The Soul of a Business
Managing for Profit
and the Common Good
Tom Chappell, Bantam Books, 1993, 219 pages.
Ask a person why he or she starts a business, and the answer would
be, to make money. After all, that's the conventional wisdom.
But there's a higher one: to do good, or as the book's author
would more accurately put it, to do well by doing good. For along
with the spiritual, the material must not be neglected if one
hopes to survive.
Mr. Chappel didn't start out "to do well by doing good."
The product of a New England church-related educational process,
he began by selling insurance. And he did well-financially. But
he wanted more freedom of self-expression. So he switched to
working with his father, a successful producer of household goods.
But he still felt cramped.
So he started his own business, along the same line. By now he
had a lovely wife and family, a beautiful home, the respect of
his peers-in a word, the American dream. Also all the freedom
of action an entrepreneur could wish for. Albeit, still something
was lacking.
He went to see a minister and inquired if there wasn't more to
life. He talked of making "religion" his life's mission.
But the Rev. Eckel cautioned him to go slow in donning the clergyman's
collar. Then Mrs. Eckel chimed in, "How do you know that
'Tom's of Maine' [his corporation] isn't your ministry?"
Mr. Chappel didn't really want to hear this. Besides, how would
it be done? But it was worth exploring. So, with the consent of
wife Kate and the company's board, he started dividing his time
between Kennebunk, Maine, location of his home and business, and
Harvard Divinity School, where he studied religion and philosophy.
He was especially impressed by two thinkers: the Rev. Jonathan
Edwards, perhaps the leading luminary of 18th century American
colonial divines, and the 20th century philosopher Martin Buber.
Both theologians stressed proper relationships with others. For
Tom this meant that the customer should not be primarily regarded
as a source of profit, but as a person one is privileged to serve
as part of the more general principle of serving others.
In a way, Tom and his wife Kate had begun moving in that direction
15 years before when they had launched a line of uniquely new
products derived entirely from natural sources and entirely without
harmful chemicals. It was they who had pioneered nonpolluting
liquid laundry detergents and 100% natural toothpaste, later adding
shampoos, rinses, soaps, lotions, and similar products which they
sold to a discriminating clientèle mainly through health food
stores.
Since the ingredients obviously cost more, and hence the demand
automatically was more limited, they couldn't hope to compete
on an "even playing field" with the long-established
"giants" in the field. Another strike against them was
that some of their products lacked eye or taste appeal. For instance,
the "natural" toothpaste they put out without saccharin
was unpleasant to the taste (as this reviewer remembers!). Though
the label explained that its calcium carbonate was an unexcelled
cleanser, sales dropped off, and eventually a flavor enhancer
had to be added.
Tom's Harvard hiatus created in him the desire to make more constructive
changes. He envisioned a company serving not only customers, but
also its employees (more correctly called co-workers), suppliers,
financial partners (like stockholders), the environment, the community,
and government (local, state, federal). To make sure of a good
start, he bought two dozen copies of Martin Buber's I and Thou
and gave them to all the board members and managers and also to
several of Kennebunk's clergy. Also, he persuaded his major professor
from Harvard, Dr. Richard Niebuhr (brother of the better known
Dr. Reinhold Niebuhr), to spend a weekend in Kennebunk, conducting
a seminar on how to regenerate "Tom's of Maine."
The most important tangible result of these actions was the formulation
of a "Statement of Beliefs," which Tom and company have
joyfully adhered to ever since and is perhaps best summarized
by its last item: their goal is "To be a profitable and successful
company, while acting in a socially and environmentally responsible
manner." Mr. Chappell, like many in Maine, an enthusiastic
sailor, has likened his company's task to that of a boatsman navigating
a swirling river: he has to steer between analysis and intuition,
between the twin goals of profit and social responsibility, between
"softball and hardball." He has also called his course
"The Middle Way...no theory, it's a practice."
