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Businesses Editorial The Almighty Buck

How Would You Like a Business to Behave? 115

professorhojo asks: "These days on the 'net, it seems like a company can go from being regarded as a Good Citizen to Evildoer in a matter of hours (witness Yahoo!'s willingness to time and time again reinterpret their own privacy policy as it suits them and their advertisers). I am at the helm of a new software company and I want us to stand apart from the rest with rock solid ethics, and policies that put the user first, that won't change or waver at the behest of advertising money. What I want to know from you is simple:what are the essential things a company has to promise and stick to? More importantly, what things have companies done, which have made you do a double-take and totally reconsider doing business with them? Why am I asking this? Well, I believe that in the future, the ethics of a company will greatly impact on their bottom line. What's good for our customers is good for us, and customers will be drawn to us BECAUSE of it." It sounds good, but reality has a tendency of getting in the way of good ethics. What suggestions would you make to keep difficult choices from compromising the ethics you would like your company to embody?
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How Would You Like a Business to Behave?

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  • . . . but it sure sounds like you're already on the right track.
    • He Does (Score:4, Interesting)

      by Orien ( 720204 ) on Saturday December 06, 2003 @02:26AM (#7645982)
      Just having that kind of a desire to be ethical is a step in the right direction. One thing to keep in mind is that when you are fixing bugs and implementing features it is plain as day to the customer weather your priority is yourself or your customer. A perfect example of this: We use an accounting package where I work that is licenced on a concurrent users model. We have run tight on our licences and people are regularly not able to log in. However getting another five seats is so expensive we can't get approval to buy more. We discovered that lots of people have the application open for long periods of time with out using it. Ever since we ran tight on licences we have been begging to have a feature in the software that will time out and log off a user if they are inactive for an hour or two. Is the company going to give us that feature? Of course not. There is no incentive because otherwise we will eventually have to break down and buy more licences. This leaves us feeling like we are being taken advantage of. We are loyal customers, we do beta testing for them, but they still pull this little stunt that makes them look money hungry. Just remember that your customers arn't all dumb, and your true priorities come through if you like it or not.
      • You might consider writing a daemon that smacks down the application after some period of inactivity--maybe that looks at keyboard activity or the lack thereof for some period of time, then sends the keystrokes necessary to quit the app.

        Or you could systematically hunt down and eat the employees that leave the application open :).

      • Re:He Does (Score:2, Insightful)

        by perlchild ( 582235 )

        Just having that kind of a desire to be ethical is a step in the right direction.

        Yes it is, but a really ethical company is ethical EVEN if it costs them money... The problem is that a lot of companies who were previously ethical, were ethical, as long as they made money through a Dam's water entrance.

        And now that they struggle to survive, they eject the Ethics, while the regular citizens expect the ethics to sink them, or at least, that the Ethics is so important to company culture, that they are willing

    • All in the eye of the beholder. Unless you have the definative guide to ethics for all cultures, societies and social norms, you will be unethical to someone.

      In reality do what matches your belief system and follow the law. That is all you need to do.

      Remember a corporation is a legal entity that doesn't expire. Unfortunately most companies operate like a sociopath, no conscience.
      • by alex_ant ( 535895 )
        I think it's pretty well agreed upon that e.g. spewing toxic waste everywhere and allowing your customers to die due to your negligence is PROBABLY a pretty unethical thing for a company to do. There aren't really any societies that look DOWN upon a company being well-behaved at the expense of profit. (Except maybe the U.S.) The law doesn't help much when companies can flout it with vast legal dept. funds. and get around it by globalizing and relocating operations to more acquiescent world regions.
  • by _iris ( 92554 ) on Friday December 05, 2003 @11:57PM (#7645351) Homepage
    For your customers who are individuals (vs companies):

    Simple pricing structures with simple paper work and no hidden costs.
    Simple, honest price increases. If you just need more cash, say so. Don't blame it on "market events."
    • o Don't Be Evil

      o Treat your employees like GOLD and give good benefits

      o FIRE the ones who are bad / take advantage, don't let them hang around and bring morale down

      o Never "sell out" to the point where you lose control over the company's direction (and don't let your loyal employees be fired!)

      o Throw a good Christmas party and hand out bonuses where applicable / beneficial.

      --That's just off the top of my head, but it's AMAZING how many companies DON'T do these.
      • by Wolfrider ( 856 ) <kingneutron AT gmail DOT com> on Saturday December 06, 2003 @02:53AM (#7646064) Homepage Journal
        --One more thing:

        o DON'T force your employees to work >8.5 hours a day. Hire enough people to spread the work around.

        o If anyone has to work over 8.5 hours, PAY OVERTIME.

        o And remember to hire *good* middle management who will actually stick up for, and defend, their employees - NOT mistreat them.

        o Promote from within wherever possible, and give good raises if someone has to go from hourly to salary.

        o DON'T take advantage of salaried workers. The tendency is to overwork them. Make sure all their hard work is appreciated.
        • by Jellybob ( 597204 ) on Saturday December 06, 2003 @11:27AM (#7647500) Journal
          DON'T take advantage of salaried workers. The tendency is to overwork them. Make sure all their hard work is appreciated.

          That's a huge one for me - I just did overtime for the last 4 weeks while we were running one of the courses the charity I work for runs.

