Category: Business Ethics

By Posted on Posted in Business Ethics Tagged with , ,

Breaking news: Bernard Madoff was sentenced to 150 years in prison for his $50 billion fraud/Ponzi scheme.

Proving, yet again, that crime really doesn’t pay. He may have lived high on the hog, but he’ll spend the rest of his life and rather less comfortable circumstances. My heart goes out to all those scammed by him, and especially the many philanthropy and social change organizations that invested with him, whose missions are substantially compromised by Madoff’s evil deeds.

Want a better way? My award-winning sixth book, Principled Profit: Marketing That Puts People First, shows how to thrive and succeed as an ethical business. The Ponzi stuff never works in the long term–but my strategies do.

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By Posted on Posted in Business Ethics, Ethics-International, Uncategorized

I love it that just about every scientific study ever conducted validates the opinions I’ve been expressing (without research stats to back me up) for years.

Here’s a fabulous study from Australia on whether ethics matters to employees. Conclusion: ethics does matter, big time:

* 84% of individuals believe being responsible environmentally is included in the definition of business ethics.

* A staggering 93% of individuals believe that organisations have an obligation to act ethically even if it occasionally harms their profits.

* And 91% agree that all organisations should make a formal commitment to acting ethically.

* 80% of individuals agree that they are willing to put in extra effort at work if they know that their organization is run ethically.

* 77% agree that if their employer acted in a way that contradicted their core principles, they would definitely leave the organization.

So, if you want some hard facts to back up the idea that ethics works better, here you go.

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By Posted on Posted in Business Ethics, Energy & Sustainability, Media Ethics, Social and Economic Justice, Transparency vs. Secrecy

Very disturbing article on Total Health Breakthroughs about a deliberate campaign by Merck to intimidate, defund ,and otherwise make life miserable for doctors who dared to speak out about the nasty and sometimes-lethal side effects of Vioxx.

I am not in a position to evaluate the claims this article makes, but if there’s any truth to it at all, we’ve got yet another very serious problem in our health care system.

Isn’t it time we put actual healing in front of corporate profits? And isn’t it time that drug companies and others are held responsible for the consequences of their products–and their strategies?

If you’re in the US, tell your representative in Congress to support HR 676, the Medicare for All bill.

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By Posted on Posted in Abundance and Prosperity, Business Ethics, Energy & Sustainability, People Helping People, Social and Economic Justice Tagged with , , ,

When are sustainability measures real, and when are they a counterproductive waste of time and money?

That was one of a several very interesting questions posed by Dean Cycon, CEO of Dean’s Beans and award-winning author of Javatrekker: Dispatches from the World of Fair Trade Coffee (Chelsea Green, 2007).

Dean’s Beans uses only organic fair-trade coffee and cocoa, typically pays farmers well above the fair-trade minimum while still keeping consumer prices very affordable, and reinvests substantial profits into locally governed sustainability/economic development projects in the communities that supply his coffee. He’s also perhaps the business person with the highest integrity that I’ve ever encountered.

Not surprisingly, his revenues and profits have grown every year, despite the recession.

In a speech to small business owners in Massachusetts, Cycon described how he had decided not to invest thousands of dollars in a more eco-friendly liner for disposable coffee cups, that in a year would keep about a basketball’s worth of plastic out of the landfill on a year’s volume of 100,000 cups. It didn’t make either economic or environmental sense, he said.

On the flip side, Cycon was asked to be the organic coffee supplier when Keurig introduced its wildly popular single-serve coffee makers. He looked at the machine, was disturbed by the large amount of plastic that would be consumed, and suggested to the engineers that they redesign it more sustainably, replacing the disposable plastic containers with biodegradable ones made of the same thick paper used to make egg cartons. When the company declined, he refused to supply the coffee, a decision that cost him millions of dollars, but which still feels like the right decision to him. He’s actually looking to develop a competing model that would be more eco-friendly.

Cycon has also been an agent of change within the coffee industry, challenging companies like Starbucks and Green Mountain to up their percentage of fair-trade sources, and to make much larger donations to village sustainability programs in the coffee lands: $10 million to his $10,000, in one case.
On the fair trade issue, he points out that if a large coffee roaster sources four percent from fair-trade co-ops, that could mean 96 out of every 100 farmers are not making a living wage.

