For seven years, Zheng Xiaoyu headed China’s Food and Drug Administration–a time in which that agency was filled with scandal, from tainted toothpaste to poisoned pet food. Both animals and people died in large numbers as a result, The New York Times reports.

Mr. Zheng, 62, has been sentenced by the Chinese government to death–not for the poisonings, but for the bribery that enabled them.

One more reason to stay honest, o ye corporate executives and government officials.

Of course, there are plenty of others–including, as I point out repeatedly in my award-winning sixth book, Principled Profit: Marketing That Puts People First, that it’s actually easier for an honest business to profit and thrive.

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Out of the blue this morning, I received a fascinating e-mail:

Hi Shel,

I’m Joel Falconer, lead singer and songwriter of the Gold Coast,
Australia-based Grok Rock band Midnight.Haulkerton. I don’t want to
bother you, but I thought you might be interested in this.

Earlier this year we came up with the idea of the Tuneback. A
Tuneback is a song recorded under the self-imposed time limit of one
hour from conception to publication (making it more of a concept or a
‘sketch’ than a complete song) and a new one must be posted once a
week, every Tuesday.

Given that most songs take weeks to go through the recording process
alone, not to mention conception and publication, it’s no mean feat,
but it’s quite a fun way to interact with an audience online and keep
us thinking.

I guess it’s a frugal, grassroots way of not only publishing music,
but creating it too!

This week I wrote the Tuneback with my good friend and colleague, NDK
Creative Artist, who said you’d know who he is and sends his regards.
He first introduced me to your work a couple of years ago, and I must
thank you for your article on frugal weddings, which helped to shave
a few pennies from my own last year.

This Tuneback was inspired by the idea of Principled Profit,
something NDK is a strong advocate of, and so am I. We are all
interested in solutions to the poor state of culture and
civilization rather than the continual whining of most mass media
(who I think cause many of the problems in the first place) and self-
pitying artists.

The fact that there is someone actively doing something about the
problem of unethical marketing is inspirational and we want to honor
you with the dedication of this song.

To which I say–go right ahead and bother me, Joel. Any time you write a song about my ideas, I’m delighted to be interrupted. I had never heard of Joel before this e-mail (although I have corresponded with NDK–we used to be on the same discussion group), and I’m impressed that I made an impact all the way to Australia–without even discussing the Business Ethics Pledge (which does have a number of Australian signers).

The song is kind of a synth/metal thing, not the sort of thing I usually listen to. But I really like the lyrics (used with his permission, of course):

Principles of Profit

The principles of profit
Say make your money in the honest way
Good work, hard work
Quality all the way
It pays
Shortcuts to profit, don’t really exist
You gotta be alive just ask Ken Lay

There’s nothing wrong with making money
There’s nothing wrong with making hay
It’s all in the way you make it
The principles of profit say
Make it the honest way

The cheating culture, full of vultures
Picking over scraps
Pluck the vultures, cook their goose
Change the cheating culture
You want to be loose, you want to be free
Live the life you want to live
We gotta keep on changing, re-arranging
So we can make profit in a principled way
There ain’t no shortcuts to profit
That’s just cutting corners to hell

There’s nothing wrong with making money
There’s nothing wrong with making hay
It’s all in the way you make it
The principles of profit say
Make it the honest way

Make honesty pay,
Make honesty pay,
Make honesty pay
Profit the principled way

I also really like the way Joel manages to refer obliquely to several of my websites and book titles in his message, subtly cueing me that he has taken the time to study my stuff a bit.

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Fedco, a cooperatively owned seed company–founded in Maine back in 1978 and specializing in serving organic growers–found itself facing an ethical dilemma when Monsanto, a company known for its experiments in genetic engineering and aggressive filing of intellectual property claims (criminalizing farmers for saving seed, even) announced it was going to buy its and best largest supplier, Seminis.

Noted for its aggressive advocacy of genetically modified crops and its dominance in biotechnology, Monsanto will now have a major presence in the vegetable seed business for the first time. No one knows if or when they will incorporate transgenes into their vegetable varieties.

The Monsanto buyout presented us with a serious ethical dilemma. In striving to carry the best possible varieties at reasonable prices, we have based our selections largely on the merits of the varieties, rarely on our supplier preferences. Could we be purveyors of Monsanto products and still sleep well at night? Many of our customers have depended upon Seminis’ good genetics. However much we may think we require these varieties in the short run, they come at a devastating social cost, ultimately the complete alienation of sower from seed.

Fedco explained a bit about Monsanto and asked its customers to choose among several options, ranging from coding the Monsanto products in its catalog to eliminating them entirely. The membership overwhelmingly voted for immediate withdrawal. So, before the merger was consummated, Fedco bought a year’s worth of Seminis seeds and announced that there wouldn’t be any more.

