Truth: The New Rules for Marketing in a Skeptical World by Lynn Upshaw (Amacom, 2007) is one of the few books I’ve seen that really addresses ethics from a marketing point of view.

Upshaw argues convincingly that companies should be ethical, transparent, and engage in what he calls “practical integrity” (which in his view has more to do with product quality and service than with the “traditional” integrity issues). He repeatedly cites the same examples (among them Timberland, Trader Joe’s, John Deere, Herman Miller and Patagonia)–and shows how these companies reap handsome rewards in the marketplace because of, not in spite of, this commitment. Unfortunately, with a pub date of 2007, the book was probably written in 2005–and a couple of his examples (Whole Foods, with its CEO sock puppeting, and Southwest, with its recent inspection issues) have been somewhat tarnished in the meantime. This is always a danger when writing about ethics; I’ve been burned a couple of times, as well, and I don’t hold a grudge that the facts changed since Upshaw turned inhis manuscript.

Upshaw makes many excellent points. Among my favorites:

• 6 characteristics of “integrity heavy-users”
• Quantification in dollars and other metrics of the consequences to Ford and Firestone of their stupidity in the Explorer rollover scandal
• The idea that great employees actively seek out great companies to work for (Upshaw doesn’t elaborate, but to me, that means these companies have much lower recruiting expenses)
• A tarnished brand can, with effort, rehabilitate itself (example: a few years ago, Gap was widely condemned for its use of sweatshops and child labor; now, the company actually pits vendors against each other to show who has improved working conditions the most)
• In one of several appendices, a sample “integritomter” showing how a company can rank itself for promises kept, guarantees honored, and other factors.

A couple of minor negatives: I found some of the visuals and sidebars (particularly the invented conversations) distracting and irrelevant–and I found it deeply ironic that the cover flap (which I’m sure the author didn’t write)–engages in exactly the same sort of unfounded claim that he chastises other companies for: “The first book of its kind, Truth takes a practical business-building approach to marketing with integrity.

While Upshaw is writing more for a corporate audience and less for the small entrepreneur, I covered much of the same ground in my own award-winning sixth book, Principled Profit: Marketing that Puts People First, published a full four years earlier. And in the nearly four years I’ve been writing this column, I’ve reviewed several others that also cover this territory.

Despite these minor flaws, this book is a rich collection of values/profit-oriented advice, and I definitey recommend it.

Another Recommended Book: The Speed of Trust by Stephen M.R. Covey with Rebecca R. Merrill

It’s good to see an important and well-promoted book on business ethics coming out of a major New York house (in this case, Simon & Schuster’s Free Press imprint).

Coveys basic thesis, peppered with lots of examples from his own and his famous father’s life and career as well as the business world in general, is that when people trust you, business gets transacted a lot faster, more smoothly, and less expensively.

He notes that almost every action either increases trust–creating what he calls a “trust dividend”–or deceases it, imposing a “trust tax.”

Covey identifies a number of factors leading to increased trust, and they basically break down to two key principles embodied in “4 Cores”: character (subdivided into Integrity and Intent), and competence (Capabilities and Results. It’s not enough to offer just one of those two. If you are good at what you do but people have reason to mistrust your ethics, you pay a penalty. But also, you can be a model of integrity, and if you’re not good at doing what you commit to do, you’ll pay a trust penalty there as well.

Building from those four core attributes, he identifies 13 specific behaviors that build trust, and spends a chapter on each:

• Talk Straight
• Demonstrate Respect
• Create Transparency
• Right Wrongs
• Show Loyalty
• Deliver Results
• Get Better
• Confront Reality
• Clarify Expectations
• Practice Accountability
• Listen First
• Keep Commitments
• Extend Trust

When evaluating these behaviors, in yourself or in others, it’s important to fid the “sweet spot” where distrust is overcome but judgment comes into play so you don’t get burned. And in that process, it’s important to recognize that each of these 13 behaviors has “counterfeits” that look on the surface like they’re building trust, even as they actually undermine it. As an example, flattery is one of several counterfeits to straight talk.

Like my own book Principled Profit, Covey repeatedly demonstrates that high-trust environments, based in both character and competence, wildly outperform the traditional hierarchical micromanaged corporate environment. Trust, in other words, is very good for business. It’s why all the local McDonald’s were left untouched during the Los Angeles riots–because McDonald’s had shown itself as a concerned community partner, for years. It’s why Johnson & Johnson is one of the only pharmaceutical companies that has a reputation for genuinely caring about its customers. It’s why when an IBM executive who had lost the company $10 million expected to be asked for his resignation, founder Tom Watson Sr. responded, “You can’t be serious. We’ve just spent $10 million educating you!”

