Archive for the ‘safety’ Category
Herbal Remedy Scam
Filed under: compliance, ethics, fraud, health, honesty, information, labelling, law, marketing, natural, product safety, quality, risk, safety, supply chain |
Comments (7) It’s a quality control problem at best, and outright fraud at worst.
A recent study by researchers at the University of Guelph used genetic analysis to study a range of commercial herbal remedies and found a shocking disparity between what was on the label and what’s actually in the bottle.
According to the Vancouver Sun, the researchers looked at 44 herbal products sold by 12 companies, using DNA ‘barcode testing’ to determine what plant species were in the bottle.
The result: some products contained other generally inert species of plants (for example wheat, to which some people are allergic, and rice, to which some people are allergic), without those ingredients being listed on the label. Other products were adulterated with potentially toxic plants like St. John’s wort or senna. Others simply contained none of the active ingredient they were supposed to contain. And yet these products are commercially available at a major pharmacy chain near you.
The study didn’t name names — the study was effectively about quality control within the industry, rather than about naming-and-shaming particular companies. But it’s a damning indictment for the industry quite generally. (Just two companies among the 12 in the study sold products that were just what they said they were.)
Of course, many readers will know that this is not the first reason we’ve had to doubt the integrity of the herbal remedy industry, or the ‘natural’ health product industry more generally. As others have written elsewhere (including pharmacists with the scientific and critical-thinking chops to know the difference), Canada’s regulations regarding natural health products leave much to be desired.
But it’s nothing to laugh about. Unlike homeopathic remedies, which (unless adulterated) generally contain no active ingredients at all, herbal remedies can have actual effects, though those effects may not live up to the claims implied by their labels. Herbal remedies, while under-regulated, can at least have real biological effects. That’s a source of pride for makers of herbals, situated as they are within an alternative-medicine industry that is rife with outright fraud and delusion.
But it also means that the honest bottlers of herbal remedies should be at the front of the line, lobbying government hard for stricter regulations. Perhaps even more crucially they should be doing their best to convince the major chains that there’s a difference between them and the companies whose products failed the Guelph study so miserably. In the end, it’s as much an ethical matter as a matter of self-interest. The public deserves to be better served, and who better than those within the industry itself to make sure that it happens?
Starbucks to Guns: “No Thanks”
Filed under: CEOs, corporate citizenship, employees, freedom, government, protest, public relations, retail, safety, values, workplace safety |
Comments (2) Starbucks CEO Howard Schultz has stirred up controversy by posting an open letter asking Americans not to bring firearms into the coffee chain’s stores, even where it is legal to do so.
“Few topics in America generate a more polarized and emotional debate than guns,” Schultz wrote. “In recent months, Starbucks stores and our partners (employees) who work in our stores have been thrust unwillingly into the middle of this debate. That’s why I am writing today with a respectful request that customers no longer bring firearms into our stores or outdoor seating areas.”
I think Schultz is to be commended. Not for the position he has taken, but for the way he went about taking it. His open letter lays out the problem frankly and even-handedly. Some people are in favour of openly carrying firearms. Others are made incredibly uncomfortable by the idea of armed civilians behind them in line while they order a grande, half-sweet, non-fat, no-whip mocha. And Schultz doesn’t want his employees caught in the middle, so he’s making a polite request.
But, not surprisingly, the request has generated a firestorm of opposition. Not all of that opposition was well reasoned.
Twitterers who screamed that their rights were being tread upon, for example, were doubly incorrect. First, it is important to note that Starbucks isn’t imposing a ban on firearms in their stores. They’re asking politely, and have given no indication that they’re going to do anything more than that. Asking politely doesn’t infringe anyone’s rights.
Secondly, Starbucks isn’t the government, so appealing to the Second Amendment right to bear arms is (no pun intended) off-target. The US Constitution and the amendments to it protect citizens from intrusions by government, not from (supposed) intrusions by other citizens or private institutions like Starbucks.
But this raises larger, more interesting questions. It’s easy for me to say that, hey, Starbucks is a private company and it can make whatever requests it wants. It could even outright ban firearms from its stores, if it wanted to. They certainly wouldn’t be the first to do so. The stores are private property, and Americans do have constitutionally-protected property rights. Schultz doesn’t have to allow visitors to his home to carry guns, and he doesn’t have to allow visitors to his stores to carry them either.