Will this cause a hardship? Yes. But the company has taken a principled position that I suspect will ultimately help–and the year of product it bought will buy time to experiment with different suppliers, different seed varieties.

The company’s statement on this is well worth reading. I hope to get permission to post the whole thing, but in the meanwhile, just follow the link.

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You might have missed this story in the mainstream news; on the first two pages of Google results for Wal-Mart spy, AOL, MSN, and CNN were the only U.S. mainstream sources listed; they picked up the story from the Reuters wire, which means it was accessible to every news outlet in the world.

You can read the original WSJ piece, as reproduced on MSN, here.

But most of the returns were from places like Huffington Post, Consumerist.com, and wakeupwalmart.com–the “usual suspects” on the Left.

Nothing wrong with those news sources; after all, I found the story by listening to Democracy Now yesterday. And DN’s interviewee was one of two Wall Street Journal reporters who broke the story, so this one actually started in the mainstream media.

Personally, I think that when the world’s largest retailer, a force considerably larger and more powerful than many national governments, illegally wiretaps phone calls with a New York Times reporter, intercepts employee e-mail sent over networks other than its own corporate system and records their correspondents’ addresses (e.g., Hotmail and Yahoo), infiltrates opposition grassroots groups, digs up a private unlinked archive of an activist’s vacation photos in order to identify him if he tries to go to a shareholder meeting–the list of shockingly inappropriate activities goes on and on–it should be a huge story in every print and electronic medium that calls itself a news organization–and government agencies should be investigating NOW.

I even searched the New York Times site to see if that august paper had deemed that such a story–its own reporter’s telephone was tapped when he called the company–was worth a line or two in print. But a search for wal-mart spy and another for wal-mart spying brought up nothing relevant or recent (this story began to reveal itself within the last few weeks, with the most important revelations coming just this week).

Oh yes, and Wal-Mart’s wimpy statement about future behavior:

This group [the spy unit] is no longer operating in the same manner that it did prior to the discovery of the unauthorized recording of telephone conversations.

Not “we have disbanded this group.” Not “we shouldn’t have spied on people.” Just a statement that the group is reorganized (the whole letter is included in the DN article). For shame!

But don’t you think when a story like this breaks across a major newswire and originates from one of the most respected media in the world, that other media would sit up and take notice? Papers in Taiwan and Belfast thought so, but not most of the US press.

Shame on Wal-Mart, yes–but shame as well on the major media outlets who ignored this story.

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Sunil Paul has a great blog entry about how he chose to get involved with environmental technology companies first and foremost to help “green” the world, and only secondarily to make profit. The profits, of course, followed.

My favorite paragraph:

But it doesn’t have to be a choice between social and economic goals. Clean energy is like the love child of John Muir and Adam Smith. It joins environmentalism with capitalism. Cleantech companies have great value not captured by the price of the good or service. Their entire business model generates excess social return. In addition, the energy market is huge, and is ripe for change – and so the opportunity for profits is tremendous.

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My sixth book, Principled Profit: Marketing That Puts People First, challenges a lot of my assumptions in 12 years as a professional book promoter. Librarians respond positively to it in a 1:1 interaction, but not so much to fliers, etc. (I was quite pleased to discover last month that Denver Public Library stocks both Principled Profit and my earlier Grassroots Marketing: Getting Noticed in a Noisy World, since I had dropped in on the librarian on my previous visit). The mainstream media show very little interest, yet e-zine editors seem to love it. Bookstores don’t want to know it exists, but actual *readers* literally grab it out of my hands and buy it on the spot (it’s happened over and over again). It’s been much-blurbed (78 at last count) and much-reviewed.

If I can “go mystical” for a moment–here’s some speculation.

Thinking about it today, I’m wondering if the universe in some subtle ways responds to the content of books. One of several key principles in Principled Profit is marketing by building ongoing relationships, and another is that marketing is something much deeper and more powerful than the techniques discussed in most marketing books (including my own Grassroots Marketing). Principled Profit does really well when people meet me and see it.

Another principle in the book is the idea of abundance coming back to you when you are open to it. And I can trace a number of ways that has worked for me with this book:

  • Almost immediately, I started attracting a better class of client–including several who have gone on to have me shepherd their books from manuscript through production (at least two of my book packaging clients specifically cited the ethics approach as why they chose me)
  • * I have begun to attract well-paying speaking gigs on this topic
  • I became a regular columnist for a year and a half for Business Ethics magazine, which paid me to appear before my key core audience
  • I’ve just gotten my first assignment for Success magazine, about business ethics, and if they like my work, they’ve promised more
  • By contrast, The Penny-Pinching Hedonist: How to Live Like Royalty with a Peasant’s Pocketbook got phenomenal media attention (Reader’s Digest, three mentions in Woman’s Day, Bottom Line, home pages of MSN, Paypal, and AOL, among many others)–but it was a slow seller. The content of that book was all about how to afford all sorts of great lifestyle stuff without having to buy it. And just maybe the universe was saying to me, “ok, if that’s how you want to be about it…”

    The idea that the universe manifests the type of energy (and results) that you feed it is certainly not new; it’s in dozens if not hundreds of books, and is the key principle of the movie “The Secret.” But it was only this morning that I put it into focus in terms of the sales results with my own books.

