If you have watched TV, read a newspaper, or surfed the Internet over the past 8 years, the topic of ethics in our lives has been a major area of concern.
It seems that in every industry, including the MLM/Network Marketing industry, companies are on the news because of some ethical blunder or another.
I think it would be fair to say that most MLM distributors are disgusted with the state of ethics in our society. They are sick of dishonesty and unethical dealings. I know that I am.
With one quick search on Google for companies that have found themselves in trouble as a result of unethical decisions, you get a very long list. Here is a few, any ring a bell? And how many of these are still in business?
180Solutions, Adelphia Communications, Arthur Anderson, Clear Channel Communication, Enron, Exxon Mobil, Global Crossing, Halliburton, MCI WorldCom, Monsanto, Qwest Communications, Tyco, Wal-Mart, Xerox, Yahoo.
But what if I asked you to make a list of businesses in the MLM/Network Marketing industry that have been accused of questionable ethics? What names would be on your list? How about:
ACN, Inc., AmeriPlan USA, Amway, Avon Products, Inc., Discovery Toys, Inc., FreeLife International, The Fuller Brush Company, Global Domains International, Inc., Herbalife International of America, Inc., Life Force International, Mary Kay Inc., Melaleuca, Inc., Nikken, Inc., NSA, Nu Skin Enterprises, The Pampered Chef, PartyLite Gifts, Inc., Primerica Financial Services, Reliv International, Inc., Shaklee Corporation, Success University, Tahitian Noni International, USANA Health Sciences, Inc., XanGo LLC to name a few.
How many of these companies do you think have had their ethics questioned by the U.S. Federal Trade Commission? The large majority of complaints pertain to promoted earning potential and not individual dealings with the public regarding products or services.
It should not come as a shock to you to discover that the large majority of these companies have had their ethics questioned. But remember one very important thing, a company is just an entity made up of a bunch of MLM distributors. And therein lays the problem.
Do We Have an Ethical Dilemma Within the MLM/Network Marketing Industry?
Many discussions of ethics and ethical issues founder on disagreements about definitions. Ethics is unique among disciplines in that practitioners often cannot agree on a common definition of their topic…so let’s first define an ethical dilemma.
“This is an ethical problem in which the ethical choice involves ignoring a powerful non-ethical consideration. Do the right thing, but lose your job, a friend, a lover, or an opportunity for advancement. A non-ethical consideration can be powerful and important enough to justify choosing it over the strict ethical action.”
Source: http://www.ethicsscoreboard.com/rb_definitions.html
Why have ethics in the past in the MLM/Network Marketing industry been in such bad state?
When a MLM distributor makes unethical choices, they do so for one of three reasons:
1. Unfortunately the Typical MLM Distributor Does What’s Most Convenient
As MLM distributors and human beings, we seem to constantly fail personal ethics tests.
We will do things even though we know that they are wrong.
Perhaps it is because we think that we won’t get caught?
We use the excuse of being under pressure to cut corners and we rationalize that it’s just one more time? Is this the ethical way of dealing with pressure?
2. MLM Distributors Will Do What They Feel They Must to Seek a Victory
If you are like me, I hate to lose.
Most successful business MLM distributors that I know desire to win through achievement and success. The downside is that many think they have to choose between being ethical and winning.
Many MLM distributors believe that embracing ethics would limit their options, their opportunities, and their very ability to succeed in the world of MLM/Network Marketing. It’s the old suspicion that good guys finish last.
If a MLM distributor believes that they have only two choices – to win by doing whatever it takes, even if it’s unethical or to have ethics and lose – their faced with a real moral dilemma. Few MLM distributors set out with the desire to be dishonest, but nobody wants to lose.
3. A MLM Distributor Will Rationalize their Choices with Relativism
Many MLM distributors choose to deal with such no-win situations by deciding what’s right in the moment, according to their circumstances. Some MLM Distributors believe that concepts such as right and wrong, goodness and badness, or truth and falsehood are not absolute but change from culture to culture and situation to situation.
Dr. Joseph Fletcher – The Founder of the Situation Ethics Movement
“Joseph Fletcher, an Anglican theologian, developed situation ethics in the 1960s after critiquing legalism and antinomianism. Legalism is the belief that there are fixed moral laws that must always be obeyed. Antinomianism is the belief that there are no fixed moral principles and that ethics should be spontaneous.
Fletcher believed that neither legalism nor antinomianism provided a sound basis for ethics and advocated “situationism” as a compromise. His book, Situation Ethics, was the centerpiece of his critique and founded much of the modern situation ethics movement.