My favorite chapter is toward the end of this substantial book: “The Fifth Wave–Societal Trust: The Principle of Contribution.” Spiraling out from previous chapters about trust within an organization (built around the concept of alignment: the messages reinforce the desired behaviors) and within a market (where the key element is reputation)–these are the third and fourth waves–the fifth wave is about “conscious capitalism,” a/k/a social responsibility: the idea (and the statistics to back up the claim) that making a difference in the world is good for the soul, and also for the bottom line. And the key principle is contribution–doing things specifically to improve the lives of others.

This is one of the most important business books I’ve read in a long time, and a complete validation of the points of view I’ve been promoting for years. Strongly recommended.

Growing Local Value: How to Build Business Partnerships that Strengthen Your Community, by Laury Hammel and Gun Denhart
Reviewed by Shel Horowitz (Berrett-Koehler, 2007)

Another wonderful title in Berrett-Koehler’s Social Venture Network series, Growing Local Value profiles a number of successful companies who see themselves as partners witht heir communities–and shows how these businesses can market successfully by distinguishing themselves from faceless corporate competition. Examples: An independent bookseller in Utah who says, “the real pleasure in bookselling comes in pairing the right book with the right person”…a San Francisco chain of boutique hotels, restaurants and day spas where each unit provides a completely different experience, and where a “hotel matchmaker” channels guests into the facility that best matches their tastes: concerning itself with “creating wonderful dreams” rather than providing a mere place to sleep…a large bakery that provides jobs to people formerly seen as unemployable (and got the contract to supply Ben & Jerry’s, probably as a direct result of this social commitment), and does so in such a way that the company is protected, and the employees can get away from the poverty, prison, and drug problems of their pasts…a garden supply company that helped revitalize the blighted neighborhood it called home.

All of these, and most of the other numerous examples in the book, were good for the community AND highly profitable.

Different chapters look at

• Putting the customer and community first
• Financing without compromising values
• Making employees into partners
• Partnering with other local businesses, government entities, and nonprofits (separate chapters)
• My favorite chapter, on turning sustainable principles into competitive advantages (which I also talk about in my own award-winning book, Principled Profit: Marketing that Puts People First)

Another Recommended Book: Ally Relationships: The Key to Sustained Success for Your Service Business, by Anthony O. Putman (Burns Park Publishers, 2007)

Those of you who’ve read my award-winning sixth book Principled Profit know that I’m a big fan of marketing through relationships–and of marketing approaches that move your offering out of the realm of commodity, and into the realm of value.

Anthony Putman is very much in alignment with this approach, pointing out that any service business’s biggest asset is the willingness of the customer to buy from you–and that building strong relationships is a very good way to protect that asset. “You cannot differentiate a service…but you <i>can</i> differentiate a relationship,” he says.

I’m not convinced that services can’t be differentiated. At least some of them can be; that’s the whole concept of the unique selling proposition. However, it’s always going to be much easier to highlight the strengths of your offer when you do in fact differentiate the relationship.

In Putman’s view, a business relationship will have one of three levels:
* Service source–a vendor, pure and simple
* Solution provider, there to solve your client’s problems
* Ally: a strategic partner who is <i>thoroughly committed to your clients’ growth and success</i>, and who is always thinking about ways to grow the relationship by being more helpful

It’s not about selling–but about being seen as the go-to person for trusted advice, and thus products. Allies, of course, make themselves indispensable–and thus not only recession-proof, but also protected against clients jumping ship or price-shopping because they may be satisfied, but they’re not inspired.

One way to be seen as an ally is to decline business that isn’t right for you, and couple that with a referral to someone who specializes in that need. There are many other paths as well, which involve your ability to refrain from traditional selling, think about your clients’ needs instead of your own, and ask the questions that make the client understand how to grow (rather than those that lead toward a one-shot sale).

While it may be easier to build ally relationships with new clients, Putman also includes specific steps to push you up the ladder with existing clients, one person at a time–and with often-dramatic results as clients subconsciously but happily accept the “free upgrade” in their status.

One final point: this approach is rooted in high ethical standards. As Putman says, there is “no place for deceit or spin.” In short, this is an excellent complement to my own award-winning book Principled Profit, especially if you’re in sales.

Click to order ALLY RELATIONSHIPS from Amazon

Another Recommended Book: Made to Stick: Why Some Ideas Survive and Others Die, by Chip Heath and Dan Heath (Random House, 2007)

If I wanted to follow one particular principle in this book, I’d put my last line first–but for this article, I’m following a different one. See if you can guess the one I followed and the one I didn’t. [Quiz answer is below the review, in brackets]

I’ve long been fascinated by the study of influence: what changes an individual’s mind? What changes the direction of a whole society?

