purpose but it should be done not to prove efficacy of a business, but rather to prove the business wants to benefit people. And before I move on, I should say that I believe the 
Anyway. I like a business aiming for something in the future. Shit. I like aiming for something in the future. I like an organization that feels like it is doing something more than making something or providing some service. I like that the people making and doing the business stuff actually feels like they are doing something more than just making and doing business stuff. I like that a vision aims for some “what”: as in what could be & what do we want to happen. I like a vision that is so big that it is compelling, not only to everyone else, but to me. I like no matter how big that vision gets it is still very specific in outlining who you are as an organization.
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successful. After hemming and hawing a little <I have never really been sure what hemming or hawing was> I answered 
Always have and always will.
But, as a sledge hammer, I also recognized I needed to manage my own behavior <this lesson took some time … and learned thru some painful trial & error>. Through watching others and some painful trial & error you learn what works in your organization’s culture.

These moments are shapeless yet have shape. Things exist within the time and space when the dice are in the air, it’s just that the outcome is unclear. But. There is a beginning (the toss of the dice) and there is an end (the dice stop tumbling).
That said. As a counter to the oscillation is the fact that all things, left to their own devices, will “irrevocably slide towards a state of maximum entropic dissemblance.” (Metamodernist Manifesto). Therefore, unfortunately, gravity, in & of itself, is ‘worse’. Conceptually this suggests ‘better’ needs to exert some force greater than gravity to not only achieve lift off but to also maintain some velocity/momentum against natural gravity. I imagine I am suggesting vigorously throwing dice in the air is possibly better than begrudgingly dropping dice. Am I suggesting doing so increases the odds of a better result? Not really. But air is air, movement is movement, tumbling is tumbling, and the longer the dice remains in the air theoretically positive oscillation can occur. I would be remiss if I didn’t point out that if the dice are never thrown there is no oscillation therefore atrophy is setting in.
Despite natural gravity, 99% of us do not find simply accepting chance, or bad, results acceptable. Despite all the depressing thoughts I just shared, 99% of us ‘get on with getting on.’
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Businesses, at their hearts of hearts, contrary to what Peter Drucker said, are stratifying
between the Will of an Institution and the Institutional Will what binds them together is ideas, or, the ideas that ground that particular institution’s idea of ‘the business of doing business’. That said. The Will of an Institution is driven by the idea of how it believes it makes its money. I purposefully use ‘believe’ because the wealth/profit outcome is typically a consequence of a set of beliefs or ideas, on how that wealth/profit is created. What that means is set aside ‘Purpose’ and even culture and get down to the brass tacks of how it makes its money and this includes desired behavior of people to make that money.
This suggests that organizations, traditions, corporations, nations, and all other powers, while ideally should serve humans and humanity by providing various social structures, will stratify their dynamics to the pursuit of survival and the Will OF the institution – not humans & humanity.
To be clear. This is class exploitation with no real objective existence other than the institutional wants, what a business desires, not what people need. This puts the Will of the Institution on a slippery slope of societal relativism. Societal needs is not the priority or a function of a business, but rather the world is defined by the producer’s decision with regard to people’s livelihood and the business’s profits. I say this so starkly to say society’s economic destiny is played out in relation to the institutional pressure, or business pressure, applied to household economies <not the reverse>.
The issue is we are not absent of a system and to the degree the system is stratified into, well, pick your group <subordinate/ordinate, economics, political, etc.> is the degree in which reciprocal exchange is prevented. This suggests that the power of the individual has limits within a system. In other words, an individual’s desire for reciprocal exchange may lack the necessary strength to reshape the system or the society. As a consequence, the stratified system increases the likelihood of conformity in behavior desired by the institutional system, not the natural inclinations of the individual <as well as human dissatisfaction driven by unsatisfactory exchange between parties>. And by declining the exchange of reciprocity the entire concept of societal reciprocity gets the oxygen sucked out of it and suffocates. Yes. Circling back to my earlier corruption point, responsibility at least partially rests upon the people within the institution who unknowingly permit corrupt, or corrupting, institutions to perpetuate. The path to changing it almost always begins with awareness and informed understanding, but almost ends with a wicked path where one has to run a brutal gauntlet of Institutional Will in order to change the system.
