Holistic education is foundational to a culture of peace and true

democracy because it is based on the understanding of the human

personality or 'human nature'. "We must learn to trust human
nature and educate children in such a way that they can develop
their human potential. This is the only way we can bring real peace
to the world. There is only one problem, and it is human
development in its totality; once this is achieved in any unit - child
or nation - everything else follows spontaneously and
harmoniously.'' (Maria Montessori. To Educate the Human Potential )

Future Schools for Humanity:

Education as the Practice of Freedom
for Growth through
Learning i.e.'Holistic Education'

All problems in the world originate in

our thinking. Therefore we need to
open our minds and set ourselves free.
Today there is urgent need for positive
social change and this depends on the right
kind of education. We need to consider the
fact that the paradigm of traditional
education as 'schooling' is essentially
ineffective because it is ultimately based on an intrinsic mistrust of
the human personality or 'human nature'. The innaccurate
perception of human nature translates into the fallacious
assumption that the interests of the individual and those of society
are mutually exclusive. This dichotomous view of the social reality
perpetuates suffering, oppression and destruction because it
creates social problems which are in fact unresolvable 'pseudo-
problems'. These must be approached from a more accurate holistic
perspective of human nature as a social nature with instincts for
sociability. Cultivation of human sociability depends on humane
education based on the respect for children's instinctive drive to
grow through learning which is creative because it engages the
intuition of the moral intelligence ('spiritual intelligence' or 'social
intelligence') of moral consciousness or 'conscience'.... i.e. their
natural human intelligence or 'creative intelligence'. Humane
education is based on respect for the human needs for complete
development of moral or 'spiritual' and therefore rational
conscience required for human socialisation or 'peace'. Education
for human development - 'holistic education' or 'peace education'
depends on conditions of freedom - moral freedom, inner freedom,
responsible freedom or 'true freedom' - and allows for the discovery
of human potential. It is thus the source of self-control as 'self-
mastery' or 'self-empowerment' - a function of the development of
the moral or 'spiritual' dimension of human nature.
So what is human nature? Human nature can be defined in terms of
the needs for spiritual development. The human species is a social
species; the human organism is a social organism; and human nature is a
moral, spiritual or social nature with instincts 'social instincts'... instincts for
effective adaptation to changing social conditions... i.e. socialisation,
sociability or 'adaptability'. Human sociability depends on the 'social
intelligence' of moral consciousnessness or morality of 'rational' or 'mature'
conscience... a function of moral or 'spiritual' development required for
peaceful cooperation. If development is hindered, the result is irrational
conscience and asocial behaviour. The human organism as a social
organism is characterised in terms of the intuition and critical thinking skills
of moral reasoning, moral intelligence , 'social intelligence' or 'creative
intelligence'. Creative intellligence of rational conscience is developed
naturally when children are educated in conditions of freedom for growth
through learning.
Creative intelligence is cultivated through a complex process of moral or
spiritual growth which results in the realisation of moral consciousness
or rational 'conscience'... product of moral development, (moral science)
and the source of universal moral values, universal spiritual values, 'social
values' required for self-preservation and species survival...human values or
'virtues'... understanding and social responsibility or 'peace' ... 'empathy' as
compassionate wisdom, 'love' as universal unconditonal love or
'lovingkindness', knowledge as 'truth', 'freedom' as freedom from
conditioning, 'justice' as moral justice, social responsibility, 'peace' as
understanding , beauty ... the values required for accurate evaluation of
changing social conditions, effective decision-making and behaviour which is
adaptive because it is creative. Human values source is the spiritual core of
the human personality or 'human nature'... .are the core values of moral
consciousness or 'morality' of rational conscience of the self beyond persona
or 'ego'... i.e. the 'transpersonal self', 'authentic self', 'higher self'or 'Self'.
Awareness of Self depends on education which allows for moral or spiritual
development and 'spiritual emergence'. "In the most general
terms, spiritual emergence can be defined as the movement of an
individual to a more expanded way of being that involves enhanced
emotional and psychosomatic health, greater freedom of personal
choices, and a sense of deeper connection with other people, nature
and the cosmos. An important part of this development is an
increasing awareness of the spiritual dimension in one's life and in
the universal scheme of things. Spiritual development is an innate
evolutionary capacity of all human beings. It is a movement towards
wholeness or 'holotropic state', the discovery of one's true
potential." (Stanislav Grof)
For children growing up in the complex
world of the global village effective
educational practice depends on an
appropriate philosophical framework or
'paradigm' . Educational theory is logical and
reasonable if it is based on natural law and
guided by the 'morality' of rational conscience.
The formulation of natural principles can be
translated into informed and effective moral
practice or 'praxis'. (The practice of theory
which is not based on natural principles results in the perception of false
dichotomies and unresolvable 'pseudoproblems'). Effective educational
praxis is based on the understanding of learning ('experiential learning' or
'natural learning') as a natural function of the human brain, a social brain
which is specialised for understanding of the significance... meaning... of
experience. Experiential learning is meaningful because it engages the
individual’s instinctive responsibility to themselves for their own growth and
development. Children are natural learner s and they all have the right to
educational experiences offered in conditions which allow them to enjoy the
freedom to exercise their responsibility for active participation in the
planning of learning environments. The practice of freedom in education...
true freedom as 'inner freedom' based on natural biological principles is
'responsible freedom'.... as the practice of theory which is informed and
effective because it is based on natural law and guided by rational
conscience. Freedom in education is responsible freedom because it aims to
provide the right conditions required to free the human spirit in order to
develop conscience as rational conscience or 'free conscience'... freedom to
think, freedom to learn, freedom to engage in personal growth and
development of one's human potential for creativity and productiveness or
‘work allows children to build their self-confidence, self-respect, creative
intelligence and moral courage thus fostering their natural growth into
mature and responsible adults living by the universal human values. We
must stop trying to condition children to be what we would like
them to be and allow them to grow up to be who they really are.
"For too long the inner world of children has been suppressed or
denied, and this is a serious flaw in our educational thinking
that holistic educators seek to remedy". (Kathleen Kesson. Critical
Theory and Holistic Education: Carrying on the Conversation in Ron Miller (Ed.)
The Renewal of Meaning in Education: Responses to the Cultural and
Ecological Crisis of our Times Brandon, Vermont, USA: Holistic Education
Press (1993)
What are the implications for education? Meaningful education is based on trust of
human nature and recognition of the conditions required for development of human potential....
the
integration of learning with life.... 'peace education'. In view of the fact that
the development of a civilised society depends on rational or 'civilised'