This is something I look at in my own organizing and writing, and when a book discusses what makes ideas last–or “stick,” in the authors’ parlance–I want to take a look.

It wouldn’t be the first book I’d recommend on the topic, but there’s some great stuff here, all built around a formula spelled SUCCES (just one s at the end), each with its own extended chapter:
Simplicity
Unexpectedness
Concreteness
Credibility
Emotions
Stories

Oh, and to increase the stickiness of their own messages, the authors end with a sound bite/bullet point recap of the whole book in outline form. I may try that on my next business book.

For me, the two most compelling chapters by far were Unexpectedness (which includes creating insatiable curiosity) and Emotions–and Stories create a path to those other attributes. Some key insights from the former:
* The best “‘aha’ moments” may be preceded by “‘Huh?’ moments”
* When creating a message, don’t think about what you need to convey–instead, think about what questions you want your audience to ask
* Keep things simple–don’t do brain dumps but focus on your key point, and make sure the core message is in front
* Big ideas are audacious–but not insurmountable (Like President Kennedy setting a goal of a man walking the moon within ten years; a manned mission to Mercury would have been too difficult)

And from the Emotions chapter:
* Concepts lose value when they become clichés through overuse–but concepts can also be made fresh–as in the algebra teacher who told his students that algebra was like weight training for the mind–it wasn’t about needing the math skill but about exercising and challenging the brain to keep it in shape
* Talk to people where they can hear you, as the creators of “Don’t Mess With Texas” did: a macho anti-littering campaign designed to appeal to Texas rednecks–but don’t insult them, as did researchers who tried to bribe firefighters into considering a safety program not by appealing to the desire to save lives, but by offering popcorn poppers
* The Abraham Maslow hierarchy of needs isn’t a ladder; we pursue all of them at once–so don’t let your ideas get stuck in the basement–don’t be afraid to tap into human desires for greatness
* Making benefits (or problems) tangible and personal is more successful than making them big
* My favorite of all: *Principles can trump self-interest*

QUIZZ ANSWER: [Did you guess? I buried the lead at the bottom, but I at least hope I created curiosity}

Another Recommended Book: Working Ethically…On a Shoestring: Creating a Sustainable Business Without Breaking the Bank by Lorenza Clifford, Tim Hindle, Nick Kettles, Carry Somers, and Lesley Somers (London: A.C. Black, 2007)

Although this book is thin and easy to read, it’s actually quite substantial–just concise. And necessary.

In a world where 56 percent of US MBA students admit cheating (p. 9), and where companies that claim social/environmental responsibility but don’t measure up can face a strong backlash, a little handbook of practical stories that show how ethics works and doesn’t increase the price of doing business may be just the ticket.

It’s also good for those of us who are American to see outside perspectives. In this case, the authors are from the UK.

Among the points I appreciate:

• As you increase your ethical commitments, give your suppliers a chance to walk that path with you
• Early adoption of Green/ethical principles provides a marketing advantage (something I say over and over again in Principled Profit: Marketing that Puts People First)
• Specific steps to take in making an environmental audit
• Ethics quandaries can become opportunities
• Actual numbers on the cost savings and environmental benefits of turning computers off at night versus leaving them running

If the book has a flaw, it’s that the focus is weighted so heavily on environmental issues. Greening a company is certainly a major concern in ethics work, but the book could address more clearly some of the non eco-related aspects of business ethics.

Disclosure: one of the authors, Nick Kettles, is a fan of mine and provided some gratis (and very useful) consulting. Also, I am cited in the book.

Order a copy from Amazon.

November, 2007: GreenDisk, review of Javatrekker

Positive Power Spotlight: GreenDisk.com
Electronic junk is jamming up our landfills. Here’s an innovative company that’s been doing something about that for over 14 years.

Another Recommended Book: Javatrekker, by Dean Cycon
Dean’s company, Dean’s Beans, was the Positive Power Spotlight for February 2006. His new book is a fascinating look at how business can create and leverage truly meaningful social change–as well as some great travel writing waaay off the beaten track.

Interesting no-charge report: The Internet Marketing Myth, by Russell Brunson

Want to boost your graphic arts skills? This e-book by Karen Saunders, “Turn Eye Appeal Into Buy Appeal,” is unusual because not only does it clearly explain and demonstrate graphic design concepts, but it’s written with a clear and on-target sense of graphic design *as a marketing ingredient*–something that’s entirely lacking in the minds of most designers. I’ve been working with designers for decades and I still learned quite a bit. Lifetime satisfaction guarantee, too.

Which of Shel’s Books is Right for You?
Shel’s books on frugal, effective, and ethical marketing–and his very inexpensive e-book on having fun cheaply–make great gifts, too.

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