According to Fletcher, decision-making should be based on the circumstances of a particular situation, and not on fixed law. He believed that truth is relative and that love is the only absolute. Thus, he believed that as long as love is the intention, the end justifies the means.
Ironically, Fletcher claims he founded his model on a biblical statement found in 1 John 4:8: “God is love.” Yet he apparently didn’t realize that the same book says commandment keeping shows our love for God (1 John 5:3) and that God never approves of law breaking. Indeed, such conduct is sinful (1 John 3:4).
What eventually happened to Fletcher? His conclusion that God’s Word wasn’t enough to guide decision-making led him to become an avid supporter of euthanasia and abortion. He died in 1991 an atheist.”
Source: http://www.verticalthought.org/issues/vt20/founder-situation-ethics.htm
The industry of MLM/Network Marketing unfortunately has not been spared the spread of “situational ethics.”
The result is ethical chaos. Every MLM distributor has his or her standards, which change from situation to situation.
It is interesting to note that though our decisions at one time were based on ethics, now ethics are based on our decisions. If it’s good for me, then it’s good. Where is this trend likely to end?
Let’s take a look at what would happen if we applied this trend to MLM/Network Marketing:
What would happen if a MLM Distributor Always did what was most convenient?
What if we decided, as MLM distributors, to just handle every situation based on what was convenient to us? Not over a short period of time, but over a long period of time. What do you think would happen to our relationships with our down-line, as well as our up-line? Answer: Total disaster.
What would happen if a MLM Distributor felt that they must do whatever to Seek Victory?
As MLM distributors, our entire business relies on the relationships we have with the MLM distributors within our business. As business owners, if we try to “win” each and every transaction or interaction with the MLM distributors in our business, over time those relationships will die off. The only way to ensure that both your business and your relationships with the MLM distributors in your business grow is to seek a win-win scenario for each transaction and/or interaction.
What if a MLM Distributor chose to deal with a no-win situation by deciding what was right in the moment, or according to their circumstances?
As a MLM distributor, or even a human being for that matter, waiting until the last moment to decide how to handle a situation without a proper moral compass will end in disaster sooner rather than later.
There has to be a better way? There is.
What’s that? Is the Global Marketplace Altering its Behavior?
I know that at times it might not appear this way, but there seems to be an increasing desire for ethical dealing in business, and as far as I can see, this desire reaches the very summit of the MLM/Network Marketing industry.
When it comes to business, the world is shrinking – the global marketplace is becoming more accessible with each day and every transaction. Although business has brought people together, culture has kept us different.
When dealing in business with people of other cultures, it is important to keep differences, whatever they may be, in mind and at ease. It’s important to understand that the global marketplace is a diverse one, and that your potential clients may have different perspectives on ethics and proper behavior than those to which you are accustomed.
As MLM distributors, we are the CEOs of our own corporations, and even though these corporations are managed from our homes, they are multimillion-dollar opportunities and thus should reflect the highest ethical standards expected on the global stage.
It’s good to know that there is a desire for change regarding ethics in our culture. The bad news is that most MLM distributors don’t know how to make that transition.
Remember that the second you step into the global marketplace, you need to be in a global state of mind. Leave behind traditional American jargon and opt for general, direct and courteous ways of communicating thoughts, feelings and ideas.
Also, research the country and the culture of those with whom you will be working. It is important that you know the boundaries when it comes to asking personal questions. What you think is polite chitchat could actually be an offensive question to someone else.
Getting into the global marketplace is a challenging, but extremely rewarding, endeavor if you do it right. Just be sure that you’re informed and ready to take on the responsibilities involved, and you’ll find the global marketplace is a great place for your business to be.
Why the MLM/Network Marketing Industry should not follow the Trend of the Global Marketplace
So why shouldn’t the MLM/Network Marketing industry follow the trend of the global marketplace where it pertains to ethics?
Take a look at how the global marketplace is currently trying to address the problem of ethics in business. They are:
Asking Others to take on the Responsibility of Instructing Our Organizations about Ethics
Some companies have outsourced the task of training ethics to their company employees, so that in the event of wrongdoing, the company can attempt to evade punishment from governmental guidelines.
Turning a Blind Eye to the Problem, or Insufficiently Reprimanding the Individual for Unacceptable Behavior
Instead of a company taking a proactive approach to teach their employees proper ethical standards, some global companies have decided deal with the ethical offenders when caught.
This seems a lot like closing the barn doors after the horses have escaped.
