Becoming As Ethical As We Think We Are | Morgan Hamel | TEDxYYC

Summary

The speaker reflects on the complexities of ethical decision-making, drawing on personal experiences with egg donation and the fashion industry. They recount how Andy Fastow, former CFO of Enron, viewed himself as ethical despite his role in a major scandal. The speaker's own ethical stance was challenged when faced with the need for egg donation to conceive a child. They then explore the ethical dilemmas in fashion, discussing the influence of compensation on influencers' opinions, consumers' willingness to overlook unethical practices for desirable products, and brands' tendency to 'greenwash' or make token ethical gestures. The speaker advocates for acknowledging the interplay between ethics and self-interest to make better decisions and shares their journey in founding a company that connects consumers with ethical fashion, emphasizing the importance of community and economic incentives in fostering ethical behavior.

Takeaways

• 📈 Andy Fastow, former CFO of Enron, claimed he was ethical but faced 78 counts of fraud, highlighting the complexity of ethical decision-making.
• 🏆 Fastow's story illustrates the contrast between perceived ethics and actual actions, showing that ethics can be subjective.
• 🎓 The speaker's experience with egg donation case studies in university versus personal need for it reveals the gap between theoretical ethics and real-world decisions.
• 👨‍👩‍👧‍👦 Ethics isn't always clear-cut; it's often a balance between moral principles and self-interest.
• 👗 The speaker's venture into fashion ethics through her company 'The Garment' shows the practical application of ethical considerations in business.
• 📱 Influencers can be swayed by compensation, affecting their judgment on ethical products, as seen in the Payless shoe experiment.
• 🛍️ Consumers may compromise on ethical standards when faced with attractive, affordable options, as demonstrated by the sweatshop labor study.
• 👗 Brands might engage in 'size washing', making it appear as though they are more inclusive or ethical than they actually are.
• 💸 The economics of ethics plays a role in how brands and consumers approach ethical decisions, often influenced by cost and perceived value.
• 🌐 The Garment's business model aims to make ethical fashion more accessible and affordable, addressing the economic barriers to ethical consumption.
• 👨‍👩‍👧‍👦 The speaker's personal journey with egg donation and the creation of The Garment shows that acknowledging the tension between ethics and self-interest can lead to better decisions.

Q & A

What was Andy Fastow's role at Enron and what charges did he face?

Andy Fastow was the former chief financial officer of Enron. He faced seventy-eight counts of fraud and spent six years in jail for his role in Enron's downfall.

What did Andy Fastow hold in each hand during his talk, and what did it symbolize?

Andy Fastow held a CFO of the Year trophy in one hand and a prison card in the other, symbolizing the contrast between his professional success and subsequent imprisonment due to unethical actions.

What was the ethical dilemma the speaker faced during her Master's studies at Utrecht University?

The ethical dilemma was regarding the ethics of egg donation, particularly the compensation of anonymous donors, which complicated the ethical considerations.

How did the speaker's personal experience with infertility change her perspective on egg donation?

The speaker's personal experience with infertility made her realize that ethics isn't always black-and-white, and it's challenging to maintain ethical standards when they stand between you and something you deeply desire.

What is the name of the company the speaker founded and what is its mission?

The speaker founded a company called 'the garment' with the mission to change the face of fashion by connecting women and responsible brands.

What is the role of Instagram in the new fashion economy according to the speaker?

Instagram is considered the new mall with a strong potential to be an ethical one, connecting hundreds of thousands of people interested in ethical fashion, companies who consider themselves ethical, and influencers.

What is 'size washing' as mentioned in the script?

'Size washing' refers to the practice of brands exaggerating their commitment to inclusivity in sizing, often not following through with substantial offerings in plus-size fashion.

What was the outcome of the influencer's visit to the fake luxury store filled with Payless shoes?

The influencers, swayed by the fancy store and compensation, believed the Payless shoes were of high quality and worth the high price tags, demonstrating how their judgment could be clouded.

How does the speaker suggest we can make better ethical decisions?

The speaker suggests acknowledging the tension between ethics and self-interest and diving vulnerably into the grey area to make better decisions.

What is the speaker's view on the current state of ethical fashion and what can be done to improve it?

The speaker believes that the current state of ethical fashion is discouraging due to the cycle of fast fashion continuing. However, by acknowledging the tension between ethics and self-interest and supporting businesses that make the economics of ethics work, we can improve it.

How did the speaker's experience with egg donation influence her approach to ethical decision-making?

The speaker's experience with egg donation taught her the importance of acknowledging ethical concerns and self-interest, leading her to ask robust questions about compensation and informed consent, and ultimately resulting in the birth of two daughters.

