Tuesday, November 7, 2006

Examples of Business Ethics

Quote of the day:
“I always have a quotation for everything--it saves original thinking.”
--Dorothy Sayers

Musician quote of the day:
“Do you realize that everyone you know someday will die?”
--The Flaming Lips

More on personal and business ethics:
“This ‘I win-You lose’ ethic infects company and culture, and it’s not doing us any favors.”
--Richard Louv, in today’s "San Diego Union-Tribune."

Louv cites public opinion expert Daniel Yankelovich, saying that he “argues that the deepest tradition of American business--the ethic of enlightened self-interest--has morphed into unenlightened self-interest: a commitment to immediate profitability even if it means long-term loss of market share.”

We’ve been here before. In the 1980s the discussion centered on the competitive threat from Japan. Their companies were said to be committed to the long term, even the very long term, while ours were perpetually preoccupied with this quarter’s results. From their behavior, I’m not sure that many companies remember this experience.

But there is hope. Yankelovich cites three companies as examples of what he calls “stewardship ethics”--operating with both long-term profitability and the broader public good in mind.

Toyota “took a big risk when it invested heavily in its Earth-friendly hybrid technology,” Louv says. “The investment may yet reap major, direct rewards. But the company (which unofficially plans to introduce an all-hybrid line by 2010) dominates the auto market.

“Similarly, Procter and Gamble is betting on its 20-year plan to introduce its water purification technology to the 40 countries with the highest rates of infant mortality.

“As for the work force, Starbucks now spends more on health insurance for its employees--including part-time workers--than it does on coffee: the company realizes that treating its employees well means that they, in turn, will be hospitable to customers.”

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