Category: Business Ethics

By Posted on Posted in Business Ethics, language, Shel's Personal Life, travel Tagged with , , , , , , , ,

mosque-sunset-jeddahStaying in the Embassy Suites in Kissimmee, Florida. Inside the usual Guest Services manual, I found this remarkable document (spacing and centering in original):

To Our Guests

In ancient times there was a prayer for

“The Stranger within our gates”
Because this hotel is a human institution to serve people, and not solely a money making organization, we hope that God will grant you peace and rest while you are under our roof.
May this room ad hotel be your “second” home.
May those you love be near you in thoughts and dreams.
Even though we may not et to know you, we hope that you will be comfortable and happy as if you were in your own home.

May the business that brought you our way prosper.
May every call you make and every message you receive add to your joy.
When you leave, may your journey be safe.

We are all travelers. From “birth till death” we travel between the eternities.
May these days be pleasant to you, profitable for society, helpful for those you meet, and a joy to those who know and love you best.

Wow!

As both a frequent traveler and a professional marketer who focuses a lot on values-based businesses—green and ethical ones, specifically—I invite you to walk with me as I analyze this document a bit.

  1. This says to me: here’s a business willing to take a risk and say what they stand for. They’re willing to alienate the militant atheists and say that God is important not only to them personally, but also to the way they run their business.
  2. They did it in a way that was very inclusive. Most of the time, when I come across religious messages in the US heartland, they tend to be specifically Christian. I’m a non-Christian who was raised an Orthodox Jew until age 10. I consider myself fairly spiritual but not very religious. I’m often turned off by religious messages that assume my Christianity (or, for that matter, assume I’m Muslim, Buddhist, Jewish, whatever). There was nothing in this message embracing any particular religious tradition. If you accept the idea of God (and not everyone does, of course), there’s only welcome here, not exclusion.
  3. The content of the message is wonderfully positive. It’s about peace, prosperity, safe travels, and joy. How could I not feel better about a business that takes the time to draft a document conveying these various blessings in my direction?
  4. Never be your own editor. OK, not many people are such grammar nuts that they’ll notice the language flaws—but what if they host a convention of English teachers? I’m actually here with a conference of people who teach business communication, and I’m betting a high percentage of those attenders who saw the message will pick it apart for its sloppy writing. It’s so easy to avoid the problem in the first place.
  5. Most importantly, being greeted by this message sets a tone for all my interactions with the hotel. I’m going in to any conversation with the attitude that they care about me. This perception is reinforced by the very helpful nature of every staffer I’ve dealt with so far (even before I opened the services notebook and saw the memo)—and would, of course, be destroyed if their personnel were rude, etc. But it certainly creates a good flow of positive energy.
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By Posted on Posted in Business Ethics, Marketing Trends/News Tagged with , ,

If you get a note like this and wonder, where do I know this person from–you don’t.

When are these jerks going to realize that the Internet is a powerful way to make an honest living and they don’t have to stoop to these ridiculous frauds?

Hi shel I know you were expecting to hear back from me much earlier but I didn’t want to get back to you empty-handed. I finally found the perfect stock for you and I am confident that it will make you some serious profit. Remember the one I told you about in November of last year right? You did very well on it and I think this [TICKER SYMBOL REMOVED TO AVOID PUBLICIZING IDIOTS] stock will do the same for your portfolio again. I have to let you know though that I’m not the only one who found out about [TICKER SYMBOL REMOVED] today. A few of my colleagues are aware as well and they are telling their friends and family about it so I must advise you to move fast if you want to buy it. I think it’s trading at just around 15 cents right now, if you wait too long it might be at 30 or even higher and at that time I won’t be able to safely advise you to buy it. You can buy as many shares as you can first thing at market open on Friday or worst case scenario buy it on Monday but move fast. I know you don’t care about what the company does because you know I’ve done all the due diligence for you already but [TICKER SYMBOL REMOVED] is actually amazing and I think it will do much better than even the one I told you about a few months ago. One of the company’s divisions offers mobile software solutions for the gaming industry. The mobile apps allow customers to play lottery and other games of chance and skill on their smartphones. The software is extremely advanced and could be the backbone of all mobile casinos in the future. It is expected that the US will legalize online gaming in the near future and this could catapult [TICKER SYMBOL REMOVED] to new highs however even without that the company’s software is extremely valuable in the rest of the world and could become extremely profitable. Something big is definitely brewing at the company. I heard something about buy out rumors but I don’t have all the details yet I will keep you posted over the coming days or weeks. Anyway I won’t bore you with much more blabber, but if you have a second do check out [TICKER SYMBOL REMOVED]. By the way I will be expecting a nice gift from you once you make fat bank on this one and a nice dinner with the wives is in order. It’s been too long since we last spent a good evening over a bottle of wine. I was going to call you to tell you about [TICKER SYMBOL REMOVED] but I figured youre probably asleep now with those crazy shifts you’ve been working. Take care and call me if there’s anything. Talk soon Your favorite friend and only broker 🙂

