Can I trust you? (Ethics as a new level of competitive advantage)

The twentieth-century economy ran on the following standard: sell more, to generate more profit, “grow”, and then the crash.

Quoting Umair Haque:

“It’s not about having more, it’s about doing things better. It’s not about protecting exports, squeezing buyers and suppliers, price-discriminating against the less powerful, and programming consumers to buy, buy, buy.
It’s about authentically making people, communities, and society better off.
It’s not about caring less, but about caring more.
It’s not about cruelty. It’s about caring.”

Umair Haque is reflecting on Google’s reaction to China.

Is there a genuine ethical interest behind Google’s move? Maybe so; maybe it’s pure altruism, a real commitment to doing good (or not doing evil, as their motto goes).

Maybe not; maybe they’re actually upset and worried because this could mean calling into question the integrity of the cloud-based business model.

I think that last point is valid. Google has to show that it can be trusted with the operation or the safekeeping of our data and our email, and that it will protect them from attacks by governments or third parties.

Either way, the perceived effect is the same: a more ethical attitude, committed to society, in the sense of making it something better.

As Haque says, we’ve moved up a level, to a higher level of competitive advantage. Behaving ethically doesn’t just strengthen brands, and not just because gaining credibility is a benefit; ethical behavior also lays the foundations for future success.

Because it makes for stronger businesses, with passionate people who don’t feel demotivated by their work.

Because it provides a better purpose, a higher aspiration, not just chasing the common denominator.

Because it allows for stronger, bolder strategies, more resilient to twentieth-century-style coercion.

Because it delivers meaningful value. It allows for stronger management, focused on long-term strategy.

It lets you choose better investors, committed ones who invest for the long term, not just speculators looking for a quick return. And it builds stronger economies, which can, instead of stagnating, enjoy authentic prosperity.

According to Haque it is this ethical edge (not ethical perfection) that lies at the heart of Google’s success. Compromising that ethical edge is expensive for Google, not only because it damages its brand, but because it would lead it into the trap of the vicious circle of competitive dynamics.

The stock markets don’t get this. They think the people at Google are crazy. But people who think only about profit don’t see the value in it. A Google that doesn’t play by China’s rules can become a stronger, more appreciated Google, with a more valuable business, one of meaningful value.

I agree that things have already changed.

These days, if you want to convince me to buy your product, you have to win me over some other way, show the value of what you offer, and above all show me that I can trust you.
If the only thing you seem to care about is how to make money, and going public to get rich quick, how am I supposed to understand your message and believe that your proposals are positive and aren’t hiding something, or that you aren’t just thinking about increasing your personal “wealth”?