Surviving The Downturn by Tom Barnett

Why surviving the downturn using ethical principles is just like giving up smoking...

I gave up smoking two years ago – I proudly handed my 20 pack of Marlboro Red over to my Mum announcing that she can “lock them in the safe as a memento of the smoker that I used to be.”

Needless to say they were all smoked by the next day...

Now, what that says about me as a person is not the point (please remember, I did say I have now managed to give up!) – the point is that I made a decision and I was sure that it was the biggy. A much harder decision actually came ten minutes later when I suddenly wanted to challenge the original one. In fact, those decisions just kept on coming – they still do now, except now I have made it second nature to override them and not smoke. So, what initially felt like the BIG decision was actually the first of many many much smaller ones. And in the end I cracked it.

Maybe I am teaching Grandmothers to suck eggs, but this is my best analogy for setting off on the path to operate any business ethically. Sure, announcing that you are going to is one thing – but can you really tell a previously valued and coveted supplier that you will not be able to continue buying from him unless they ...? Can you really bring yourself to do things that you will see no immediate financial reward for? Can you base your decisions on more than profit?

For me running my business ethically has represented exactly the same challenge as giving up smoking. It was just a matter of recognising when the decisions popped up and learning what my new protocol was.

One of the problems with applying the ethical approach to pure commerce is that it regularly rejects the obvious answer. Capitalism at its most mercenary does not believe that what goes around comes around, it does not recognise the ramifications of any action unless they are a direct benefit – and it certainly does not take anyone else in to consideration.
The ethical approach does, however. It inspires longevity in business relationships. It limits the damage that business practice inflicts on the environment. It does promote considered long term decision making processes. It does ask if everyone involved in the business is being treated fairly. Correctly applied ethical policy and practice in conjunction with modern commercial techniques can ensure the sustainability of a business within the economy. And in times like these that is exactly what entrepreneurs really need to do.

So, what does make a business ethical? And the short answer is a decision. A decision to question what you do and how you do it. There are many dimensions to ethical business behaviour and once you’ve embarked on an analysis of how you operate there are few areas of operation that won’t need re-evaluating.

The obvious things to start looking at are what materials and products you use in your business. For each, ask yourself what impact they have on both the environment and the people who make them. The goal should be about minimising environmental harm while maintaining a fair system for the workers. Often not an easy balance to achieve. Inevitably there will be compromises and trade-offs such as buying local instead of organic or fairtrade instead of local, or going for durability over eco-friendliness. The point is to keep asking the question and making the best decision you can.
Beyond the ‘things’ you use or make there are also questions about how you, as a business, behave. How ethical is your policy towards employees? How ethical are you in your dealings with competitors, suppliers and customers? Do you really have to make profit maximisation the objective every time?

Of course, you never run out of questions. There are new decisions to be made all the time and new information to evaluate. It isn't easy. 99% fall at the first hurdle – I did. But there is always another hurdle – indeed, there are other races.

Copyright 2009 Tom Barnett | Ethical Junction