Notes on The Sadhu: Ethics, Leadership, and Corporate Culture
Context and Source
Parable discussed by Bowen H. McCoy, a Morgan Stanley managing director and president of Morgan Stanley Realty, Inc.; an ordained ruling elder of the United Presbyterian Church.
Original publication: Harvard Business Review, September-October 1983.
Central vignette: during a Himalayan climb, a dying sadhu (an Indian holy man) is found on an ice slope at high altitude; the group must decide whether to help and how much responsibility they bear.
Broader theme: the differences between individual ethics and corporate ethics, and what this means for leaders and organizations.
The parable is used to illustrate how ethical decisions unfold under stress and in a cross-cultural, high-stakes context, with implications for business practice and organizational culture.
The Nepal Trek and the Sadhu Incident
McCoy spent the first three months in Nepal as part of a six-month sabbatical program, walking about miles through villages and climbing vertical feet during the Himalayas segment.
A Western companion, an anthropologist, helped illuminate cultural patterns of the villages encountered.
The trek was arduous: a high pass at needed to be crossed before the ice steps melted; the wettest spring in 20 years added danger (hip-deep powder and ice formed from melt).
Pre-existing risk: McCoy had previously suffered pulmonary edema at near Everest base camp, heightening concern about altitude exposure.
The group assembled overnight at a hut at ; the last village was two days below, making concerns about crossing the pass even more pressing.
Early morning departure at to beat sun-melted ice; the New Zealanders led, followed by McCoy and Stephen, the porters and Sherpa guides, then the Swiss; the Japanese lingered behind.
Encounter: a nearly naked, barefoot sadhu, found severely hypothermic, lying on the ice with a body slung over another climber’s shoulders; the New Zealander dumped the body at McCoy’s feet and urged the group to move on.
Immediate reality: the sadhu was alive, with a detectable carotid pulse; there was recognition that the sadhu had wandered off his usual pilgrimage route to Muklinath and was now in danger of death due to exposure on the pass.
The New Zealander’s reaction: frustrated that aid was delaying the ascent; insisted the group move ahead despite the sadhu’s condition.
Initial respondent actions: the four Swiss climbers began removing outer clothing and sharing packs; the sadhu was clothed, warmed, and cared for as best as possible on the slope; the Sherpas carried the sadhu down to sunlit rock at about ; the Japanese provided food and water; later the sun and human actions helped sustain the sadhu.
The sadhu’s status: “not dead” at that moment, but the future remained uncertain; the group did not yet know the ultimate outcome.
The group’s subsequent debate: Stephen, a committed Quaker with deep moral vision, framed the incident as a breakdown between the individual ethic and the corporate ethic; the group had acted in a way that avoided personal responsibility.
The Ethical Dilemma: Individual vs Corporate Ethics
Stephen’s core claim: the incident illustrates a breakdown where individuals are willing to help only to the extent it is not inconvenient; nobody takes ultimate responsibility for the sadhu.
The narrator’s defense of the group: everyone did their “bit” (New Zealander helped lower the sadhu; McCoy checked pulse and suggested hypothermia treatment; Swiss helped with clothing; Japanese provided food; Sherpas guided them to the sunlit area).
Stephen’s critique: the group’s actions resemble throwing money (food, sweaters) at a problem rather than solving the fundamental ethical issue.
Key question: What would satisfy ethical obligation in a collective crisis where personal safety and collective risk are at stake?
The conversation highlights the tension between personal safety and moral responsibility in the context of a larger, powerful group.
Stephen’s Framework for Moral Obligation
Stephen articulates three conditions under which collective obligation would be satisfied:
the sadhu dies in our care,
the sadhu demonstrates to us that he could undertake the two-day walk down to the village,
we carry the sadhu for two days down to the village and convince someone there to care for him.
The narrator’s practical assessment: leaving the sadhu in the sun with food and clothing while the group considers the two conditions might come close to (1) and (2) but would not fulfill (3); taking the sadhu to the village appeared impractical given the villagers’ perceived lack of care and the group’s own limits.
The exchange probes whether a temporary solution (getting across the pass) can justify failing to fulfill deeper ethical obligations.
The moral question: should the group have altered its entire plan to prioritize the sadhu, or was such a change beyond what the group could responsibly undertake?
The Limits of Individual and Corporate Ethics under Stress
McCoy notes that stress can test personal and corporate values more than calm conditions do; adrenaline, a superordinate goal, and a once-in-a-lifetime experience influenced decision-making.
He asks: What are the practical limits of moral imagination and vision? Is there a collective or institutional ethic beyond the ethics of the individual?
Not all dilemmas have a single “right” solution; reasonable people may disagree, yet business contexts require a process for handling dilemmas.