His challenge to business in general? Bring CSR and sustainability “deeply into your business” as an integral part of decision-making, and don’t just tack it on at the end. With that attitude, Cycon believes companies can influence their vendors, their customers, and other stakeholders to take many more sustainability steps: from convincing UPS to use biodiesel trucks in the fleet to biodegradable paper from their label supplier.

Award-winning author of Principled Profit: Marketing That Puts People First and seven other books, Shel Horowitz writes and speaks on driving success through environmental sustainability, business ethics, cooperation (even with competitors), attitude, and extreme service. He is the founder of the international Business Ethics Pledge.

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By Posted on Posted in Business Ethics, Ethics in Government, General Commentary, Marketing Trends/News, Media Ethics, Politics, Shel's Personal Life, Social and Economic Justice Tagged with , , , , , ,

Been spending some time on Huffington Post this morning, always a fascinating place. Here’s some of what I’ve been reading:

Oregon’s Senator Jeff Merkley on Republican strategist Frank Luntz’s plan to derail health reform. What he doesn’t talk about is single-payer, which I believe could engage the strong support of the American people and roll right over all the roadblocks put there by industry lobbyists–while piecemeal “reform” would gain no such support. I do not understand why mainstream Democrats aren’t pushing this issue. It’s key to a raft of economic boosts that would help, for instance, both US automakers and labor. It’s little-talked-about that because most governments around the world, at least in developed nations, provide a real health care service, foreign competitors to GM, Ford, and Chrysler aren’t stuck with that enormous cost.

Robert Borosage on the general climate of business corruption in Washington. And on how that corruption has caused us to fail in such areas as mandatory sick leave, which then in turn makes the “stay home” response to swine flu impractical for those at the bottom of the ladder, who might lose their jobs and would certainly lose their pay.

Apparently some right-wing pundits have nothing better to do than attack Obama as elitist because–are you sitting down?–he likes Grey Poupon or Dijon mustard on his burgers! Give me a break! You can buy the stuff for two dollars a bottle at a discount store, and it sure does taste a lot better than the yellow glop that’s largely turmeric. I say unto them: get a life!

Stephen Colbert’s very funny video spoofing the big too-big-to-fail bailouts; no commentary necessary from me

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By Posted on Posted in Business Ethics, Ethics in Government, Ethics: General, Marketing Techniques and Philosophies, Shel's Personal Life, Social and Economic Justice Tagged with , , , , ,

Although I’m a strong advocate of same-sex marriage, and have attended a number of gay and lesbian ceremonies long before they were legal in any U.S. state, I am very disturbed by a ruling of New Mexico’s Human Rights Commission that a photography studio, Elane Photography (owned by Elaine Huguenin and Jonathan Huguenin, was not within its rights to decline a job photographing a same-sex wedding. (That link is to the NPR story–scroll down–and in the midst of the coverage is a link to download a PDF of the actual decision.) And the photography studio is to pick up $6,637.94 in plaintiff’s legal fees!

The decision quotes the actual e-mail correspondence, which was civil, measured,not the least bit threatening, and simply stating that the couple did not choose to photograph same-sex weddings.

When someone contacts me regarding my copywriting/consulting services, I send back an e-mail response that includes the following:

Please note that I reserve the right to reject a project if I feel I’m not the right person for it. This would include projects that in my opinion promote racism, homophobia, bigotry or violence–or that promote the tobacco, nuclear power, or weapons industries–or if I do not feel the product is of high enough quality that I can get enthusiastic about it.

In other words, I am putting out my values and stating clearly that I will not accept projects in conflict with my values. I have in fact occasionally turned down projects because they were promoting causes I actively disagree with. And in my award-winning sixth book, Principled Profit: Marketing That Puts People First, I even have a section called “When to Say No to a Sale.”

While the values of these photographers are not my values, I think they, too, should have the right to turn down projects that violate their particular beliefs. I feel this on both ethical and practical grounds: the truth is, when someone takes on a project in conflict with deep internal values, that person won’t turn in good work.

I support their right to not be hired to perform their art for a cause they disagree with; this is not a public accommodation, such as a restaurant or hotel denying service. It is not a job discrimination issue, but a self-employed couple in the creative arts choosing not to be hired by a prospective client.

It would be a sad day indeed if someone were to compel me to write propaganda for, say, a homophobic organization, or a company whose primary product is nuclear weapons.

I don’t know if there’s any appeal process for the New Mexico board, but I certainly hope there is. Something is very definitely rotten in this decision.

