Dhawal Gupta

3170421
IMB - 4 - Red
Assignment 3

Summary
Integrity is a necessary condition for maximum performance, according to Dr. Werner
Erhard. It is a purely positive proposition and is distinguished from morality and ethics.
Morality deals with good vs. evil, and right vs. wrong in society, while ethics refers to the
normative set of values that apply to all members of a group or organization. Integrity, on the
other hand, is about what it takes for a person to be whole and complete. An individual is
whole and completed when their word is whole and complete. By honoring their word, they
have maintained their integrity, even if they haven't kept it. Integrity creates workability, and
without it, the workability of any person or organization declines. Honoring one's word is also
an actionable pathway to being trusted by others.

One's word to oneself is a critical part of integrity. The foundation for being a person of
integrity is giving one's word to oneself that they are a person of integrity. Without this
foundation, they will never be a person of integrity. By not being serious when giving their
word to themselves, they forfeit the opportunity to maintain their integrity by honoring their
word. If they fail to honor their word to themselves, they will create 'unworkability' in their
life, appearing to others as inconsistent, unreliable, and unpredictable. People who don't
honor their word to themselves will not be whole and complete persons. They will undermine
themselves as persons of integrity and diminish who they are as a person.

Integrity translates into performance because it is a necessary condition for maximum

workability. If something is integrity, it has maximum workability. Violating the Law of
Integrity will shrink the opportunity set for performance, and therefore actual performance is
likely to suffer. Respect for the Law of Integrity results in enormous increases in performance,
both in organizations and in life. People tend to view integrity as a virtue that is 'nice to have,'
but not something that is directly related to performance. However, the increases in
performance that are possible by focusing on integrity are signi cant, ranging from 100 to
500 percent. The effects of out-of-integrity behavior are signi cantly more damaging than

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 most people believe. People fail to link the dif culties in their lives or organizations to out-of-
integrity behavior.

Sentence which has had a great impact

The line “The primary differentiation I make between them is to distinguish integrity
from morality and ethics.”, and the lines following this had a great impact on me. It explained
to me the de nition and the difference between the, where I used to use this words in place of
each other.

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