Outlines

00:00

🔍 The Ethical Dilemma of Andy Fastow and Personal Realization

The speaker begins by recounting Andy Fastow's speech, who was the CFO of Enron and responsible for its downfall, leading to his imprisonment. Fastow claimed to be ethical, yet his actions resulted in a massive scandal. The speaker reflects on their own ethical stance, having studied ethics and worked in a corporate ethics office. They thought they were ethical until faced with the reality of needing an egg donor to conceive a child, which complicated their ethical views. They used ethical theories to analyze the compensation of egg donors and initially concluded it was unethical. However, when faced with infertility, they reconsidered their stance, realizing that ethics isn't always clear-cut and is often influenced by personal desires and situations.

05:04

👗 The Complexities of Ethical Fashion and Influencer Bias

The speaker transitions to the topic of ethical fashion, sharing their journey from making a dress to questioning the origins of their clothing. This leads to the creation of 'The Garment,' a company aimed at promoting ethical fashion. They discuss the rapid growth of Instagram as a new marketplace and its potential for ethical commerce. However, they highlight the challenges by sharing an experiment where influencers were deceived into praising cheap shoes presented as luxury items. This illustrates how influencers' judgments can be swayed by compensation and context, affecting their reliability in promoting ethical products. Consumers are also shown to have flexible ethics, justifying purchases from sweatshops when attracted by cute shoes. Brands are criticized for 'greenwashing' and 'size washing,' where they make superficial ethical changes for marketing without substantial commitment.

10:05

💸 The Tension Between Ethics and Self-Interest in Fashion

The speaker acknowledges the inherent tension between ethical behavior and self-interest, especially in the fashion industry. They argue that influencers, consumers, and brands often fail to act ethically due to financial motivations or perceived threats to their interests. Influencers may mislead due to compensation, consumers compromise on ethics for affordable and appealing products, and brands make token ethical changes for publicity without genuine commitment. The speaker emphasizes the need to recognize this tension to make better ethical decisions, using personal experiences to illustrate how awareness can lead to more ethical choices.

15:07

👨‍👩‍👧‍👦 Overcoming Ethical Challenges in Business and Personal Life

The speaker concludes by sharing the success of 'The Garment' in promoting ethical fashion, which not only acknowledges the tension between ethics and self-interest but also creates a business model that supports ethical choices. They explain how the company helps brands afford ethical changes and makes ethical fashion accessible and appealing to consumers. The speaker also returns to their personal journey with egg donation, emphasizing the importance of asking robust ethical questions and seeking quality and ethical services despite higher costs. The narrative ends on a hopeful note, with the speaker celebrating the birth of their children and the potential for ethical growth both personally and within the fashion industry.

Keywords

💡Ethical Home

An ethical home refers to a family environment where moral principles are emphasized and practiced. In the script, Andy Fastow claims to have been raised in such a home, suggesting that he was instilled with a strong sense of ethics from an early age. This is contrasted with his later actions at Enron, which led to a massive financial scandal, indicating the complexity of ethical decision-making.

💡Enron Scandal

The Enron scandal refers to a series of fraudulent activities that led to the bankruptcy of the Enron Corporation, an American energy company, in 2001. It's considered one of the largest business ethics scandals in history. Andy Fastow, the former CFO, played a significant role and faced legal consequences, which is a central narrative in the script to discuss the nuances of ethics in business.

💡Ethical Dilemma

An ethical dilemma is a situation that requires a choice between options that are or seem equally unfavorable or mutually exclusive, typically regarding principles of morality. The script uses the example of egg donation, where the speaker grapples with the ethics of compensating donors, illustrating the personal and moral challenges one can face.

💡Case Study

A case study is a detailed analysis of an individual, group, or event, often used to illustrate a point or provide an example of a complex issue. In the script, the speaker discusses a case study on egg donation ethics during her time at university, which later becomes personally relevant when she and her husband face fertility issues.

💡Egg Donation

Egg donation is a third-party reproduction treatment that involves a woman donating eggs for purposes of assisted reproduction or medical research. The script uses this as a pivotal point to explore the ethical considerations of compensation for donors versus the personal desire to have a child.

💡Corporate Ethics

Corporate ethics refers to the system of moral and ethical principles that guide the operations and behaviors within a company. The script contrasts the speaker's previous role in a corporate ethics office with the real-world complexities of ethical decision-making, particularly in the context of fashion.

💡Fast Fashion

Fast fashion describes a system of quick production and low-cost clothing, often criticized for exploiting workers and contributing to environmental issues. The script discusses the ethical challenges of the fashion industry and how the perception of ethics can influence consumer behavior.

💡Greenwashing

Greenwashing is the act of misleadingly promoting the environmental benefits of a product, service, or company to attract customers. The script uses the term to describe brands that exaggerate their ethical or environmental commitments, particularly in the fashion industry.

