Objective 3-5 Business Opportunities Created by Ethical Needs

  1. Identify ways in which companies can apply ethical standards to create new business opportunities.

Creating New Markets with an Ethical Focus

How can firms create business by acting ethically? By examining the world with an eye toward social responsibility, many firms have created opportunities with new types of products and services. Let’s examine a few.

Offering Clean Fuel

Solar City is a company that is finding ways to create profit from the residential and commercial use of solar energy. They did not invent a new solar panel or a new technology but focus on creative ways to help homes and businesses afford the up-front installation costs of switching their energy needs to solar. This approach to making solar energy an affordable option for millions may be more important than even inventing a new type of solar battery itself.

Creating Medical Vaccines

Other companies have created business opportunities by addressing the world’s most serious medical needs. Malaria kills up to 3 million people a year, mostly children, and is the leading cause of death in ­children worldwide, mostly in Africa. The disease is transmitted easily, whereas the drugs currently used to treat it are becoming increasingly ineffective.

Many businesses haven’t found a way to balance the tremendous research costs associated with creating a malaria vaccine with the anticipated meager profits from it. Enter Sanaria, a pharmaceutical company founded by Dr. Stephen Hoffman, whose mission is to create a malaria vaccine. Hoffman ­remarks, “I haven’t spent 25 years working on diseases of the most disadvantaged and ­neglected people in the world to start a company that’s just here to make money.”28 The malaria vaccine the company has developed has completed its first phase of clinical trials.

Photo shows a man holding a sleeping child under a mosquito net.

Mosquito nets work to reduce the risk of malaria. A malaria vaccine, though, would eliminate the risk for millions.

Source: J R Ripper/Brazil Photos/Getty Images

Fighting Censorship

Still other companies are creating business opportunities by fighting censorship. The Chinese government maintains a tight rein on the flow of information to its citizens, including controlling the accessibility of certain Internet sites. This policy of censorship garnered the attention of the international business community when, in 2010, after four years of complying with China’s system of censorship so that search results were edited before being presented to users, Google did an about-face and announced it would no longer censor search results for China.29 Google’s announcement was met by an announcement from Microsoft that its Bing search engine would continue to abide by Chinese censorship laws. The Bing search engine has even been charged with censoring information for Chinese language users in the United States in the same way.30

This censorship left the founder of Dynamic Internet Technology (DIT), Bill Xia, with a skewed view of the world when he arrived in the United States from China. DIT and similar companies provide a paid service that counteracts the impact of censorship. When a site is placed on the list of censored sites by the Chinese government, DIT quickly creates a new, uncensored web address that points users to the same material. A list of the new accessible sites is then e-mailed to web surfers who want full Internet access. Chinese censors often stamp out the new site within a few days, at which point DIT starts the process again, determined to override China’s censorship. DIT and other companies are showing there are ways to fight censorship and profit from it. The service DIT provides may continue to be important because other countries, including India, are now requiring Google to restrict content their governments feel are “antisocial” or “antireligious.”31

Businesses Going Green

How can businesses benefit by going green? Increasingly, companies are attempting to reduce the impact they have on the environment. Take Interface, Inc., the world’s largest commercial carpet manufacturer. The company was careful to follow all laws and regulations related to its industry, but it made no special commitment to stewardship of the environment beyond that. Then CEO Ray Anderson read The Ecology of Commerce.32 Anderson was so inspired by the book’s message that he began reorganizing his $1.4 billion company around the principles of sustainability. Sustainability is the practice of improving the quality of people’s lives in ways that simultaneously protect and enhance the earth’s life support systems.

Interface is rethinking all aspects of its business in an effort to meet its ­sustainability goal. It is eliminating waste and toxic substances from its products, using renewable energy, and finding how to route its trucks along more efficient transportation routes.33

Cool Carpet is one product that demonstrates how Interface now operates. The “cool” part of Cool Carpet is that Interface makes sure that all carbon dioxide emissions over the full life cycle of Cool Carpet—from its manufacture through its delivery—are offset so as to minimize global warming. Actions like purchasing energy from wind farms and choosing suppliers that are ecologically friendly balance out the necessary carbon dioxide produced in other stages of carpet production. Anderson recognized the choices Interface makes today will ultimately affect future generations and hoped his customers would see the value in these choices and go green themselves.

Another large international company that has worked for over a decade to reduce its environmental footprint is Starbucks. Its “Shared Planet” progress plan sets clear objectives for the company in terms of its recycling, energy and ­water usage, building, and efforts to reduce climate change.34 Starbucks also held a summit with local ­governments, cup manufacturers, and recyclers to identify the steps required to make its cups recyclable. Stores are being designed with recycling bins in the front, and customers are given $0.10 off each cup of coffee served in a reusable tumbler. Today, more than 35 million Starbucks customers bring their personal tumblers to the firm’s stores to have them refilled.

Photo shows Starbucks recyclable tumbler cups.

Starbucks discounts coffee if customers bring their own recyclable tumblers. Customers bring in tumblers more than 35 million times a year.

Source: Bloomberg/Getty Images

..................Content has been hidden....................

You can't read the all page of ebook, please click here login for view all page.
Reset
18.221.163.13