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By Posted on Posted in Business Ethics, Business-general, Publishing Tagged with , , , , , ,

Book buyers: looks like the party’s winding down. Amazon’s once-generous discounts are slowly going away, as this article in the New York Times reports.

I’ve been expecting this for years. Now that Amazon has kicked so many competitors to the ground through ruthless discounting, the laws of the market decree rising prices. This is what happens when a company gains a market share bordering on monopoly—while establishing a tech and logistics infrastructure that would be very difficult for a new competitor to match, so the likelihood of being undercut on a mass scale as they did to others is slim. Amazon has also, for many years been utterly ruthless in its dealings with other segments of the market (particularly small independent publishers, where years ago it started extracting a 55 percent discount in an industry where the normal bookstore discount had been 40 percent).

Amazon’s history is full of stuff that looks a lot like bullying. I always expected predatory pricing—coming in willing to take a short-term loss through lower prices, in order to drive competitors out of business, and then raising the prices when consumers no longer have alternatives—was part of the strategy. What made it work for them, as the Times article points out, is that…

In its 16 years as a public company, Amazon has received unique permission from Wall Street to concentrate on expanding its infrastructure, increasing revenue at the expense of profit. Stockholders have pushed Amazon shares up to a record level, even though the company makes only pocket change. Profits were always promised tomorrow.

Small publishers wonder if tomorrow is finally here, and they are the ones who will pay for it.

 

 

Publishers accepted the higher discount because:

  • They had no choice
  • Amazon does provide some services that used to require a wholesaler (and wholesalers traditionally buy at 55 percent off)
  • AND the higher discount did translate into a reader benefit: reduced prices

Now that the third reason is being eroded, it will be interesting to see if publishers rebel. However, now it’s probably too late. Amazon is the only mass retail channel that routinely deals with tiny publishers. Barnes & Noble, the last remaining competing megachannel, prefers to buy from wholesalers (yes, I know, there are exceptions). If you say goodbye to Amazon, you’d better have some non-bookstore channels in place.

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By Posted on Posted in Activism, Business Ethics, Corporate Social Responsibility, Ethics-International, Green Business, People Helping People, Social and Economic Justice, travel Tagged with , , ,

I can think of no better way to celebrate July 4th this year than to acknowledge the huge honor my hero and friend Dean Cycon, CEO of Dean’s Beans in Orange, MA recently received.

Dean Cycon, CEO, Dean's Beans, jamming with musicians in Rwanda
Dean Cycon making music in Rwanda

Dean Cycon is the most ethical business owner I know, and the only person to be a guest twice on the business ethics radio show I hosted and produced for four years, from 2005 to 2009. Dean has done 100% organic and fair trade coffee and cocoa since the day he opened his company, which he located in a depressed area where jobs are scarce. Dean not just funds but also actively partners with people in the villages that supply his coffee to do “people-centered development” projects, led by the folks who live and work in those villages. He also partners with local charities in western Massachusetts to create private label coffee they can sell as fundraisers. Oh yes, and he’s also the author of one of my favorite travel books: Ippy Award gold winner Javatrekker: Dispatches from the World of Fair Trade Coffee (Chelsea Green, 2007). And he’s a fun guy who hasn’t let success interfere with his playful spirit.

And now, OMG, Dean Cycon has been awarded one of the most prestigious honors in the world: the Oslo Business for Peace Award, also known as the alternative Nobel Prize for business. The award judges are actual Nobel Laureates, including microlending pioneer Prof. Muhammad Yunus, winner of the Nobel prize in Economics in 2006, and Prof. A. Michael Spence, winner of the Nobel prize in economics in 2001. Dean is one of five honorees, and the only American. All I can say is, he richly deserves it.