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By Posted on Posted in Business Ethics Tagged with , , ,

Yesterday’s edition of Christopher Baauer’s Weekly Ethics Thought newsletter bore a startling statistic:

43.8% of the surveyed companies said they would not refer uncovered fraud to law enforcement due to fears of bad publicity.

Wow! So these companies are potentially throwing away millions of dollars because they’re too ashamed of the bad press they’d receive.
Like Bauer, I say avoid the problem in the first place by having strong ethics programs in place from the get-go.

Of course, in my award-winning sixth book, Principled Profit: Marketing That Puts People First, I make the case that strong ethics can actually be a profit center–but we’ll cut the bean-counters some slack and demonstrate that at least a culture of ethics has significant cost-control advantages.

His article isn’t on the Web, but here’s a link to Bauer’s site.

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By Posted on Posted in Business Ethics, Energy & Sustainability, Publishing Tagged with , , , , ,

In 2002, when I was writing my award-winning sixth book, Principled Profit: Marketing That Puts People First, a lot of the ideas in it were way out in front of the pack. Not a lot of people were talking about corporate environmental sustainability, and pretty much no one was talking about success through business ethics.

I spent a lot of time this weekend editing the manuscript for my eighth book, Guerrilla Marketing Goes Green (which will be published about a year from now by Wiley, and co-authored with the legendary Jay Conrad Levinson). And I was struck once again by how much these issues have moved into the general discourse. It’s so easy to find sources now! Everyone’s talking about sustainability, and business ethics has a lot more street cred than it used to.

Of course, no one ever really knows what takes a radical idea and pushes it to become a trend–but I like to think that my work, and particularly the Business Ethics Pledge campaign I started in 2004, has at least something to do with the shift. The whole idea of that campaign is to move the ideas through a small number of influencers and create a “tipping point” within society. We certainly haven’t reached the tipping point yet, but I think we might be seeing some of the early rumbles.

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By Posted on Posted in Business Ethics Tagged with , ,

Someone on a forum I belonged to posted a really great article. The only problem was, it looked like the poster hadn’t gotten permission.

As entrepreneurs, we need to be careful to respect the intellectual property rights of other entrepreneurs, and that includes writers, musicians, photographers, etc. It is often not difficult to get reprint permission (I have over 1000 reprinted articles on https://www.frugalmarketing.com and https://www.frugalfun.com, and I have permission for every single one. To simply place a whole article and not get permission or give credit to the source, is an act of theft, called plagiarism. But even if you give credit, if you don’t have permission, it’s still theft. And yes, that includes throwing together a scraped-content computer-powered website to try to get ad revenue from someone else’s content without asking. If you published a book, you wouldn’t want someone taking your hard work and publishing their own edition.

Remember this: when you steal from those of us who create intellectual property for our livelihood, you not only take away our ability to make a living just as surely as you would if you shoplifted goods from our stores, but you also take away the incentive for us to keep creating the things that make the world beautiful, intersting, and well-informed.

I’m sure the person who posted was not acting out of malice but of ignorance. Many people don’t think of reprinting an article as stealing, just like they don’t think throwing a toxic cigarette butt on the ground is littering. It’s totally appropriate to quote the first paragraph or two, mention some key points in the article (in your own words), and post a link–or to go get permission from the author, who’s usually pretty easy to find online.

Let’s not do things that come back to haunt us.

Note: I have posted a whole bunch of articles about business ethics on my ethics site, PrincipledProfit–and yes, I have permission for all of those as well. I’ve also written an award-winning book on success through business ethics: Principled Profit: Marketing That Puts People First.

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By Posted on Posted in Business Ethics Tagged with , , ,

Very interesting discussion at LinkedIn on when it is or isn’t OK to pay referral fees. I don’t believe you have to be a member to see the discussion though you do if you want to make a comment (might have to join the group first, I don’t know).

Here’s my take.

When colleagues refer new business to me, I offer them a choice: commissions or “karma points” (good vibes and my thanks). As a copywriter, I get referrals from designers, complementary service providers, etc. I am comfortable with whichever they choose and see no ethical problem in my industry with paying a referral fee, any more than I do in paying a commission when someone sells a physical product.

However, there are industries where cash payments could easily be problematic if not disclosed, not just because of regulations but also because of ethics. The financial services field strikes me as a place to be particularly upfront, as with any companies providing services to elders, disabled people, or others in a position of vulnerability. And the issue of someone within a company referring to another part of the company is another place to be very upfront.

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