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Comments Sought on New Good Business Seal of Approval Venture
Comments Sought on New Good Business Seal of Approval Venture
Published 08-23-05
Submitted by Good Business
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.
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.
