MONEY CAN’T SOLVE EVERYTHING

Last week I came across something very interesting during my free time. Dan Pink of Ted Talks posted a video titled “The Puzzle of Motivation”. Here he introduced a mind boggling concept which was portrayed through the simple candle stick problem. The goal of the puzzle is to place the candle on a wall. If you look at the image below, many people with straightforward thinking would simply try to glue the candle on the wall, or place tacks to secure it. None of these solutions were practical and ended up in the candle falling over. The solution required critical outside the box thinking which involves securing the platform with tacks and placing the candle on top.  Dan Pink followed by conducting research on the puzzle.

In the business world, motivation is one of the key aspects companies use to develop faster and more efficient employees.  When Dan timed individuals to solve the puzzle as quickly as possible, he gave one set of people an incentive, and the other no incentive. To his surprise, the people without the incentive solved the puzzle much faster. He conducted this experiment through different samples of people in different areas and the results were the same. This is astonishing because in the business world, tasks are increasingly complex and require outside the box thinking. Management is making the wrong decision by giving incentives. Incentives narrowed a person’s ability to think outside the box.

MARKETING ETHICAL PRACTICES – UNETHICAL?

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Ethics play a vital role in the success of a business, however it is hard to determine the line to be drawn. Nowadays, many businesses practice in unethical activities which are cost saving measures. This pressures the maintenance of competitive advantage. It is virtually impossible to rid of ethics through a voluntary internal decision. In order to lower the amount of unethical practices, we need consumer influences that will ultimately change the amount of demand for a product/service. This will shift a company’s perspective and force them to re-evaluate a more profitable solution. The consumers have power in correcting unethical business practices.

To support my claims, I have a case where Cadbury changed their products to “Fair Trade”. This is due to the increased media attention towards underpaid workers in rural areas. The niche market that the “Fair Trade” label produces has grown 67% from last year. Consumer demands are changing to favouring those with ethical practices, which gave Cadbury a competitive edge by choosing ethical means of production despite higher costs.

If making ethical choices proved not to be an investment for Cadbury, they would not have switched suppliers. The question still remains whether Cadbury’s rationale is ethical.