human beings, then the needs of the individual and of the society are
mutually dependent and interrelated. Consequently the function of
education is to provide optimal conditions for the development of each
person as a rational and integrated whole through cultivation of their
human potentialities - physical, cognitive, intellectual, artistic,
psychological, emotional and moral or 'spiritual' . Spiritual development is a
function of engagement of the person's instinctive sense of responsiblity for
their own development of their human potential.... conscience. Development
of conscience depends on education for the development of the whole
person as a moral or 'spiritual' and therefore rational and peaceful human
being i.e. 'holistic peace education' or 'holistic education'. Holistic education
is the practice of freedom for creativity and productivity or 'work' which is
meaningful because it involves motivation for growth through learning or
'intrinsic motivation'. (Holistic education is motivating at all ages because
the learner is asked to engage in meaningful work.) Holistic education is
therefore based on respect for human dignity as manifest in meaningful
work. It calls for the planning and provision of natural learning environments
characterised by conditions which enhance the learner's freedom to learn.
The role of the teacher is described in terms of facilitation for learning. The
teacher as 'facilitator' understands the nature of human nature as a function
of the cultivation of creative intelligence and development of rational
conscience. Holistic education is meaningful education because it involves
the creation of opportunites of which integrate learning with life and allow for
personal growth through learning... development of human potential and
human empowerment as self-determination ... complete human
development and the production of compassionate and responsible adults
with a rational or 'peaceful' approach to the resolution of their human
problems... i.e. 'freedom ' as 'responsible freedom'... 'freedom of thought',
'inner freedom', freedom from fear and conflict, freedom from dogma,
freedom to work ... freedom for personal development and growth through
learning, freedom for guidance through life by the human values and the
moral freedom of 'self-transcendance' i.e. 'true freedom' or 'real freedom'
foundational to social understanding and social responsibility required for
peace, cooperation and real democracy. "Real freedom is a consequence
of development; it is the consequence of latent guides, aided by
education. It is the construction of the personality, reached by
effort and one's own experiences; it is the long road which every
child must take to reach maturity". (Maria MontessoriTo Educate
for Human Potential)
The aim of education, in the fullest and deepest sense of the word,
is to provide the conditions to free the human spirit in order to
cultivate naturally meaningful human intelligence or 'creative
intelligence'. Creative intelligence is a function of the integrated
development of the person as a whole... hence 'integral education' or
'integrative education' also known as 'free education', 'libertarian education',
'libratory education', 'progressive education', 'new education', 'open
education', 'cosmic education', 'child-centered education', 'person-centered
education', 'problem-centered education', 'humanistic education', 'humane
education', 'confluent education', 'peace education', 'transformative
education', 'soul education', 'democratic education' and 'holistic education'.
Holistic education is the practice of freedom for the the pursuit of
'knowledge' as 'truth' and engages the instinctive motives for growth
through learning... is a natural truth finding process which is active because
it engages the so-called 'higher' soul needs , spiritual needs or 'metaneeds'
and thereby cultivates intelligence... not only mechanical intelligence of
conditioned learning but also intuitive intelligence (spiritual intelligence) or
'creative intelligence' which allows for social cooperation and the creation of
humane societies. The highest function of education is to bring about
an integrated individual who is capable of dealing with life as a
whole." (Jiddu Krishnamurti Education and the Significance of Life)
Holistic education is natural education based on principles of human
development. Holistic education is 'humanistic' because it is true to the
social nature of the human personality or 'human nature'. Holistic education
is education for human development and therefore education with
conscience... education for responsible freedom or 'self-empowerment' as
the pre-condition for creative and effective adaptation to changes in the
social environment i. e. 'adaptability'. Human adaptability depends on 'true
freedom'... the freedom to interact with the environment... to inquire, to
discover, to think... to make personal meaning of experience or 'learn', the
freedom to understand the realities of nature and human nature while
attaining the highest levels of awareness or 'self-knowledge', the freedom
to engage in meaningful creativity and productiveness or 'work'. Meaningful
work is a function of curiosity, cognition and the wisdom of 'compassion'...
engages development of 'moral consciousness' or 'conscience' - the human
'soul'. Holistic education is for development of rational conscience which is
required for the mastery of life and respect for the lives of others. It is
'education for life through life' (Ovide Decroly). The cultivation of creative
intelligence depends on the freedom to engage in active experiential
learning motivated by the natural curiosity of inquiry and understanding of
the physiological mechanisms underlying the natural learning process
('biology of learning' ) ... engages the intrinsic drive (intrinsic motivation) for
creativity and productiveness or 'work'. Work is meaningful when it engages
the person's development as an integrated whole... engages development of
moral consciousness or 'morality' of rational 'conscience'. Conscience is the
source of guiding values or 'human values' required for accurate evaluation
of changing environmental conditions, effective decision-making ... and
behaviour which is adaptive because it is creative.
The paradigm of holistic education has larger scope than the
traditional paradigm of authoritarian education for control of the
individual with its view of the learner as passive receptacle
motivated by external factors... 'extrinsic 'motivation'... 'teacher as
instructor'. In fact, the learner is an active participant who is motivated by
the intrinsic drive to grow through learning... 'intrinsic motivation'... which is
understood and respected by the teacher as facilitator. Effective learning is
a function of the learner's active engagement in a process of adaptation to
the environment. Human adaptability is a function of the capacity to create
meaning from experience or 'learn'. Natural 'experiential learning' is a
function of the brain’s capacity for perception of connections between
systems of wholes and the parts which make them up i.e. 'holistic
perception'. Holistic perception actively engages the person as a whole in
their instinctive striving for mature growth or 'self-actualisation'. Self-
actualisation depends on natural education which engages the individual's
sense of responsibility for their own growth i.e. 'intrinsic motivation'.
Intrinsically motivated learning depends on the provision of conditions
which integrate learning with life and allow for development of
human potential and human empowerment as self-determination
or 'freedom'. Freedom in education is freedom from dogma, freeedom from
ignorance, freedom from from conflict... 'inner freedom', 'spiritual freedom',
'moral freedom' or 'true freedom'. True freedom is obedience to rational
conscience... a function of human development as 'moral development'.
Freedom in education engages children's integrated development in
harmony with their instinctive sense of responsibility for their own spiritual
growth and development i.e. 'human nature'. Natural principles of human
nature are foundational to education of the person as a whole or 'holistic
education'. Education shall be directed to the full development
of the human personality and to the strengthening of
respect for human rights and human freedoms". (Article 26
paragraph 2 Universal Declaration of Human Rights)