Most institutions do not like informal networks despite the fact informal networks are most likely to be just the things making the Institution itself successful. While I could list a variety of reasons business institutions do not like them let me settle on this. The fact that social+functional groups (informal networks) drawn from a vast variety of a population, i.e., diverse, have repeatedly demonstrated their ability to acquire every conceivable aspect of the world cultural inventory. In other words, they accumulate the diversity into a formidable sub-culture – one that could easily challenge the ‘desired culture’ as stated by the Will of the Institution. Well. That is if the Institution were to permit it to be so. While, in principle, culture can change and evolve independent of simple ‘survival feedback’ the reality is within an Institution, and its Will, the evolution can be created (purposefully) by institutional feedback. Reflecting on that feedback thought probably accounts for many of the control-ish attributes we see in institutions today and a general reductionist attitude toward, well, everything. The point of Institutional Will is, and will almost always be, driving response alternatives to the smallest possible number of things compatible with the Will of the Institution <which they will suggest is ‘meeting desired culture’ objectives>. Yes. Institutional desires actually are a constraint on natural behavioral scale. In other words, the institution seeks to constrain a range of possible behavioral responses thereby suffocating the emergent aspects, by crushing the divergent aspects in the equation, so everything is ‘finely’ convergent.
up. What I mean by that is ‘unifying’ is when people, and small groups of people, emerge in a common purpose with similar goals. I would be remiss if I didn’t point out this concept is terrifying to most senior leadership wherein the power resides in the people, not the ‘leader’ or even the system. Which leads me to, on the other hand, unity is a socially constructed process in which social systems coalesce around some common abiding truths. What this means to an Institution is that these ‘truths’ are not constructed by some leader (or politician), but rather represent an agreement, maybe a collaboration, on an idea or ideas <of which values, if ideas or principles behaviors, can be included>. It’s not consensus or even an agreement, but it is an acceptance. I sometimes call this a coalition of the interested. Why interested? Well. Vision, Purpose, BHAG or any of the traditional leadership tricks are actually worthless unless people are interested in them. The only way to circumvent existing construct, and systems, is to actually have people interested in something enough that the existing system becomes irrelevant and they create a new system to support what they are interested in. as a corollary, the only way to activate an existing construct, to its fullest potential, is to actually have people interested in something enough that the existing system IS relevant to them. I would be remiss if I didn’t point out 90+% of the time Institutional Will has little interest in what the employees are interested in, but rather what the Will of the Institution is interested in.
Which leads me to people.
Which leads me to where we can go from here.
systems that destroy the earth and crush the meaning out of people and its subsequent poverty of social values & value, hope will arise. As we withdraw our consent to these powers, practicing noncooperation while finding or creating meaning-generating alternatives, what has seemed impossible becomes possible because we are willing to pay the price to make it so. But we need to play, or, as someone said, “only when we ourselves enter the game and bind our own life inextricably to the game’s outcome does hope arrive.”
Two business topics I have always struggled with are ‘communities’ and ‘leadership.’
It also suggests the business is free of constraints as if choices dissolve constraints. Conversely, determinism does not mean the community is completely determined by forces beyond its control, but rather that the situation, or the terrain the business is established on and where it is, bounds its success and organizational life. In other words, business reality is shaped, and lived, within constraints limiting options to make the most of possibilities presented to the business. I would argue that most businesses reside in a deterministic world (for the most part). Yes. People will throw exceptions at me, but the reality is a significant majority of business is determined by the place it exists (geography, community, people) and its reason for being (intent/vision/benefit offered that earns profit). I imagine I am suggesting organizations, and communities in a business, do not actually act with free will. Much of what happens is determined by circumstances.
Communities are represented by a wide array of arrangements in which people organize themselves. And within their distinct structural organization there are countless ways to organize them. Regardless of the structure or how organized I would suggest they are all similar in one way- they have leaders. How leaders are selected, what power they have and how they can use it varies widely, but in the end, all communities have leaders.
In the end.
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Throw the entire book at her, everything in it, send her to jail. For a long time.
She should never be allowed to run a business again. I am not suggesting she can’t work, just not permitted to run a business. Maybe forever is too long, but say she can’t for 20 years. Why? She lost her business leadership card. Period. And you know what? I’d treat all these business shitbags the same way. Be a shit and lose your business card so maybe you have to “reskill” or whatever bullshit we suggest the ‘common worker’ has to do when they lose their job.