          I'm not getting paid for it, just some extra time off over christmas - however I'm more than happy to do it because all through the time I've been thanked for doing the work, and generally enjoyed myself.

          Another big one is to make sure your employees are happy doing what they're doing - and more importantly, if they're *not* happy, listen to that fact, and try to let them do more of what they do enjoy.
        • o DON'T take advantage of salaried workers. The tendency is to overwork them. Make sure all their hard work is appreciated.

          The extension to this is that if you must push your employees hard, then you need to compensate/reward them properly. Some examples of ways to reward employees were discussed in this earlier Slashdot thread [slashdot.org] (re: Christmas bonuses).

          As well as giving performance bonuses (and sometimes gifts as tokens of appreciation), at the request of some of my full-time employees I've also give
      • How about not throwing an xmas party at all? Not everyone believes in xmas. I think most people would rather have a day off than spend time with co-workers anyway.

        The place I work right now, if I don't show up for the xmas party, where people sing religious carols, drink (I don't do that either) and basically make asses of themselves, I have to wait two extra weeks, because anyone who could give it to me will be on vacation.
    • Actually, that works for institutional (corporate / academic / government / etc.) customers as well. The company I work for [intelligent-imaging.com] doesn't generally sell to individual users -- not a whole lot of people at Best Buy shopping for $100,000+ digital microscopy systems. ;) But we do try to establish a good relationship with the individuals who are making purchasing decisions at the labs (mostly university and pharmaceutical co., some and government) who are making the decision to buy one of our products.

      If you show
      • The company I work for doesn't generally sell to individual users -- not a whole lot of people at Best Buy shopping for $100,000+ digital microscopy systems.
        So true. I was in Best Buy the other day and all they had were crappy $80,000 (after $10,000 mail-in rebate) digital microscopy systems. They said they don't stock the high end models because most consumers are happy with the el-cheapo versions.
  • Brutal Honesty (Score:5, Interesting)

    by JetScootr ( 319545 ) on Saturday December 06, 2003 @12:05AM (#7645390) Journal
    Especially in advertising. You know how a company will compare their product to their competitors? One example comes to mind: Medicine. Tylenol, for years, compared the effectiveness of extra-strength Tylenol to regular-strength aspirin. Do your comparisons honestly.
    Itemized features? The kind that have a column for yours, and a column for theirs? Shock your potential customers by putting in a few of the features they have but you don't, and put a "NO" in your column and a "YES" in theirs. This kind of advertising would make me move the despisometer from zero to "surprising respect".
    I've gotten to where I automatically reject as dishonest EVERY ad I see on TV or read anywhere.
    Honest advertising that was obviously honest would be such a huge change from the norm that you would definitely stand out in a positive way. (Think "Miracle on 34th Street")
    • Re:Brutal Honesty (Score:5, Interesting)

      by grotgrot ( 451123 ) on Saturday December 06, 2003 @12:55AM (#7645614)
      Check out what CodeWeavers post [codeweavers.com] on their site. Read both The Real Dirt and their EULA. It makes quite clear what you get (tangible and intangible), how well the product works, and the EULA isn't even evil and even has some humor in it.
      • From their page:

        Internet Explorer works and you should find it usable for light use. However it still has some problems, and is not quite ready for production, full time use yet.

        So now they're claiming that IE works as well in Crossover Office as it does under native Windows. Go figure.
    • It's interesting to read this thread. Cliff says in his editorial:

      It sounds good, but reality has a tendency of getting in the way of good ethics.

      Almost all of the readers' comments, however, boil down to one or more of the following.

      • A well-treated employee is a productive employee.
      • It's hard to beat an honest man.
      • Honour among thieves. ;-)

      I've gotten to where I automatically reject as dishonest EVERY ad I see on TV or read anywhere.

      You're not the only one. In fact, some research [useit.com] strongly su

    • by netsharc ( 195805 ) on Sunday December 07, 2003 @08:22PM (#7656243)
      Nasty Side Effects
      Their product: Yes!!
      Our product: No!!
  • Google (Score:5, Insightful)

    by Lord_Dweomer ( 648696 ) on Saturday December 06, 2003 @12:09AM (#7645409) Homepage
    The guys at Google got it right.

    "Don't be evil."

  • by JetScootr ( 319545 ) on Saturday December 06, 2003 @12:09AM (#7645410) Journal
    Whatever you see SCO do, do the exact opposite.
  • by edalytical ( 671270 ) on Saturday December 06, 2003 @12:12AM (#7645434)
    ...but you better find a way to cover your ass. It has been a dream of mine to create a ethical company as well.

    However, the founder of the Computer Game Developers' Conference, Chris Crawford, wanted to CGDC to be a non-profit organization. But their treasurer wanted a for-profit corporation, he convinced the other members of the board that this was the way to go. Eventually the board members kicked Crawford out, took his stock and sold the conference for $3 million, giving Crawford only a small piece of what the others got.

    I had second thoughts when I read this in the book "Chris Crawford on Game Design." All it takes is the other people in your company to decide your ethical ways of doing things are compromising profit. If this happens your screwed.

    But by all means don't let something like this stop you from trying, I'm sure there are ways to prevent take overs, I just don't know what they are.

    • You're bang on. The only way to keep a company ethical is to own the majority of it, and to smack down the MBA's, bean counters, and assorted wide boys every time they open their mouths. If you can't do that then sell your share as soon as the value is high enough to start another company without partners. With the current state of business ethics you're screwed as soon as you allow others to control you.

