Interesting Conflicts
Have you been tempted?
These days, ‘conflict of interest’ seems to mean:
If it’s in my interest, there’s no conflict!
I don’t quite see it that way.
But I have.
Old School
When working for an ad agency, I was surprised to find myself writing for two BIG FIVE* clients in the same week.
I strive to do my best. So unless two clients have markedly different stories to tell, I feel conflicted that I can serve only one properly.
This means the second client gets a lesser deal, which upsets me.
As there was little light between these two clients, I asked the boss if we could cut one free and give the other our all.
I argued that in so doing so, we’d:
- Capture the high moral ground (and thus sleep well at night).
- Help our remaining client dominate their market (resulting in a growing spend).
- Differentiate ourselves as a truly ethical supplier (and thus gain new, like-minded clients).
The boss regarded me as if I were insane, then explained that our foreign masters would be highly unamused if we sacked a million-dollar client for ethics.
The trouble was, we only had one studio.
As work for both clients grew, we told them we had separate creative facilities for each. Though technically true, the separation was a line of masking tape on the carpet and a direction not to look when the other side was printing.
One day, the bigger client sacked us, citing conflict of interest.
Not long after, the second client also left. As did many staff.
Conflict resolved.
New School
When I went freelance, I finally had the glorious chance to practise what I preached.
Instead, terrified of insolvency, I grabbed every client I could.
So much for ethics!
To my knowledge, no client was harmed in the conflict; but that’s splitting hairs.
It’s only now, years later, that I can ‘afford’ the luxury of focusing on one client in each sector.
But some things still sting.
Not Again!
Lately I’ve been doing a truckload of work for a BIG FOUR client.
Last week I was offered a job for this company’s arch rival.
The gig was perfect: fun, lucrative, interesting and right up my alley.
I could’ve done it without anyone knowing.
But that wouldn’t have been right.
So I knocked it back with gritted teeth.
My grateful client told me they were loyal and that I’d be rewarded.
There was talk of karma.
The Great Wheel
So, I’ve gone from angel to mercenary and back again.
I’ve learnt that conflicts of interest, while appearing external, really dwell within.
So how strong is your moral compass?
Have you foregone instant loot for chronic brownies?
Did you come back as a sea-eagle?
Do you think business and ethics can coexist?
Or, in today’s cut-throat world,
do good guys finish
last
?
* i.e. five fierce, roughly equal competitors dominated this sector.
Paul Hassing, Founder & Senior Writer, The Feisty Empire
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Paul
well done
There is a saying ” if you stand for nothing you fall for everything”
As you are well aware at Banjar Group ‘values’ are our brand.
As you are also aware we do not charge for Sales Cats the book ” the value is up to you”
Last year we believe roughly $12,000 went into School of St Judes by people donating their value of the book. Some still cannot believe i don’t sell the book. They are missing the point on currency and values.
Never ever compromise your values for then we are lost as a community
The Sales Cat
Thank you, Mike.
I knew you guys were good, but I had no idea your book had made TWELVE GRAND for that school.
So how can cats get their paws on this mighty tome? Gotta link for us?
G’Day Paul,
Be warned-not Warnied-I’m about to repeat myself again.-couldn’t resist that. In a word…..
Focus, focus, focus,focus,focus !
Ethics have a way of sorting themselves out when you have a crystal clear notion of exactly what you’re doing and who you’re doing it for.
Helena Rubenstein sells hope.
That’s all….
and you will have fun.
Leon
Cash is king but integrity rules. Certainly take on as much work with interesting clients but direct competitors is not right. It breaches your first client’s trust and compromises all future dealings.
Business is about people and relationships. Taking a job from a competitor that could very well be a one off does nothing to enhance your reputation in the business world.
Short term, long term – for me it’s an easy decision.
Glad to know we’re on the same tram, Leon and Malcolm. Makes me want to buy a season pass! Many thanks for your thoughts.
I’m curious, Paul, but why can’t you apply your skills to doing a great job for both clients? (Without of course serving up exactly the same text.) Each job is different; each brief is different. Moreover, if the big clients want to say more or less the same thing in more or less the same way, and need a writer to do so, what’s the difference between you doing it, or the next writer doing it? Isn’t the lack of difference their concern and not yours? If you do your best for each, I’m not sure that I see the conflict. Even the perceived conflict.
Thanks for your question, Adam; it’s a beaut!
If I believe two clients to be identical and their products homogenous, they are. I’m thinking hamburgers, running shoes, consulting firms, political parties …
If I can’t see the difference, I can’t write copy to make others see it. If a client merely wants me to rearrange their words, I can. But there’s no artistry in that. And if my heart’s not in it, I stop as soon as I can afford to. I’d rather leave such rehashing to the next writer.
On the other hand, if I find a client whose message makes my heart sing, I’m highly motivated to give them my finest work, such that they trounce their rivals and dominate their sector. It’s much more fun. And I don’t have to fear a hand on my shoulder and a cold voice rasping, HEY! Didn’t I see you writing for the OTHER crowd?!
