Just when you thought, oh, the well is capped and Tony Hayward’s gone, maybe we can get back to normal—comes this little bit of news, courtesy of my colleague Chris MacDonald, a business ethics guy in Canada:

BP faked a photo of its Houston command center to make it look busier and more determined than was actually true.

Just how dumb are these guys?

Faked Photos: Is There No End to BP’s Stupidity? is a post from: Principled Profit

The Deepwater Horizon disaster in the Gulf of Mexico shows a number of lessons. Taking them to heart, as individuals, as business people, and as a country, will be crucial. First, four specific lessons from this disaster. Points five and six address our long-term energy future.

1. It is absolutely essential to have tested remedies in place in case of catastrophic failure. BP’s throw-a-bunch-of-stuff-and-see-what-sticks approach would have been laughable, except that it was sickening. It became clear very early on that the company had absolutely no clue how to contain a large oil rupture. You don’t make those experiments after the failure, but well in advance—before you ever deploy any potentially dangerous and highly disruptive technology—you’d darned well know how you’re going to deal with an emergency. And those solutions will have been tested and demonstrated to work. BP clearly had no clue that working a mile underwater was different than working on the surface, and should never have been allowed to operate.

2. Don’t give the fox the keys to the henhouse. Government oversight was spotty, at best, and that led to a situation where BP was allowed to override the good judgment of its own engineers. Enforce the rules we’ve enacted to protect our people and our planet. BP so obviously neglected its responsibility to public safety and environmental responsibility that I wrote a post back in May wondering whether there was a good case to bring criminal charges agaisnt the oil giant.

3. When you take massive shortcuts with safety, when you cut corners in the name of short-term profit, the financial consequences are often more severe than doing it right in the first place. BP will be spending tens of billions of dollars that it could have easily avoided, by spending a few hundred thousand dollars upfront on safety equipment, and by heeding the warnings of engineers who said before the accident that their path was unacceptably risky.

4. Even redundant safety devices can fail. We saw this with the Titanic, with Three Mile Island, and with Deepwater Horizon. Engineers are not always skilled at anticipating how different systems interact, and what happens to a system downline from a system failure.

And now, at the federal policy level…

5. Deepwater Horizon is a wake-up call to move away from centralized, polluting energy technologies. The risk of gathering so much energy in one place is significant, and when catastrophes happen, they happen BIG. There are a dozen reasons why oil (and fossil fuels generally) cannot be the long-term answer. And there are a dozen reasons why nuclear should never have been deployed in the first place, of which catastrophic accident is certainly one. A major nuclear accident would make Deepwater Horizon seem like a leaky neighborhood sewer pipe. There are still parts of the Ukraine left uninhabitable by Chernobyl, 24 years ago—and even that was not as severe as the worst-case accident. We MUST change our economy over to non-polluting, renewable, decentralized technologies such as solar, wind, small-scale hydro, geothermal, and of course, conservation/deep-energy-efficiency retrofits.

6. This should be obvious, but apparently it’s not. All deep-sea offshore drilling needs to be shut down until the appropriate safety measures are in place so that Deepwater Horizon is not repeated. It’s a lot harder to put the genie back in the bottle than to keep it in to begin with.
Long-time environmental activist and Green consultant’s latest book is Guerrilla Marketing Goes Green.

Crucial Lessons from the BP Deepwater Horizon Disaster is a post from: Principled Profit

By Alexis Bonari

[Editor's note: Yes, this is fairly elementary—but it's nice to be reminded of the basics once in a while. If this topic interests you and you want more depth, I recommend Stephen M.R. Covey's Speed of Trust as well as my own Guerrilla Marketing Goes Green: Winning Strategies to Improve Your Profits and Your Planet (co-authored with Jay Conrad Levinson).
—Shel Horowitz]

In our ultra-competitive business world, it is easy to excuse treading on the wrong side of the line that separates necessary competition from sleazy behavior. The younger generation—those in their teens and twenties—have been bombarded with the idea that honor and ethics are relative terms. In other words, if everyone else appears to be cheating the system, it’s “ok” for me to do the same.

Do ethical people get left in the dust?

So, what really happens to businessmen and women who try to play by the rules of good business ethics? Do they get pushed aside by their more competitive, meaner contemporaries? The answer would appear to be “no”.

There’s a reason for everything.