    • Well, I think it's pretty straightforward. Just make sure that you and you alone maintain sole possession of the company, be it 51% of stocks or private ownership or whatever. And don't let anyone else get into a position where they can threaten that.
      • I'm a very ideologic person. I think the most basic thing a company can do to be ethical is be an ethical employer. I think there is only one way to accomplish this. Don't have employees. Instead if you need to have people work for (with) you make them business partners. That way everyone is an equal. This is where the problem arises.

        I've come to realize that this would jeopardize my stake in the company should my partners decide profits are more important than ethics. So instead I would have to settl

      • Yeah, but you don't get to do that in a non-profit. You need typically 6 board members.

        A non-profit can be run very much like a for-profit in many respects, bean counting and all.
    • the method for which you seek is to hold half of the company in your name. Steve Jobs learned this lesson: after he was booted from Apple, he started NeXT and held 51% of the stock in his own name. the caveat is that you can't sell anything once you get down to 51%.
  • What I want in a company is a good product that has a niche. Not just a code monkeys college product turned commercial (not that that is always bad... think samba).
    Provide a good product that does something your competitors dont do or dont do well.
    Document it and make it idiot proof and then back it up!
    Good luck, good ethics will help you alot. Keep to your goals.
  • by cpt kangarooski ( 3773 ) on Saturday December 06, 2003 @12:38AM (#7645537) Homepage
    Well, two things come to mind instantly.

    First, register your software's copyright, and include a full and complete copy of the source, sufficiently well-commented that once the copyright expires, people will be able to make reasonable use of it. (not to mention learn from it whilst still copyrighted)

    Second, don't use adhesive use contracts e.g. EULAs. There's nothing wrong with just outright selling software instead of making dubious claims of licensing it, and it doesn't leave you unprotected to do so. The last book you bought at Amazon didn't have a EULA -- why should your software?
    • Copyrights on software never expire.
      • by elendel ( 229983 )
        While you may be right from a practical standpoint, what with copyright extensions every time something is about to expire, we have this thing called the United States Constitution:

        "Section 8. The Congress shall have power...
        To promote the progress of science and useful arts, by securing for limited times to authors and inventors the exclusive right to their respective writings and discoveries"

        Notice the phrase "limited times"
        You might want to point this out to your congressman.
        • Larry Lessig already pointed it out, to both Congress and the Supreme Court. They didn't listen to him, so why would they listen to me?
        • Even with no further extensions to the copyright law, you can be pretty sure that any software will be pretty much useless by the time its copyright has expired. The copyright of a program written today will last almost twice as long as the entire history of digital computers. Unless you expect technological advancement to grind to an unexpected halt in the near future, it's probably not worth worrying about what's going to happen to your code when its copyright expires.

          On the other hand, people are stu

  • A few pointers (Score:5, Insightful)

    by ezraekman ( 650090 ) on Saturday December 06, 2003 @12:39AM (#7645542) Homepage

    One of the most important commodity you'll have to maintain is trust. This is not simply not changing your policies repeatedly; it is a combination of factors:

    Privacy
    Your customer's data is important information. Almost every type of company imaginable now takes andvantage of it, and shares it with others. This includes, but is not limited to: banks, phone, cable, utility and insurance companies, subscription-based services, etc. It's scary just how many companies will "opt you in" to their marketing schemes, some of which they no longer control once it leaves the company.

    It is important that you protect your customer's data, both from fraud and industrial espianage... as well as from your own company. It's pretty straightforward: Think about what your company will do with the data, then ask yourself if you would trust your own personal information to your own company. If the answer is no, you might want to make some policy changes.

    Customer Service
    The United States is an interesting place. Customer service seems to be a far greater deal than it is elsewhere, according to all of my international friends and relatives. Because of this, your customer-facing employees can win you evangelist customers, or sink your company just with words over the phone. Here's a couple of tips:

    The customer is always right
    Yeah, right. Often, the customer is an irate, unreasonable bastard of a phone call to deal with. But if you treat them as what they're acting like, you will only infuriate them more. When a customer calls in with a complaint, don't let your reps get so hung up on defending the company. Many times, the customer actually has a legitimate complaint; they just aren't phrasing it well. Even if they're wrong, telling them so won't help the situation. Be agreeable. Let them get it out of their system, so long as they aren't abusive. Apologize, even when it isn't your fault, and mean it. When I speak with a client who has accidentally deleted half the content of their website and thinks I'm responsible, I always apologize for any confusion that there might have been. (And I make sure I keep backups, even though the contract ended a year ago.) And I am sorry. I wish that they had not been placed in this position, even if it isn't my fault. I have no animosity towards my customers, and neither should your employees. If they do, they don't belong in customer service.

    Keep your promises
    Many times, a customer service representative will make a promise that violates a company's normal terms of service or standard policies and procedures. This is a HUGE problem among customer service centers. How many times have you called in and promised something, only to be told later that "Oh, we're sorry that you were told incorrect information, but that's against our policies"? If your reps promise something, YOU have promised something. Remember, you have appointed these people to speak for and make promises for your company that you MUST honor, if you wish to remain trustworthy. If you don't trust them to do this, you've hired the wrong people, or you've failed to train them properly. It only takes one customer with a tape recorder to turn a case of bad customer service into a case of fraud. The difference is the proof they bring to court.