But there’s an important sense in which a big company like Starbucks isn’t “just a company,” and a sense in which its stores are not fully private property. Starbucks has over 13,000 stores in the US alone (and over 60,000 worldwide), making their stores the go-to spot for coffee, a soft chair, and free wifi for plenty of Americans. And Schultz’s own vision for Starbucks was to make it a ‘third place’ between work and home, a kind of quasi-public meeting place. And so there’s a sense in which Starbucks, like Google and Facebook, is effectively a part of our public infrastructure.
That’s not to say that Starbucks has the legal obligations of a government. That would be a dangerous position to take. But it suggests that the range of ethical obligations we attribute to big companies with an important role in public life are a fit subject for debate. Schultz deserves praise, I think, for taking a good first step by presenting his reasoning openly, and making it fodder for public discussion.
University Frosh Rape Chant Poses Leadership Challenge
Filed under: accountability, CEOs, character, decision-making, economics, safety, values, virtue |
Comments (1) Last week, a scandal sprouted on Canada’s east coast, when it was discovered that part of Frosh Week activities at Saint Mary’s University (SMU), in Halifax, included the chanting of a song promoting the sexual assault of underage girls. The news broke shortly after a video of the chant was posted online. Condemnation was broad and swift. Some were angry at the students. Others were angry at university administrators. Others simply lamented the sad state of “youth today” and the perpetuation of the notion that it is OK to glorify rape.
As it happens, I taught for about a decade in SMU’s Philosophy Department; I still have friends who teach there. I know some of the administrators involved in this case, and have more than a little affection for the place, generally.
My own particular scholarly interest in this case, though, has to do with the ethics of leadership. I think the events described above provide a good case-study in the ethics of leadership. That’s not to say that it is an example of either excellent or terrible leadership. But rather, that it’s a case that illustrates the challenges of leadership, and an opportunity to reflect on the ethical demands that fall on leaders in particular, as a result of the special role they play.
Two key leaders were tasked with handling the SMU situation. One was Jared Perry, President of the Saint Mary’s University Student Association. Perry has now resigned. Reflecting on his error, Perry said “It’s definitely the biggest mistake I’ve made throughout my university career and throughout my life.” The other leader is SMU president Colin Dodds. For his part, Dodds has condemned the chant and the chanters, and has launched an internal investigation and a task force.
A leader facing a crisis like this needs to balance multiple objectives.
On one hand, a leader needs to safeguard the integrity and reputation of the organization. Of course, just how to do that can be a vexing question. Do you do that by effecting a ‘zero tolerance’ policy, or by a more balanced approach? Do you focus on enforcement, or education?
A leader also needs to deal appropriately with the individuals involved. In this case, that means offering not just critique (or more neutrally, “feedback”) to the students involved, but also offering compassion and advice in the wake of what everyone agrees is a regrettable set of circumstances. In particular, a situation like this involves a “lead the leaders” dynamic. It is an opportunity for university leaders to teach something specifically about leadership to the student leaders involved. It is also, naturally, yet another opportunity for university leaders to learn something about leadership themselves; unfortunately, that lesson must take the form of learning-by-painfully-doing.
Finally, a leader needs to be responsive to reasonable social expectations. In this case, those expectations are complex. On one hand, society wants institutions entrusted with educating the young provides a suitably safe setting, and arguably one that fosters the right kinds of enculturation. On the other hand, society wants — or should want — universities to be places where freedom of speech is maximized and where problems are addressed through intellectual discourse. Indeed, my friend Mark Mercer (in SMU’s philosophy department) has argued that what the university ought to demonstrate, in such a situation, is its commitment to intellectual inquiry and to the idea that when someone uses words we disagree with, we should respond not with punishment but with open discussion and criticism.
Balancing those objectives is a complex leadership challenge. And there’s no algorithmic way to balance such competing objectives. But one useful way to frame the leadership challenge here is to consider the sense in which, in deciding how to tackle such a challenge, a leader is not just deciding what to do. He or she is also deciding what kind of leader to be, and what kind of institution he or she will lead. Each such choice, after all, makes an incremental difference in who you are. It is at moments like this that leaders build institutions, just as surely as if they were laying the bricks themselves.
