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Corporate Social Responsibility
News
8.23.2005 ET
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CSR News from:
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Good Business
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News Category:
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Comments Sought on New Good Business Seal of Approval Venture
University Professors, Business Leaders and Social/Environmental Advocates Encouraged to Read Request for Comment Document. Focus is on Rewarding Ethical Profitability with a Seal of Approval for Companies that 'Walk the Talk' of Social and Environmental Awareness.
(CSRwire) SIGNAL HILL, Calif. - Start-up company Good Business announced today
the availability of a 27-page Request for Comment document, available at no
cost to university professors, business leaders and social/environmental
advocates.
Seeking to be the first American eco-/social-label, Good Business will
soon begin accepting applications from U.S.-based for-profit companies.
Applications and supporting documentation will be evaluated using
openly-published Good Business criteria. Companies proven to be both
profitable and ethical will be allowed to display the Good Business
Seal of Approval.
In addition to profitability, companies seeking Good Business approval
must document their genuine commitment to four areas:- The
environment: pollution reduction, environmental impact, recycling and
energy-saving measures
- Community relations: philanthropy, foundations, community service,
employee volunteerism, outreach and scholarships
- Employee relations: fair wages, paid benefits, family-oriented
policies, workplace safety and diversity
- Customer relations: quality management, product safety, customer
satisfaction, and harmful impact mitigation.
Approved companies will
be listed on the http://www.Good-Business.org
website, which is still in development but viewable as a beta (or
pre-release) version. They may also display the Good Business Seal of
Approval on storefronts, products and advertising. Companies denied
Good Business approval will receive suggestions for improvement, plus an
invitation to reapply in 90 days. Approved companies must reapply
annually.
Good Business founder and CEO Lee Godden said, "The U.K. is far ahead of
the U.S. in the use of eco-labels and in empowering consumers to support
ethically profitable companies through their purchasing choices." Godden
is originally from England but now resides in Los Angeles. He is the
author of a new book on ethical business practices, titled ZenWise
Selling. Godden interviews CEOs of ethically profitable companies on
Good Business Television, which was recently named Best New TV
Program of 2005 by Charter Communications. He also serves as West Coast
correspondent for the PBS TV series Ethical Markets.
U.S.-based firms seeking the distinctive gold-and-platinum Good Business
seal will pay an application fee that varies, based on their status as
either a publicly-traded or privately-held company, and also on their
total number of employees. For example, the application fee for a
privately-held company with up to four employees is $75US. The application
fee for a publicly-traded corporation with 20,000 worldwide employees is
$3,490US. Fees vary due to the increased time and expense required to
evaluate the applications of larger companies. Fees and approval criteria
are explained on the beta version of the Good Business website at http://www.Good-Business.org.
"This is a win-win for consumers and companies," said Godden.
"Conscientious consumers tend to buy from conscientious companies. There
will be no fee to consumers to search or browse the Good Business website,
and consumers will be encouraged to use a company's display of the Seal of
Approval as a guide in choosing from whom they'll buy products and
services. This personally empowers consumers to positively impact their
community, their country and the world through the simple act of
purchasing from ethically profitable companies."
Godden added, "Approved companies benefit by having an independent source
to verify their claims of ethical profitability. The Good Business Seal of
Approval will reduce consumer skepticism of companies that advertise their
green accomplishments. Approved companies will also see increases in
community goodwill, customer loyalty and employee morale."
Among those who have already reviewed the Good Business Request for
Comment is author and advocate for socially responsible business Dr. Hazel
Henderson. "This is a well-thought out and comprehensive document," said
Dr. Henderson, who also described Good Business as, "...a worthy
endeavor."
In the Request for Comment document Godden cites research from several
studies, including the Ethical Purchasing Index (EPI), published in 2004
by the U.K.'s Cooperative Bank. The study concluded that ethical
consumerism in the U.K. is soaring and was worth £24.7B in 2003, a
one-year 16% jump during a time that household expenditure increased by
only 4%.
The EPI study revealed some interesting trends among consumers. For
example, women are more likely than men to buy products with regard to
ethical or green issues. Also, levels of affluence and education parallel
consumer responsiveness to ethical and green issues.
From a U.S. perspective, Mark Ritchie, president of the Institute for
Agriculture and Trade Policy recently wrote, "About 50% of U.S. consumers
are influenced by environmental considerations. Over half want to see
labels as a key source of information."
Godden is quick to point out what Good Business is not. "We're not a
politically-biased organization. We don't resolve consumer complaints like
the Better Business Bureau, and we don't warranty products like the Good
Housekeeping Seal."
"What we stand for is reflected in our logo," Godden said. "The two gold
coins, touching each other, represent the two highest responsibilities for
a corporation: profitable performance and ethical conduct. The platinum bar
that joins the two coins is embossed with the overall goal, Good
Business."
For more information, or to request a copy of the Request for Comment
document, please contact Good Business headquarters by telephoning
toll-free (866) 936-9473 or by emailing info@Good-Business.org.
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