    Communication
    Your actual policies aren't all that important. You will discover which ones will work, and which ones won't, based on customer response. But you must stick with those policies. From a customer perspective, what you tell them you will do is your policy. If you break your policy for a customer, you'd better be damn sure that they know that they shouldn't expect it in the future. It's even safer to not break your policies at all... but that is sometimes necessary to appease a disgruntled customer. But also bear in mind that this customer might not be in the right. If this is the case, it's not necessarily y

    • by Anonymous Coward
      The parent is 100% correct in defining communication as one of the things your customers will notice. I've discovered that the timing of communication is even more important than the content, and can make or break certain aspects of your business.

      The most pertinent advice I can give is this: never let your inboxes turn into blackholes. Nothing will ruin your reputation faster than slacking on email. I've had to do this on occasion (there are only 3 of us in my company, and when we're all very busy with a p

  • The important thing is not what you promise, but that when you make a promise you stick to it, whatever it is.
    That said, realize that this takes time--years. I need to see promise after promise to not be broken, each held commitment increasing the company's credibility in my esteem. You can't do it in just one quarter.

    And you need to have consistent management--every senior management change, and you basically start from scratch. And one of the quickest ways to lose control over the process is to go pub
  • Let bottom line not be the bottom line. Let the ends not justify the means.

    For instance, if a company's lifespan has come to an end, and if they extend it past this, only undue suffering for all and the corruption of capitalism will be the result, because these companies usually resort to unethical methods in order to survive (see SCO).
  • #1: Don't lay off people when you're posting record profits.

    #2: Don't get yourself a generic patent meant to serve as suing fodder years down the line instead of something being designed for a specific product/piece of S/W.

    #3: Check out any downbeat memo at internalmemos.com or stories from fuckedcompany.com and try not to re-create them.

    #4: Don't sacrifice experienced employees for cheap ones.

    #5: Try not to have employees living under the constant threat of layoffs. Sticks instead of dangling carrots g
    • #6. Don't obscenely overpay your top management while screwing over the people who *really* run your business.
    • And for pity's sake, if you do have to lay off, don't wrap it in euphemisms ("business planning adjustments affecting 20% of the staff"), and don't condescend by saying, "Well, there are never guarantees of job security".

      You didn't hire stupid or naive staff, right? Call it a layoff, explain honestly why you're doing it, and understand that in the absence of guarantees, job security is purely a matter of perception, so it's your job to keep people comfortable with their job situations. If you're offshori
  • by MightyTribble ( 126109 ) on Saturday December 06, 2003 @12:59AM (#7645637)
    There are people out there in business who aren't complete sleazeballs, who understand that spamming (either via email or fax) is not an ethical way to grow a business, that 'human resources' means more than just hiring and firing. Find them and hire them. Listen to them, and let their ethical lead create an honest workplace.

    While we're at it, resist the lure of VC funds for as long as you can. VCs are (almost-universally) ethically-suspect, not-very-smart people who have too much money and lots of friends at the golf course. As soon as they get a hook into your company, the rot will set in - even if it's only you having to BS them at board meetings.
    • > While we're at it, resist the lure of VC funds for as long as you can

      Once you sell out to VCs or go public you've lost, because your company invariably ends up with the "we have a responsibility to our share-holders" line that is used whenever something "unethical" happens. Whether you founded it, or even hold a controlling share of the stock won't make much difference...

      So basically, keep control of your company, and you probably know what customers want anyway!

      Ponxx
  • Don't sweat it... (Score:5, Insightful)

    by anthony_dipierro ( 543308 ) on Saturday December 06, 2003 @01:05AM (#7645671) Journal
    Just be yourself. I'll figure out for myself an appropriate level of trust and respect. I mean, I don't really understand your question. What people want is usually pretty obvious. It's also impossible to give everyone everything they want and remain in business. Figuring out the balance between those two is what management is there to do. It's not something you can sum up in a neat formula.
    • Just be yourself. I'll figure out for myself an appropriate level of trust and respect.

      What he's looking for is how to establish and maintain ethics...not to just wing it.

      I might trust you, and trust is based on individuals, though organizations can (if they have people with ethics) make the whole group more trustworthy.

      One policy I heard of that worked for a 2,000 person company covered internal politics. Basically, the policy was 'muck around in internal politics and you will be fired'. The import

      • What he's looking for is how to establish and maintain ethics...not to just wing it.

        There's no formula, though. Certainly not within the framework of a for-profit company. Maybe if you went non-profit you could do it, but for-profit company's exist to make money. That doesn't exclude ethical behavior, but it makes it very difficult to enforce it. Winging it is about all you can do.

        I might trust you, and trust is based on individuals, though organizations can (if they have people with ethics) make t

        • There's no formula, though.

          Agreed.

          Certainly not within the framework of a for-profit company. Maybe if you went non-profit you could do it, but for-profit company's exist to make money. That doesn't exclude ethical behavior, but it makes it very difficult to enforce it. Winging it is about all you can do.

          Didn't I give an example that would contradict this statement? :)

          Trust is not always based on individuals. A well established company with a long history of trustworthiness and the ability to prot

          • Didn't I give an example that would contradict this statement? :)

            Not at all. You gave an example of a company which eliminated office politics. That has nothing to do with ethical behavior, and certainly not ethical behavior of the company as a whole, when dealing with its customers. Frankly I wasn't sure what your point was with your example, which is why I largely ignored it in my reply.

