Tanya, Part I; Likkutei Amarim 13:6

Hook

Founders, let's cut to the chase. You're building something, and the inherent tension in that is the constant battle between what is and what could be. Your vision is the North Star, but the daily grind, the compromises, the sheer force of inertia, can feel like a wrestling match with your own nature. This isn't just about external competition; it's about the internal one. Are you a "wicked" founder, driven by pure ambition and potentially short-sighted gains? Or are you a "righteous" founder, so consumed by your mission that you've transcended all personal impulses? The Tanya, in its profound wisdom, paints a picture of the "intermediate person" – the benoni. This is where most of us, and most of our ventures, truly live. It’s the founder who isn't a saint but isn't a villain either. They have a potent "evil nature" craving worldly pleasures, but also a "divine soul" striving for higher purpose. The dilemma? How do you, as a leader and as a human, navigate this internal tug-of-war to ensure your company, and your leadership, consistently leans towards the good, the truthful, and the fair, even when the easier path beckons? This isn't about achieving perfection overnight; it's about a disciplined, ongoing arbitration.

Text Snapshot

"intermediate people are judged by both [the good and evil natures], for it is written, ‘When He stands at the right of the destitute to deliver him from the judges of his soul.’...where the evil nature gains any control and dominion over the “small city,” even though but temporarily, one is at such times deemed “wicked.” The evil nature [in the benoni], however, is no more than, for example, a magistrate or judge who gives his opinion on a point of law, yet it is not necessarily a final decision to be implemented in deed, for there is another magistrate or judge who is contesting this opinion. It is, therefore, necessary to arbitrate between the two, and the final verdict rests with the arbitrator."

Analysis

This passage from Tanya offers a powerful framework for ethical decision-making in the entrepreneurial arena. It’s not about abstract morality; it’s about actionable principles that directly impact your bottom line through reputation, team cohesion, and sustainable growth. We can distill three core decision rules from this text:

Insight 1: Fairness as Active Arbitration, Not Passive Acquiescence

The Tanya states, "where the evil nature gains any control and dominion over the 'small city,' even though but temporarily, one is at such times deemed 'wicked.'" This is a stark warning against the unchecked pursuit of self-interest, which in business translates to prioritizing short-term gains over fair dealings. The "small city" is your organization – your team, your customers, your partners. When your "evil nature" (read: unchecked ambition, pressure to meet unrealistic targets, or a desire for quick wins) gains control, even for a moment, it compromises the integrity of the entire enterprise. This isn't just about legal compliance; it's about the spirit of fairness. The text contrasts this with the benoni's state: the evil nature is like a "magistrate or judge who gives his opinion on a point of law, yet it is not necessarily a final decision to be implemented in deed, for there is another magistrate or judge who is contesting this opinion." This is the core of ethical business: the constant arbitration between the impulse for personal or immediate gain and the obligation to act justly.

• Decision Rule: Before any decision is finalized, ask: "Is this decision being driven by an immediate impulse for profit or power, or has it been thoroughly arbitrated against principles of fairness to all stakeholders (employees, customers, suppliers, community)?" Recognize that even a temporary lapse in fairness can damage your reputation, which is a significant intangible asset.
• Metric Proxy: Track customer complaint resolution times and sentiment scores. A rising trend in complaints or negative sentiment, especially those related to perceived unfairness, can be an early indicator of the "evil nature" gaining dominion.

Insight 2: Truth as the Unwavering Standard, Not a Negotiable Tactic

The text emphasizes the struggle between the "evil nature" and the "divine soul." The "evil nature" craves "all the pleasures of this world," which in business can manifest as cutting corners, embellishing claims, or withholding crucial information to gain an advantage. However, the Tanya asserts that the divine soul, aided by divine light, illuminates the intellect to "gain the upper hand and mastery over the folly of the fool and evil nature." This "folly" is precisely the temptation to deviate from truth. The passage later contrasts the temporary nature of the benoni's good impulses with the tzaddik's "true service" which is "established forever," unlike a "lying tongue." In business, this translates to the fundamental importance of radical transparency and honesty, even when it's difficult or inconvenient. Embellishing product capabilities, misrepresenting financial projections, or being opaque about company challenges are all forms of the "lying tongue."