Depending on the Laws of the Municipality, State, or Country to Address the Problem
Here is the saddest of them all. Some companies have actually given up entirely on trying deciding what’s ethical and instead are using what’s legal as their standard for decision-making. Any wonder why we have the problem we do in the global marketplace.
Let’s apply these “solutions” to the MLM/Network Marketing industry. How do you think these solutions would be received within our global community?
Would you really want to hand over to an “unknown” source how your business should be run and how your down-line should be treated? I hope your answer is no. If you’re unsure of this answer, you may want to think about a career change.
How about waiting until someone gets caught, even though you know that they’re doing something wrong. Is that the way you would want your business to be run, or to have your down-line run their business? Once again, I hope your answer is no.
Would you like to rely on the law to manage your business? Since most MLM/Network Marketing businesses represent global opportunities, relying on the law becomes next to impossible, if not reprehensible.
What do I mean by that? The last place a MLM distributor or the industry of MLM/Network Marketing, wants to leave their destiny is in the hands of any government.
The area of MLM/Network Marketing is the last bastion of free enterprise. It has broken down more walls and opened up more freedom opportunities to MLM distributors on this globe than any other single business related idea to hit this planet. I implore you to fully understand the area of free enterprise, and once you do, you’ll fully understand the power of MLM/Network Marketing.
Also known as a “free market”, which is an economic system in which people are allowed to choose their own jobs, start private businesses, and make a profit in any legal way that is controlled very little by the government.
We Should Take This Personally as MLM Distributors
In today’s society we have come to believe that ethics is either a business issue or a political issue. In reality it is always a personal issue.
As MLM distributors we say we want integrity. But at the same time, ironically, a large amount of MLM distributors don’t always act with the kind of integrity they request from others.
For example, the same MLM distributor who cheats on his taxes or steals office supplies wants honesty and integrity from the corporation whose stock he buys, the politician he votes for, and the client he deals with in his own business.
It’s easy to discuss ethics and even easier to be disgusted with MLM distributors who fail the ethics test – especially when we have been violated by the wrongdoing of others. It’s harder to make ethical choices in our own lives. When we are faced with unpleasant choices, what are we going to do?
Ethics and the Final Word
I know that I constantly strive to be ethical, and it is my belief that you do as well. I am also a firm believer that it is possible to do what’s right 100% of the time and still succeed in business.
Paradigm: MLM distributors that are dedicated to doing the right thing and have a personal commitment to social responsibility, and who consistently act on it, will be more profitable in the long-run than those who don’t.
Now I am not saying that if you embrace ethical behavior you will automatically be rich and successful. That would be foolish. However, it will pave the way for you to become successful.
Let’s talk about going back to fundamentals. How do you know what’s right? How do you find the way through even the most difficult of pressure filled situations? Where can you find a standard that will work in every situation – a guide that will help you to sleep well at night, prosper as a MLM distributor, improve your relationships, and have confidence that you’re doing all you can every time?
Answer: Read on.
Insights for “The Responsible MLM Distributor”
We as individuals have such a moral responsibility to do the right thing at all times, but one factor is standing in our way: we are human!
Unfortunately, for as long as there are humans involved in business, we are going to continue to have questionable ethics in the MLM/Network Marketing industry. That is, unless “we” decide to change.
Most MLM distributors want to change their business, community, or family situation without changing themselves. It does not work that way.
We need to stop spending time trying to change others and focus all of our time on changing ourselves. If enough MLM distributors did that, the impact would be exponential.
Are there questionable direct selling companies? Oh, probably. However, the real answer is that some MLM/Network Marketing companies have some questionable MLM distributors involved in their company as distributors.
How can we change as individuals and ensure that “we” are not part of the problem, but part of the solution?
To start, never do anything because it is convenient, where it pertains to building your business. Always do what is “right,” even if it affects you financially. Do not think short-term; always have a big picture attitude.
Look for real win-win scenarios in all your interactions. Make sure that with this strategy, the other person wins first. This will go a long way to building stronger relationships.
Make decisions ahead of time on how you will handle situations within your business. This way, you will not be forced to continually make decisions on the fly that will lead to unethical behavior.
Do not worry what other MLM distributors are doing in the marketplace. Only worry about what you are doing. Clean up your own backyard, before even thinking about pointing to someone else’s.
Be responsible for your business. Do not rely on others to determine what is right and wrong. If you see something wrong in your business (this includes your down-line), make the correction and move on. Waiting until it corrects itself is a recipe for disaster.
There is a solution to every problem. You just have to take a moment and look for it. Be part of the solution, not the problem.
I would love to hear from you on this topic, please leave a comment below and let us start a dialogue on this subject.
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