            That's what he's trying to establish, though it can be fragile because we are dealing with people who make choic

            • The example can apply to just about any coroporate situation. Extrapolate.

              Agreed on formulas...though giving up and always winging it isn't very smart either. (IMNSHO)

              • The example can apply to just about any coroporate situation. Extrapolate.

                OK, so a corporation can set up policies to ensure that it behaves ethically. I thought that was bleedingly obvious.

                Agreed on formulas...though giving up and always winging it isn't very smart either. (IMNSHO)

                I don't see any choice other than winging it. What policies you need depend too much on the specifics. I guess there are some small things which any software company can have as policy. Follow the law. No shrinkwrap

  • Publish Buglist (Score:4, Interesting)

    by jayrtfm ( 148260 ) <jslash AT sophont DOT com> on Saturday December 06, 2003 @01:19AM (#7645747) Homepage Journal
    make the bug reporting/documenting process open, so that when we do run into a suspected bug we can do a quick search to find out if you know about it.

    Nothing I hate more than doing a google search, not finding anything, then spending time to prepare a tested step by step description to repeat the bug, only to have a 2nd level support guy tell me that it's been in their private bugbase for months.
  • Use your company's organizing documents as tools to keep your company on the right path. For instance, write your charter and bylaws (or equivalent) in such a way that they will be difficult to change. Make the ways of changing those documents dependent on buy-in from people who are NOT stockholders or officers. Perhaps use third-party interest groups or trustees whose requirements are to act in consideration of the highest ethical standard for the business, best interest of the customers, and best intere
  • I would like toremind you that the ethics of a company is not determined jsut by how it treats its customers.

    I currently work for an evil company, and they are not evil just because they disrespect the customer, they are evil because they also direspect there employee's.

    so treat everyone you deal with with respect, and try to be fair also
  • by Lendrick ( 314723 ) on Saturday December 06, 2003 @01:53AM (#7645871) Homepage Journal
    When your company is down on its luck, it's easy to say things like, "oh, our customers would really love to hear about all of these great offers we have for them," as opposed to, "let's not spam these people who trusted us not to inundate them with crap."

    It's probably a fair guess that most companies don't start making ethically questionable decisions like the above example unless they would otherwise go out of business. What you really need to ask yourself is whether or not you are prepared to let your company go under rather than letting go of your ethical standards. It's not an easy question to answer.
  • by Anonymous Coward
    That's all they should do. Companies have no morals, and no ethics, unless they need it for public relations, or they are too small. Otherwise they get trampled by aggressive competition.

    Sounds hopeless? Tired of the Microsofts and SCOs in this world? Well, the solution is to pressure government to pass better laws.

    Having said that, there *are* different "personalities" of companies. For instance I would rather hang out with Apple (snobbish artist) than Microsoft (arrogant prick).

    The personality I like t
  • Well, I believe that in the future, the ethics of a company will greatly impact on their bottom line. What's good for our customers is good for us, and customers will be drawn to us BECAUSE of it.

    I'm glad you said that, because "future" is the key word here. I believe that libertarian and Adam Smith economics can work, but they're based on the idea of people looking at what's in their own long-term best interest.

    Every time you make a decision, ask yourself how it impacts your profits in the long run. If
  • by Detritus ( 11846 ) on Saturday December 06, 2003 @03:14AM (#7646158) Homepage
    The #1 thing that pisses me off about many companies is their disregard for the customer when they discontinue products. One month they are hyping the product as the optimal solution to your problems, the next month, they kill the product, drop support for it, remove all references to the product from their web site, and pretend it never existed.
  • by HotNeedleOfInquiry ( 598897 ) on Saturday December 06, 2003 @03:45AM (#7646283)
    All these principles are good and valid, but in the end it will be your character that determines it. Not until you lie awake a few night sweating about making payroll will you know if you are up to it. Not until you have to turn down a big juicy contract that you know you just can't fulfill, a big contract that would mean months of security, will you know what kind of leader that you are.

    Furthermore, the big disappointment will be the customers themselves. As you strive to ship a quality product for a fair price, they will beat you up wanting more, for less before it's done. Or as a friend said, "they want God in a box for free"

    I wish you well. You will live in exciting times.

  • by RealProgrammer ( 723725 ) on Saturday December 06, 2003 @03:45AM (#7646284) Homepage Journal

    As a consultant / system administrator / programmer in business for myself, I have one rule: all I sell is labor. Because of that, I don't sell software and I don't charge a markup on hardware I recommend. It makes everything so much simpler, and I never have to defend my choices as being self-serving. Here are some other suggestions, some of which I've learned the hard way:

    • Obey the Golden Rule. The real one, not 'who has the gold makes the rules'.
    • The customer is always right.
    • Be more honest than you have to be. If your employees and management team know ahead of time that honesty is expected and rewarded and dishonesty will result in dismissal, it will permeate your culture and spill over into your customer and supplier relationships.
    • Avoid debt. Owing money can make you somebody's whore.
    • Never force someone to accept new features to get bug fixes.
    • If you discover a flaw with your product:
      1. Alert your customers, or be open about it, depending on the flaw
      2. Fix it as completely or as quickly as possible, depending on the flaw
      3. Make the fix available for free, and backport it to earlier versions if applicable
    • Remember that your business has a higher purpose than making money. Only you know what that purpose is. If your business existed solely to make money, you'd never have asked what you did. If money were your only objective, you would be in a pure financial market, not the software business. What is it that your business should accomplish besides making money? Put another way: what objective can you miss and consider your business a failure, even if you turn a profit? Answer those questions and your ethical decisions will be straightforward.
  • 1) Honesty in all things. Be honest with your investors, your employees and your customers. Don't "stretch" the truth in your advertisements. Make sure you're sales force understand exactly what the product does, so that they don't "oversell" it.

