Friday, November 04, 2005

responsible companies with irresponsible products

No company or organisation does no harm at all. every time we use up energy for example, we are harming the environment to some extent. The world is so complex that supply chains are enormous, and no organisation can operate without using paper, electricity etc.

All of these products somewhere along the line are harming the environment, but yes, some products are more harmful than others -arms and cigarettes some of the worst, but then many arms are used for peaceful means (well, some are, not that i am defending the industry!)

the way business works is complex -for example Altria makes cheese as well as cigarettes... so what do you say about that company? BAT employs over 100,000 people providing them and their families with livelihoods for example, so there is no easy solution.

what do i think? i think organisations exist because there is a demand for them. what they should do is behave ethically as they meet that demand. in extremes that often means reducing demand (eg. not advertising for cigarettes), but it needn't be. Governments can create the framework defining ethics (it could ban arms, but does not).... when society deems a company unethical then eventually the government (in a functioning society) will act (maybe cigarettes will be banned at some point). The good thing is that it will take a long time for the governments to act, depending on corporate lobbying, sufficient public pressure and evidence... thus during this time the corporation will either die or diversify and hopefully those beneficiaries will find other work etc.

Leaders in these controversial organisations (like any other organisation) should strive to behave ethically, but this will always be within boundaries -human defined boundaries, boundaries that move, boundaries that vary per person. Those boundaries will differ individually and define what is and is not a good product or company. Leaders should strive to consider the impacts of their organisations and maximise the benefit to society and their organisation at the same time. Its not easy -being a leader is not. Ethics is not black and white. Pick a shade of grey. Pick the shade that you are comfortable with. How do you define responsible?

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