The Dark Side of the Tanning Business
Filed under: consumers, health, law, regulations, risk, safety |
Comments (1) Tanning beds are rapidly joining cigarettes in the “it’s only legal because no one has figured out how to outlaw it” category. Indeed, even their legality is slipping. Jurisdictions from Prince Edward Island to Texas, for example, are banning minors from tanning salons. Not surprisingly, dermatologists are pleased. Indeed, the Canadian Dermatology Association has issued a release, noting that indoor tanning “causes premature aging and… increases a person’s risk of developing skin cancer, including melanoma, the deadliest form of skin cancer.”
Is this a business that should exist at all? Sure, even a potentially-dangerous product can be used safely if used in suitable moderation. But the question here has to be whether moderation is the norm, and whether customers will know what moderation means.
Protecting minors is the regulatory low-hanging fruit. Protecting kids is an easy sell. Tanning beds pose a risk to anyone who uses them, but teens are in particular need of protection. Studies have suggested that younger people are more vulnerable to the harmful effects of ultra-violet radiation. And teens, in particular, tend to be both obsessed with appearance and under the sway of a general belief in their own invincibility. And According to the the dermatologists, “tanning before the age of 35 has been associated with a significant increase in the risk of melanoma.”
But beyond the case of minors, shouldn’t we all be free to tan at will? Well, yes and no. Freedom is a good thing, sure. But freedom in the marketplace is predicated on the idea that everyone involved is more or less rational and well-informed. This imposes an obligation on businesspeople to be honest and forthright about risks associated with their products. But tanning salons themselves may be promoting a number of myths that make artificial tanning seem safer than it is.
If you’re only still in business because no one has figured out how to make your product illegal, you should probably consider a new line of business.
Top Retailers Sign New Bangladesh Safety Initiative
Filed under: accountability, brands, corporate citizenship, disaster, employees, human rights, international, retail, rights, safety, standards, supply chain, workplace safety |
Comments (2) Workers in Bangladesh will be the beneficiaries of yet another massive effort to improve their lot. Will it work? And will it mean anything for workers in countries other than Bangladesh? It’s a welcome move, but it also raises questions.
According to a press release, an alliance of leading North American retailers has committed to a new plan, The Bangladesh Worker Safety Initiative, intended to “dramatically improving factory safety conditions in Bangladesh.” The coalition includes Walmart, Target, Canadian Tire, Gap, Hudson’s Bay Company, and a dozen other major retailers. That means, according to the press release, that the Initiative covers the “overwhelming majority of North American apparel imports.”
This new Initiative should not be confused with the Accord on Fire and Building Safety in Bangladesh, a labour-led agreement that was announced in May, less than a month after the collapsed the collapse of Bangladesh’s 8-story Rana Plaza collapse, a tragedy that eventually claimed 1,129 victims. Signatories to that Accord included Europe’s two biggest clothing retailers, as well as Tommy Hilfiger, H&M, and Canada’s Loblaw, but there were notable abstentions. Walmart, for instance, was criticized for declining to sign on.
The new Initiative “sets aggressive timelines and accountability for inspections, training and worker empowerment.” Of particular note: “Within one year, 100 percent of all factories that conduct work with an alliance member will be inspected,” and members of the alliance have committed to refusing to do business with any factory deemed unsafe. And, in a worthy commitment to transparency, the alliance will make semi-annual progress reports public.
There is, of course, plenty of room for skepticism. Some will see this new Initiative as a PR move, albeit a rather expensive one. Members of the alliance have already committed $42 million, though of course that number has to be put into context by comparing it to the vast profit the alliance members derive from doing business in Bangladesh. The Bangladeshi garment industry is a $19 billion-a-year industry. (Quick math: that means the size of the Alliance budget amounts to roughtly 0.2% of the size of the industry. That’s not necessarily the most relevant comparison, but it gives you a sense of scale.)
