Just as there is a wise woman behind every successful man, or so the saying
goes, there is also one behind most ethical businesses. Be it an online
retailer selling organic goods, a Fairtrade chocolate company or a renewable
energy supplier, there is a high chance that it will have been founded by a
woman.
Four years ago, Triodos, the “sustainable” bank, having picked up on the
success stories of Penny Newman, the creator of Cafédirect, and Sophi
Tranchell, who set up Divine chocolate, launched the Women in Ethical
Business Awards (WEBA). In the same year, a survey of social enterprise by
the Department of Trade and Industry reported that 60 per cent of women
thought that ethical and environmental considerations in business were
important, compared with only 48 per cent of men.
The WEBA awards aim to give recognition to trailblazing women who are doing
business in a way that benefits people or the environment, and also to
strengthen the networks between them. This year, the shortlist includes a
charity that arranges foster placements, an olive oil business and a company
selling the world’s first organic lubricant.
Why should women be more likely to embrace social responsibility and ethics?
The favourite answer from those on the 2009 shortlist, as well as from
previous WEBA winners, is that money is not enough to persuade women into
business. While all successful businesses must turn a profit, women crave an
extra factor to complete the picture. “We perceive and measure success
differently,” says Rose Marley, who runs a social enterprise called Motiv
that focuses on improving school attendance in the Greater Manchester area.
“It’s as much about doing something satisfying, finding balance and having a
happy home life as whether you are a millionaire by the time you are 30.”
The idea of stacking up cash just for the sake of it is distinctly
uninspiring, agrees Solitaire Townsend, co-founder of the sustainability
consultancy Futerra and one of the winners last year. “We are not turned on
by the master-of-the-universe thing,” she says. “It’s not enough.”
So, if they are not driven by power and money, why do women want to set up
ethical businesses? Juliet Davenport launched Good Energy in 1999 out of
frustration at the Government’s failure to commit to renewable energy. The
company now provides renewable power to more than 25,000 households in the
UK. “Before that, I did a stint working for an IT company in a job that I
didn’t enjoy,” she says. “I woke up one dark February morning and thought,
‘That’s it. I need to do something more worthwhile than this’.” Davenport
believes that because of the hard slog involved in setting up shop, plus the
potential sacrifices to family life, there has to be a motivating force
other than personal success.
It helps, she says, that women often know the market. The ethical sector is
female-led, especially in “softer” areas such as fashion, food and beauty.
Utility companies, on the other hand, are male territory, but this is
changing. “Most of Good Energy’s customers are still male, but female
numbers have risen in the past few years as women have become more engaged
with green issues,” she says.
A survey in 2007 by npower, working with a psychologist from the University of
Leicester, indicated that it is women who are most likely to take on
day-to-day green tasks such as buying eco-friendly and ethical products,
while men favour bigger gestures. Women may not always be greener than men
but they are more likely to make green purchasing decisions.
For many, the starting point is having children. Not only do they make you
think about the future, but having a child awakens a nurturing instinct that
extends beyond family and friends. As they are traditionally the world’s
carers, perhaps it is no surprise that women feel a sense of responsibility
towards its problems.
When Rose Marley became pregnant four years ago, it was a chance to reassess
her career. She had worked in the music industry, running a recording studio
and managing artists, but she wanted to do something more useful as well as
more family-friendly.
“It’s a cliché but I started thinking about what kind of world I was bringing
my children into,” she says. It is no coincidence that Motiv, which she runs
with her husband, works with children in schools — it rewards those who
achieve full attendance with anything from badges to trips to the cinema and
free music downloads. The business was born at the same time as her son,
Charlie. By the time he was three months old, Marley was giving
presentations to promote her idea to local councils. “Contrary to what
everyone told me, having children enhanced my career opportunities,” she
says. “It enabled me to see the world in a different way.”
The flip side of family life is that women’s careers can be seen as less
vital. That women are not always the primary earners is perceived as
contributing to their ability to pursue work that is not money-motivated —
the implication being that, if the husband works in an investment bank, the
financial health of his partner’s ethical start-up is less crucial. When I
put this to Townsend, a WEBA judge, she waves it aside. “Yes, it’s the
equivalent of ‘she does a lot of charity work’ — but to run a successful,
growing business takes long hours, dedication and a lot of support from
loved ones,” she says. “In every successful ethical business run by a woman
that I know, she is the primary earner.”
More likely, she says, it is the female ability to combine a head for business
with caring values that helps women to thrive in this area. “These things
seem conflicting to a man: either you are ambitious or you are a softie.”
Another judge, Anna Guyer, the founder of the Spring Consultancy, which
promotes ethical business, has a theory that women succeed because they are
good at juggling. Whether it is triple bottom lines (a means of weighing up
social and environmental impact as well as profit) or work and childcare,
they make good balancers.
It is to women’s advantage that they show emotions more easily than men, says
Becky Pearson, the chief executive of Community Foster Care, a fostering
agency that has doubled in size since she took it on in 2007. “My passion
goes deeper than the product I am selling,” she says. “This is what people
respond to when I’m promoting our services. It is a struggle for men to
engage on that profound level.”
There is also a precedent for success. No picture of ethical businesswomen
would be complete without mention of the late Anita Roddick, the grande dame
of entrepreneurship and a strong role model for women in business. That the
Body Shop founder envisioned a fairer world and a more compassionate way of
doing business has influenced today’s start-ups. “She inspired women to
think about business in a different way and to realise that it need not be
boring,” says Townsend.
Even leading male voices in the ethical sector agree that today’s focus on
corporate social responsibility and green credentials in the boardroom
favours women. Yes, there are male stars, says Patrick Holden, an organic
farmer and director of the Soil Association, but they have usually succeeded
by demonstrating female skills. “Ethical trade revolves around
reconciliation, which is a core female principle,” he says. “In the same way
that women have had to adopt male principles of aggression and domination in
other areas of business, so in this one men are at a disadvantage.” Holden
points out that the number of women in organic farming is rising.
The only worry, for some people involved in ethical business, is that it could
become a niche. Townsend is concerned that this would limit its power. To be
taken seriously, ethical companies, whoever is at their helm, should compete
with the mainstream, not be treated differently. “We need to be recognised
not because we are female or ethical but because we are darned good at
business,” she says. And, lest the lofty ambitions of ethical businesswomen
were in doubt, she adds: “Don’t just put me in The Ecologist.
I want to be on the front of Fortune .”
The Times is supporting the Triodos Women in Ethical Business
Awards. The winner of the Times Readers Award will be announced
tonight: go to timesonline.co.uk/management
