Ethical Business: Simple Solutions

What types of questions do you ask yourself before you buy something? You might consider something along the lines of ‘Is this something I need?’ or  ‘Is this good value for my money?’. However, recently consumers are asking questions more along the lines of ‘Where does this product come from?’, ‘How is it made?’, and ‘Can I feel good about myself if I purchase this product?’. 

As business owners, we take pride in our products and we know that they are good quality and good value. Unfortunately, in efforts to highlight other prominent features, marketing does not always make ethicality as transparent as it should be. In the past, some businesses have been about making a quick dollar no matter what the implications may be for stakeholders like the earth,  employees, and customers. Many large corporations, such as Exxon, Equifax, and Wells Fargo, have profited on the ability to deceive, embellish, and hide the truth.

However in the age of the internet, having ethical, transparent and sustainable business practices has never been so important. Consumers now have the unprecedented ability to trace your company’s supply chain and scan for rights and wrongs across all business functions. Not surprisingly, consumers also have the motivation to buy from companies which they believe leave a positive footprint. We live in a world with many undeniable realities: climate change, child labor, and discrimination. Widespread access to the internet and social media means that the time for corporations taking advantage of consumer ignorance  is up. Consumers now have the platform to unify in action for causes that seem worthy. With just the publication of one Tweet, your company could find itself embroiled in a fiery media circus causing your stock to plummet and profit to be lost. Customers, particularly millennials and Gen Z, want to vote with their dollars and vote for the right thing. 

Undeniably, many companies have suffered in this new era of involved and informed consumers. One of the most high profile industries has been fashion, which came under fire for its frequent use of child labor, toxins, and cheap and dangerous materials in the production of clothing. The American retail giant Forever 21 was forced to file bankruptcy, and many other brands came close. Those that survived the craze, however, were those which adapted their business models to match the new mindsets of their consumers. For example, the Swedish clothing brand H&M introduced a program where customers could recycle unwanted textiles with 0% going to landfills. Therefore, when customers bought cheap clothing items from H&M, they could feel better knowing the material would be reused once worn out. The brand also introduced a more upscale clothing line which was completely sustainable in an effort to appeal to loyal H&M customers who faced moral dilemmas.

If you are the CEO of Ben and Jerry’s (we might add - delicious) ice cream, then congratulations! You run a B corporation and you are the gold standard for attaining both a conscience and a profit. If you are basically anyone else, however, we know the task of turning your company into a totally transparent and responsible beacon of change may seem daunting. Before you decide to make any drastic changes to your business, however, consider a few questions. Are there any parts of your supply chain where you cut costs in a way that may be dangerous, or reckless? Do you know who your suppliers are, and are you getting a documented quality guarantee? If your product is harmful to the environment, do you offer a way for consumers to return or recycle it once it is no longer in use? 

Thinking along the lines of questions like these is a great place for you to decide where your company stands. Each of us has the power to do something good for the world. Your company doesn’t have to completely redesign its product or supply chain in order to start the shift towards sustainability. Start with something small. Here’s our suggestion: set a goal for your office to lower the amount of waste it creates. Easy! Simple solutions like this are likely to pave the way towards a long term solution, and a healthier world!