It was a few years ago when Lindsay McCormick hopped on the phone with the manufacturer of her soon-to-be-released toothbrushes to chat about a few last minute questions. As founder and CEO of Bite, a Los Angeles-based company focused on sustainability that sells plastic-free toothpaste products such as toothbrushes and ‘toothpaste bits’ (tablets), she was ready to release the bamboo toothbrush, and internally had been talking about how the brush would be different from anything else on the market at the time.
“I was excited because we had a big program coming up where we were going to release our bamboo toothbrush, which is 100 percent plastic-free—even the bristles are plastic-free—and the head was supposed to come off,” says McCormick. “The idea was that you could change out the head and it would cut down on bamboo use.”
As part of her due diligence, she asked her manufacturing company for more information about the toothbrush construction process that would allow for a replaceable head. A few minutes into the conversation, though, McCormick realized that there wasn’t a way (without spending far more than her startup had on hand) to make replaceable heads.
“He told me that they had to make a whole toothbrush and then throw out the handle,” she says. “The whole point of my company is to make products that are sustainable and eco-friendly.”
McCormick and her team decided to pivot and publicly explain how the toothbrush heads are removable—not independently replaceable.
“I wrote a long blog post explaining that we would have had to re-tool the machine with the manufacturer, and it wasn’t something we could afford,” she says. “We were super transparent in the blog post and quickly realized that those who took the time to read it became even bigger Bite advocates. Since then, we’ve had incredible organic growth.”
The Changing Face of Ethics in Business
McCormick’s example of full transparency with her customer base is a tenet of what today’s employees and customers value.
Gone are the days of the questionable handling of ethical issues in business. The last 15-ish years, with the financial crisis of 2008/2009, the Enron scandal and many other very public stories of businesses crossing ethical lines has shown that both employees and customers won’t stand for anything less than sterling ethical standards from companies large and small.
This sentiment is reinforced by study after study. A 2020 Salesforce study of 15,600 global consumers and business buyers showed that customer expectations are at an all-time high. Among its many findings, the surveys says, "To win hearts and wallets, companies must not only deliver amazing marketing, sales, ecommerce, and service interactions, but also prove that they have the customers’ best interests in mind."
Eliza Erskine has seen this change first-hand. As the founder of Green Buoy Consulting, a New York City-based sustainability consulting firm, she is seeing a major shift in both employee and consumer behavior when it comes to ethics. The types of ethical issues employers are facing today are numerous and include things like the sustainability and environmental impacts of products, services and vendors; diversity, equity and inclusion; employee compensation and treatment; and the handling of conversations around social justice and politics in the workplace, to just name a few.
Customers will now pay more for products made by companies that are positively handling ethical issues in business, and employees are increasingly wanting their names next to company names that are doing right ethically.
—Eliza Erskine, founder, Green Buoy Consulting
Erskine points to social media as one reason for the shift. Consumers and employees are increasingly communicating openly about the internal and external ethics of specific businesses, down to supply chain issues. Employees, in particular, also “want to bring their whole selves to work, and from an ethics standpoint, that means companies are forced to be transparent and honest,” she says.
The depth of concern about ethics cannot be underestimated. Donations to good causes, for example, won’t cut it anymore, says Karen Swim, APR, founder of Words For Hire, a Shelby Township, Michigan-based public relations, marketing and social media consultancy.
“Plenty of...companies donate to good causes,” she says. “It is about creating an ethical foundation, an ethical culture, and staying true to that.”
Strategies For Handling Current Ethical Issues in Business
Business owners looking to be ethical capitalists (those who value both ethics and bottom line numbers) should consider trying the following strategies in their workplaces:
Focus on Transparency
“Look at what you are doing internally and externally and see how those things align,” recommends Erskine. “This doesn’t mean you are sharing your complete financial picture, for example, but if you messed up internally, explain the steps that you are taking to fix it and make sure the external messaging is the same.”
Welcome Feedback and Dialogue
“In order for a business to bring a level of empathy to their operations, there needs to be a dialogue,” she adds. “This comes down to welcoming two-way feedback and admitting mistakes.”
Ask Yourself the Hard Questions
“When you realize something isn’t right, ask yourself if you are prepared to combat the behaviors that led to this ethical compromise,” suggests Swim. “Ask yourself if this is a one-off situation or a pattern or if something is wrong in the system. Then think about how you can create a better environment for all involved.”
Try Not to Get Overwhelmed
If you are just starting out looking at the current ethical issues in business, Swim recommends to do things step by step.
“Take an hour out of your day, break out a notebook, and write some things down,” she says. “You don’t need to make this a formal presentation right away. When you realize that there are some things that need changing, sit down and see how far you can get with a short period of time before moving forward.”
Take Ethical Standards in the Workplace Seriously
“Consumers are voting with their dollars, and they are looking to support companies that align with their values,” says Bite’s McCormick. “And employees are voting with their time. It isn’t just about making money anymore. Workers want to contribute to something that they are proud to be part of, and I don’t see that changing.”
Photo: Getty Images