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By Posted on Posted in Business Ethics, Corporate Social Responsibility, Energy & Sustainability, Social and Economic Justice, Technology

Many developed countries have embraced the Precautionary Principle, which states that new processes and products have to be proven safe, and if we don’t understand their effects, we wait.

The United States, on the other hand, passed the “Monsanto Protection Act,” which not only utterly violates the Precautionary Principle, but actually removes the court system’s power of oversight over GMO (genetically modified) food safety, even when the products (developed not only by Monsanto but by other agribusiness/chemiculture companies) and  have been found to cause health risks.

This horrible law was slipped into a much larger bill and has the potential to wreak havoc in all sorts of ways—not the least of which is the threat to organic agriculture if their fields become contaminated by windblown GMO seeds (and the further threat to farmers’ livelihoods when Monsanto actually sues the farmers whose fields it contaminates, for using their seeds without permission). Organic farmers have countersued Monsanto, but by logic I don’t understand, the courts have generally sided with Monsanto, ruling over and over again that the chemical giant’s pollution and ruination of organic crops allows Monsanto to collect damages for the illegal use of its products, while denying the organic farmers compensation for trashing their crops.

And now, there’s a threat to US exports: South Korea, Japan, Taiwan, and the entire European Union are among the countries canceling contracts and testing shipments after a Monsanto-developed GMO “zombie wheat” contaminated a wheat farm in Oregon.

Oh, and let’s not forget that many genetic modifications are designed to allow plants to tolerate larger quantities of herbicides whose safety is widely questioned—including Monsanto’s own Roundup.  Yes, in a triple-whammy, Monsanto sells “Roundup-ready” GMO seeds, and then sells the Roundup to spray on those plants, which causes weeds to develop resistance, so farmers respond by spraying even more Roundup. Eeeeew!

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By Posted on Posted in Business Ethics, Corporate Social Responsibility, Innovation, privacy, Technology, Uncategorized Tagged with , , , ,

In all the buzz about Google Glass, some people are raising deep concerns about privacy. Mostly about the privacy the wearer of Google Glass will sacrifice.

But the issues go well beyond that. Mark Hurst’s very thoughtful article, “The Google Glass feature no one is talking about,” for instance, brings up the disturbing spectre of Google creating a world where everyone is watching YOU. In other words, non-users could be deeply impacted, and human behavior may actually shift in response to the Big Brother phenomenon of being under constant surveillance, person-to-person as opposed to camera-to-location.

Yet I think privacy concerns may be far less significant than something I don’t hear anyone discussing AT ALL: the question of whether literally seeing the world through Google Glass’s technology is essentially a radical shift in the human experience: an engineered electromechanical “mutation” that could have results as far-reaching and unforeseen as genetic engineering.

Already, we live in a world where centuries-old patterns of communication have been blown apart by computers, mobile phones, and other disruptive technologies. And for the most part, this is positive–despite idiocies like the pedestrian I saw the other day who couldn’t stop texting long enough to see if it was safe before he crossed the street. But when a device becomes an extension of our bodies to such an extent, I have to wonder: What are the consequences of seeing the world through the Internet and Google Glass, rather than through our own eyes, as we walk down the street? What happens when governments or corporations start filtering and controlling our very sensory input, even when we’re in the “natural” world away from our computers?

I’m not a Luddite. But I do believe in the Precautionary Principle, which states that we should not engage in actions that have potentially harmful consequences if we don’t know what those consequences are. Violating the Precautionary Principle has led to many calamities, from catastrophic climate change to ecosystems being thrown out of balance to the 250,000-year threat of global contamination by nuclear waste leaks. In other words, we should keep our assorted genies in the bottle until we know what we’re about to unleash. And I think Google Glass could be one such genie. Particularly if future iterations in totalitarian states make Google Glass or similar technology less optional, and less easy to remove.

Love to get your comments on this.

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By Posted on Posted in Business Ethics, Marketing Techniques and Philosophies Tagged with , , , , ,

It happened again—the first words out of the robocaller’s synthesizer box were “press 1 for your free directory listing.”

Guess what—if that’s the first thing I hear from you, it’s also the last—because my phone will be back in its cradle before your robot even finishes the sentence. CLICK!

