Tag Archives: ethics

by - 2 Comments

Companies using “Focus Strategy” – incorporating ethics for differentiation

When asked to name a few companies that uses the “Focus Strategy”, a strategy that targets a niche market by differentiation or cost advantage, a few companies immediately came to my mind. Such companies include: TOMS, Frog Box, and Ten Tree Apparel. All three of these companies uses the “Focus Strategy” by , targeting a very specific (narrow) market- consumers that uphold and value the importance of ethics.

TOMS

Founded in 2006, this shoe company is popular for its excellence in corporate social and environmental stewardship. The company adopts the “One for One” principle, “With every product you purchase, TOMS will help a person in need.” To date, TOMS has provided over 10 million pairs of shoes in over 60 countries, restored sight for 200,000 people in over 5 countries. TOMS has recently initiated a water project to provide clean water for communities in need.

Frog Box

Frog Box is a moving company that provides a cost effective and environmentally friendly alternative to using cardboard boxes for moving. The company rents out reusable moving boxes and supplies and does moving services at a competitive price. The company donates “1% of gross revenues to frog habitat restoration”.

Ten Tree

Ten Tree is an apparel company that strives to commit: stewardship, transparency, and community involvement. The company vows to plant 10 trees for every purchase made.

 

Works Cited
“Frogbox.” Eco-Friendly, Green, Reusable Moving Boxes. N.p., n.d. Web. 05 Oct. 2014. <http://frogbox.com/>.
“Ten Trees Are Planted for Every Item Purchased.” Tentree. N.p., n.d. Web. 05 Oct. 2014. <http://www.tentree.com/ca/?___store=en_ca>.
“With Every Product You Purchase, TOMS Will Help a Person in Need. One for One.®.” TOMS : One for One. N.p., n.d. Web. 05 Oct. 2014. <http://www.toms.ca/>.
by - 1 Comment

Wall Street Movers and Shakers Care about Factory Conditions

 

Since the disastrous industrial fire that occurred at a garment factory more than a year ago in Bangladesh; many giant retailers, governments, clothing companies and human rights group vow to step up and revolutionize the conditions of factories in labor concentrated countries. The aftermath of the fire that resulted more than one thousand deaths and twenty-five hundred injured led the world thinking about corporate social responsibility and their roles for ethics. But no one would have imagined that Wall Street would join in the boat to support a more ethical garment industry.

Bangladesh, reported to have a $24.5 billion garment industry, will receive support from big companies. One of the companies include Tau Investment Management, promising that it will contribute $500 million to upgrade and modernizing factories in the upcoming years. Jerry Yang, Yahoo’s co-founder is also not shy to take the initiative to fund better working conditions factories in Bangladesh, Indonesia, Cambodia, etc.. These actions do converge closely to Freeman’s Stakeholder Theory, showcasing all parties do comply to address ethics, whether it may be morals or values.

Niedermaier, the head for Tau Management, believes his company is “doing this because [they] think [they] can make a lot of money for [their] investors while [they’re] going to have very positive impacts on communities in which [their] offices are operating”. Haven’t said that, Tau is definitely not a charity. As a company they aim to ” make a lot of money for [their] investors while [they’re] going to have very positive impacts on communities in which [their] offices are operating”. Niedermaier believes companies need to act quicker in promoting ethics in the industry than consumers; for it is too late when consumers request to make change. In short, he believes “corporations and capitalist incentives are better mechanisms to change things”. But are these changes truly genuine, motivated by one’s own social conscience? Or are these changes happening simply to promote corporate image? Nonetheless, such changes is one step forward, a step towards achieving morality in the business world for the betterment of every society.

Works Cited

“2013 Savar Building Collapse.” Wikipedia. Wikimedia Foundation, 09 Sept. 2014. Web. 10 Sept. 2014. <http://en.wikipedia.org/wiki/2013_Savar_building_collapse>.
Butler, Sarah. “Big Business Will Force Change in Garment Trade, Vows Wall St Boss.” The Guardian. Guardian News and Media, 08 Sept. 2014. Web. 10 Sept. 2014. <http://www.theguardian.com/business/2014/sep/07/big-business-force-textile-plant-reforms>.