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Businessman:
Business often gets slammed as being beholden solely to their
shareholders, chasing after the almighty dollar without giving a good
damn about their employees or their impact on their community or
the world. May Day rioters, free trade protestors, and the like may be
misguided in their approach, but in some ways that do have a
point… While we are in business to make money, we must do it in a
moral and ethical manner.
It is vital to understand that businesses are not faceless
conglomerates; they are collections of people who make personal
decisions and take individual actions at all levels throughout the
organization on any given day. Added together these individual
choices drive the way in which the business performs its work,
manages its employee base, governs its supply chain, and interacts
with the larger community. That means that this is personal. It’s not
somebody at the top’s problem. It’s not our boss’s problem. It’s not
our coworker’s problem. It is our problem, yours and mine… And our
solution. Every day the decisions we make, however big or small,
impact the operations of our business and thereby the larger
community as a whole.
Thinking deeply on the world in this context, therefore, means at
minimum being certain to treat one’s suppliers, customers, and
employees right. This is not only the ethical thing to do but also a
strategy that can pay off over the long run. Studies consistently
demonstrate that consumers would rather spend their hard earned
money at establishments that act in a socially responsible way as
opposed to buying from ones that do not. This includes companies
that won’t work with foreign suppliers who violate child labor laws,
those that embrace “green” manufacturing, those that acquire Fair
Trade certifications, and those that only source sustainable products
or buy local ingredients, among other factors... In fact, putting their
money where their morals are, many folks are willing to pay a
premium for products or services that are produced in an ethical and
responsible way.
[9]
By taking the larger view we not only do the right things we also
grow our businesses in the process. That’s all goodness, but the
concepts of right and wrong in business oftentimes get muddled
through ignorance, politics, or short-term thinking. For example,
consider the issue of “outsourcing,” something that has come up in
the last few national elections in the United States. Politicians and
pundits assume that the term outsourcing means sending US jobs
overseas, but they are incorrect. Outsourcing simply means buying
products or services that we cannot or will not make ourselves from
somebody else. The supplier could be anywhere. Since nobody can
do everything, businesses buy stuff all the time, things like office
supplies, computers, software, building maintenance, vehicles, tools,
equipment, cafeteria services, raw materials, precious metals, and
the like. Offshoring is actually the term they’re thinking of; it means
acquiring work from another country.
More important than terminology, however, we need to take a step
back and ask ourselves, “What’s wrong with this picture?” Is hiring
somebody in another country to provide products or services for us
inherently a bad thing? Are we entitled to certain jobs simply
because we were born in the United States (or wherever we happen
to live), even if others can do it better, faster, cheaper, or more
innovatively? Establishing a supply chain in an underdeveloped
foreign country can mean helping to establish and grow an
infrastructure there that leads to clean water, education, and
opportunities for folks who could never expect a better life on their
own. What’s so bad about that? In most instances there are plenty of
other activities that can or must be done in house by our employees
on our premises, so in growing our business we can help provide
jobs for everyone who is willing to work, not just in our home country
but all around the world (assuming we’re big enough, of course).
Nike, for example, is a paragon of sustainable manufacturing. While
their headquarters is in Beaverton, Oregon they have more than 780
factories that employee over a million people around the world who
build more than 500,000 different products for them. This is in
addition to approximately 48,000 direct-hire employees. To keep tabs
on their supply chain they rate every supplier using a Sourcing &
Manufacturing Sustainability Index (SMSI) that evaluates labor
conditions, health and safety, energy usage, carbon footprint, lean
manufacturing capabilities, and environmental sustainability to
achieve a score of red, yellow, bronze, silver, or gold (from worst to
best along the continuum). According to their code of conduct, Nike
only acquires products from factories that are able achieve a
minimum bronze standard SMSI on that scale. This means among
other things that labor is voluntary, nondiscriminatory, and that
subcontractor employees are all at least sixteen years of age,
compensation is paid timely, facilities are safe and healthy, and the
environmental impact of operations is minimized.
So, we truly do need to think lightly on ourselves and deeply on the
world. How can we make our businesses grow by doing a good
thing? How can we make a lot of money for ourselves and our
stakeholders in a morally and ethically appropriate way? And, how
do we define “good” in the global context? In this fashion Musashi’s
fourth precept should be a beacon for businesspeople everywhere,
one that shows us the way to a better future for both ourselves and
the rest of humanity.
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