Tuesday, November 6, 2007

Will recalls boost SE?

This has been the year of recalls. Lead-paint tainted toys (multiple times), toothpaste, tires, pet food, spinach, and most recently a million pounds of ground beef. I would think that all of this has to add up to a lack of trust in those businesses that strive for shareholder value without social value.

If that's true -- and the holiday season will be the true test of whether consumer behavior changes at all based on these safety scares -- shareholder value will also be compromised. That, in turn, should be a boost for socially aware enterprises that take extra steps to measure and manage their processes and products.

I doubt that any of the people running the traditional corporations is a bad person. But they are likely converts to the pursuit of ever lower prices. A certain amount of fat-cutting in the supply chain is both healthy and necessary but eventually the lower costs come with a price --compromises in safety and oversight among them.

Social enterprises aren't perfect. No organization is. But I trust them to be more vigilant about everything from worker safety and compensation to manufacturing standards.

Consumers have short memories. I, for one, am hoping that concern for our own safety and that of our families keeps the memories of the recalls fresh and inspires people to make more socially aware choices when they shop.

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