    2) Respect the property of the customer. If you're not sure, err on the side of the customer. Although you may own the copyright to the software, the particular copy on my system is *mine*, so don't try to control it. If that's not the way you want it, don't preten
  • Quality prevails (Score:4, Interesting)

    by unixbob ( 523657 ) on Saturday December 06, 2003 @04:10AM (#7646365)
    Providing the consumer with something that they actually want and feel value for is something that can make a difference. In reference to you question, take the RIAA, SCO and Amazon as examples:

    Amazon aren't the cheapest place to buys books from. But I have remained a loyal customer due to the excellent "people who bought ... also bought ..." feature. I don't mind paying a little extra than other Internet retailers (it's still cheaper than the local bookstore anyway).

    However take the RIAA. Or the music industry in general. I feel quite strongly that the rise of napster and subsequent p2p networks is to do in part with the quality of the product. And the fall in music CD sales is also due to the quality of the product and not to do with p2p. Consumers aren't interested in pop music which is samey and generic and meaningless. A boy band in 2000 regurgitating the same cheesy song the Osmonds sang in the 70's isn't appealing to most. What the music industry today has done is instead of making music that some consumers will really enjoy (and some will detest) they have created a bland product which everyone finds inoffensive.

    SCO have got people's backs up because they are appear to be trying to destroy Linux, which many people are passionate about. However I would argue that the reason they are probably currently the most unpopular company in the technology industry is because they don't have something of their own which they can sell to consumers but instead are taking advantage of others hard work.

    My point is that if you create a good product and don't just adhere to the risk averse bean counter methodology then people will notice this. Promote what makes you stand out and if it's good enough people will love you.
    • Funny... p2p stats seem to indicate that the most-traded songs are precisely the 'samey' 'generic' RIAA-propped 'artists' that are suffering the largest slump in sales(only top 10 pop album sales are down, all other genres are up).

      this more indicates the public's dissatisfaction with the single-driven nature of pop albums. $20 an album, and only 2 or 3 songs they like is just not a good deal anymore. though they're angry with the legal distribution channels, the download statistics show that most people -
  • by Kirruth ( 544020 ) on Saturday December 06, 2003 @05:06AM (#7646493) Homepage
    There are some businesses who say, obeying the law and keeping people safe is all business ethics should be about.

    To me, though, great businesses are all about truth. They know the truth of their own capabilities, the truth of what their customers need, the truth of what works and what doesn't, and without bullshitting anyone, they just get on and do the business.

    That's not to say you dont have marketers or lawyers or accountants: you need these in modern business. But as soon as you have marketers and lawyers battling over just how much to lie to the public, and accountants doing "creative accounting", you might as well shut up shop.
  • I don't care what a company promises, so long as they KEEP those promises.

    A good example of this is Google who right from the start have followed an ethical policy because of the beliefs of the two guys who founded the company.

    Another example (but this time of lack of ethics) are companies like Yahoo who change the terms and conditions at the drop of a hat then expect the users to follow.

    Maybe the CEO of a company should be forced to take ethics 101 once a year to make sure they fly straight.

    Ed
  • Let your 'Yes' be 'Yes,' and your 'No,' 'No'; to strengthen your promise with a vow/oath shows that something is wrong.
  • besides don't be evil, can i recomend keeping your company private. i realize money can be made hand over fist by becoming a publicly traded company, but why don't you try having valued workers (i.e. the ones who do shit, and understand shit) be the only people besideds yourself holding shares. it seems to me where most companys go wrong is letting share holders decide where a company can and should go as opposed to it's engineers and the rest of it's workers setting pace. yes it's wonderful to have a vison
    • While I agree that many companies can lean toward dishonesty when their focus is quarterly earnings numbers (which are a terrible metric for cyclical businesses), private companies are often as bad or worse because they face less scrutiny (which is what OS folks are all about, right?).

      Having worked for both types of companies (and worked in the public sector too), I found that more sketchy things happened in private companies (like dozens of partners bonusing themselves instead of making needed capital inv
  • Decide how you're going to act, and DO THAT. Do NOT change policy simply because a few people start whining. This doesn't mean that you stagnate, but it does mean that you understand that no matter what you do, it's going to piss somebody off.

  • by hey! ( 33014 ) on Saturday December 06, 2003 @11:59AM (#7647686) Homepage Journal
    Speaking as one who has been in business for some time, I'd say if you think being ethical is going to help you get ahead in business you are engaging in wishful thinking.

    What is right is not always expedient.

    What is expedient is not always what is right.

    Honesty starts with yourself: exactly how much are you willing to compromise on your beliefs? Which ones are really important?

    If the answer to the first is zero and the second is all of them, then you either are purer than virtually anyone else in business or you haven't really figured out where you want to draw the line. If you don't decide in advance then you'll probably end up letting circumstances draw the line for you.

