Page 317 - Ray Dalio - Principles

we will have many fewer disputes about who is offending
whom.

Still, judgments will have to be made and lines will have to
be drawn and set down in policies.

This is the overarching guideline: It is more inconsiderate
to prevent people from exercising their rights because you are
offended by them than it is for them to do whatever it is that
offends you. That said, it is inconsiderate not to weigh the
impact of one’s actions on others, so we expect people to use
sensible judgment in not doing obviously offensive things.
There are some behaviors that are clearly offensive to many

people, and it is appropriate to specify and prohibit them in
clear policies. The list of those specifics, and the policies
pertaining to them, arise from specific cases. Applying this
principle to them is done in much the same way that case law
is created.

b. Make sure that people understand the difference between fairness and
generosity. Sometimes people mistake generosity for not being

fair. For example, when Bridgewater arranged for a bus to
shuttle people who live in New York City to our Connecticut
office, one employee asked, “It seems it would be fair to also
compensate those of us who spend hundreds of dollars on gas
each month, particularly in light of the New York City bus.”

This line of thinking mistakes an act of generosity for some for
an entitlement for everyone.

Fairness and generosity are different things. If you bought
two birthday gifts for two of your closest friends, and one cost
more than the other, what would you say if the friend who got
the cheaper gift accused you of being unfair? Probably
something like, “I didn’t have to get you any gift, so stop

complaining.” At Bridgewater, we are generous with people
(and I am personally generous), but we feel no obligation to be
measured and equal in our generosity.

Generosity is good and entitlement is bad, and they can
easily be confused, so be crystal clear on which is which.
Decisions should be based on what you believe is warranted in
a particular circumstance and what will be most appreciated. If

you want to have a community of people who have both high-