In the paradigm of holistic education the role

of the teacher is defined in terms of the
'facilitation of learning'. The teacher's function is to
understand the psychological value of creativity and productiveness or
'work'... to facilitate the construction of conscience through development of
human potential. The teacher is a 'facilitator of learning'. The facilitative
teacher designs learning environments which are compatible with respect for
the instinctive motives for human learning behaviour i.e. 'human needs'.
These include basic 'lower' psychological needs for security and self-esteem
('ego needs') and the so-called 'higher' psychological needs for spiritual
growth beyond the 'ego' level of consciousness or 'self-transcendance'.
Human needs for self-transcendance are the spiritual needs, soul needs or
'metaneeds'. Motivation by the metaneeds or 'metamotivation' engages
growth through learning and personal development in terms of the
interrelated aspects of the complete human personality - physical,
emotional, intellectual, psychological, social, political, creative, artistic,
philosophical and spiritual i.e. 'holistic growth' and therefore the
development of the human potential for creative intelligence. The cultivation
of creative intelligence depends on the freedom to engage in active
experiential learning motivated by natural curiosity of inquiry. "It is in fact
nothing short of a miracle that the modern methods of instruction
have not yet entirely strangled the holy curiostiy of inquiry; for this
delicate little plant, aside from stimulation, stands mainly in need of
freedom; without this it goes to rack and ruin without fail." (Albert
Einstein)
..........................................................................................................................
..........................................................................................................................
..........................................................................................................................
........................
The only means to a world of peace and understanding is through
the proper education of children into emotionally and intellectually
mature and thinking adults, respectful and tolerant of other
cultures" (Norman Goble. The Function of Teaching UNESCO Paris 1977)
Present-day Western materialist culture and schooling exaggerate
the importance of the physical at the expense of the spiritual and
thus tend to suffocate individual initiative and personal
responsibility in favour of docile compliance with external authority
vested in ever-larger political bureaucracies. This de-humanising
trend can be reversed only by the voluntary combination of well-
balanced individuals who have taken the trouble to explore their
own potential and are ready to live freely in harmony with natural
law rather than as slaves to a political system". ( www.ardue.org)

"The organization of human communities and the establishment of

freedom and peace are not only intellectual achievements but
spiritual and moral achievements as well, demanding a cherishing of
the wholeness of the human personality." (Ivan Ilich, Deschooling Society)
"An educational system isn't worth a great deal if it teaches young people how to make a
living but doesn't teach them how to make a life." ~ anonymous
"Never doubt that a small group of thoughtful, committed citizens can change the world.
Indeed, it is the only thing that ever has". (Margaret Mead)
Holistic education is more concerned with drawing forth the
latent capacities and sensitivities of the soul than with
stuffing passive young minds full of predigested
information. It is an education that prepares young people
to live purposefully, creatively, and morally in a complex
world." (Ron Miller ed. The Renewal of Meaning in Education: Responses to the
Cultural and Ecological Crisis of our Times)
...........................................................................................................................................................
....................................................................................................................................................
Interactive Book: A Scientific* Rationale for Holistic Education
(*in the sense of holistic science)
1. abstract 2. introduction 3. site map: topics... titles of texts
4. outline (texts in context) and chapters 5. glossary 6. quotation references
7. alphabetic index: (keywords) 8. bibliography (books and articles)
9. dedication 10. biographical statement
..........................................................

