Justice Based Management (CESJ)

CESJ - Justice Based Management (JBM)

A System for Building an Ownership Culture

Article Summary

Center for Economic and Social Justice. Building new economic vision of the future called the "Just Third Way." CESJ has an open and positive view towards Justice Based Management (JBM). "Justice-Based Management" or "JBM" is rooted in the principles of economic justice developed in chapter 5 of The Capitalist Manifesto, a 1958 book co-authored by the lawyer-economist-investment banker-ESOP inventor Louis O. Kelso and the noted Aristotelian/Thomist scholar Mortimer J. Adler, supplemented by the theory and practical principles of social justice developed in the writings of the Marianist scholar William J. Ferree, a world renowned expert on the social encyclicals of the Catholic Church.

What are the benefits of JBM for management?

By moving from an autocratic to a more participatory, value-based mode, a company's leadership can spread around some of management's typical operational "headaches." This gives managers more time to focus on the company's long-range, strategic needs, rather than spending most of their time putting out brush fires.

What are the benefits of JBM for employees?

A workplace that operates according to the principles of Value-Based Management empowers employees as workers and as owners. JBM creates a corporate culture where work can be more satisfying and economically rewarding.

What are the benefits of JBM for labor unions?

Just as JBM involves a transformation of the modern corporation, it also involves the transformation of labor unions within JBM companies, offering labor representatives new and more important roles than they have played within the present adversarial system of labor-management relations. Unions can help deliver a higher degree of economic justice and far greater rights for their members than the false security and wage system "crumbs" now bargained for within today's labor-management framework.

What are the benefits of JBM for the company as a whole?

Experience within a growing number of companies indicates that the more that people's self interests are unified within a management system reflecting the principles of Value-Based Management, the greater will be customer and employee satisfaction. From this can flow increased cost savings, increased sales, and increased profits.

By offering solid principles and a logic for building an ongoing ownership culture, Value-Based Management helps to create an environment which respects the dignity of all forms of productive work. JBM recognizes that, regardless of a person's function or role in the company, we are all workers. The success of Value-Based Management comes when each person-from the CEO and supervisor to the machine operator and receptionist-feels that they own and benefit from the JBM process and share in the results as full participants in their company and its culture.

Also view:

Kennedy, The End of Shareholder Value

Freeman, Corporate Strategy and the Search for Ethics

OECD corporate governance sustainable development measuring industrial performance

Business Roundtable - Corporate Governance responsibilities accounting standards

Global Corporate Governance Forum standards governance corporations, enterprise accountability fairness transparency responsibility

CSR Europe corporate social responsibility stakeholder dialogue

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