💡Influencers

Influencers are individuals who have the power to affect the purchasing decisions of others because of their authority, knowledge, position, or relationship with their audience. The script discusses how influencers' judgments can be swayed by compensation and how this impacts their ethical credibility.

💡Ethical Fashion

Ethical fashion is an approach to the design, sourcing, and manufacturing of clothing that maximizes benefits to people and communities while minimizing impact on the environment. The script explores the challenges of making ethical fashion accessible and desirable to consumers.

💡Self-Interest

Self-interest is the desire to seek or promote one's own advantage or benefit. The script argues that acknowledging self-interest is crucial for understanding ethical decision-making, as it can often conflict with ethical considerations, leading to complex choices.

Highlights

Andy Fastow, former CFO of Enron, claimed to be raised in an ethical home and considered himself ethical during his tenure at Enron.

Fastow holds himself most responsible for Enron's forty billion dollar downfall, the largest business ethics scandal in history.

Fastow faced seventy-eight counts of fraud and spent six years in jail for his role in the scandal.

The speaker, who studied ethics in university and worked in a corporate ethics office, initially thought ethical choices were clear-cut.

A case study on the ethics of egg donation during the speaker's Master's program challenged their perception of ethical clarity.

The speaker initially concluded that compensating egg donors was unethical based on theoretical analysis.

Personal experience with infertility led the speaker to reconsider their stance on egg donation compensation.

The speaker suggests that ethics is rarely black-and-white and that recognizing the gray areas can lead to better decision-making.

The speaker founded The Garment, a company aiming to connect women with responsible fashion brands.

The Garment operates primarily on Instagram, leveraging its platform to promote ethical fashion.

The speaker discusses the difficulty of perceiving ethical aspects in our decisions and the tendency to not act as we predict.

Influencers, consumers, and brands all face ethical dilemmas in the fashion industry, often swayed by self-interest.

The speaker highlights the example of influencers being deceived by the context of a luxury store into promoting low-quality shoes.

Consumers often compromise on ethical values when faced with desirable products made in sweatshops.

Brands sometimes engage in 'size washing,' exaggerating their commitment to inclusivity in fashion.

The Garment's business model addresses the tension between ethics and self-interest by making ethical choices more accessible.

The Garment's first corporate year saw over 1 million dollars in responsible garment sales, demonstrating the viability of ethical fashion.

The speaker's personal journey with egg donation concluded with the birth of two daughters, highlighting the complexity of ethical decisions.