Everything has a source, an origin. Even if we believe that ethics are relative, they still must come from somewhere. Our modern business ethics are founded on philosophical principals that date back hundreds, if not thousands of years. Humankind has continually refined these rules of conduct so that people can interact with each other in a positive, non-violent manner. Therefore, there is a practical, utilitarian purpose behind agreeing to a code of ethics.

It’s all about trust.

Essentially, we work together best when we feel that we can trust each other. Doing business is the ultimate form of working together. If an individual has questionable dealings in their past, it is highly likely that they will suffer some sort of backlash for it, be that publicly or privately. Take the executives at Enron as an example. They employed very aggressive, hyper-competitive strategies for amassing wealth. When investors felt they could be trusted, they were given huge sums of money. As their underhanded dealings came to light, they became the poster-children for unethical business practices and were reviled by a nation.

Although unethical business practices might result in short-term success, this rarely translates into stable business relationships in the long run. In this sense, those who choose to take a strong ethical stance generally come out ahead in the end.

Alexis Bonari is a freelance writer and blog junkie. She is currently a resident blogger at onlinedegrees.org, researching various online college degree programs. In her spare time, she enjoys square-foot gardening, swimming, and avoiding her laptop.

Guest Post: Upsides of Being Ethical: Why Good Guys and Girls Don’t Always Finish Last is a post from: Principled Profit

Rarely do I open up my morning paper and see even one positive story among the day’s major news. Today—though I already knew about two of them from other sources—there were three:

1. The Wall Street Reform Bill has passed both houses of Congress. Is it everything I want? Of course not. Is it more than I expected from this stalemated Congress? You betcha.

2. BP finally seems to have capped the torrent of oil from Deepwater Horizon. A lot of wait-and-see before claiming victory, but at least for the moment, no oil is pouring out.

3. Overwhelmingly Catholic Argentina passed same-sex marriage rights legislation, striking a major blow for equality and human rights. The bill, according to NPR’s All Things Considered last night, has the support of an astonishing 70 percent of the population. Major demonstrations helped sway the legislators.

A very good news day, all in all.

Footnote: My local paper, the Daily Hampshire Gazette, ran all these stories in today’s first section. But its news pages are only open to paid subscribers, so I’ve linked to other sources.

Wall Street Reform + Oil Cap + Gay Marriage is a post from: Principled Profit

I just did, and I hope you will too.

http://www.standfordemocracy.org/ratify/?r_by=21779-1224363-q_0LmAx

And while “you’re in the zone,” If you haven’t yet signed the Business Ethics Pledge, you may do so at http://business-ethics-pledge.org.

Sign This Petition to End Bailouts, Fight Washington Corruption is a post from: Principled Profit

As I’ve been publicly thinking out loud about forming the International Association of Earth-Conscious Marketers (a trade association for Green marketers), this article by Matthew Ammirati on MediaPost, “Is It Enough To Be Green? What About Being Good?” seems very timely.

The article asks whether we should…

…be buying an all-natural household cleaner in a recycled package but if the company has a team of migrants in Africa working in horrendous conditions in 18-hour shifts, does it really make you feel better about buying that product?

These kinds of questions come up regularly in my work the last decade or so, and they raise their heads again in thinking about how this organization will work. For instance, what happens if people who work on Walmart’s sustainability initiatives apply for membership?

Walmart has a lot of Green cred. They’ve done a tremendous amount in the past few years not only to make their own operations substantially Greener (and not coincidentally saving hundreds of millions of dollars. But there are many other aspects of their operation that are deeply troubling to me, and I don’t shop there.

I just looked again at the proposed behavior standards for membership–and I don’t see anything that would keep Walmart out. So if the organization were to adopt those standards, someone working on marketing Walmart’s sustainability initiatives would be welcome, as long as they were doing real Green marketing and not greenwashing. So would the conservative political consultant who has posted a couple of comments on these working drafts. Employees of a company such as Halliburton might have a much harder time proving they qualify.

What about a tougher case? Suppose someone has been involved with the sustainability initiatives over at BP (a company that actually at one point was fairly well regarded by mainstream environmentalists)? What about questions about supply chain and vendor practices and investing and charity programs and and and… Some kind of arbitration system will be needed to determine who qualifies and who does not. Any ideas for how to set that up?

In my eighth book, Guerrilla Marketing Goes Green: Winning Strategies to Improve Your Profits and Your Planet (co-authored with Jay Conrad Levinson), I very clearly and deliberately link ethical behavior and Green practices, and point out that the two combined are a powerful path to success. But the standards of behavior I’ve proposed for membership in this trade association are focused on the Green side and don’t really talk about ethics other than in a specifically Green context (e.g., no greenwashing). Should those broader issues be addressed? By whom, and who judges?