It’s like telling me you want to marry me the moment we first meet—before we’re even introduced. And guess what. I’m already happily married and I’m not in the market. Even if I were, that’s not how I’d want to be approached.

Sure, I’m in business, and I love free listings—useful ones, anyway, like Literary Market Place (which typically brings me a very small stream of very large clients). But I’ve also wasted a lot of time over the years filling out free listings that have zero benefit, like the gazillion Who’s Who books I got listed in back in the 1980s and 1990s.

So…when your call ID shows up as something unrecognizable (RL2 Services Co? What the heck is that?), the first thing I want to know is “who are you, really?” The second thing I want to know is “what’s the catch/the actual cost?” Then “how much time is this going to take?” And of course, “who reads your directory, how many readers are there, and how targeted is this to what I sell?”

No robocall is going to answer those questions.

I will listen to the first few seconds of a robocall, because sometimes it’s the bank’s identity theft with a security alert on my credit card, a school district telling me classes are canceled for weather, or something like that. I don’t love them but I have learned that once in a while, they’re real. But try to sell me something, anything, with a robocall and I just think you’re stupid, disrespectful, and annoying.

And some of the live operators are no better. I’m very protective of my cell number and give it out on a need-to-know basis. I got a human being calling me who told me he was calling because of a survey he filled out. I responded, “I don’t give my cell number out on surveys. Who are you really?” His response: CLICK!

Does this company really think it’s going to get on my good side with this?

I’ve had others who can’t deviate from a script. Honey, if I’m going to do business with you, we’re going to have a two-way conversation. If you’re human and you talk at me as if you are a robot, I will treat you like one. My turn to CLICK!

I continue to be amazed at the clueless, deceitful, or just plain disconnected marketing “strategies” I encounter. Presumably, businesses do these things to attract new clients. But it would be more accurate to call them “client repelling strategies,” because they do the opposite of attract.

If you would be pushed away by bad marketing when it’s done to you, why do it to others who will feel the same way?

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By Posted on Posted in Business Ethics, Corporate Social Responsibility, Energy & Sustainability, Greenwashing, Social and Economic Justice Tagged with , , , , , , ,

Fascinating profile of Peter Brabeck, Chair of Nestlé, and his crusade for world-wide water conservation and water sustainability. Especially fascinating since Nestlé’s water bottling approach has often gotten the company in trouble with water rights and environmental activists, and has occasionally brought it to court. (In my eighth book, Guerrilla Marketing Goes Green, I discuss Nestlé being hauled into court in Canada by green activists, on greenwashing/misleading advertising charges.)

These days, Brabeck is saying that 5 liters of water to drink, and 25 for other personal needs, should be the daily right of every human being. But he also says that direct human consumption is the smallest portion of water consumed by humans—just 1.5 percent. The energy and agriculture sectors use far more (and he didn’t even discuss industry in general). He is particularly troubled by “unconventional oil” (such as tar sands), which he says consumes up to 6 liters of water for every liter of fuel, compared with just a tenth of a liter to produce a liter of oil conventionally. Water conservation, he says, is essential—and thus we shouldn’t be using those water-hogging technologies. Of course, there are MANY other environmental arguments against tar-sands oil, in addition to water conservation!

And he notes that when he was born 68 years ago, the world had 2.7 billion people and stayed well within its water budget, using only 40 percent of the renewable water. But now, with 7 billion people on the planet, we’re already exceeding what the planet can renew—and we’re heading to 10 billion.

Note: just because in our daily lives our water consumption far less than what industry and agriculture use, please don’t take that as a license to squander. As individuals, we still have a responsibility to be frugal with the world’s water. Even something as simple as brushing our teeth can be done with about 95 percent less water, just by not letting the water run the whole time—voila, instant water conservation. Wet the brush, turn off the water, repeat as necessary. Use the same principle when washing hands, washing dishes, etc. And when it makes sense (as it does in most of the US, Canada, and Europe), use filtered tap water instead of bottled water. Many people don’t realize how much water consumption is involved in the bottling process—wasting,often, up to three times as much water as actually goes in the bottle.

Go ahead and read the interview. If you’re skeptical about Nestlé, that’s OK. So am I. But I think there’s a lot of wisdom in Brabeck’s thinking, and a wake-up call to the world.

