It was Anita Roddick, the founder of the Body Shop, who said, “Being good is good for business”. This quote is my inspiration for driving change with my clients. I’m not only motived by good outcomes for the planet, I want good business outcomes for my clients. I want to show them that their businesses can flourish and prosper in tandem with having good ethical business practices.
Dame Anita Roddick was a British businesswoman, human rights activist and environmental campaigner who shaped ethical consumerism and proved that you could operate a thriving, profitable and ethical business. She was a true trailblazer!
It is a different ball game, however, for smaller organisations. Running a small business is challenging but whilst directors and managers may be constantly juggling multiple priorities, it’s still possible to incorporate business ethics into your organisation. There are plenty of opportunities to:
· create a better working environment for staff
· have a positive impact on the environment and the community
· engage with your suppliers around their environmental and social initiatives
In small business, these initiatives really need to come from the TOP. Without strong leadership from the director or GM, it’s unlikely that any environmental or social initiative will get off the ground.
I work with a number of small to medium enterprises and one client, in particular, is a great example of strong, ethical leadership. The Managing Director’s commitment to making a difference in people’s lives starts with his own staff and he demonstrates this by creating a great work environment. The offices are well decked out with lots of plants and greenery and it’s a great space to be in. The manufacturing facility has a gym and a personal trainer to help keep staff fit and healthy, and he really goes all-out with the staff Christmas parties as an opportunity to say thank you and give back. He also ensures that he and his staff support charities and community events, not only in Australia, but also overseas – he loves to get his staff involved so they too get a kick out of helping others. It’s a win win!
BUT being good is not just about taking care of your own staff and your local community; it’s about addressing sustainability issues in the broader context. By this, I mean ensuring that the products and materials you are procuring are made without any human and or labour rights abuses and with minimal environmental impact.
So, with that, this Managing Director is working with his key suppliers and issuing a Suppliers Code of Conduct, which, in short, means that he wants the suppliers to commit to taking care of their staff by:
· paying them a decent wage
· ensuring they are working in a safe environment
· that there is no child, forced or bonded labour
· no discrimination or corruption
· that they have the right to freedom of association and collective bargaining
· that they are free from harassment
He does all this because he believes it’s the right thing to do. His business is thriving and every so often it makes me wonder if the two are connected!
This example is inspiring and I feel real change is around the corner. Businesses may soon not have a choice to do the right thing. It may be that addressing environmental and social compliance becomes a pre-request for doing business with the larger organisations like banks, telcos, insurance companies and construction companies.
The Australian government is planning on enacting a Modern Slavery Act in 2018. The Modern Slavery Act will see entities earning over 100 million dollars report annually, outlining their actions to address modern slavery in supply chains. The government wants the business community to respond more effectively to modern slavery and develop and maintain responsible and transparent supply chains.
Over 30 million of the estimated 40 million people under modern slavery around the world are in the Asia-Pacific region, where a lot of Australian companies are sourcing products.
A number of large Australian companies have been conducting supply chain due diligence (environmental and social compliance) on product manufacturers for a number of years but I suspect due to the Modern Slavery Act, this will become a greater priority for them.
I have helped a number of clients (product manufacturers) complete extensive and complex questionnaires from construction companies asking for full environmental and social compliance to qualify to work with them. So, it just makes good business sense for product manufacturers to start procuring products that are made without any harm to the environment and or human health.
Large companies see the advantages of partnering with these types of organisations.
Some tips on how to build an ethical brand
1. DEFINE your company values. Doing the right thing for your business starts with defining core values. Identify what values are important to you and your organisation using a collaborative approach – find out what’s important to your staff.
2. COMMUNICATE effectively. Make sure your company values are well communicated and front of mind so when tricky situations arise, these values can be called upon. Let them be the company’s moral compass.
3. LEAD by creating winning teamwork. Leading people to do the right thing as a team can be challenging but lead by example, take accountability, make the tough decisions, motivate, inspire and recognise good behaviour and teamwork.
4. ENDEAVOUR to beat, not meet, industry standards. Doing the right thing is not just about getting by or following the rule of law; it’s about meeting and exceeding clients’ and industry expectations. Lastly, but certainly not least;
5. DEVELOP a strategy. Conduct a gap analysis of the work you have already done in relation to environmental and social initiatives. What’s your vision, what does best practice look like? If you want to be an industry leader in sustainable and ethical business practices, then plan out the next 5 years.
And don’t assume that doing the right thing comes naturally and doesn’t require effort and perseverance. Nothing worthwhile is easy, but it’s likely your good work will be rewarded.
Links to organisations that demonstrate company values and purpose
Pepsico, Performance-with-purpose
For further guidance on how to build an ethical brand, please contact Libby at Sustainable Business Matters.