    In the end, the main check is this: what would be the result if the thing I am about to do were made public? In a sense, ethical behavior can help reduce certain downsides from recklessly unethical behavior. On the other hand, in extreme circumstances, if expedience is your only guide then you will take the Faustian bargain: either your company continues with tainted ethics, or it dies and the people workig for it are let go. This is hard because, selfishness aside, people depend on you and if you are sensitive you will feel this as a moral obligation, and you will have a hard time teasing out what is purely selfish and what you are doing for your people.

    Integrity is the one ethical virtue which is a true business asset.

    Integrity in the business sense is when your deeds reflect your words. This can be a competitive advantage. But it's harder, because it means knowing when (and how) to say no.

    But in the end, the full spectrum of ethics doesn't do much for your business. You must choose the ethical way because it is what you believe in, because of your self-regard, the desire to preserve your own character.

  • by wowbagger ( 69688 ) on Saturday December 06, 2003 @12:03PM (#7647703) Homepage Journal
    I would take issue to the oft-quoted (even in this discussion) statement "The customer is always right".

    The customer is not always right. However, the customer always thinks he is right.

    If you blindly follow your customer's whims you will end up with a car designed by Homer Simpson that nobody wants.

    If you LISTEN to your customers, and then THINK about what they said, however, you will end up with a product that they will want to buy.

    However, the tricky bit is dealing with a customer that you disagree with - you must show tact in how you blow them off.

    Case in point: I used to be a regular customer of the Super8 motel chain when I travelled. I would stay there preferentially to other chains. (you may note the use of the past tense in those statements).

    One day I received one of those "fake check" mails from them - what looks like a real check, but in .0001 point microfont on the bottom says "by cashing this check you agree to join this plan that is going to cost you and arm, leg, and the gonad of your choice, for a cost orders of magnitude greater than this check is worth."

    Those sorts of things piss me off. I found the name of the CEO of the company, and sent him a nice letter explaining that I felt such advertising was unacceptable, and that while I was sure that they didn't really MEAN to do that, they should look into the company that they hired to do this and re-evaluate their position.

    In short, I gave them every possible out to use to say "OOPS! Sorry!". I was NOT accusitory in the letter.

    I seriously injured my jaw on the floor upon reading their response. It wasn't a polite-but-bland "YourConcernsAreImportantToUsThankYou" form response. It was not a "You are right, the responsible individuals have been sacked" reponse.

    It was a "Shut up! You Suck! We aren't doing anything wrong! This is NOT misleading! IS NOT! NEENER NEENER NEENER! We are making money doing this, HOW DARE YOU CRITICIZE US!" response.

    Needless to say, they lost my business, and I take every opportunity to pass this story along to others.

    In summary - listen to your customers - they may not always BE right, but they always THINK they are right. If you don't THINK they are right, then DON'T just blow them off.
    • The problem with Super 8 is that they just don't care about their customers. And why would they? They are just a low buck, low profit margin hotel chain. There are 2 reasons why people stay at a Super 8: Its cheap, or its the only place in town that isn't booked. If they piss people off who don't return, those people will be replaced by other tightwads lured in by the low rates. For this chain, it is more profitable to resort to gimmicky promotions than to try to build any sort of 'customer relationships'.
      • But the silly thing is, Stupor8 is NOT cheap - they are consistently $10 or more a night more expensive than Motel6 or other chains.

        The reason I *used* to do business with them was that they *used* to have a pretty good continental breakfast. However, other motels are offering that, and more and more Stupid8s think "Continental breakfast" means some nasty coffee that has been on the burner since the '60s and a couple of cheap donuts, "served" starting at 7:00 (by which time I am usually 200 miles way).

        But
    • I work for a largish ISP, and we don't get many written complaints, but when we do, they invariably fall into one of two categories:

      1. The legitimate complaint where we fucked up and we will apologise profusely for having done so.

      2. The complaint from the chronic whiner, who, in his mind, finds insult in something that is standard practice, and we have no intention of changing for him.

      To the first category (very infrequent), we send the humble beseeching-your-forgiveness letter, and meant it.

      To the se
      • No offence taken, because that is just my point - some "customers" aren't worth the money.

        But you can blow a customer off nicely, or you can piss them off - and no matter what else, pissing them off unnecessarily is not a good idea.
  • Ok, answer this.

    Business has been going ok for a while, you have several employees who depend on you including one with a sick kid, but now you have a desert experience. Cash reserves are almost exhausted, there is no sight of a customer for miles and you're about to bite the dust.

    Then Customer X turns up and offers you wads of cash. The company will be sorted for at least the next ten years, everyone will get pay rises, little Jimmy will get his kidney and so on.

    The problem: Customer X requires you to
    • And this right here is how many 'bastard companies' get started. Its easy to be fair and ethical when the business is doing well. Most people don't screw others because they enjoy it, they do it because they are in a bind (not that it becomes OK). When a company starts to suffer financially, that is when they start cheating customers, replacing loyal staff members with minimum wage drones, providing bad products/service. It takes a very strong person to say no to unethical behavior. Unfortunately, good ethi
  • I see too many companies take something that has been in an open-source product (like a Linux window manager) for years, and rewrite it, add a few features, and release it on Windows, for money. Probably the simplest example is popup blocking, even though most of them are free -- Mozilla and Firebird supported popup blocking long before even the first freeware plugin for Internet Explorer.

