It's the end of December, and the lists of annual notables are currently being published. We at Better Capitalism began our own list last year, and we want to continue our acknowledgment of some outstanding ethical companies with a list for 2024. These companies have business models that embody the goals of better capitalism. Of course, there are many others that are great examples of these standards; these are just a few from a range of industries that share the goal of putting the ethics of mutuality at the core of their business.
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Business Ethics as Defined by the Barrett Model
Before we celebrate specific companies, though, let's talk a little about business ethics in general as laid out by the Barrett Model of Business Ethics, a framework that helps organizations navigate ethical decision-making in the business world. Developed by Richard Barrett, this model emphasizes the alignment of corporate values with ethical practices, guiding businesses in how to operate not only for profit but also for the greater good.
At the core of the Barrett Model is the recognition that ethical behavior is not merely a set of rules or guidelines but a reflection of an organization's culture and values. The model states that a company should develop a set of core values that will inform every aspect of its operations. This approach allows employees to address ethical problems openly and encourages them to voice their concerns without fear of affecting their job.
The model outlines several key components for fostering ethical behavior in organizations. First, it emphasizes the importance of clearly defined core values. These values should be communicated effectively throughout the organization and integrated into every aspect of the business, from hiring practices to performance evaluations. By incorporating these values into the organizational culture, businesses create a strong ethical foundation to guide decision-making.
Another crucial aspect of the Barrett Model is the concept of stakeholder consideration, a key element of economic mutuality. The model states that businesses have a responsibility not only to their shareholders but also to all stakeholders, including employees, customers, suppliers, and the community at large. By considering everyone's interests and well-being, organizations can make decisions that truly reflect their commitment to ethical practices.
The Barrett Model also highlights the significance of ethical leadership. Leaders play a pivotal role in shaping the ethical climate of their organizations. They must model ethical behavior and demonstrate a commitment to the organization’s values. This involves not only making ethical decisions themselves but also supporting and encouraging their teams to in the same way. Ethical leaders are instrumental in fostering a culture where principled behavior is the norm.
Lastly, this model encourages continuous improvement. Organizations are urged to regularly assess their ethical standards and practices, seeking feedback from employees and stakeholders to identify where things could be better. This commitment makes it possible for companies to be responsive to changes in both the business world and the community.
Using the Barrett Model as a standard, we have chosen the following entities as examples of businesses that have pursued better capitalism in 2024 in the following categories: food, technology, fashion, hospitality, and consumer goods.
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Food: Heritage Foods USA
Core Values: Education, Accessibility, Traceability, Stewardship
Heritage Foods USA is a company that stands out in the food industry due to its strong commitment to ethical practices and sustainability. Founded with the vision of promoting traditional farming methods and preserving heirloom breeds, Heritage Foods emphasizes the importance of maintaining biodiversity in agriculture. The dedication to heritage breeds supports animal welfare and helps sustain traditional farming communities.
The company sources its products from farms that raise their animals in humane conditions without the use of antibiotics or growth hormones. By partnering with farmers who share these values, Heritage Foods guarantees that its meat and dairy products are both high quality and produced in a way that respects the animals and the environment. This approach benefits both these dedicated farmers and conscientious consumers.
In addition to animal welfare, Heritage Foods focuses on initiatives that promote environmental sustainability and transparency. The company provides consumers with detailed information about where their food comes from and how it is produced. It also plays a significant role in community engagement and education by organizing events and workshops to raise awareness about the importance and benefits of ethical food production and family farming.
Technology: Hewlett Packard (HP)
Core Values: Transparency, Integrity, Teamwork, Innovation
Consistently demonstrating a strong commitment to corporate social responsibility and sustainability, Hewlett Packard prioritizes ethical practices in its operations. This commitment is reflected in its comprehensive code of conduct, which guides employees in making ethical decisions and fosters a culture of accountability and transparency within the company. For decades this culture has been referred to as "The HP Way."
Hewlett Packard actively engages in various initiatives aimed at minimizing its environmental impact. HP has made significant strides in using renewable energy sources to power its operations and has set ambitious goals for reducing greenhouse gas emissions across its supply chain. This dedication to environmental stewardship not only benefits the planet but also resonates with their environmentally-conscious consumers.
Hewlett Packard is also dedicated to social responsibility. The company invests in community development programs and educational initiatives that empower individuals and enhance skills in underserved communities. By providing access to technology and resources, HP enables more people to participate in the digital economy. The company’s commitment to qualified diversity and inclusion further underscores its ethical stance, as it actively creates a workplace that values different perspectives and backgrounds, fostering innovation and collaboration.