• Decision Rule: In all communications – internal and external – ask: "Is this statement factually accurate and demonstrably true, or is it an attempt to create a more favorable impression that deviates from reality?" If the answer leans towards the latter, pause and re-evaluate. The long-term trust built on unwavering truth far outweighs any short-term benefit from deception.
• Metric Proxy: Monitor employee feedback on transparency and trust in leadership. An anonymous survey question like, "I believe leadership is consistently transparent with information, even when it's difficult," can serve as a leading indicator.

Insight 3: Competition as a Test of Integrity, Not an Excuse for Compromise

The Tanya describes the "evil nature" in the benoni as being in "innate strength, craving after all the pleasures of this world." In a competitive market, this "craving" can push founders to adopt aggressive, unethical tactics to outperform rivals. The text’s core message is that the divine soul, through intellect and divine aid, must gain "supremacy and dominion." This means that even in a cutthroat environment, your competitive strategy must be governed by your ethical principles, not the other way around. The "external judges" of the market (competitors) should not dictate your internal moral compass. The notion that "everyone else is doing it" is precisely the manifestation of the evil nature seeking to justify its actions. True strength in competition comes not from unethical shortcuts, but from superior execution, innovation, and ethical positioning.

• Decision Rule: When faced with competitive pressure, ask: "Are we considering actions that, while potentially effective, violate our core ethical commitments? Can we win by out-innovating and out-serving, rather than by undermining or misleading?" The "white space" for ethical advantage is often overlooked when founders are solely focused on beating the competition at their own game.
• Metric Proxy: Track your Net Promoter Score (NPS) and compare it to industry benchmarks. A consistently high NPS, especially when your competitors have lower scores, indicates that your ethical approach to business is resonating with customers and creating a competitive advantage.

Policy Move

Implement a "Truth in Packaging" Policy with a Mandatory Review Stage.

This policy will address the core tension between expediency and truthfulness.

• Policy Description: All external-facing materials, including marketing collateral, sales scripts, product descriptions, investor pitch decks, and public statements, must undergo a mandatory ethical review before dissemination. This review process will be overseen by a designated ethics champion (potentially an HR lead or a board member with an ethics focus, or even a rotating senior leader). The review will specifically assess claims for accuracy, completeness, and potential for misinterpretation. The goal is to ensure that all representations are not just technically true, but also ethically communicated, avoiding exaggeration or omission that could mislead. The policy will explicitly state that the "evil nature" of wanting to make things sound better than they are is to be actively challenged by the "divine soul" of factual integrity.
• Process Integration: This review stage will be integrated into the existing product launch and marketing campaign approval workflows. For instance, a marketing campaign cannot be approved for public release without a sign-off from the ethics reviewer confirming adherence to the "Truth in Packaging" policy. This adds a crucial deliberation step, mirroring the arbitration process described in the Tanya, ensuring that the "opinion" of expediency is contested by the "opinion" of truth.
• Training: All employees involved in creating external communications will receive training on the "Truth in Packaging" policy, emphasizing the importance of accurate representation and the potential long-term damage of even minor ethical lapses. This training will draw parallels to the Tanya's concept of the benoni's internal struggle and the need for conscious effort to uphold truth.

Board-Level Question

Given the Tanya's description of the benoni as an individual whose "evil nature is no more than, for example, a magistrate or judge who gives his opinion on a point of law, yet it is not necessarily a final decision to be implemented in deed," how do we, as a board, ensure that our strategic decisions and operational execution are consistently subject to rigorous ethical arbitration, preventing even temporary dominance by short-term impulses or competitive pressures from compromising our long-term commitment to fairness and truth, thereby safeguarding the "small city" of our company from potential reputational damage and ensuring sustainable, principled growth?

Takeaway

The benoni isn't a cautionary tale of failure, but a realistic depiction of the human and organizational condition. Your company, like the benoni, is in a constant state of internal arbitration. The key is not to eliminate the "evil impulse" – that's unrealistic and, frankly, misses the point. Instead, it's to build robust systems and cultivate a leadership culture that actively arbitrates, ensuring that fairness and truth, aided by a higher purpose, consistently gain the upper hand. This isn't just good ethics; it's good business.