    So the way to do this right is to do your homework. Before you even start planning on a project, make sure it is a u

  • KANE: Declaration of Principles. Don't smile, Jedediah. Got it all written out. Declaration of Principles.
    BERNSTEIN: You don't wanna make any promises, Mr. Kane, you don't wanna keep.
    KANE: These will be kept. I'll provide the people of this city with a daily paper that will tell all the news honestly. I will also provide them...
    LELAND: That's the second sentence you've started with "I."
    KANE: People are gonna know who's responsible. And they're gonna get the truth in the Inquirer quickly and simply and e
  • A lot of it depends on the type of software you make, but:

    X day money back guarantee if dissatisfied. Many companies won't offer it because someone could just lie, get their money back, and keep the software. But on the other hand, most people will not use that option if satisfied, and those that will could have alternately looked to other methods of piracy. A lot of business software purchases are high risk, and a big question on many potential customers' minds is "What if we spend all this money and it d
  • by aclarke ( 307017 )
    Why am I asking this? Well, I believe that in the future, the ethics of a company will greatly impact on their bottom line. What's good for our customers is good for us, and customers will be drawn to us BECAUSE of it.

    I'm sure this isn't the ONLY reason you want to be ethical, but it's a little disconcerting that you cite it as your main one. I'm not saying I'm the MOST ethical person out there, but I do believe in an absolute standard for what is right and wrong, and I believe that a person should adher

  • Open your mind way, way up and go find and read the following book:

    "Fabled Service: Ordinary Acts, Extraordinary Outcomes" by Bonnie Jameson, Betsy Sanders.

    The reason I say "open your mind" is that the book is about Nordstrom's, the upscale department store. They have survived, and they thrive, because they have empowered each and every employee to offer the highest level of service to everyone who walks into one of their stores--including people who "have no business" being in such an exalted atmosphere.
  • The easiest answer is : Never.

    If the customer is unhappy, and it's your fault then it's your fault.

    If the customer is unhappy, and it isn't your fault, it's still your problem. Frequently, they're unhappy about something other than the problem they're nattering on about and it's your job to figure out what and where the real problem is and fix it.

    In practical terms, this means staffing your customer support team so that they can spend time with your customers working through their issues. Don't punish

  • Give your customers a place to say anything they want--even if it's Bad--and you will find yourself supporting them the way they want to be supported.

    Put that community up and leave it up, rain or shine. Politely answer everybody, even the lamers and flamers, and do it quickly. To hide the off-topic crap, allow your customers to gently moderate the discussion--link to hidden messages, never delete--and don't touch that button yourself.

    You will also reap fanatical user loyalty, repeat business, and price
  • "Blessed are the meek, for they shall inherit the earth"

    We've been having this 20-something, moral relativistic, why are humans animals, why are corporations greedy discussions on Slashdot for a while. Why are corporations greedy? Because it's easy and fun. Either you believe in absolutes and a higher power or you don't. It's that simple. If you don't believe in a higher power, than why should you act ethically? Especially if you can legally do so? You say you care about other people? So, what. Th
  • I started a corporation 2 years ago (well, started it with my dad's help anyways, i was 16 at the time), doing consulting/technical work for local residential and commercial customers. It's VERY small scale and VERY word-of-mouth. I have at least one job a week (paying $40-$80, decent for a H.S. senior working 2 hours a week). I level with my customers, since everything is one-on-one, it teaches you MANY things, the customer is always right... as long as they know what they're talking about. An irate clien
  • Another thing to keep you on the straight and narrow: Not everyone who wants to be your customer should be. Be selective.
  • Do not claim ownership of your employees' thoughts. Do not claim ownership of projects done by your employees on their own time that are unrelated to what they do at work. Do not try to impose non-compete agreements that are not legal.
  • The text you'll find at Omnigroup [omnigroup.com] where they present themselves [omnigroup.com] as a company hasn't changed much over the years. I also like their job opportunites page... too bad I don't live in Seattle (6000 miles from where I live)
  • ...making a decision:

    "How would I feel if I was a customer who was affected by this?"
  • As many posters have mentioned, some of the best intentions disappear when a company faces the brutal face of reality. This happens most often when you make promises without thinking through all the ramifications. While it is not possible to predict the future, I feel it would be a good idea for a firm to build flexibility ("wiggle room," not "weasel room") into their policies.

    For example, many people have proppsed on the privacy front to never sell the names of contacts or clients. That database, howev

  • If you are starting a business, I presume you are consulting with a lawyer over the basics (partnership/incorporation issues, DBAs, employee relationship basics). If you are serious about your policies, though, you ought to have your counsel review them.

    While I do not know the legal standard for such things, it would not be surprising for a court to treat your posted policies as legally binding agreements with the client. An attorney can help you avoid any unforseen pitfalls (e.g. Could a loophole in you

  • Yeah, I know it's lousy writing, and pedantic, and repetitive, but... it's core theme is valid. So slog though it, and take it to heart.

    Communicate with your customers, partners, suppliers, and employees in clear, simple, unambiguous, TRUE language. Don't mislead by omission. Don't obfuscate. Don't hide the truth in-amongst tons of verbiage. Make sure the letter of your message is the same as the spirit of your message. Don't hide behind legalities and technicalities. Say what you mean, and mean wh

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