International Challenge
As an independent organisation fighting for a poverty-free Australia, the Brotherhood of St Laurence was recently confronted by an ethical dilemma of its own. "In 2000, we acquired Mod-Style, a commercial enterprise that imports and wholesales optical frames," says Emer Diviney, the ethical business division's research and policy officer. "Mod-Style sources the majority of its frames in China, and we were concerned about labour and environmental conditions in Chinese factories. We had to ask ourselves whether raising funds to help low-income earners in Australia would mean exploiting workers overseas."
As they set about managing this complex issue, profits from Mod-Style were quarantined for two years. At the same time, the Brotherhood established an ethical business project with the intention of documenting the Mod-Style supply chain, researching labour conditions in China, and considering the opportunities for improvement.
The Board quickly recognised a need to integrate the project into their overall operations. "We also have a fashion label, Hunter Gatherer, and through this we became aware of the conditions suffered by many outworkers in Australia," says Diviney. "In Victoria alone, there are an estimated 144,000 home-based outworkers being paid as little as $3.70 an hour with no sick leave, annual leave, superannuation or work cover. Many are working more than 14 hours a day, six to seven days a week." In response to their findings in this area, the Brotherhood signed the Homeworkers Code of Practice and became the first fashion brand in Australia to be accredited as a No SweatShop Label manufacturer and retailer.
Many business owners find that the best of ethical intentions can be tested by cost.
"Doing the right thing is often more expensive in the short term," says Schultz. "When fixing a problem is going to cost $5,000 and ignoring it costs nothing, it's tempting to go for option B. This is where what I call the 60 Minutes test can be helpful.
"I imagine the 60 Minutes team are on my doorstep, and ask myself: could I go out in front of the public and hold my head reasonably high? Would most of them agree I'd done the right thing?
"This process might not provide an easy answer, but it can lead to the right answer - and it definitely can help you sleep at night."
Seven-Step Foundation
US business strategist and author, Robert Moment, has created a checklist of seven principles to help businesses stay on an ethical track:
- Be trustworthy: Customers want to do business with a company they can trust; when trust is at the core of a business, it's easy to recognise.
- Keep an open mind: Ask for opinions and feedback from both customers and team members.
- Honour your obligations and commitments.
- Have clear documents: Make sure they are clear, precise, and professional and, most importantly, do not misrepresent your business in any way.
- Become involved with your community.
- Maintain accounting control: A hands-on approach to accounting and record-keeping helps you gain a better feel for the progress of your company. You will also be able to spot any dubious activities quickly and put a prompt end to them.
- Be respectful: Always treat other people with professional respect and courtesy regardless of any difference in position, title, age or background.
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