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Can you give an example of large companies which operate on a "ethics first" model?

by dwg 10y ago

omarchowdhury 10y ago
They certainly imply they do in their marketing message.
throwaway2048 10y ago
costco and mars incorporated both have long histories of ethical, sustainable practices, and a strong reputation for resisting the quality lowering death spirals that infect many consumer goods focused companies.
- dwg 10y ago
  Costco is probably the best example that comes to mind for me to, considering the scale at which they operate and the fact that they are actually widely reputed for their ethical practices. Nonetheless I think they are an exception and, while not impossible, it would be pretty difficult to disrupt the disruptor with a business model based on being more ethical.
  - ftlio 10y ago
    Costco's profits are less their subscription revenue. That tells me the space for bulk retailers in middle class areas with the type of consumers that can shell out a yearly subscription fee isn't a whole lot bigger than Costco already occupies. Costco shoppers have more money, so they can buy more economically at Costco quantities, and they have a higher expectation of service which requires a higher paid employee. Costco has effectively packaged that arrangement in a $50 fee and keeps prices competitive by selling mostly bulk quantities compared to grocery stores. Good luck trying to compete at scale while holding on to costly values that your competitors don't. Your choices are fail entirely or carve out a niche that you can keep almost exclusively. In my mind, the mental ceiling keeping us from understanding 'Why more companies can't be like Costco' and 'What's the real value of an Uber ride sans venture capital subsidies' is a lack of understanding of the extensive properties of capital that automation is going to either push us through or bring down on us in a rain of deadly glass shards. I'm not going to wait around for the market to 'get real' and 'focus on companies with actual viable business models' though. 1) The bulk of your portfolio should already be occupied by companies that fit that mold, but 2) The practice of leveraging profitability today for gains in equity tomorrow is going to push through a few big winners consistently enough that it's not going away regardless of the overall consequences. Meanwhile we'll keep asking the same questions that ultimately amount to 'Why does capital beget capital?'
nhf 10y ago
Patagonia is famous for this in the clothing industry. They are a premium brand so they can get away with higher prices and a lot of it gets reinvested in supply chain sustainability /ethics.
- dwg 10y ago
  Thanks for this example. I wonder how much ethics contributes to Patagonia's success. I own at least a few things from Patagonia, but I wasn't aware of anything to do with their ethics. I bought them because of (perceived) quality. My point being that, in response to the original comment, I think it would be pretty difficult to disrupt the space by "being more ethical."
  - snowwrestler 10y ago
    It matters to me; I always buy from Patagonia if I can. I've also seen consumer research that shows that a lot of customers, especially younger ones, want to believe that they are buying from companies that have a social mission beyond just getting rich. You can see this play out in brand fights here. Apple is either creating great products for creativity (good social mission) or is creating a walled garden to suck money out of everyone (bad social mission). Google is either solving the world's problems (good social mission), or is sucking up everyone's personal data to better target ads (bad social mission). Android is "open," vs. iPhone is "secure." Etc.
  - misiti3780 10y ago
    I didnt know either until I listened to this excellent interview. change the way i thought about the company: https://www.npr.org/player/embed/504852483/505017995 https://www.npr.org/player/embed/504852483/505017995
dpc59 10y ago
Patagonia, jones snowboards, wikipedia and many more.
- dwg 10y ago
  These companies operate ethically to be sure, but how much of customers' purchase decision is based on the companies ethics? The original comment implied, at least to me, that the market is ripe for disruption because Uber is acting unethically, but I think that's a stretch.

Can you give an example of large companies which operate on a "ethics first" model?

by dwg 10y ago

Can you give an example of large companies which operate on a "ethics first" model?

omarchowdhury 10y ago

They certainly imply they do in their marketing message.

throwaway2048 10y ago

costco and mars incorporated both have long histories of ethical, sustainable practices, and a strong reputation for resisting the quality lowering death spirals that infect many consumer goods focused companies.

dwg 10y ago
Costco is probably the best example that comes to mind for me to, considering the scale at which they operate and the fact that they are actually widely reputed for their ethical practices. Nonetheless I think they are an exception and, while not impossible, it would be pretty difficult to disrupt the disruptor with a business model based on being more ethical.
- ftlio 10y ago
  Costco's profits are less their subscription revenue. That tells me the space for bulk retailers in middle class areas with the type of consumers that can shell out a yearly subscription fee isn't a whole lot bigger than Costco already occupies. Costco shoppers have more money, so they can buy more economically at Costco quantities, and they have a higher expectation of service which requires a higher paid employee. Costco has effectively packaged that arrangement in a $50 fee and keeps prices competitive by selling mostly bulk quantities compared to grocery stores. Good luck trying to compete at scale while holding on to costly values that your competitors don't. Your choices are fail entirely or carve out a niche that you can keep almost exclusively. In my mind, the mental ceiling keeping us from understanding 'Why more companies can't be like Costco' and 'What's the real value of an Uber ride sans venture capital subsidies' is a lack of understanding of the extensive properties of capital that automation is going to either push us through or bring down on us in a rain of deadly glass shards. I'm not going to wait around for the market to 'get real' and 'focus on companies with actual viable business models' though. 1) The bulk of your portfolio should already be occupied by companies that fit that mold, but 2) The practice of leveraging profitability today for gains in equity tomorrow is going to push through a few big winners consistently enough that it's not going away regardless of the overall consequences. Meanwhile we'll keep asking the same questions that ultimately amount to 'Why does capital beget capital?'

nhf 10y ago

Patagonia is famous for this in the clothing industry. They are a premium brand so they can get away with higher prices and a lot of it gets reinvested in supply chain sustainability /ethics.

dwg 10y ago
Thanks for this example. I wonder how much ethics contributes to Patagonia's success. I own at least a few things from Patagonia, but I wasn't aware of anything to do with their ethics. I bought them because of (perceived) quality. My point being that, in response to the original comment, I think it would be pretty difficult to disrupt the space by "being more ethical."
- snowwrestler 10y ago
  It matters to me; I always buy from Patagonia if I can. I've also seen consumer research that shows that a lot of customers, especially younger ones, want to believe that they are buying from companies that have a social mission beyond just getting rich. You can see this play out in brand fights here. Apple is either creating great products for creativity (good social mission) or is creating a walled garden to suck money out of everyone (bad social mission). Google is either solving the world's problems (good social mission), or is sucking up everyone's personal data to better target ads (bad social mission). Android is "open," vs. iPhone is "secure." Etc.
- misiti3780 10y ago
  I didnt know either until I listened to this excellent interview. change the way i thought about the company: https://www.npr.org/player/embed/504852483/505017995 https://www.npr.org/player/embed/504852483/505017995

dpc59 10y ago

Patagonia, jones snowboards, wikipedia and many more.

dwg 10y ago
These companies operate ethically to be sure, but how much of customers' purchase decision is based on the companies ethics? The original comment implied, at least to me, that the market is ripe for disruption because Uber is acting unethically, but I think that's a stretch.