The Himalayan incident underscores the immediate, non-reschedulable response required in a crisis—unlike philosophy, business demands action and implementation.
The lack of a pre-existing decision-making process contributed to the group’s instinctive, disjointed reactions.
Group Dynamics, Leadership, and the Role of Culture
The cross-cultural nature of the group added complexity; there was no leader everyone could identify with or trust to lead a moral decision.
Stephen was willing to take charge, but could not secure adequate support to care for the sadhu; the Sherpas refused to risk the group’s safety, and the Japanese and other groups did not decisively shoulder responsibility.
The situation illustrated how a value system beyond personal inclinations can stabilize actions under stress.
McCoy distinguishes between groups that have a shared value system and those that do not. Values serve as a positive force, not merely a constraint.
The absence of a shared corporate culture makes a company vulnerable under stress because individuals may retreat to self-protection rather than act in concert with organizational values.
In contrast, organizations with strong cultures tend to rally around common goals and resist “bail out” dynamics during crises (e.g., costly takeovers when individuals are anchored by shared ethics).
Corporate Culture, Values, and the Leadership Challenge
Core claim: corporate ethics is not just compliance with rules but authenticity and integrity of the enterprise, aligning the corporation’s goals with the owners, employees, and customers.
Leaders are the interpreters and managers of the corporate value system; effective managers are action-oriented, tolerate ambiguity, handle stress and change, and maintain a clear sense of purpose.
Corporate culture can transmit values through stories, legends, and heroes more effectively than formal policies; some firms hire consultants to audit their culture.
The question arises: can a “professional manager” carry the values of one organization into another, or even manipulate the values of others to fit different corporate cultures?
McCoy muses on the idea of “fungible” managers who move between companies; the ethical implications of transplanting or manipulating culture remain contested.
He suggests that leadership should enable individuals to feel supported by the organization so they can act in line with shared values, rather than rely solely on personal virtue in isolation.
Practical Implications for Managers and Organizations
A manager must be able to confront risk and not run from difficult situations; this requires an agreed-on process and a set of shared values to guide decisions.
When organizations face stress, those with a well-defined corporate ethos can coordinate action and maintain cohesion, rather than letting the “buck” be passed among players.
The article emphasizes developing a process for decision-making in dilemma situations, rather than ad hoc, instinct-driven responses.
The role of leadership includes fostering an environment where individual needs are recognized and shaped to align with the group’s mission, thereby maintaining a robust corporate culture.
The idea of corporate culture includes a balance between individuality and group cohesion: individuals should feel that their personal values are respected and that they contribute to a shared purpose.
Reflections on Ethics, Society, and Leadership
The author contemplates whether the “lower path” (the ambiguous, ethically murky option) can be navigated successfully when there is a clear purpose and a supportive group, or whether a strong leader is essential to reveal the greater purpose of a journey.
Stephen’s pessimism about the decline of the individual’s role in large organizations is countered by the claim that corporate culture can preserve individuality while enabling collective success.
The author argues that the ethical life of a manager requires transparency, consistency, and an alignment of personal and corporate values; indecision can be as damaging as a wrong decision.
The emotional and moral weight of the sadhu incident persists for all involved; the author emphasizes that readers should reflect on the role of their own organizations and their personal responsibilities within them.
The piece connects to broader discussions of organizational sociology, including corporate stories, legends, and the idea that ethics is embedded in daily practices and narratives within a company.
Key Takeaways and Final Questions
Immediate action in crises is necessary, but action must be guided by a shared ethical framework; absence of such a framework leads to ad hoc decisions and moral ambiguity.
A robust corporate culture provides a platform for individuals to act ethically under stress, aligning personal values with organizational goals.
The “sadhu” serves as a metaphor for ethical responsibility in organizations: individuals must decide whether to prioritize personal safety, group goals, or higher moral commitments—and the group must support those decisions with a coherent framework.
Leaders should cultivate and protect organizational values so that employees feel empowered and accountable to a shared mission, rather than relying solely on personal virtue in isolation.
The piece invites reflection on broader questions: How far should a group go to help someone in need? What are the limits of organizational responsibility? How can a leader reconcile cross-cultural differences with a universal set of ethical standards?
For readers seeking deeper analysis, the article points to Robert Jackall’s Moral Mazes: Bureaucracy and Managerial Work, beginning on page 118 of this issue.
Numerical References and Formulas
Key elevations and distances mentioned:
Crossed pass at above sea level.
Trek total: in Nepal/Himalayas.
Longitudinal hike: about .
Vertical gain during Himalaya portion: .
Hut altitude near the incident: .
Sandhi or resting point at 15,500 ft: .
The time of ascent: departure.
Practical ethical condition proposed by Stephen (as a compact mathematical-like statement):
These conditions summarize the threshold at which collective responsibility would be deemed fulfilled, according to Stephen.
