Justice-Based Management

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A management system embodying the philosophy of "Justice-Based Leadership" that is organized in accordance with universal principles of economic and social justice. (Originally called "Value-Based Management" or "VBM".)

JBM provides a framework of principles for creating sustainable ownership cultures. It measures success within a productive enterprise according to the delivery of maximum value to the customer and the empowerment of each person within the enterprise as both a worker and an owner. This success is translated into increased, long-term corporate profitability.

Increases in value delivered to the customer can be measured by the formula “V=Q/P,” where V=Value, Q=Quality and P=Price. In other words, value to the customer increases when the quality of a good or service increases and its price stays constant or decreases.

JBM builds into the structuring of all management systems and operations the three principles of economic justice:

1) Participation: The input principle that all people have a right to live in a culture that offers them equality of dignity and opportunity, and with equal access to the means of acquiring property and power. Such social means are necessary for all members of a society or institution to exercise their fundamental rights, and contribute to the success of the whole and to their personal success.

2) Distribution: The out-take principle that all people have a right to receive a proportionate, market-determined share of the value of the marketable goods and services they contributed to production, both through their labor and their ownership of productive assets. (In contrast, the distribution principle for charity is based on need, not one’s contribution to production.)

3) Harmony (or Social Justice): The feedback principle that balances “participation” and “distribution.” It includes a concept of limitation that discourages greed and prevents monopolies. Expressed as the principle of “social justice,” it holds that every person has a personal responsibility to organize with others to correct their organizations, institutions and societies whenever the principles of "participation" or "distribution" are violated or not operating properly." (http://www.cesj.org/definitions/glossary.html)

More Information

  • Justice-Based Management: A System for Building an Ownership Culture. Excerpted from a paper presented at the ESOP Association, 21st Annual Conference - May 20-22, 1998

URL = http://www.cesj.org/jbm/articles-jbm/brief-jbm.htm

More Information