Another source of skepticism, for some, is that this is an entirely business-driven initiative, unlike the May Accord, which was driven by labour and which will be guided by a Board that includes representatives of both corporate and labour interests. The Board of the new Initiative is perhaps less clearly unbiased: the 9-member board will consist of “four retailers, four stakeholders who provide specific expertise, and an independent board chair.” Interestingly, however, the Initiative does include specific provisions not just to look after workers, in the paternalistic sense, but to empower them: it calls for members to support the election of Worker Participation Committees at all factories, along with the provision of anonymous worker hotlines to be administered by a third party.
I continue to wonder and worry that both the new The Bangladesh Worker Safety Initiative and May’s Accord on Fire and Building Safety in Bangladesh represent a kind of Bangladeshi exceptionalism. Why are major retailers joining together in now two big agreements to improve conditions in Bangladesh, but in Bangladesh alone? Admittedly, Bangladesh is important — as far as the garment industry goes, it is second only to China among countries exporting Western brands. But still: it worries me that a factory collapse that could have happened in an number of developing nations has apparently drawn attention only to the fate of garment workers in one, admittedly needy, nation.
Rejecting the Bangladesh Safety Accord
Filed under: brands, corporate citizenship, employees, excuses, human rights, international, retail, safety, supply chain, unions |
Comments (18) 
Image by rijans (Creative Commons)
It’s easy to villainize a company like Walmart for being unwilling to sign an agreement seeking to improve safety for workers in Bangladesh. What’s harder is to assess the company’s actual motives, and its obligations.
Headlines recently blared that Walmart has refused to sign the new “Accord on Fire and Building Safety in Bangladesh”, despite the fact that 24 other companies (including Europe’s two largest clothing retailers, as well as American brand Tommy Hilfiger and Canada’s Loblaw) had signed.
Other news sources avoided the Walmart-centric hysteria and pointed out that lots of retail chains have in fact opted not to sign. For its part, Walmart says says it plans to undertake its own plan to verify and improve conditions at its suppliers’ factories in Bangladesh. Supporters of the accord, however, are skeptical about the effectiveness of company’s proposed independent effort.
From the point of view of ethical responsibilities, could a well-intentioned company conscientiously decline to sign the pact?
It’s worth looking at a few reasons why a company might choose not to sign a pact designed to improve, and even save, lives. Walmart presumably believes that its own effort will be sufficient, and perhaps even superior. The company’s famous efficiency and notorious influence over suppliers lend some credibility to such a notion. Other companies have worried that signing the pact would bring new legal liabilities, which of course is precisely the point of a legally-binding document. (Gap, for instance, has said that it will sign only if language regarding arbitration is removed, a stance that effectively amounts to refusal.)
There may also be worries about governance: the accord provides for the appointment of a steering committee “with equal representation chosen by the trade union signatories and company signatories” — equal, but to be chaired by a seventh member selected by the International Labour Organization (ILO). Perhaps some worry that the ILO-appointed chair won’t really be neutral, giving unions an effective majority.
Other companies — including ones like Walmart, which is famous for its efficiency — may worry about the extra administrative burden implied by weaving this accord’s regulatory apparatus into its own systems of supply-chain oversight.
Another worry might be the fact that the accord applies only to Bangladesh, and makes that country the subject of a separate set of procedures. The accord also commits signatories to expenditures specifically on safety in Bangladesh, when from a particular company’s point of view Bangladesh might not be a priority. In the wake of the April factory collapse, it’s worth pointing out that there are other places in the world with unsafe factories and crummy working conditions. It’s not unreasonable for at least some companies to focus their efforts on places where conditions are equally bad, and that host even more of their suppliers.
None of this goes any distance toward excusing inaction. None of it condones apathy. The point is simply that while failure to sign a particular accord makes great headlines, we need to look carefully at reasons, as well as at a company’s full range of obligations, if we are to make sense of such a decision.
Bangladesh, Joe Fresh and the burden of responsibility
Filed under: accountability, boycott, compliance, employees, international, risk, safety, supply chain |
Comments (4) In Bangladesh, on Wednesday, a building collapsed, killing at least 260 people.* The factories in the building made garments for a number of global retailers, including Canada’s Joe Fresh. This weekend, I’m very likely going shopping at Joe Fresh, and with a clear conscience. People threatening to boycott the brand are woefully misguided. Their sorrow is justified; a change in their shopping habits is not.