Connections to Foundational Principles
Links to organizational behavior theories about corporate culture, shared values, and the role of stories in transmitting norms.
The essay connects ethical theory with real-world decision-making under stress, highlighting the practical need for structures that guide action in crisis situations.
Ethical leadership is framed as the ability to articulate and uphold a common mission while supporting individual members within the group.
References and Further Reading
Bowen H. McCoy, The Sadhu (Harvard Business Review, 1983).
Stephen, the Quaker interlocutor, whose perspectives on ethics bridge personal virtue and organizational responsibility.
Robert Jackall, Moral Mazes: Bureaucracy and Managerial Work (references to the broader discussion on ethics in organizations).
McCoy’s later reflections on corporate ethics and leadership in relation to personal experience on the Himalayas and in business settings.
Context and Source
This story comes from Bowen H. McCoy, a business leader and church elder.
It was first published in Harvard Business Review in 1983.
The main story is about a dying holy man (sadhu) found during a climb in the Himalayas; a group of climbers has to decide how much to help him and who is responsible.
The bigger idea: it shows the difference between personal good choices and group good choices, and what this means for leaders and companies.
The story helps explain how people make tough choices when they are stressed, in a different culture, and facing big risks. This has lessons for how businesses should act.
The Nepal Trek and the Sadhu Incident
McCoy spent three months in Nepal, walking about miles, visiting villages, and climbing feet in the Himalayas.
A friend, an anthropologist, helped him understand the local cultures.
The journey was very hard: they had to cross an mountain pass before the ice melted, and it was the wettest spring in years, making it even more dangerous (deep snow and melting ice).
McCoy was already at risk because he had gotten sick from high altitude (pulmonary edema) before at , so he was worried about going high up again.
The group slept in a hut at ; the closest village was two days away, making it urgent to cross the pass.
They left early at to avoid the sun melting the ice; first were the New Zealanders, then McCoy and Stephen, then the porters and Sherpa guides, then the Swiss; the Japanese were last.
What happened: They found a sadhu, almost naked and freezing, lying on the ice; another climber was carrying him. A New Zealander dropped the sadhu at McCoy’s feet and told everyone to keep moving.
The sadhu was alive, with a heartbeat; it was clear he had strayed from his usual religious path and was now in danger of freezing to death.
The New Zealander was annoyed that helping was slowing them down and insisted they go on.
First actions to help: The four Swiss climbers gave him clothes from their bags; they got him warm and helped him as much as possible; the Sherpas carried him down to a sunny rock at about ; the Japanese gave him food and water; the sun and their actions helped him stay alive.
The sadhu was “not dead” right then, but no one knew if he would survive later.
What the group argued about later: Stephen, a very moral Quaker, said the event showed a problem between what individuals thought was right and what the group did; he felt the group avoided truly taking responsibility.
The Ethical Dilemma: Individual vs Corporate Ethics
Stephen’s main point: People were willing to help only if it wasn't too much trouble; no one took full responsibility for the sadhu.
McCoy’s defense: Everyone did something (New Zealander moved him; McCoy checked him; Swiss gave clothes; Japanese gave food; Sherpas moved him to the sun).
Stephen’s criticism: The group’s actions were like just throwing small things (food, sweaters) at a problem instead of really solving the moral issue.
Big question: What would truly count as fulfilling a moral duty when personal safety and group risk are involved in a crisis?
This discussion shows the conflict between staying safe yourself and helping others when you’re part of a bigger group.
Stephen’s Framework for Moral Obligation
Stephen said the group’s shared duty would only be met if:
the sadhu died while they were caring for him,
the sadhu showed them he could walk for two days down to the village by himself, or
they carried the sadhu for two days down to the village and found someone there to care for him.
McCoy’s practical view: Leaving him in the sun with food and clothes might be close to (1) or (2), but it wouldn’t be (3); taking him to the village seemed impossible because the villagers might not care, and the group had its own limits.
The conversation explored if a quick fix (crossing the pass) was okay, even if it meant not doing a deeper good deed.
The moral question: Should the group have changed its entire plan for the sadhu, or was that too much to ask?
The Limits of Individual and Corporate Ethics under Stress
McCoy noted that stress reveals true values more than calm times; adrenaline, a main goal, and a once-in-a-lifetime journey affected how they decided.
He asked: How far can our sense of right and wrong go? Is there a group ethic that is bigger than just what each person thinks is right?
Not all hard choices have one simple “right” answer; smart people can disagree, but businesses still need a way to handle these problems.
The Himalayan event showed that in a crisis, you have to act immediately, unlike philosophy, business needs decisions and action.
The group didn’t have a plan for making decisions beforehand, which led to their disorganized reactions.