Cynics may call "The Middle Way" "way out,"
but they can't argue with success. At the time Tom wrote the book,
sales were approaching $100 million annually. This despite competition
from national giants like Proctor & Gamble and Lever Brothers,
while "Tom's of Maine" was just "the new little
kid on the block," catering to a limited number of customers
and being a regional enterprise targeting the Northeast, Mid-Atlantic,
and West Coast.
Despite all this, "Tom's of Maine" tithes on its pre-taxation
earnings. Not to a church, but by supporting worthy extracurricular
undertakings, like helping inner-city children, and sponsoring
public television programs geared to educating the public on environmental
and other vital issues. Hundreds of applications for donations
pour in annually. In addition, the workers are encouraged to spend
five percent of their working time on community-oriented constructive
projects. So actually the company's benevolence is not just one-tenth,
but more like one-seventh.
In Ecclesiastes 11:1 we read, "Cast thy bread upon the waters:
for thou shalt find it after many days." The last part has
been paraphrased, "It shall return buttered." There
may not be a more ardent believer in this principle than Kennebunk's
most successful entrepreneur. Some of his most helpful co-workers
(though there is a hierarchy of command, socially all are on the
same level) were found by "accident" — the good seed sown
bearing fruit. He met one talented co-worker as a fellow parent
at one of his children's school. Another learned of an opening
from a local paper during a visit from out of state. Another had
his car break down right outside Tom's office. Still another first
met Tom while auditing the company.
Tom all along hoped to learn from the ancient lore of the Native
Americans. One day at an environmental conference he met a clergyman
from that group and was not disappointed in his impressive input.
There may not be a greater believer in the value of ethnic diversity
than Tycoon Tom. Not because it is "politically correct"
or due to government pressure, but because it is the right and
wise thing to do. He quotes I Corinthians 12 on "diversity
of gifts." He also tells of his visit to South American rain
forests at the time he attended the 1992 Rio de Janeiro Environmental
Conference and witnessed the tragedy of their ongoing decimation.
Not only are trees destroyed but then sunlight penetrates where
it previously had been perennially dark and damp, causing certain
forms of life to gradually disappear, which eventually breaks
the cycle of nature.
The book's author believes there is also a cycle of completeness
when women and minorities can make their distinct contribution.
Thus when there is an opening in the company, which at the time
of this writing had 85 on its payroll, and if both a white male
and someone else seem equally qualified, the latter will invariably
be hired-unless, perhaps, intuition led Tom and his board to feel
there might be a hidden skeleton in the closet. For intuition
ranks very high with Tom. He defines it as a light bulb turning
on in the brain, also as an invisible partner toiling in his behalf.
He has successfully used it even in opposition to the "experts."
Along with intuition he praises the use of the creative imagination,
about which he learned much from the Indians. For example, several
persons sit in a circle ("the creative circle") and
just talk and listen. Not only profitable ideas emerge from this,
participants are also subtly drawn closer to one another, making
for greater harmony in the work force.
Workers are all treated royally. Being able to put in their 40
hours in just four days is greatly appreciated. But even better
is the fact that they are all like one big family. Elsewhere,
when one is asked "How are you?" the standard reply,
even though it may not really be true, is "Fine, thank you."
At Tom's, the expected reply is the unvarnished truth, regardless
how unpleasant. Thus when it was learned that one middle-aged
man was dying of cancer, special efforts were taken to make his
work more enjoyable. When a young wife confessed she couldn't
go on much longer because her sailor-husband's long tours of duty
made her terribly lonely, provision was made for her emotional
support. Once the company sponsored a nutrition seminar for its
employees. It is hard to imagine how the company could do more
for the general public good.
Lest this review be seen as too enthusiastic, a couple of small
criticisms. In a few instances the very forthright and outspoken
author could have put his points across in a more restrained manner.
In the Introduction's very first paragraph he states that his
book "is not about New Age spirituality in the work place."
But if breaking with old materialistic ways and substituting love,
altruism, compassion, idealism, intuition, respect for the environment — all
squarely reinforced by Biblical principles — if that isn't genuine
New Age, what is?
— A Probationer
— Rays from the Rose Cross Magazine, November/December, 1995
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