The events in Bangladesh represent an utterly horrible loss of life. Anyone unmoved by such a tragedy is less than human. But to see this as an indictment of Joe Fresh, or of Western consumers, is a serious mistake.
So, just what happened in Bangladesh? The 8-story building that collapsed on Wednesday housed a number of garment factories, a shopping mall, and a bank. The people who died did so partly due to the fact that someone in Bangladesh made a very, very bad decision: police had ordered the building evacuated the day before, due to structural defects, but factory managers ignored that order. That was an immoral decision, and perhaps a criminal one. I hope those managers are brought to justice.
Now, yes, it’s true that the purchasing decisions of Canadian consumers are also part of the causal chain that led to those deaths. But causal connection is not the same as moral responsibility. Every event, tragic or not, is the culmination of countless contributing factors. To be part of a causal chain is not the same as causing something to happen. There is no reasonable sense in which Canadians shopping at Joe Fresh are responsible for Wednesday’s deaths.
In fact, Canadians shopping at Joe Fresh are doing a lot of good. Places like Bangladesh — people in places like Bangladesh — absolutely rely on the jobs provided by the international garment industry. That is, there are people in developing countries who only have jobs because people in the industrialized West buy clothes from retailers who subcontract to manufacturers in places like Bangladesh.
None the less, some people are expressing outrage at the fact that Bangladeshis are dying so that Canadians can have cheap clothes. Is this situation really so unique? In North America, the deadliest trade is commercial fishing, followed closely by mining and logging. Does anyone imagine that no corners are cut in those industries, no safety standards violated? So Canadians, too, are dying…dying so that Canadians can have cheap crab and haddock, cheap oil and aluminum, and cheap wood and paper products. Actually, a lot of that stuff goes for export, so Canadians are dying so that people from other countries can have those things cheaply. Such is globalization: millions of people world-wide take risks that they think are worth taking, in order to make a living, and they can do so because people on the other side of the world are willing to pay them to.
But of course, companies like Joe Fresh still have some obligation to make sure that their subcontractors are treating employees decently. And the company certainly acknowledges as much. According to a statement on the brand’s Facebook page, their parent company, Loblaws Inc. has…
“robust vendor standards designed to ensure that products are manufactured in a socially responsible way, ensuring a safe and sustainable work environment. We engage international auditing firms to inspect against these standards. We will not work with vendors who do not meet our standards.”
In other words, the company makes exactly the promise it ought to make. Of course, there’s only so much it can do to guarantee that its subcontractors won’t break the law, on the other side of the planet. But then again, there’s notoriously little any company can do to guarantee that its subcontractors won’t break the law, whether it operates on the other side of the planet or just down the street.
Has Joe Fresh done enough in this regard? It’s impossible to say from the outside. But what’s crucial, here, is to see that even an event as tragic as Wednesday’s building collapse in Bangladesh does nothing to impugn the company’s integrity. Should we ask questions? Of course we should. But these events shouldn’t make us jump to conclusions. Nor will they deter me, at least, from going shopping this weekend.
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*Note added Oct. 2013: the death toll eventually climbed to over 1,100.
Business Obligations During Natural Disasters
Filed under: corporate citizenship, disaster, employees, philanthropy, safety |
Comments (1) As Hurricane Sandy bears down on Atlantic City, New York, and (eventually) parts of eastern Canada, thousands of businesses large and small are faced with dilemmas related to doing business before, during, and after a potential state of disaster. Certainly some businesses won’t have a choice, as flooding either wipes them out or makes access impossible. The NYSE and Nasdaq have both made the unusual move of staying closed for the day today (Monday).
But others will have hard choices to make, and no easy formula for making such choices is at hand.
Choice #1 pertains to the basic issue of staying open. Here, business owners need to balance the safety and security of their employees and buildings, on one hand, with the needs of their customers on the other. The weight given to the needs of customers must of course depend on just what you’re selling. If you sell water and flashlight batteries, a sense of social obligation ought to keep you open ‘as long as possible.’
