Moral Mazes

1. Bureaucracy Shapes Moral Consciousness

I went into these organizations to study how bureaucracy—the prevailing organizational form of our society—shapes moral consciousness.

Bureaucracy's pervasive influence. Bureaucracy, with its hierarchical structures, standardized procedures, and emphasis on rational action, profoundly shapes the moral landscape of corporate managers. It regularizes experiences, emphasizes subordination to authority, and prioritizes pragmatic goal-seeking, subtly molding ethical considerations.

Moral rules-in-use. Managers develop "moral rules-in-use" to navigate the complexities of their work, often shaped by authority relationships and organizational experiences. These rules govern interactions with superiors, subordinates, peers, and external stakeholders, influencing their perceptions of right and wrong.

Ethics as a social construct. Morality and ethics are not treated as abstract principles but as empirical realities to be investigated. The book explores the actual evaluative rules managers fashion and follow, examining how their work and its social context shape their occupational moralities.

2. Fealty to Superiors is Paramount

In this world, a subordinate owes fealty principally to his immediate boss.

The patrimonial authority arrangement. Corporate hierarchies operate on a system of personalized authority, where loyalty to one's immediate boss is paramount. Subordinates must protect their bosses, keep them informed, and defer to their judgment, reinforcing a quasi-feudal relationship.

Obligations of fealty. Subordinates are expected to avoid overcommitting their bosses, prevent them from making mistakes, and never contradict them in public. This requires a delicate balance of deference and strategic self-effacement.

Rewards for loyalty. In return for unwavering fealty, subordinates can expect certain perquisites, such as better resources, protection from mistakes, and potential advancement. However, these rewards are contingent and depend on the boss's power and willingness to reciprocate.

3. Credit Flows Up, Details Flow Down

Superiors do not like to give detailed instructions to subordinates.

Centralization and decentralization. American businesses simultaneously centralize and decentralize authority. Power is concentrated at the top, while responsibility for decisions and profits is pushed down the organizational line.

Pushing down details. Superiors avoid giving detailed instructions to subordinates, both to maximize autonomy and to insulate themselves from tedious intricacies. This also allows them to retain the privilege of declaring mistakes without being implicated in the process.

Pulling up credit. Credit for successful decisions flows upward, often appropriated by the highest-ranking officer involved. Subordinates are expected to be good sports about having their ideas appropriated, reinforcing the fealty structure.

4. Organizational Upheaval Reveals True Priorities

It is precisely when a social order begins to fall apart that one can discern what has held it together in the first place.

Constant political turmoil. Corporate hierarchies are almost always in political turmoil, fueled by the endless search for market dominance and managers' ambitions. This leads to frequent personnel changes and intense rivalries.

Shake-ups and reorganizations. New CEOs often initiate organizational changes to consolidate power and reward loyalists. These shake-ups can result in widespread upheaval, with managers being promoted, demoted, or terminated based on their social connections and perceived fit with the new regime.

The "big purge." The case study of Covenant Corporation illustrates how a new CEO's reorganization led to the systematic elevation of his former colleagues and the removal of managers from rival factions, highlighting the importance of fealty in corporate life.

5. Team Play Demands Conformity and Suppresses Dissent

What it really means is going with the flow and not making waves.

The ideology of team play. Corporations emphasize teamwork and harmony, often masking underlying conflicts. Team players are expected to be interchangeable, control their emotions, and align themselves with the dominant ideology.

Suppression of dissent. Dissenting opinions are often discouraged, as they can disrupt the perceived unity and harmony of the team. Managers who voice objections or challenge the status quo risk being labeled as "troublemakers."

The importance of conformity. To succeed, managers must demonstrate a willingness to conform to the prevailing norms and expectations of their organization, even if it means sacrificing their own beliefs or values.

6. Style and Image Trump Substance

What happens is that people perceive in others what they like—operating styles, lifestyles, personalities, ability to get along.

The importance of public faces. Managers are expected to cultivate a polished public image, adhering to strict dress codes and displaying appropriate demeanor. This includes controlling emotions, masking intentions, and projecting a positive attitude.

The right style. Having the right style involves mirroring the image that top bosses have of themselves, possessing a subtle sophistication, and demonstrating an urbane, witty, and graceful demeanor.

Self-rationalization. Ambitious managers engage in self-rationalization, systematically adapting their behavior and appearance to fit the criteria valued by key organizational circles. This involves a constant monitoring of one's adaptation to socially defined criteria.

7. Luck and Connections Outweigh Merit

You can lose money and still be an insider; you can make money and still be an outsider.

The illusion of meritocracy. While corporations often promote the idea that hard work and competence lead to success, managers recognize that luck and connections play a significant role in advancement.

The importance of patronage. Having a patron or mentor is crucial for gaining visibility and access to opportunities. Patrons provide guidance, support, and protection, helping their clients navigate the complexities of the corporate world.

The role of chance. Managers acknowledge the importance of being in the right place at the right time, as unforeseen circumstances and chance encounters can significantly impact career trajectories.

8. Moral Dilemmas Become Public Relations Problems

What is right in the corporation is not what is right in a man’s home or in his church.

The separation of ethics. Managers often compartmentalize their personal moralities, adhering to different sets of rules within the corporate world. What is considered ethical in business may not align with conventional moral beliefs.

Public relations as a shield. Moral dilemmas are often framed as public relations problems, requiring managers to prioritize the organization's image and reputation over personal convictions.

The art of justification. Managers become skilled at crafting justifications for their actions, using euphemistic language and appealing to organizational goals to deflect criticism and maintain public legitimacy.

9. The Erosion of Traditional Ethics

What matters on a day-to-day basis are the moral rules-in-use fashioned within the personal and structural constraints of one’s organization.

The bureaucratic ethic. The bureaucratic ethic prioritizes loyalty, conformity, and expediency over traditional moral values. This can lead to a gradual erosion of ethical standards as managers adapt to the demands of their organizations.

Compromises and moral drift. Managers often face situations that require them to compromise their personal beliefs or engage in actions that they might otherwise consider wrong. Over time, this can lead to a gradual moral drift.

The normalization of unethical behavior. As unethical behavior becomes more commonplace within an organization, it can become normalized and accepted as simply "the way things are done." This can create a culture where ethical concerns are marginalized or ignored.

10. The Seduction of Power and the Specter of Organized Irresponsibility

Every big organization is set up for the benefit of those who control it; the boss gets what he wants.

The allure of power. The pursuit of power and influence can be a strong motivator for managers, leading them to prioritize their own advancement over ethical considerations.

Organized irresponsibility. Bureaucracies often diffuse responsibility, making it difficult to hold individuals accountable for their actions. This can create a culture of impunity, where managers feel free to engage in unethical behavior without fear of consequences.

The cycle of corruption. The combination of power, ambition, and organized irresponsibility can create a cycle of corruption, where unethical behavior becomes entrenched and self-perpetuating.

Last updated: February 27, 2025