The Ethics of Business

By Christopher Drake
Profits or prophets? Chris Drake looks over his shoulder at the latest perceptions of moral and
ethical values in commerce.
In the past two years several major scandals have rocked the world of business. These have
affected high-profile names in the City of London such as centuries-old Barings Bank, which
collapsed under US$1.3bn in debt, and the highly reputable Morgan Grenfell.
Elsewhere, the New York branch of Daiwa racked up losses of US$1.1bn through trading US
Treasury bonds, while the secret copper trades of ‘Mr. Five Percent’ at Japan’s Sumitomo
resulted in losses now put at US$2.6bn. Prominent politicians in India and Pakistan, and even
two former Presidents of Korea, have all been given leading parts in an unending gallery of
greedy rogues.
In a case of widespread fraud at German steel and engineering giant Thyssen, one of the top anti-
corruption prosecutors said “We are witnessing a loss of values in Germany. Moral and ethical
principles in German boardrooms have gone to the dogs … the only thing that seems to matter is
profits and selfish materialism.” Lax controls, the bending of rules and white-collar crime are
seen as having reached epidemic proportions with allegations from Australia to Alaska tarnishing
household names previously seen as representing the paragon of boardroom ethics.
It appears that in some countries public intolerance of economic injustice, exploitation and
dishonesty is on the verge of exploding as more people are posing ever more searching
questions. Instead of listening to companies saying “trust me”, individuals are telling them
“show me” and wanting to see proof of the honesty and integrity they tout to the world.
Likewise, corporate leaders are thinking about their obligations to staff, families, investors and
the public, wondering to what extent ethical standards are involved in making money and
running a successful and responsible business. Can moral and ethical principles help sort the
wheat from the chaff and distinguish good money from bad? And if so, how do we know it’s not
just psycho-babble or superstitious mumbo-jumbo, an unread “In God we trust” self-consciously
tacked on to the back of a dollar note? When Christ threw the money-lenders out of the Temple,
did that signify the fall of the sacred shekeldom, the eternal excommunication of Lucre from the
house of God? On 20th century planet Earth is there really such a thing as an honest buck?
Over the years there have been some clear shifts of opinion with regard to the rights and wrongs
of business. Gone are the days when vast concerns frequently depended on forced slave labour
(although even today as many as 15 million children in India are reported to be working as
virtual slaves). However, the reality of today’s global marketplace is such that it is easy to
challenge supposedly ethical investment and point out that the world’s economies are all so inter-
related that no one can be whiter than white. Miss Cleanhands may think she’s smart not having
anything to do with Global Gunrunners Inc. but does she realize what Truly Honest Bank is
doing with the money she used to buy shares in it, or even with the money she has in her Truly
Honest current account? Yes, Truly Honest is lending poor Miss Cleanhands’ hard earned
savings straight to Global Gunrunners! And the interest that Global Gunrunners is paying to
Truly Honest is going…straight into Miss Cleanhands’ account!
Nevertheless, consumer power is being applied to put pressure on multinational companies—
massive corporate giants typically based in a wealthier country but that take advantage of
cheaper labour and infrastructure costs to locate manufacturing operations in poorer countries.
One household name under the spotlight has been Nike. Workers at the factory in Indonesia that
churns out 1.2 million pairs of shoes a month for Nike are on a basic daily wage of US$2.23
while Nike icon Michael Jordan earns millions in endorsing the fancy footwear made by those
humble hands. But how much does a holier-than-thou attitude benefit anyone? The paradox is
that attempting to save the poor from the rich can end up preventing the poor from helping
themselves. What may be a pittance for one is a living wage for another.
In recent years, at least, the idea of ethical investment came to prominence in the 1970s when the
wave of anti-Vietnam war fervour extended to Americans withdrawing investment from
companies involved in the war. A number of professional fund managers have since set up funds
that enable members of the public to place cash with them for investment in companies chosen
primarily on the basis of ethical criteria instead of just commercial ones. Now there are some
US$160 billion invested in easy conscience funds in America, and a more modest GBP1 billion
or so in the UK. Managers of such funds generally avoid companies with interest in armaments,
nuclear power, tobacco, alcohol or gambling.
Some companies might be favoured if they support environmental concerns, give to charitable
causes, are active in the community or show greater concern for employees. While many small
investors favour such an approach the first question is whether such funds can match the returns
achieved by the more traditional funds. The dilemma for consumers is that evidence suggests
that often they do not. Nevertheless there are people out there trying to make it work and there
has been popular support for companies claiming not to sell products that are made using child
labour or involve depleting the rain forests. With business increasingly taking a place at the
forefront of social change, companies are in a unique position to shape and reflect public policy.
While such notions have begun to gain popularity in Europe and the USA they never took off in
the free-wheeling money-making enclaves of Asia. In Islamic countries, however, the Sharia, or
Islamic law, contains a number of restrictions on how money may be made. Profits derived from
alcohol and gambling are clear taboos, as is lending money subject to payment of interest, as this
is seen as usury, and some authorities will even reject donations made using interest-bearing
credit cards.
Modernizing economics nevertheless need money and so this has given rise to the phenomenon
of Islamic Banking in which funds are made available to others on condition that they are repaid
without interest being charged. Ingenious solutions to the desire for a return on a risk-carrying
investment include the issuing of ‘Islamic securities’ and banks taking a share of profits
(assuming there are any) in lieu of interest. One of Malaysia’s largest banks has just launched an
Islamic credit card that blocks use on transactions deemed non-Islamic, such as gambling,
massage, and liquor and nightclub payments. It also offers holders benefits such as discounts on
pilgrimages to Mecca.
The other side of all this is an industry that has sprung up in Europe and America in which
management gurus and trainers are paid vast sums to talk to corporate executives about what
often seems to be little more than plain common sense. They help companies adopt vision and
mission statements and the like that often incorporate certain principles and values as part of the
corporate culture.
Although it may be hard for most of us to put a value on ethics, many of these gurus seem to
have no difficulty in merging profits with prophets and putting a high price on selling ethics in
this way. The claim is that ethical business practices can offer a competitive advantage as they
avoid losses arising from fraud and dishonesty and can lead to the building up of goodwill and a
sound reputation.
While all these ideas are at least a step in the right direction there is always the problem that
external regulators and trainers can be outwitted by those who do not see any reason why their
activity should be restricted in such a way against their will. Far more effective therefore are
limitations voluntarily observed on the basis of an understanding why they should be followed.
In reality humans are moral beings, endowed with reason, conscience and an innate
understanding of primary and inalienable qualities such as justice, fairness, respect, honesty,
responsibility, integrity and compassion. These moral values are not just universal to all
humanity but also universal to all human activity i.e. they are just as valid and called for in
economic and commercial life as they are in personal, family and social life. In other words, the
values we should express in business are the values that we aspire to in our moral and social
lives.
What does this mean in practical terms? A number of things including:
1. The business should not involve an activity of itself immoral.
2. Look closely at how the business is run. On what values or principles are decisions and actions
based?
3. What are the motives of those involved in the business? Why are they carrying it out?
4. Given that the business itself passes these tests, what effect does it have on people and their
lives?
When looking at the effect that business activity has, at the broadest level there may be an impact
on the environment. A business that results in injury to the natural surroundings causes excessive
pollution or destroys non-renewable natural resources, with a consequent loss to humanity as a
whole, therefore runs the risk of being unethical.
Next there is the society in which the business is located; what effect does the business have on
those people and their lives? For example, a tourism or entertainment business may
unnecessarily disturb the community in the place where the businesses is located because of the
number of people it attracts, the times they are there or their activities so that the community as a
whole suffers.
One more step closer to home are the business’s customers: what effect does the activity or
products sold have on them and their health and overall well being? Then partners and investors:
are they treated with honesty, responsibility and fairness? Closer still to home are staff and
colleagues: are our relations with them based on respect, fairness and integrity? What about my
family: what effect is my work schedule having on them and am I acting with responsibility and
understanding in relation to them? Then there is my physical health: is that suffering because of
the way I work? And finally, what effect is the work having on my mental, emotional, moral and
spiritual well-being? Am I remaining true to myself and keeping a clear conscience? What are
the motivations for my action or the values or principles by which my actions are guided?
It’s sometimes tempting to justify a wrong action by saying that it wasn’t done with bad
intentions, but motives alone are not a sufficient touchstone for judging whether an activity is
right or wrong. Many wrongful deeds are motivated by misguided altruism, or the Robin Hood
syndrome. While Robin may have been giving all to the poor and deserving, and keeping nothing
for himself, the fact remains that depriving someone else of their property in such a way is theft.
Even if it’s done in the name of a good cause, a wrong action is still a wrong action.
While there may be some complexity when applying them to individual situations, the
underlying and guiding principles are therefore clear. Business and investment should reflect
ethical factors, and even in purely monetary terms, they may be more profitable in the long-term
if they do so. One school of economics theory holds that prosperity comes when businesses are
guided by the invisible hand of the market rather than being subjected to too many external
controls and regulations.
Business people today are often motivated by fear and greed more than anything else and if pride
comes before a fall then greed comes before poverty and fear before downfall. For profit with
peace of mind what is now needed more than the invisible hand of the market is the invisible
hand of God, or the conscious commitment to act in accordance with moral principles. If this
sounds like a novel approach it shouldn’t really as it was long, long ago that St Matthew summed
it all up: “What is a man profited if he gains the world but loses his soul?”
This article was originally published by BK Publications (www.bkpublications.com) in Retreat
Magazine #9 in 1997, at which time Christopher Drake was General Manager of Sassoon
Securities Limited in Hong Kong.

Shopping for God in the Spiritual Supermarket

Valerie Coyle interviews Dadi Janki (Additional Administrative Head of the Brahma Kumaris
World Spiritual University.)

Why most people are lost and searching, disillusioned and desperate for solutions.

Valerie Coyle: The Western world seems inundated with so many different spiritual choices
and teachers, and most people seem to be shopping around in the spiritual supermarket and
changing aisles all the time. It seems very hard to stay focused on a spiritual path, even if it
feels like a true one.

