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Conscientious commerceThe first Principal Voices round-table of 2007 took place in Johannesburg, South Africa on May 29, discussing how conscientious commerce can play a major role in improving the world. Also:
The four panelists that took part are pioneers in promoting social change through new ways of doing business. Between them they have set up inspiring and life-changing operations to help address problems as diverse as energy poverty and homelessness to freeing children from the cycle of bonded labor. As entrepreneurs with a social agenda they're better equipped to look at areas of life where the market or government are failing, noted panellist Rick Aubry, executive director of Rubicon Programs that for over twenty years has run businesses that have helped America's homeless get their lives back on track. "Businesses and the communities in which they operate are inextricably linked and therefore the relationship goes beyond merely measuring success in terms of profitability," said Rory Stear, founder of Freeplay that produces the hand-powered radio. Identifying a problem and applying their skill and acumen to solve it is one thing, but creating a successful and sustainable business with an emphasis on social responsibility is not so straightforward. "What we started with was a socially responsible product that was empowering," said Rory Stear. "That was the motivating thing right up front - an opportunity to take something to market that people really needed, but we had a lot of luck in the early days with unconventional financing sources and media coverage." Fellow panelist Kailash Satyarthi, who set up Rugmark as a positive response to ending child labor in southern Asia, had to think up new ways to change corporate behavior and harness consumer power. "I was frustrated to see the growth in carpet exports linked to the increase in child slavery, so I had to think of a way to link the corporate with consumers' consciences.
While enlightening businesses and consumers to important issues, the panellists agreed that by blazing a trail old obstacles needed to be overcome, with Rory Stear highlighting how tough it was to find a way to distribute a new product like the Freeplay wind-up radio. "That was a real eye-opener. We had a product clearly appropriate for the developing world, but the distribution channels just didn't exist. The protectionist nature of the developing world economies was also another hindrance." Our fourth panellist Nogozi M. Awa, chief executive of Colela Group Investments, touched upon the role that governments have to play in encouraging new businesses to flourish and suggested individuals have to take more responsibility. "If you buy into business you are supposed to take an active part. Now can we blame that on the government? The government has set up the policy; it's how it's implemented." For Kailash Satyarthi, governments must continue to be pressured by civil society to fulfil their responsibilities and uphold the regulations that govern companies. "The government has to be held accountable, even though human nature is there. We initiated Rugmark when we saw that the government inspection system wasn't working well in the field of child labor, but it does not mean we should let the government officials off the hook." |
Economist Milton Freidman famously said that "the business of doing business is business," but for companies today there's much more to think about than just profits. Companies can benefit themselves and the communities in which they operate by thinking beyond just making revenue. But can socially aware initiatives still be competitive against less-ethically aware businesses and what are the ingredients of this new form of conscientious commerce? These were the main topics at the eleventh Principal Voices round-table event that took place in Johannesburg. 
"The difficulty was creating a solution-oriented approach, but we've found one that is holistic, giving solutions to the industry, the buyers and consumers."
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