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By Posted on Posted in Advertising, Business Ethics, Marketing Techniques and Philosophies, Transparency vs. Secrecy Tagged with , , , , ,

What do you notice about the two images in this photo?

Deceptive comparison ad

Here’s what I notice; the placement and composition of the vegetables and fruits are exactly the same. Look at the carrots, for instance. It is statistically impossible to pose a bunch of carrots in exactly the same alignment for two pictures taken at different times, and just as impossible to find two different bunches of carrots where each carrot has exactly the same shape as one in the other batch and are in the same order. It’s somewhat easier with mushrooms and peppers, but still highly questionable.

What this tells me is that one of two things happened, neither of which are OK if you’re an honest marketer:

1. The same photo was used as the basis for both images. At least one of them was retouched to change the colors, probably the didn’t-use-it one, which also had believability-enhancing touches like aging in the mold on the grapes.

OR

2. The advertising agency took the first photo, and then left the fridge untouched for some period of time, and came back and took the aged picture.

Either way, just like the food in the aged picture, it doesn’t pass the sniff test. The ad claims that these were different batches of food and implies that they were subjected to a scientific comparison. That would mean two different sets of vegetables aging in different but calibrated refrigerators for the same time, one with the treatment and one without (or the same refrigerator used to test each batch one at a time, starting with the untreated one to avoid tainting the results). I do not see any evidence in this photo that this is what happened.

Chose your own term: false advertising, deceptive advertising, misleading advertising—whatever you choose to call it, it’s certainly a major ethical violation and quite possibly a violation of truth in advertising laws such as Section 43(a)(1)(A) of the Lanham Act.

And therefore, I don’t believe the ad. And therefore, I don’t trust anything else in the catalog where I found it (an in-flight sky mall). And therefore, this entire catalog loses any chance of getting me as a customer, forever. And therefore, I am sharing my perception that this company engages in deceptive practices. Perhaps this post could even go viral and be seen by thousands or millions of people.

So on a practical as well as a moral level, this deceptive advertising practice backfired. Big time. My question to the ad agency and to the people at the client who approved it (who may, in fairness, not have realized the ad was deceptive): was it worth it? This catalog company should fire its ad agency for engaging in false advertising, and should look with a critical eye at every other bit of advertising this agency prepared.

And if you’re a marketer, take a look at your own marketing. Have you accidentally or deliberately engaged in similar false advertising practices? Are you aware that one demonstrable lie can ruin a long-built reputation for integrity if anyone publicly calls you out for deceptive advertising in the press or in social media?

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By Posted on Posted in Activism, Business Ethics, Copywriting, Democracy, language, Marketing Techniques and Philosophies Tagged with , , , , , ,

“Framing” is the way you position an issue, ideally in terms that are easy to grasp. Alan Grayson is one of the few on the left (Van Jones is another) who are really good at framing. Look how he describes the impact of Walmart’s low wages as an attack on taxpayers, on Cenk Uygur’s national TV show—something people on the right can relate to. (The full transcript is at that link.)

As you pointed out, the average associate at Walmart makes less than $9 an hour. I don’t know how anybody these days can afford their rent, afford their food, afford their health coverage, afford their transportation costs just to get to work, when they’re making only $9 an hour or less.

And who ends up paying for it? It’s the taxpayer…The taxpayer pays the earned income credit. The taxpayer pays for Medicaid. The taxpayer pays for the unemployment insurance when they cut their hours down. And the taxpayers pay for other forms of public assistance like food stamps. I think that the taxpayer is getting fed up paying for all these things when, in fact, Walmart could give every single employee it’s got, even the CEO, a 30% raise, and Walmart would still be profitable… I don’t think that Walmart should, in effect, be the largest recipient of public assistance in the country. In state after state after state, Walmart employees represent the largest group of Medicaid recipients, the largest group of food stamp recipients, and the taxpayers shouldn’t have to bear that burden. It should be Walmart. So we’re going to take that burden and put it where it belongs, on Walmart.

Consider framing for wide appeal when you develop your organizing messages. If you plan carefully, framing can play a major role in the debate. I credit a lot of the success of Save the Mountain, the environmental group I started in 1999 that beat back a terrible development project in just 13 months, to the careful attention I paid to framing, starting with the very first press release and continuing through the whole campaign.

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