HP maintains transparent relationships with its stakeholders, including customers, employees, and suppliers. The company encourages open dialogue and feedback, ensuring that it remains accountable to the communities it serves. By adhering to ethical sourcing practices, HP ensures that its suppliers comply with labor standards and human rights regulations, thereby promoting fair treatment and safe working conditions throughout its supply chain.
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Fashion: Organic Basics
Core Values: Sustainability, Transparency, Collaboration, Accountability
A pioneering company that has made a significant impact on sustainable fashion, Organic Basics was founded to create high-quality, environmentally friendly clothing. Organic Basics places a strong emphasis on transparency, sustainability, and ethical production practices. The brand recognizes the need for significant change in the fashion industry, which is often associated with environmental misuse and poor labor practices.
At the core of Organic Basics' philosophy is the commitment to using sustainable fabrics like organic cotton, TENCEL™, and recycled nylon. By using these materials, the company reduces their carbon footprint and promotes a circular economy where resources are reused and waste is minimized.
Organic Basics is also dedicated to ethical labor practices. The company ensures that all its manufacturing partners adhere to strict labor standards, providing fair wages and safe working conditions for all workers involved in the production process. This commitment to ethical labor extends beyond mere compliance; Organic Basics actively seeks to foster long-term relationships with its suppliers, emphasizing mutual respect and support.
In addition to its focus on materials and labor, Organic Basics encourages customers to make informed choices about their purchases. The company educates consumers on the benefits of investing in high-quality, sustainable pieces that are designed to last, as opposed to fast fashion (see our blogpost on this subject). It also encourages customers to recycle and upcycle their clothing, as well as providing resources for them to extend the life of their purchases.
Organic Basics is transparent about its practices and impact. The brand regularly publishes detailed reports on its sustainability efforts, including information on its supply chain, carbon emissions, and social responsibility initiatives. This level of transparency not only builds trust with consumers but also holds the company accountable to its commitments.
Hospitality: Marriott Hotels and Resorts
Core Values: Put People First, Pursue Excellence, Embrace Change, Act with Integrity
Marriott has consistently demonstrates a strong commitment to corporate social responsibility and sustainable business practices. The organization prioritizes integrity in all its operations, ensuring that ethical considerations are integrated into decision-making processes at every level.
For instance, Marriott actively engages in fair labor practices, treating its employees with respect and providing them with competitive wages, benefits, and opportunities for professional development. The company has established a qualified, diverse, and inclusive workplace culture promoted through various programs and initiatives that encourage a workforce reflective of the communities it serves.
Marriott is also dedicated to environmental sustainability. The company has implemented various initiatives aimed at reducing its carbon footprint and minimizing waste. These initiatives include energy-efficient building designs, water conservation programs, and waste reduction strategies that aim to recycle and repurpose materials wherever possible.
In addition to its focus on labor and environmental issues, Marriott engages in community outreach and philanthropy. The company supports numerous charitable organizations and initiatives that aim to improve the lives of individuals and families in the communities where it operates. This includes partnerships with local organizations to provide disaster relief, educational opportunities, and support for underprivileged groups.
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Consumer Goods: Hasbro
Core Values: Respect, Integrity, Diversity, Creativity, Storytelling
Corporate social responsibility and commitment to ethical standards is evident at Hasbro. The company has established comprehensive policies that guide its operations, ensuring that they align with principles of integrity, respect, and fairness.
Hasbro is dedicated to maintaining high standards in its supply chain management, which includes rigorous assessments of its suppliers to ensure compliance with labor laws and environmental regulations. This commitment includes protecting of workers' rights, promoting safe working conditions, and eliminating child labor in its manufacturing processes.
A logical extension of the products it makes, Hasbro invests in various programs that support children's education, health, and well-being, recognizing its role in fostering positive social change. Through partnerships with non-profit organizations, Hasbro contributes resources and funding to enhance educational opportunities and promote inclusivity in play.
This dedication to social responsibility is further exemplified by its sustainability efforts, where Hasbro aims to reduce its environmental footprint by implementing eco-friendly practices in product design and packaging, thereby promoting a healthier planet for future generations.
Hasbro's commitment to diversity and inclusion within its workforce is a testament to its ethical stance. The company strives to create an inclusive workplace that values diverse perspectives and backgrounds, fostering an environment where all employees can thrive. By actively promoting gender equality and supporting underrepresented groups, Hasbro not only enhances its corporate culture but also sets a standard for ethical business practices in the industry.
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As you can see, these companies share a number of qualities, including a commitment to
responsible business practices, community engagement, sustainability, and inclusivity. Though they may not hit the mark every time—we all are human—their efforts in these areas are truly commendable and are leading the way toward a better business standard for everyone.
Thanks to all of the companies, large and small, who are mindfully implementing a better, more ethical business model. May the end of next year find us with even more companies working toward and building a better capitalism!
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