Dadi Janki: Human beings are attracted towards spirituality at present because they are
tired of materialistic life. They have not experienced any happiness through materialism.
The more they have chased after materialism, to that extent they have lost themselves;
they have forgotten themselves. Their attention has become completely extroverted. It has
not been turned within. To search for spirituality means to go within. Because there are so
many paths of spirituality, from both the East and the West, people are totally confused
about what is right and what is wrong, or what they should select.

This world itself is a world of deception. When people have experienced deception they seek
a spiritual path. However, even when they come onto a spiritual path, after some time, they
again experience some kind of deception. This is why people move away from religion. They
are tired of hearing the word ‘religion’. Their pure feelings of faith in religion have
disappeared—whether that be Hindu, Muslim, Christian or whatever. No matter which
religion they belong to they have to understand what true spirituality is and go into the
depth of that spirituality.

Originally, the religious founders definitely had spiritual power. They lived as messengers of
god. They came on this earth whenever there was a need, and played their role within the
help of God’s power. Now, because people have become body conscious, they have
forgotten their religion, and they have so much conflict within themselves that, even if they
use the term ‘religion’, it is only namesake. Hence they do not practise the teachings that
were shared by those religious founders; they simply repeat them like parrots. No matter
how much they study, inside they are empty; they do not have that spiritual knowledge. In
order to experience peace, happiness and power it is necessary to go within, for only then
can we realize what true spirituality is. No matter how much someone searches outside,
they can never find true spirituality.

Valerie Coyle: What does spirituality mean to you?

Dadi Janki: Spirituality means that I should be connected with the Source. For that I need to
have the recognition of that Source. Who is He? Where does He reside? In fact God is One.
He cannot be different for different religions. He is One for all. If I say that Christ belongs to
the Christian religion and someone else to another religion, then I create conflict. Instead of
more spiritual power there will be even more wars and even less love between one another.

Spirituality means to have eternal spiritual love for each other whilst maintaining that
incognito, internal connection with God. This is only possible when I become introverted, and
when I am able to keep my mind under control through the power of concentration. Today,
human beings’ minds and sense organs are not under their control. The sense organs cause
us to perform very bad actions by coming under the influence of lust, greed and anger.
Spirituality means to make my mind free from all these things—to let these desires finish.
The consciousness, “I want this, I want that etc,” is also extrovert. The more I want the less
satisfaction I will receive from that. In fact I will become even more of a beggar. To be
spiritual means to be royal, not to have any desires. A jeweller who does business with
jewels will not waste his time in trifling matters. So, I have to go deep into myself and search
for the treasures that I have within myself. In order to see God, I need to have a divine
intellect and divine sight. I cannot see God through these ordinary eyes. I can see this world
through these eyes, but I cannot see myself. Whether my eyes are open or not, I should be
able to see myself. Otherwise, if I am extroverted, whatever I see externally comes into my
mind. Even things I have seen years ago come into my mind.

Spirituality means to open the eye of the mind and, on the basis of that, to realize who I am.
When anyone comes here we always teach them three main lessons: “Who am I?” “Who is
God?” and “What is the philosophy of karma?” I should understand the philosophy of karma
to such an extent that every action I perform is accurate and filled with spirituality. Even if
the actions are mundane, they should reveal spirituality. Even the quality of my thinking
must be filled with spirituality because the foundation of human life is the quality of our
thoughts. If I have the feeling of positivity and of bringing benefit to others, then
automatically my thoughts will be filled with those qualities. And if my thoughts are of
quality, then my interactions with others will also be of quality. I am a soul; I am connected
with the Supreme Soul; He is teaching me, and whatever He is teaching me I am able to
share with others.

Valerie Coyle: Most spiritual teachings do advise us to go within, because the answers are
within. But it seems to me that to do this properly requires an enormous leap of faith. To
renounce the outer world and especially the ego creates a lot of insecurity. How do you
develop the faith to remain introverted? It seems to be a hard thing for people to grasp—
having such uncompromising faith—even in yourself?

Dadi Janki: Originally, there was spirituality within every one of us, but today we have
accumulated a lot of rubbish in the form of negative thinking and bad habits. And so,
spirituality means to clear away the rubbish and release the power that is in the soul. If you
ask the experience of those who are following a spiritual path now, they will be to verify this
experience of clearing away the rubbish to expose the beauty within. This does not mean
‘blind’ faith; you have to use your intellect. First understand, then have faith and then
practice.

Suppose I am explaining something to you. If you are intellectual, you will start to analyse
what I am saying through your intellect. Then nothing I explain will sit in your intellect. In
fact what you need to do is put aside all the other information that you have accumulated,
make your intellect quiet, and then you will be able to absorb. You can have faith only when
you can understand what you have heard.

Valerie Coyle: Personally, I feel that a lot of the times I sit on the fence. On one side is faith
and trust, and on the other is ego and control. The obstacle for me is the underlying fear
that if that I don’t at least attempt to control my world, nothing will happen to me. Maybe I
won’t even exist!

Dadi Janki: Firstly, I would like to clarify what it means to have trust. You don’t have to
trust me to have trust. You don’t have to trust me or what I say. You trust in something after
making yourself understand. If your intellect agrees with it, then you trust. We don’t use the
method used by gurus and others that you have to follow what we say. God has given us
this understanding. Previously you had the intellect but you did not know how to use it in
order to understand and judge what is right and what is wrong. Now, you received that
understanding to judge properly.

The difference between animals and human beings is that animals do not have an intellect.
Human beings have an intellect, so can ask, “What is right?” “What is wrong?” “What is
good?” and “What is bad?” “What is sin?” and “What is charity?” However, we have lost the
power of decision-making because the intellect has become so weak. We continue to
commit sins (negative and violent actions) and we do not perform any acts of charity.
Through understanding, we receive the ability to discern the difference between right and
wrong.

Previously, we used to suppress our conscience because we were under the influence of
other people, opinions and the world. Now our conscience opens up, and we develop the
power to perform good actions. If for example, I know what is right, but don’t have the
strength to do it, then I connect the yoga of my intellect with the Source and take the power
from God, and then I can do it.

First of all, I have to understand who I am and what my relationship with God is. Then, I
practically establish that relationship, and receive power. On the basis of this experience, I
have the faith that this is God and this is soul. At that point, I understand what I should be
doing. Then all my thoughts and actions will be accurate, and I will thank God for giving me
such good thoughts. This is what is called ‘having faith’.

For example, if I am born a Hindu, and I believe in all the teachings of Hinduism, then I
continue to move forward. Now, suppose somebody else speaks to me about another
religion or culture. I will not start thinking that I can’t leave my Hinduism behind because I
can’t survive without it. I will just incorporate the new information. It is the same with
education. When you study, you learn more and more new things. And, when you learn
something better, then automatically you will leave behind whatever is past. You will not
have questions, “How can I survive without it?” “How can I give up that teacher?” or “How
can I leave those books?”