Hey Malcolm! I’m in disagreement here. If I provide a professional service, why can’t I have a good relationship with you, and a good relationship with your direct competitor? The ethics here lie with me. As a professional, of course I’ll do a great job for both. What’s more, I’d bend over to try and find points of difference. In other words, integrity rules anyway.
Very interesting point, Ad!
Hey Naomi, how would MYOB feel if I started writing small business blog posts for Reckon?
Given that I’m an ethical chap and all, would that be cool with you guys?
Hmmm, we are unusually of a different mind here. I can’t imagine two clients being identical. Similar, yes. Highly similar, yes. But identical, no. Not for burgers, shoes, firms or parties. By definition, no. By logic, no.
So, as a creative professional, I’d take the minor points of difference and weave the appropriate story for the appropriate client.
What would people prefer out there? Two cookie cutter writers for two competing clients, or a writer dedicated to taking each for what it is?
It ain’t often we differ, Ad. With the greatest respect, weaving minor points of difference into an appropriate story sounds an awful lot like moo cow poo to me.
That’s one reason I’m not pulling $250K p.a. by working in a PRODUCT advertising agency.
Writers who can convince punters that TAB is realio trulio actually better than Diet Royal Crown Cola deserve every cent they get.
I prefer to dwell in the realm of majorly superior stories. In other words, I like a bit of woof in my weave.
It’s a good discussion, Paul. But I’m not sure that you’re comparing apples with apples. What you’re saying is that you prefer writing for unique clients. That’s a preference. Tell your stories as you please. What I’m saying is that an ethical approach involves weighing up all the variables in a situation, and then determining an appropriate course of action. It’s not a rule of thumb … work for A … can’t work for B. I fail to see the active moral principle in ‘Well, I work for you, so I can’t also work for your competition.’ To me, that dumbs the argument down. It might be useful on occasion, but only as precedent, not as original thought. It’s a different sword to die by, as others may not perceive the nuance, but it’s not moo cow poo.
Fairaday, Ad. I’ve not studied ethics, so perhaps I shouldn’t package my instincts as such.
I’m sure Christine Keeler was fond of Profumo, Edgecombe AND Ivanov, but her even-handed approach certainly didn’t sit well with the establishment.
What’s dumb to you is crystal to me. As a literal chap, I find it easiest to cleave to simple concepts. Then again, so do extremists.
Arguing, in good faith, on different occasions, that BOTH diet colas are superior to each other would fry my brain entirely.
Speaking of ethics, Ad, if you had your hand chained to that lever that sends the runaway train into one of two tunnels to crush either the old bloke who’s had a happy life or the two little girls in pink gingham with the fluffy lapdog, which tunnel would you go for?
And no, Malcolm; you can NOT kill them all!
I truckle not to gingham.
Paul and Ad, I am enjoying your discussion. Here’s another angle on it.
My previous IT consulting business provided IT services to over half a dozen Australian gas and electricty companies covering every part of the industy (generation, networks/distribution and retail). G&E is a highly competitive and tightly regulated industry.
Our customers knew we provided services to their various competitors, but this was not considered a conflict of interest. Rather, we were considered an industry expert and our consultants would regularly move from one G&E company to another.
Our people would apply their knowledge and experience to each customer without fear or favour. Non-discolsure agreements were de rigeur and all intellectual property remained with the clients.
Our people would move from customer to customer periodically with engagements lasting from weeks to many months. Some of our staff racked up multiple years of experience across a number of different G&E customers.
I guess what I am illustrating here is an example where providing services to competing customers does not necessarily mean a conflict of interest exists. Our customers certainly weren’t concerned baout it. A key here is that everyone knew what was going on and nothing clandestine was happening.
In Paul’s original example I don’t see a conflict either. If Paul did his best for each customer then there is no conflict. I believe the fact that their offering are very similar is not relevant.
When one of Paul’s clients eventually terminated their account due to them perceiving a conflict of interest, I think that client made a mistake. That sort of decision should be based on the service and outcomes that Paul’s company provides. If they were already getting the best then theuy are stupid for changing.
If it were indeed necessary for a service provider to provide services to only one of a group of competing customers then it would be necessary to have at least a one to one ratio of each type service provider to each competitor in a given industary sector, and that is not even taking into consideration conglomerates. As an hypothetical example – let’s say there are 100 financial institutions (banks, etc.) operating in Australia. If there are less than 100 agencies with the skills to write copy for bank advertisements does that mean some banks simply can’t have that service? I don’t think so.
Ultimately in the case of Paul’s company, if its customers, whether they be a so-called Big 5 or an anachronistic cola drink maker, can’t differentiate themselves from their competitotrs (both real and perceived differences) and then ask you to help sell that differentiation for them, then they should look internally at what is wrong rather then shooting their messenger.
Now THAT is a comment and a half! Many thanks indeed for your terrific take, Jas. I feel better already!
Jason takes the cake. All the cake! Bravo. But how does he feel about gingham?