Does Being Green Require Being Good? is a post from: Principled Profit

Membership in the International Association of Earth-Conscious Marketers will not be open to anyone who claims to be Green. To provide value in the membership, members need to pass both accomplishment-based standards (employment, education/training, and/or volunteer work) and behavioral screens. We’ll talk about accomplishments today, and screens tomorrow

Here are some I’m thinking about:

Accomplishments—Standard Membership

Members must have at least one of the following:

Want to be on the notification list? Leave your e-mail address on the “coming soon” website I’ve set up—or leave a comment below and fill in your e-mail address.

Ethics Considerations for Membership in a Green Marketers Association, Part 1: Accomplishments is a post from: Principled Profit

Africa (South Africa, in particular) gave us the Sullivan Principles, which outlined investment strategies to move toward ending apartheid. At the time (1977), I thought it was way too little, way too late, but I came to appreciate that for its time, it was revolutionary: perhaps the first declaration by corporate America that they had a clear role to play in improving conditions around the world. And this was not so long after the US has been involved in such disgusting maneuvers as (to ame just two among dozens of equally awful examples) overthrowing the democratically elected governments of Mossadeq in Iran (1953, in the interests of the Anglo-Iranian Oil Company) and Arbenz in Guatemala (1954), on behalf of United Fruit)—actions that have had horrific consequences down to the present day in Iran and through at least 1996 in Guatemala.

Now, Ron Robins, of Investing for the Soul, postulates that Africa is on the brink of an explosion in socially responsible investing. It’s a very interesting article, and among his points are these:

Worldwide, SRI now accounts for 1 of every 9 dollars invested. However, even though Africa was a pioneer in this field (not just with the Sullivan Principles but also the Johannesburg Stock Exchange’s first-in-the-world SRI index), it has lagged—but rapid growth appears to be imminent.

Go and read it.

Is SRI in Africa About to Come of Age? is a post from: Principled Profit

My friend Paul Krupin of Direct Contact PR sent me this memo from the Deepwater Horizon recovery team. Even if the Gulf of Mexico weren’t drowning in BP’s oil–a situation in which you’d expect the form letters would at least act grateful for the advice–this is one of the worst examples of corporate messaging I’ve ever seen.

From: horizon.support@oegllc.com [mailto:horizon.support@oegllc.com]
Sent: Saturday, June 19, 2010 10:08 AM
Subject: An Important Message from Horizon Support

Dear Paul Krupin,

Thank you for your submission to the Alternative Response Technology (ART)
process for the Deepwater Horizon MC252 incident. Your submission has been
reviewed for its technical merits.

It has been determined that your idea falls into one of the following ART
categories: Already Considered/Planned, Not Feasible, or Not Possible, and
therefore will not be advanced for further evaluation. To date, we have
received over 80,000 submissions with each submission receiving individual
consideration and priority based on merit and need.

BP and Horizon Deepwater Unified Command appreciate your contribution
and interest in responding to this incident.

Michael J. Cortez
Technical Manager
Alternative Response Technology Team
Deepwater Horizon Call Center – Houston, TX

Tell me what you think (in the comment space below. Then scroll down to see what I think.
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Here’s what I think it’s bureaucratic, it’s off-message, it’s downright snotty, it doesn’t even mention the specific idea submitted before dismissing it, and it doesn’t even give a brief recap of what else they’re trying or why the submitted plan doesn’t work. Oh yeah, and how about that highly specific and targeted subject line NOT? If this came to my mailbox, I’d have assumed it was spam. Eeeeeeew! Couple this with the combination of hubris, selfishness, corner-cutting, and cluelessness shown by BP from Chairman Carl-Henric Svanberg and CEO Tony Hayward on down, and it doesn’t paint a pretty PR picture. Is there any wonder the company’s lost half its market cap? They don’t give much confidence in their ability to solve the problem, their understanding of why this is important, and the steps they might be taking to make sure it doesn’t happen again at a different well.

BP’s Form Response to Offer of Help: They STILL Don’t Have a Clue is a post from: Principled Profit

Recent stories in the New York Times make it clear that Attorney General Eric Holder should be “sharpening his saw” (as Abraham Lincoln said).

BP deliberately chose to use a high-risk sealing method in the days before the blast, and ignored warnings that things were going deeply awry, the paper reports.

BP: Can You Say “Criminal Negligence?” is a post from: Principled Profit