If I have no ego, I can survive without these because I know that I am receiving something
better that is for my own progress.

Valerie Coyle: So then why do we all resist?

Dadi Janki: Fear, Ego comes because of fear. We have been taking support from it for a
long time. Many people have this obstacle. If I give up what I was doing before, if I have any
loss, then what? God has given us an open opportunity to learn. He says you learn until the
last breath of your life. Myself, I had gurus before starting to practise Raja Yoga. They used
to frighten me by saying, “If you leave me something will happen” because they wanted me
to be their follower. I would answer, “Thank you for all you have taught me, but please now
give me blessings so that I can move forward in my life”. But I needed courage to do that.

Because there is no end to spirituality, the more you go into its depth, the further you can
go. And to that extent, you experience happiness.

Valerie Coyle: I think that most people have ego as their guru. It is the ego that tells most
of us what to do.

Dadi Janki: Because ego has filled the soul over a long period of time, it has gone deep
inside. Ego of my own body, my religion, my education, my culture, my nationality has gone
deep inside me. So, now I have to bring that ego out of myself. I have to become free from
ego. Then I am able to experience what reality is. The soul cannot do anything without a
body. But what has happened is that being in the body, we have allowed all the bodily things
to affect us: culture, religion, education, etc. In reality, the soul is truth, love and bliss. We
have to cleanse the soul in order to finish the ego. Because of ego, we also have greed,
anger, jealousy and attachment. If someone is jealous he can never make his mind peaceful
no matter how much meditation he does. Meditation means to remove all the rubbish and
cleanse the soul. No matter how much people may criticize or insult me, I don’t have to be
affected by that. I have to adopt truth and I have to move along that path. I know that God is
truth, but now I have to experience and realise how God is truth.

Dadi Janki is the Additional Administrative Head of the Brahma Kumaris World Spiritual
University. Valerie Coyle was editor of Southern Crossings Magazine published in Australia.

"Dr. Stephen R. Covey - one of the world's leading management consultants and author
of the best selling book The Seven Habits Of Highly Effective People - is co-chairman of
Franklin Covey located in Salt Lake City, Utah in the U.S.A. Franklin Covey provides
consultancy services to Fortune 500 companies as well as thousand of small and mid-size
companies, educational institutions, government and other organisations world-wide.
Their work in Principle Centered Leadership is considered to be an instrumental
foundation to the effectiveness of quality, leadership, service, team building,
organisational alignment and other strategic corporate initiatives.

Excerpts from Chapter 7 - Seven Deadly Sins - Page 87 to 93

Mahatma Gandhi said that seven things will destroy us. Notice that all of them have to do
with social and political conditions. Note also that the antidote of each of these "deadly
sins" is an explicit external standard or something that is based on natural principles and
laws, not on social values.

Wealth Without Work

Pleasure Without Conscience

Knowledge Without Character

Commerce (Business) Without Morality (Ethics)

Science Without Humanity

Religion Without Sacrifice

Politics Without Principle

� 1990 Stephen R. Covey. All rights reserved. Reprinted with permission.

The Seven Habits and Principle-Centered Leadership are registered trademarks of
Franklin Covey and are used with permission. To learn more about Franklin Covey, visit
their web-site at www.franklincovey.com.

Wealth Without Work

This refers to the practice of getting something for nothing - manipulating markets and
assets so you don't have to work or produce added value, just manipulate people and
things. Today there are professions built around making wealth without working, making
much money without paying taxes, benefiting from free government programs without
carrying a fair share of the financial burdens, and enjoying all the perks of citizenship of
country and membership of corporation without assuming any of the risk or
responsibility.

How many of the fraudulent schemes that went on in the 1980s, often called the decade
of greed, were basically get-rich-quick schemes or speculations promising practitioners,
"You don't even have to work for it"? That is why I would be very concerned if one of my
children went into speculative enterprises or if they learned how to make a lot of money
fast without having to pay the price by adding value on a day-to-day basis.

Some network marketing and pyramidal organizations worry me because many people
get rich quick by building a structure under them that feeds them without work. They are
rationalized to the hilt; nevertheless the overwhelming emotional motive is often greed:
"You can get rich without much work. You may have to work initially, but soon you can
have wealth without work." New social mores and norms are cultivated that cause
distortions in their judgement.

Justice and judgement are inevitably inseparable, suggesting that to the degree you
move away from the laws of nature, your judgement will be adversely affected. You get
distorted notions. You start telling rational lies to explain why things work or why they
don't. You move away from the law of "the farm" into social / political environments.

When we read of organisations in trouble, we often hear the sad confessions of

executives who tell of moving away from natural laws and principles for a period of time
and begin overbuilding, over borrowing, and over speculating, not really reading the
stream or getting objective feedback, just hearing a lot of self-talk internally. Now they
have a high debt to pay. They may have to work hard just to survive - without hope of
being healthy for five years or more. It's back to the basics, hand to the plow. And many
of these executives, in earlier days, were critical of the conservative founders of the
corporations who stayed close to the fundamentals and preferred to stay small and free
of debt.

Pleasure Without Conscience

The chief query of the immature, greedy, selfish, and sensuous has always been, "What's
in it for me? Will this please me? Will it ease me?" Lately many people seem to want
these pleasures without conscience or sense of responsibility, even abandoning or utterly
neglecting spouses and children in the name of doing their thing. But independence is
not the most mature state of being - it's only a middle position on the way to
interdependence, the most advanced and mature state. To learn to give and take, to live
selflessly, to be sensitive, to be considerate, is our challenge. Otherwise there is no
sense of social responsibility or accountability in our pleasurable activities.

The ultimate costs of pleasures without conscience are high as measured in terms of time
and money, in terms of reputation and in terms of wounding the hearts and minds of
other people who are adversely affected by those who just want to indulge and gratify
themselves in the short term. It's dangerous to be pulled or lulled away from natural law
without conscience. Conscience is essentially the repository of timeless truths and
principles - the internal monitor of natural law.