Yeah, Jason. How about the gingham?
If I had my hand chained to a lever that sends a runaway train into one of two tunnels to crush either the people who make up ridiculous hypothetical scenarios involving death by my own hand or the people who precipitate the distribution of such scenarios, I would go with the option which was denied to Malcolm.
Cor. The Fat Controller has NOTHING on you, Mate!
Nice post as usual Paul – perhaps naively I look forward to this dilemma, and perhaps even more naively I predict that I’ll stick with my morals. Well, maybe it will be more my competitive spirit than morals, and anyone who’s competitive knows there’s no satisfaction in winning when you play for both sides, even if your bank balance look’s healthier for it (which it won’t necessarily judging by the example in your post).
Cheers
Dan
Thank you very much, Dan. May a herd of dilemmas hoist you on gilded horns ASAP!
Interesting topic Paul. Speaking to a former colleague of mine a few weeks ago we discussed an up coming web project they had. I advised them that they should consider agency XYZ because the work I had seen from them was of a good quality. I also told them that they were servicing one of their key competitors, whose website I knew my friend really liked.
He followed my advise and spoke to them. The issue of conflict of interest was raised and the agency assured him that it was manageable.
Although he believed what he was told, the thought that a competitor could somehow see what new projects they might be working on caused them to pull out. They just couldn’t trust them. I told them to maybe think of it the other way around, that they could also benefit from the fact that their bigger competitor was also in the room and that the agency was gaining so much experience in the industry they competed in. Everyone would win.
All my convincing didn’t work and they pulled out of discussions with this agency. I was disappointing for him because I knew the agency could deliver quality work and that my friend might be missing out on that over something that I didn’t think was very risky.
That’s a really interesting comment, Arthur. It draws together many of our discussion threads very nicely. Serious consequences can make a tiny risk seem bigger. I’m starting to see that conflict of interest may well be a matter of (distorted) perceptions. Many thanks!
PAUL,
Greetings from rural Australia.
What an interesting topic.
To most of us, ethics is subjective. It’s totally dependent on a set of values based upon what each person considers to be right or wrong.
Which is why so much conflict exists in the world.
And ethics is more a wide brush stroke of grey rather than a palette of only black or white.
What’s ethical is this scenario?
A husband smothers to death a wife who he has loved and adored all his life, because she’s suffering beyond her capacity to cope and will never get better.
Is this murder?
Or a husband showing compassion and wanting to end the misery of his wife. At her request. Regardless of the punishment meted out to him.
Is this a simple case of the law is in charge and has a resolution for this and is out of our hands?
Or is this a grey area of a value judgement made by you and me based upon what we consider to be ethical under the circumstances?
Some will consider him a murderer.
Others will have deep compassion for his dilemma and be alarmed when he’s sentenced to a harsh jail term.
All ethical questions come down to a simple answer. Can I sleep straight in bed at night if I make this decision?
A psychopath can answer yes to that question after committing a random murder.
And the husband who just ended the misery of his beloved wife will answer the same.
A business person deeply in debt, facing financial ruin, can also answer yes when engaging in dubious behaviour.
I love and embrace change.
But despise and avoid emotional turmoil.
So I always ask myself that simple question: how will I sleep once making this decision?
I’m extremely fortunate that money doesn’t motivate me now. Nor has it ever motivated me.
But being good at what I do does.
I guard my reputation with the same zealousness as a tigress wields to protect her cubs.
I’m prepared to give up anything that doesn’t align with my intrinsic value that my reputation as an individual worthy of being trusted, admired and respected is the only baggage worth carrying from place to place.
So I’m rarely in conflict with my ethics.
But I will put in a disclaimer. I’m not a consultant. And therefore have no masters/mistresses other than me to answer to.
Which allows me to lead a very simple life.
With a very simple ‘golden rule’.
Everyone who I love. Everyone I’m friends with. And everyone who I do business with. . .
. . . must be able to trust me.
And feel safe in my company.
Love the discussion. And the disparity in views. This is what makes for good conversation.
And as always, Paul, you’re sooooo good at bringing it on.
Best wishes and take care,
Carol
Carol Jones
Director
Interface Pty Ltd
Designers of The Fitz Like A Glove™ Ironing Board Cover
http://www.InterfaceAustralia.com
Ironing Diva’s stories are at http://bit.ly/TheIroningDiva
What a beautiful commment, Carol! When oh when is your BOOK coming out?!
You have such a lovely turn of phrase – just the thing for your lilting thoughts.
Thanks so much for sending them our way.
I don’t see a conflict of interest. it’s not your job to define the brand. You are there to create an expression of their brand, right?so if they are lame enough to not differentiate themselves, that’s not your problem- it’s your job to accurately express their lameness. Which you undoubtedly do well by working for both of them at the same time.
Thank you for taking the time to visit, Penelope! Adam will be delighted to have you in his camp.
I must say this discussion has made me see that MY world isn’t THE world. It’s so easy to forget that. Especially when you work solo.
Best regards indeed.