    “‘Tis a puzzlement,” as the King of Siam would say.

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    I knew there was a company called jigsaw.com. I assumed it was for puzzle lovers. Then I stumbled on my colleague David Batstone’s blog entry about it. (Author of the WAG newsletter and the Right reality blog, David is another blogger on corporate ethics; I’ve been on his newsletter list for a couple of years.)

    To say I was horrified is an understatement. This company actually pays people to gather business cards and punch the information into a for-sale database!

    I don’t know about you, but I find that extremely creepy. I give a business card to someone because I’m interested in facilitating that person’s ability to stay in touch with me. As public as I am, and I’m pretty public, I don’t really want people exploiting me by selling my contact info. As it is, I am cursed, as an early adopter on the Internet, with the dubious honor of being included on every blankety-blank list of contacts that spammers buy and sell already.

    Let me say categorically that if I ever find out that someone has mined my information in that way, I would *never* do business with that person again. It is an invasion of privacy and a very bad business model.

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    An article in today’s SpeakerNet News (scroll down to “Do book testimonials work? — Ian Percy”) posits that many, if not most, book blurbs are signed by people who’ve never examined the book.

    I surely hope Mr. Percy is wrong! Certainly, when I’m asked for a book blurb I spend some serious time with the book and read at last several sections as well as the Table of Contents, index, etc. I will confess–I don’t generally read the whole thing–but I read enough of it that I can comment accurately. I find it scandalous that some people apparently consent to blurb a book without looking at it at all.

    Perhaps it hasn’t occurred to them that ultimately, it’s *their* reputation at stake as well as the author’s. To endorse a book you don’t actually believe in is asking for trouble on both moral and practical grounds.

    And when I request a blurb from someone else, I want that person to give me something based in honesty and a true appreciation of the content of the book. The blurbs I get, as a result, have enough substance that they actually do sway a sale. Yes, I believe readers can tell the difference between an honest enthusiastic blurb and a fake. (In fact, I spend some time explaining what makes a good blurb and how to get them, in my newest book Grassroots Marketing for Authors and Publishers).

    Blurbs are a crucial tool in creating a marketing buzz, and one that helps equalize the playing field between those books published by big houses and those published by small independents. Let’s not cheapen them, please!

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    The Justice Department this week agreed to ease its tough legal tactics against scandal-tainted corporations, requiring prosecutors to get approval from Washington before seeking confidential information between firms and their lawyers.

    Hmmmm. Seems like the Bush Administration is once again drawing back and letting the foxes stand guard at the chicken coop.

    Now, I confess–I haven’t looked into this in detail, checked a couple of news stories–the above from the insurance industry’s point of view, and Democracy Now’s, which I heard on the radio but can’t locate in the archives. Perhaps the government has been going overboard on this. But I am skeptical.

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    One of the things investigative journalists learn very quickly is “follow the money.” And that can mean both a direct trail of funding as well as who stands to benefit from policy changes a particular group is recommending.

    Given the naked self-interest of certain large corporations in the watering down of the Sarbanes-Oxley–or at least what they perceive to be their self-interest–it’s not a big surprise that the group advocating to weaken that bill turns out to be funded by the very people who see themselves as benefiting by pulling back the watchdogs.

    The Committee on Capital Markets Regulation, which argues that U.S. markets are suffering under overzealous enforcement and unwieldy rules, said it received $500,000 in financial support from the C.V. Starr Foundation. The charity has longstanding ties to Maurice R. “Hank” Greenberg, the former American International Group chief who was ousted from his post last year and is contesting civil charges filed by the New York attorney general.

    Two committee members, Wilbur L. Ross Jr., a private investor, and Citadel Investment Group manager Kenneth C. Griffin, contributed “a few hundred thousand dollars” more, Ross said in an interview. The panel was formed this year with support from Treasury Secretary Henry M. Paulson Jr., a former chairman of the Wall Street firm Goldman Sachs.

    The email version (thanks, Nancy Smith, for sending it) connects a few more dots:

    The
    report was funded by the Starr Foundation, which is controlled by Former AIG
    Insurance chief Maurice Greenberg. Greenberg was forced to resign last year
    after then-NY Attorney General Elliot Spitzer revealed major accounting
    manipulations and misrepresentations at his insurance company.

    The irony is, as I point out repeatedly in my award-winning sixth book, Principled Profit: Marketing That Puts People First, that high standards of ethics are actually good for the business bottom line.

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