A prominent, widely published psychologist worked to align people with their moral
conscience in what was called "integrity therapy." He once told me that he was a manic-
depressive. "I knew I was getting suicidal," he said. "Therefore, I committed myself to a
mental institution. I tried to work out of it, neutralize it, until I reached the point where I
could leave the hospital. I don't do clinical work now because it is too stressful. I mostly
do research. And through my own struggle, I discovered that integrity therapy was the
only way to go. I gave up my mistress, confessed to my wife, and had peace for the first
time in my life. ""

Pleasure without conscience is one of the key temptations for today's executives.
Sometimes on airplanes I'll scan the magazines directed at executives, noting the
advertisements. Many of these ads, perhaps two-thirds of them, invite executives to
indulge themselves without conscience because they "deserve it" or have "earned it" or
"want it," and why not "give in" and "let it all hang out"? The seductive message is,
"You've arrived. You are now a law unto yourself. You don't need a conscience to govern
you anymore." And in some ads you see sixty-year-old men with attractive thirty-year
old women, the "significant others" who accompany some executives to conventions.
Whatever happened to spouses? What happened to the social mores that make cheating
on spouses illegitimate behaviour?

Knowledge Without Character

As dangerous as a little knowledge is, even more dangerous is much knowledge without
a strong, principled character. Purely intellectual development without commensurate
internal character development makes as much sense as putting a high-powered sports
car in the hands of a teenager who is high on drugs. Yet all too often in the academic
world, that's exactly what we do by not focusing on the character development of young
people.
One of the reasons I'm excited about taking the Seven Habits into the schools is that it is
character education. Some people don't like character education because, they say,
"that's your value system." But you can get a common set of values that everyone
agrees on. It is not that difficult to decide, for example, that kindness, fairness, dignity,
contribution, and integrity are worth keeping. No one will fight you on those. So let's
start with values that are unarguable and infuse them in our education system and in our
corporate training and development programs. Let's achieve a better balance between
the development of character and intellect.

The people who are transforming education today are doing it by building consensus
around a common set of principles, values, and priorities and debunking the high degree
of specialization, departmentalization, and partisan politics.

Commerce (Business) Without Morality (Ethics)

In his book Moral Sentiment, which preceded Wealth of Nations, Adam Smith explained
how foundational to the success of our systems is the moral foundation : how we treat
each other, the spirit of benevolence, of service, of contribution. If we ignore the moral
foundation and allow economic systems to operate without moral foundation and without
continued education, we will soon create an amoral, if not immoral, society and business.
Economic and political systems are ultimately based on a moral foundation.

To Adam Smith, every business transaction is a moral challenge to see that both parties
come out fairly. Fairness and benevolence in business are the underpinnings of the free
enterprise system called capitalism. Our economic system comes out of a constitutional
democracy where minority rights are to be attended to as well. The spirit of the Golden
Rule or of win-win is a spirit of morality, of mutual benefit, of fairness for all concerned.
Paraphrasing one of the mottos of the Rotary Club, "Is it fair and does it serve the
interests of all the stakeholders?" That's just a moral sense of stewardship toward all of
the stakeholders.

I like that Smith says every economic transaction. People get in trouble when they say
that most of their economic transactions are moral. That means there is something going
on that is covert, hidden, secret. People keep a hidden agenda, a secret life, and they
justify and rationalize their activities. They tell themselves rational lies so they don't
have to adhere to natural laws. If you can get enough rationalization in a society, you
can have social mores or political wills that are totally divorced from natural laws and
principles.
I once met a man who for five years served as the "ethics director" for a major
aerospace company. He finally resigned the post in protest and considered leaving the
company, even though he would lose a big salary and benefit package. He said that the
executive team had their own separate set of business ethics and that they were deep
into rationalization and justification. Wealth and power were big on their agendas, and
they made no excuse for it anymore. They were divorced from reality even inside their
own organization. They talked about serving the customer while absolutely mugging their
own employees.

Science Without Humanity

If science becomes all technique and technology, it quickly degenerates into man against
humanity. Technologies come from the paradigms of science. And if there's very little
understanding of the higher human purposes that the technology is striving to serve, we
becomes victims of our own technocracy. We see otherwise highly educated people
climbing the scientific ladder of success, even though it's often missing the rung called
humanity and leaning against the wrong wall.

The majority of the scientists who ever lived or living today, and they have brought
about a scientific and technological explosion in the world. But if all they do is
superimpose technology on the same old problems, nothing basic changes. We may see
an evolution, an occasional "revolution" in science, but without humanity we see precious
little real human advancement. All the old inequities and injustices are still with us.

About the only thing that hasn't evolved are these natural laws and principles - the true
north on the compass. Science and technology have changed the face of most everything
else. But the fundamental things still apply, as time goes by.

Religion Without Sacrifice

Without sacrifice we may become active in a church but remain inactive in its gospel. In
other words, we go for the social facade of religion and the piety of religious practices.
There is no real walking with people or going the second mile or trying to deal with our
social problems that may eventually undo our economic system. It takes sacrifice to
serve the needs of other people - the sacrifice of our own pride and prejudice, among
other things.

If a church or religion is seen as just another hierarchical system, its members won't
have a sense of service or inner workship. Instead they will be into outward observances
and all the visible accoutrements of religion. But they are neither God-centered nor
principle-centered.
The principles of three of the Seven Habits pertain to how we deal with other people,
how we serve them, how we sacrifice for them, how we contribute. Habits 4, 5 and 6 -
win-win interdependency, empathy, and synergy - require tremendous sacrifice. I've
come to believe that they require a broken heart and a contrite spirit - and that, for
some, is the ultimate sacrifice. For example, I once observed a marriage where there
were frequent arguments. One thought came to me : "These two people must have a
broken heart and a contrite spirit toward each other or this union will never last." You
can't have a oneness, a unity, without humility. Pride and selfishness will destroy the
union between man and god, between man and woman, between man and man,
between self and self.

The great servant leaders have that humility, the hallmark of inner religion. I know a few
CEOs who are humble servant leaders - who sacrifice their pride and share their power -
and I can say that their influence both inside and outside their companies is multiplied
because of it. Sadly, many people want "religion," or at least the appearance of it,
without any sacrifice. They want more spirituality but would never miss a meal in
meaningful fasting or do one act of anonymous service to achieve it.

Politics Without Principle

If there is no principle, there is no true north, nothing you can depend upon. The focus
on the personality ethic is the instant creation of an image that sells well in the social
and economic marketplace.

You see politicians spending millions of dollars to create an image, even though it's
superficial, lacking substance, in order to get votes and gain office. And when it works, it
leads to a political system operating independently of the natural laws that should govern
- - that are built into the Declaration of Independence : "We hold these Truths to be self-
evident, that all Men are created equal, that they are endowed by their Creator with
certain unalienable Rights, that among these are Life, Liberty, and the Pursuit of
Happiness . . . . "

In other words, they are describing self-evident, external, observable, natural,

unarguable, self-evident laws: "We hold these Truths to be self-evident." The key to a
healthy society is to get the social will, the value system, aligned with correct principles.
You then have the compass needle pointing to true north - true north representing the
external or the natural law - and the indicator says that is what we are building our value
system on : they are aligned.
But if you get a sick social will behind the political will that is independent of principle,
you could have a very sick organization or society with distorted values. For instance, the
professed mission and shared values of criminals who rape, rob and plunder might sound
very much like many corporate mission statements, using such words as "teamwork,"
"cooperation," "loyalty," "profitability," "innovation," and "creativity." The problem is that
their value system is not based on a natural law.

