Organizational Identity as Moral Philosophy: Competitive Implications for Diversified Corporations

This chapter argues that organizational identity (01) can, in some circumstances, be a source of competitive advantage for firms. This chapter also argues that, as the level of diversification in a corporation increases, 01 must be defined in increasingly abstract terms. One way firms can define an abstract identity is as moral philosophy-statements of right and wrong around which employees can rally and which can influence a broad range of business decisions. In this sense, 01 as moral philosophy can become a source of sustained competitive advantage for firms.