The second choice has to do with the closely related question of whether businesses should require employees to work before, during, and after a natural disaster. Sometimes being at work will pose risks to health and safety, and sometimes the risk lies in getting to work. The transit closures that go with severe weather are a factor here, too. Lack of access to public transit can make it difficult, and sometimes dangerous, for employees to get to work. But then again, in some cases employees — especially ones earning an hourly wage — will prefer to work, in which case telling them to go home may be overly paternalistic.
The third question is about prices. In a reasonably free market, prices tend to go up when goods are scarce and when demand is high. And natural disasters have a way of both limiting supply and raising demand. As supply chains get cut off, it may be reasonable for businesses to raise prices somewhat in order to cover additional costs. But stores need to be careful to stay on the right side of the law — most jurisdictions have anti-price gouging laws that put limits on just how much you can raise prices in the wake of disaster.
All three choices involve difficult decisions about how to balance the competing interests of various groups. But in terms of fundamental motivation, it’s also worth pointing out that staying in business as long as possible can be a great way to build goodwill. A business that is there for its community in times of crisis is likely to reap rewards for a long time to come.
The business I happen to work for — Ryerson University — is an unusual kind of business when it comes to questions like these. I asked our VP Administration & Finance, Julia Hanigsberg, about the criteria Ryerson uses to decide whether and when to close.
“The safety of our community is the primary consideration on whether to close the university or cancel classes during extreme weather conditions or other emergency situations,” Hanigsberg told me. “Our Integrated Threat and Risk Assessment team monitors the situation by scanning publicly available sources and consulting with expertise available in the broader public sector about road conditions, availability of public transit, information from Emergency Services etc.”
One particularly interesting point that Hanigsberg made had to do with the fact that, really, the university never fully shuts down. Hanigsberg says: “Unlike most businesses, even when we ‘close’ the university is operational 24/7 with students in residence, research labs operational etc.”
The same is true for hospitals, of course, as well as other public services like shelters. But the same is true for businesses such as hotels and kennels and airports. Anything charged with the 24/7 sheltering and feeding of humans or animals — is unlikely to shut down entirely. The same obviously goes for essential services, such as police, fire, and ambulance. They’re not businesses in the traditional sense, but they face the same dilemmas, albeit with a much stronger public service impetus pushing them to keep the wheels turning.
The inability to shut down entirely brings special obligations, of course. For starters, it puts a premium on planning for disasters. Businesses that can’t shut down need to have plans in place, and need to train employees both in safeguarding their own health and safety, and in looking out for the customers who may be entrusted to their care in the most trying, and ethically challenging, of circumstances.
Pipeline Whistleblowing: Getting the Ethics Right
It was reported recently that an engineer for TransCanada, Evan Vokes, has now gone public with claims that the pipeline company has been lax in the standards it applies to having its pipelines inspected.
Whistleblowing is among the most complex ethical issues in the world of business. Whistleblowers are people who demonstrate that there is — there must be — a limit to the loyalty of even a dedicated employee. Whistleblowers go outside the boundaries of their organization to report actual or immanent wrongdoing. They often prevent grievous harm, but in doing so they inevitably impugn the character of their organizations, and sometimes of their co-workers. And of course, there’s always the worry that the self-appointed whistleblower is actually just a malcontent bent on revenge. But such cases aside, whistleblowers perform an essential public service.
A few points are worth making about the TransCanada case in particular.
The first is that, at least as the story is told by the CBC, Vokes is the perfect whistleblower. He’s got the relevant expertise (he’s both a welder and an engineer) and he’s got a reputation for honesty and integrity. Further, Vokes carried out the whistleblowing properly: he proceeded in perfect ethics-textbook fashion by first making his concerns known to his superiors, and then escalating up chain of command. Only when it became clear that internal channels weren’t working did he go outside of the company to bring his concerns to the relevant regulatory agency.
Second, the fact that Vokes felt the need to blow the whistle suggests a failure of leadership within the company. According the the CBC’s report, Vokes made his concerns clear all the way up the corporate hierarchy, and everyone “right up to the chief executive officer refused to act on his complaints.” A
“It’s fine” — just like NASA’s space shuttle Challenger
The latest update to this story, of course, is that TransCanada has now temporarily shut down its Keystone pipeline, citing safety concerns.
The Business Ethics Blog 