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The Importance of Being Earnest Ethical

30 October, 2024

Identity Economics is here to stay, so it’s time to get right by your customers.

Here’s the deal — we live in a time and place where identity, morality, and economic decisions are inextricably linked. Time and time again, polls and studies have shown that consumers want to support an unwaveringly ethical business, and, in a profoundly obvious follow-up, it’s critical for companies that they can. Not because it’ll make profits skyrocket (or even raise the bottom line) but simply because it’s the right thing to do. 

At this point in life, we’re all pretty aware that the easiest option is rarely the most virtuous, so moving forward ethically by choosing people over profits won’t always be effortless, but it’s far from impossible. However, to equip you (or gird your loins if this all looks like an uphill battle right now), there are quite a few big-picture reasons for prioritizing a healthy, do-good-by-each-other company. Namely:

1 – Everyone (literally) has a moral responsibility to each other

2 – It’s what your customers want

3 – It will help your business’ reputation

4 – It’s good for the planet

5 – Yes, ethical business is good for profit

Let’s dive in; I promise I won’t be on a soapbox the entire time.

Everyone has a moral responsibility to each other.

I knew I’d waded into murky waters with an article about the inherent value of an ethical business approximately 13 seconds into researching the topic. Not (yet) touching on the fact that most articles started by defining what ethics meant (yikes), I was immediately affronted with a panoply of articles enumerating a seemingly uncountable number of reasons to be ethical that all had to do with… money. Do not misunderstand me; I get that money makes the world go ‘round and is a highly incentivizing factor in many, if not all, business decisions. What I would argue, however, is that if you’re only considering your bottom line, then you’re already missing the mark.

Businesses prioritizing money in their decision-making will eventually be presented with a real Sophie’s Choice of people OR profits. I will spare you the philosophical debate and subsequent proof of why we are obligated to be good to one another, but suffice it to say that it keeps society out of chaos, which (generally speaking) is pretty neat and how we want it. I’m aware that asserting that individual decisions keep society out of pure anarchy might look like a stretch, but we don’t live in a vacuum and while The Butterfly Effect was a terrible movie, the idea is worth bringing up here. Every decision made has the potential to intersect with someone else’s life, and small decisions can have a significant impact as they ripple down the chain. Don’t get it twisted – I’m not saying a single unethical decision will create the fall of society, but we all play our role in keeping it held together, so we have to keep our end of the bargain.

It’s what your customers want.

Come along with me as I paint a picture for you. You love food, and more than anything, you love tiramisu. A bakery opens down the street, and you discover they make the best tiramisu you’ve ever had (even better than that one little restaurant 2km away from your hotel that you stumbled into on your trip to Italy in 2019. What a fun trip that was!). So you start going to this bakery down the street every other week as a little treat. After all, you deserve it. 

One day, you’re reading your local news and see a piece about this bakery. Interest piqued, you start reading and find out that not only did the health department witness the owner violate several health codes, including sneezing on the tiramisu (!!!!) but that they weren’t paying their employees on time and often withheld tips for themselves. Disgusted and appalled, you vow never to go again. How could you, in good conscience, support a business knowing they have such unethical practices?

And there it is. As a consumer, you hold the places you patronize to a standard that business owners should also hold themselves to. Multiple studies have shown that consumers want to buy products that align with their sense of morality (whatever that may be), with searches for sustainable goods up by 71% over five years. Furthermore, research has shown that over five years, products making Environmental, Social, and Governance claims accounted for 56% of all growth in the US retail sector. 

Give the people what they want; after all, the proof is in the pudding ethically-made-and-not-sneezed-on tiramisu.

It will help your business’ reputation.

Creating an allegorical tale of the ‘Consumer and the Sneezy Tiramisu’ feels jejune compared to decisions made within the context of an enterprise-level business, but the truth is as the company scales up, so can the consequences. That’s because consumers trust the businesses they loyally support, regardless of company size. They believe that the product, service, experience, company culture, and how the company presents itself will be authentic and accurate. When businesses violate that trust, reputations erode in seconds.  

People talk to each other; it’s in our nature. Because of that, your reputation will be your calling card to the people and their network with which you share values. Just as importantly, considering so many businesses are unable or unwilling to look out for anyone besides themselves when a business chooses the more challenging option, consumers will go out of their way to do what they can to see that company survive because what they want for the world is represented in that company. 

I came to HCL Designs and wanted to work with them because Amodhi and Caroline, the CEO and COO, respectively, had already proven themselves to be conscientious and ethical leaders during a freelance stint. They were the kind of people I wanted to work for, and I knew this would be a company clients would want to work WITH. In the first three hours of my first day as a full-time employee, they’d already invested more in my professional growth and prioritized my well-being than any other job I’ve had. Their personal and professional reputations preceded them, and that’s translated into continued success.  

But if that’s not enough for you, then let’s consider good ol’ planet Earth.

It’s good for the planet.

Many conversations surrounding this topic focus almost exclusively on the human impact, but ethical decisions intersect with taking care of the planet we live on. If you provide a healthy work environment but dump toxic sludge in the river out back, what good is a healthy corporate culture if the planet it exists on isn’t going to be here because of it? 

This is the part where I understandably see many companies struggle. Everything feels like a blood-soaked compromise because our world isn’t currently set up with long-term eco-friendly solutions. But none of this, or anything written in this article, is meant to be an indictment. Instead, it’s a reminder to do everything you can to ensure eco-friendly choices like sustainable supply chains. By doing what you can, you’ll be a part of the solution to reducing environmental impact while promoting fair labor practices and supporting local communities. Research shows consumers are willing to pay premium prices for ethical supply chains. 

This means being ethical is…

Yes, in fact, good for profits.

We all knew this was coming, and here it is. Yes, of course, being ethical is good for profits. Every topic in this article all but explicitly states that making authentic, intentional decisions builds trust in a brand, which is the foundation of getting consumers down the marketing funnel to high customer retention and repeat purchasing. 

I’ve lived long enough to know that doing the right thing for the sake of doing the right thing is not a core belief everyone shares. But despite that, I’m not looking to pack my bags and take myself and my (very adorable) cat out into the woods, screaming about the demise of decency in society. There are oodles of business founders trying to do the right thing, and that’s a good start.

So, to sum up, instead of leaving you with a preachy quote, I’ll leave you with these sage words: Do good, get money.

Marshall Wootton is a copywriter and strategic marketing expert who is perpetually wondering if there’s ever a perfect moment to use the word pauciloquent and not come off as pretentious. So far, no dice. Marshall is thrilled to be writing for HCL Designs, an agency that helps build revolutionary companies through branding and tech development. If you’re interested in working with us, let us know!