Group Dynamics, Leadership, and the Role of Culture
The group had people from many different cultures, which made things harder; there was no one leader everyone trusted to make a moral choice.
Stephen wanted to take charge, but couldn't get enough help to care for the sadhu; the Sherpas wouldn't risk the group's safety, and the Japanese and other groups didn't fully take responsibility.
This showed how a shared set of beliefs, beyond personal feelings, can help people act together in tough times.
McCoy explained the difference between groups with shared values and those without. Values help people do good things, not just stop bad ones.
Without a strong shared culture, a company can struggle under pressure because people might only look out for themselves instead of working with the company’s values.
Companies with strong cultures, however, usually work together toward common goals and don't give up easily during crises (e.g., during expensive company takeovers, if people are guided by shared morals).
Corporate Culture, Values, and the Leadership Challenge
Main idea: Company ethics is not just following rules, but about being real and honest as a whole company, making sure the company’s goals match those of its owners, employees, and customers.
Leaders explain and manage the company’s values; good managers get things done, can deal with uncertainty, handle stress and change, and have a clear purpose.
Company culture can pass on values through stories, legends, and heroes better than just through official rules; some companies even hire experts to check their culture.
A question: Can a manager move between companies and bring the values of one place to another, or even change others' values to fit a new company culture?
McCoy thought about managers who move between jobs; whether it’s ethical to move or change cultures in this way is still debated.
He believes leaders should make employees feel supported by the company so they can act according to shared values, rather than relying only on their personal morals alone.
Practical Implications for Managers and Organizations
A manager must face risks and not run from hard situations; this needs an agreed-upon process and shared values to guide choices.
When companies face challenges, those with clear team rules can work together and stay united, instead of blaming each other.
The article stresses creating a way to make decisions in tough situations, rather than just reacting without a plan.
Leaders should create an environment where individual needs are understood and molded to fit the group’s main goal, making the company culture strong.
Company culture means balancing individual freedom with group unity: people should feel their personal values are respected and that they contribute to a shared mission.
Reflections on Ethics, Society, and Leadership
The author wonders if choosing the difficult, morally unclear path can work if there's a clear goal and a supportive group, or if a strong leader is always needed to show the journey's bigger purpose.
Stephen worried that individuals were losing their importance in big organizations, but McCoy argues that company culture can keep individuality while helping the group succeed.
The author says that an ethical manager must be open, consistent, and have their personal values match the company’s values; not making a decision can be as bad as making the wrong one.
The sadhu event’s emotional and moral impact stayed with everyone involved; the author wants readers to think about their own companies and their responsibilities within them.
This piece connects to bigger ideas about how organizations work, including company stories, legends, and the belief that ethics are part of everyday actions and narratives within a company.
Key Takeaways and Final Questions
In a crisis, you need to act fast, but your actions must be guided by shared moral rules; without them, decisions are made on the spot and can be morally fuzzy.
A strong company culture helps people act ethically under pressure, making sure personal values match company goals.
The “sadhu” is a symbol for ethical responsibility in companies: individuals must choose between personal safety, group goals, or higher moral duties—and the group must support these choices with a clear framework.
Leaders should build and protect company values so employees feel empowered and responsible for a shared mission, instead of just relying on their own personal goodness.
The story makes us think: How much should a group help someone in need? What are the limits of a company’s responsibility? How can a leader balance different cultures with one set of moral rules?
For more reading, the article suggests Robert Jackall’s Moral Mazes: Bureaucracy and Managerial Work, starting on page of that same issue.
Numerical References and Formulas
Important heights and distances:
Crossed a pass at high.
The trek in Nepal/Himalayas lasted .
Walked about .
Climbed 120{,}000\,\text{ft}} in the Himalayas.
The hut where they slept was at 14{,}500\,\text{ft}}.
The sunny resting spot was at 15{,}500\,\text{ft}}.
They started climbing at .
Stephen's proposal for when their duty would be fulfilled (like a simple math statement):
These ideas show what Stephen thought was necessary to truly meet their shared moral duty.
Connections to Foundational Principles
This story links to business theories about company culture, shared beliefs, and how stories pass on rules.
The essay connects ideas about what's right with real-life choices made under pressure, showing why it’s important to have plans for how to act in a crisis.
Ethical leadership means being able to clearly state and uphold a common goal while supporting everyone in the group.
References and Further Reading
Bowen H. McCoy, The Sadhu (Harvard Business Review, 1983).
Stephen, the Quaker who argued about ethics and responsibility.
Robert Jackall, Moral Mazes: Bureaucracy and Managerial Work (more about ethics in organizations).
McCoy’s later thoughts on company ethics and leadership, based on his experiences in the Himalayas and in business.