Figuratively, inside many corporations with lofty mission statements, many people are
being mugged in broad daylight in front of witnesses. Or they are being robbed of self-
esteem, money, or position without due process. And if there is no social will behind the
principles of due process, and if you can't get due process, you have to go to the jury of
your peers and engage in counterculture sabotage.

In the movie The Ten Commandments, Moses says to the pharaoh, "We are to be
governed by God's law, not by you." In effect he's saying, "We will not be governed by a
person unless that person embodies the law." In the best societies and organizations,
natural laws and principles govern - that's the Constitution - and even the top people
must bow to the principle. No one is above it.

The Seven Habits will help you avoid these Seven Deadly Sins.
And if you don't buy into the Seven Habits, try the Ten Commandments.

Chapter 9 - Principle-Centered Power - Page 108

To some, these principles and the ideals they represent are readily attributable to
notable leaders of distinction such as Mahatma Gandhi, but they are harder to find in the
much more common experiences of everyday living. In response to this concern, Gandhi
replied, "I claim to be no more than an average man with less than average ability. I am
not a visionary. I claim to be a practical idealist. Nor can I claim any special merit for
what I have been able to achieve with laborious research. I have not the shadow of a
doubt that any man or woman can achieve what I have, if he or she would make the
same effort and cultivate the same hope and faith.

A Personal Note - Page 323

Gandhi emphasized : "A person cannot do right in one department whilst attempting to
do wrong in another department. Life is one indivisible whole. "
Shareholders' Rights:
The Gandhian Approach to Corporate Governance
Mario J. Gabelli, CFA - Class of '67
September 1999

At Gabelli Funds, Inc., our magna carta states, "We are neither for nor against management. We
are for shareholders." Our main purpose is to help our shareholders' money grow. Our clients do
not hire us to fight with corporate managements. We try to generate a 10 percent real return on
shareholders' money.
So, how do we get the attention of companies that we think are not doing a great job for
shareholders? We take what we describe as a Gandhian approach to corporate governance. This is
a form of forceful yet passive resistance that includes such methods as getting the press involved.
For example, about three years ago, after we had acquired 10 percent of Santa Anita Companies,
management threw up what we considered a Berlin Wall around shareholder values. The
company agreed to sell to Colony Capital (where a Santa Anita director was CEO) a sizable block
of stock at about $15 per share - about $15 per share less than what we calculated was the
underlying value. It was an insider deal that, in our view, was not consistent with shareholder
democracy.
So, what did we do? We notified the press. (We got the idea from the Pilgrims of the 17th
century, who would put you in the stocks when you committed a crime to serve your appropriate
tour of duty and expose you to public ridicule.) When the Los Angeles Times called, we pointed
out, "It smacks of grab, grab, grab. This is not consistent with shareholder democracy." In another
article, I believe I was quoted as saying the deal stinks to the high paddocks. They wrote these
things, among others, in the newspaper. Finally, after three or four quotes like this, the fellow
called me and said. "Mario, I don't want this company." How did that happen? Well, his son
would come home from school and say, "Dad, why are they saying these things about you?"
The Gandhian approach, in our context, also means we will not show up at an annual meeting, so
the directors won't get a quorum. Another tool is technology, specifically the Internet. For
example, our firm was sued by a closed-end fund shareholder who, although we told him he was
wrong, refused to drop the suit. So we put his name and the names of his lawyers on the Internet
and laid out our observations that they were careless and sloppy in their claims against us. All of
a sudden, they realized that their names were known to the world and that anyone conducting an
Internet search on them would come across this information and read our views about what they
did. So now they have settled with us. There are many ways we can use modern tools cost-
efficiently to instill effective corporate governance.
We created a "Magna Carta of Shareholder Rights" that states what we stand for so that
companies we invest in know in advance, for the most part, how we would vote.
We are in favor of
 ○ Cumulative voting
○ Golden parachutes (Why? Because we want management to think about harvesting
for us and not worry about the next job.)
○ One share, one vote
○ Cash incentives
○ Preemptive rights.
We will vote against
○ Greenmail, or voluntary repurchase of a hostile would-be acquirers shares at a
price significantly above market.
○ Poison pills, or antitakeover provisions
○ Supermajority voting
○ Blank check preferreds
○ Superdilutive stock options
○ Option resets.
This is our policy, but we will make exceptions when we encounter management that
demonstrates superior sensitivity to the needs of shareholders.
CEOs frustrate me when they build moats around themselves and when the moats deal with any
issue of corporate governance that precludes shareholders who have strong opinions - particularly
when the shareholders have been in the stock for five or 10 years. Poison pills are a clear example
of where managements, in my judgment, are creating bad will between themselves and their
shareholders.
We tend to be small-company oriented, so we need to telegraph to management where it should
go to earn a return for shareholders and how we would vote on that. We have a proxy voting
committee consisting of lawyers and analysts who research and track the companies we have
invested in. They try to find out if the management is oriented toward shareholders or trying to
enrich or entrench themselves. Then panel members vote on these issues, and we document the
votes and report them to the plan sponsor, as is required by law.
In closing, in the best of all possible worlds, corporate managers view shareholders and their
representatives as partners, not adversaries. the best way to maintain this relationship is through
truly democratic corporate governance. We believe it is an important part of our job to respond
passively, but forcefully, on issues that challenge corporate democracy.

Mario J. Gabelli is chairman of Gabelli Funds and adviser to the Gabelli family of mutual
funds and Gabelli Asset Management Company, a money management firm. A member of
the School's board of overseers, he is a leading practitioner of The Graham and Dodd
school of securities analysis.

Hypersonic sound system - this new technology will replace the annoying
loudspeakers. The specialty of this system is that it directs the sound beam to
wherever you want it without disturbing others. Conventional speakers produce
sound directly in air but the hypersonic sound technology produces sound indirectly
in air. For this it uses a property of air known as non-linearity. Even the best
loudspeakers are subject to distortion, and their omni-directional sound is annoying
to people in the vicinity who do not wish to listen.
The hypersonic sound system holds the promise of replacing conventional speakers.
It is quite certain that the hypersonic sound system is going to shape the future of
sound and will serve our ears with magical experience.