A few years ago, we had to make a decision whether to let go one of our executives who had just settled with the SEC for insider’s training. The actions had occurred prior to him joining our firm. While a few of us thought this was the right approach, David Finn refused to let him go asking all of us: “What about the concept of forgiveness?”

The concept of forgiveness is rarely considered in the business context. Forgiveness is often relegated to religion and psychology.

However forgiveness is practice at a national level. Nations forgive nations after war. Both Germany and Japan have been forgiven for their horrendous war crimes during WWII. Rich nations forgive poor nations when they cancel their debts.

Forgiveness and reconciliation has occurred among fractural groups such as the Tutsis and Hutus, and the white and black populations of South Africa.

In our political system, the Executive branch, the President or the Governor, can grant a pardon. Pardons are granted when individuals have demonstrated that they have fulfilled their debt to society. Presidential pardons can sometimes be difficult to understand. President Ford pardoned President Nixon after the Watergate scandal. It cost him political support and possibly the election. President Clinton pardoned fugitive billionaire Marc Rich who was convicted of tax evasion and making illegal oil deals with Iran during the hostage crisis. . However both President Clinton and President George W. Bush refused to pardon Jonathan Pollard who was convicted more than 20 years ago of divulging national secrets to an ally (Israel) about a common enemy (Iraq!)

The Archbishop of Warsaw, Stanislaw Wielgus was forced to resign after it was revealed that he had collaborated with the Polish Communist secret police more than 20 years ago. Should he not have been forgiven?

In our culture, we believe that an individual is entitled to a “second chance.” An employee is rarely let go without a warning or probation. The concept of forgiveness is also demonstrated in our bankruptcy laws giving the individual or business a second chance.

Are there some criteria or minimum requirements necessary to obtain forgiveness? I can think of three.

1. Recognition of errors. We should admit our mistakes and take responsibility for our actions.
2. Remorse: We should not only “show remorse” but also actually be remorseful.
3. Reparation: We should be willing to compensate, if possible, the person or persons who were negatively impacted by our actions.

Being given a second chance can create very strong loyalty. Forgiveness is a very powerful concept that we should consider more often in the business world. As Hannah Arendt once said:

“Forgiveness is key to action and freedom.”