Transcripts

a couple of months ago I had the

opportunity to see Andy Fastow former

chief financial officer of Enron speak

he began his talk by saying that he was

raised in a very ethical home and that

when he was at Enron he thought he was a

very ethical person and he also said he

holds himself most responsible for

Enron's forty billion dollar downfall

arguably the biggest business ethics

scandal in history for his role in that

scandal he faced seventy eight counts of

fraud and spent six years in jail and he

began his talk by holding his trophy for

CFO of the year in one hand and his

prison card in the other and told the

story of how he got both in the same

year well some might see this is just

another example of the greed of big

business my experience tells me that

this leaves something out you see I too

used to think I was really ethical in

fact if there's anyone who should have

been at achill it was me

I studied ethics in University and spent

six years working in the ethics office

of a large corporation as part of my

role there I routinely answered

questions from employees I was on the

ethics side of the desk they were on the

business side and because I wasn't

actually in the situation it was easy

for me to say no and then something

happened that made me realize that the

ethical choice isn't always clear and

that sometimes we don't do the thing we

think we will do when we are actually in

it I went to do my Master's in Utrecht

University in the Netherlands we

routinely did case studies

one of these was about the ethics of egg

donation it was the first time I had

ever heard the term which for those who

don't know involves an intense process

or one woman donates her eggs to help

another woman conceive things are

relatively clear for known donors where

the woman is a sister or friend but when

it comes to the compensation of

anonymous donors the ethical waters get

muddy i sat in my classroom table

windmills out the window and used my

training and ethical theory to consider

all the factors I thought through the

possible impact to the donors fertility

and the risks of financial compensation

might have her her ability to make an

informed choice and in response to this

particular case study question about

whether or not it is ethical to

compensate an egg donor for her eggs

I said no fast forward six months my

husband and I returned from the

Netherlands to start our next adventure

starting a family when things weren't

going as planned I went to the doctor

for some tests I can still feel it the

feeling of dread in my stomach as we

waited to see the specialist a deep

knowing that the doctor was going to

confirm something I'd known intuitively

for some time Morgan he said tears in

his eyes your tests confirm the

diagnosis there's a less than 5% chance

they go get pregnant on your own and if

you want a baby egg donation is your

best option it is one thing to say

something is that ethical when you're

sitting on one side of the desk or

writing a case study it is something

entirely different

when ethics seems to stand between you

and the thing you want more than

anything you've ever wanted in your

entire life what I want to suggest is

that ethics is

rarely black-and-white and that we have

a better chance of making better

decisions if we realize this is the case

and I've courageously into the gray the

fact that Andy saw himself as ethical

while at Enron and that I found it easy

to judge situations as unethical until I

was in them myself teaches us something

important which is that as humans our

motivations are mixed we are both moral

and self-interested and this means two

things first we often don't see the

ethical aspects of our decisions and

second we often don't make the decision

we thought we would even if we do so why

does this matter

it matters because individuals and

corporations are making far fewer

tangible improvements in ethics than we

would be if this was understood so even

though it feels like we're going a world

away from Enron an egg donation I want

you to stick with me as we look at the

implications of this in my world which

is no longer ethics corporate ethics but

the ethics of fashion a few years after

returning for home from the Netherlands

I took a sewing class my first project

was a blue dress I chose the pattern cut

the fabric pinned and stitched it and as

I did so I began to think embarrassingly

for the first time about who made my

clothes this question led me to start

the garment a company whose mission is

to change the face of fashion by

connecting women and responsible brands

we search the world to find the

beautiful quality responsibly made

pieces we shoot these garments on real

women of all colors shapes and sizes and

we connect them to our community members

with a discount and we do almost all of

it on Instagram

Instagram is growing with shocking

ferocity and is in my view the new mall

with a strong potential to be an ethical

one there are hundreds of thousands of

people interested in buying ethical

things hundreds of thousands of

companies who consider themselves to be

ethical and hundreds of thousands of

influencers connecting them over the

Internet

this is great you might think we can use

this to help shift the fashion world

from one that is fast and excessive to

one that is slower and more sustainable

not so fast

think back to what we learnt at the

start about how difficult it is for us

to see the ethical aspects of our

decisions or make the decision we

thought we would even if we do so let's

look at the implications of this for the

three main players in this new fashion

economy influencers consumers and brands

first influencers last fall social media

influencers arrived decked out cell

phones in hand to a beautiful storefront

in Santa Monica to attend the launch of

a new luxury store called pale SE

unbeknownst to them it was actually a

trick and the store was filled with $35

payless shoes they're elegant and

sophisticated said one influencer

holding up a shoe with a $500 price tag

I could tell they were made from

high-quality material said another now I

don't think these influencers were

misleading people intentionally it's

just that the fancy store paired with

the fact that they were being

compensated made them actually think the

shoes were pretty good next let's look

at consumers show of hands who here

thinks sweatshop labor is wrong yeah me

too well what have I told you then it

all likelihood both of us are pretty

willing to toss that out the window when

we see something from a sweatshop that

we want in her study titled sweatshop

labor is wrong unless the shoes

cute near Oprah haria showed that we're

before seeing a cute pair of shoes

people like us simply say that sweatshop

labor is wrong

whereas afterwards they modify their

morals and justify the purchase they do

this by telling themselves that the

sweatshop labor results in jobs that

wouldn't otherwise be available to

people in poor countries and also in

products that wouldn't otherwise be

affordable to low income people sound

familiar

yeah I've done it too lastly let's look

at brands many of us are familiar with

the term green washing which is used to

describe brands that exaggerate their

environmental commitment in recent years

I have watched size washing grow this

appeared to be the case last year when a

well-known sustainable brand announced

their launch into the plus-size market

with an inclusive sizing collection the

move was celebrated by plus-sized women

around the globe

unfortunately perhaps due to fears about

the financial viability of the plus-size

market their commitment seemed to stop

there the number of plus-size dresses on

their website was at one point dwarfed

by the company's New Year's Eve dress

collection leaving all the women who at

first felt excited thinking WTF now

don't get me wrong I'm not criticizing

these three players for behaving the way

they do I'm only using them to show that

most times because of our desire to

either make or save money and our

perception that ethics is a threat to

that those of us who think we're pretty

ethical don't always live up to our own

standards the effect of this in the

fashion space is this influencers are so

swayed by their compensation that we

can't really trust them consumers will

only buy ethical fashion if it's cheap

enough and right in front of them and

brands make the ethical changes they

think they can afford and publicize the

hell out of it the result is that the

cycle of relatively poor quality

fast-fashion continues this is

discouraging and thankfully we can do

better

I built the garment on the understanding

that ethics is in black and white and my

experience tells me that we have the

best chance of building a better story

if we acknowledge the tension between

ethics and self-interest and dive

vulnerably

into the grey here's what this looks

like when I'm standing at the mall I

know that I'm a person who says like you

that's what child labor is wrong I also

know that the fact that these shoes are

cute is going to make me want to think

that buying them is okay simply the act

of realizing that my self-interest has a

role here can be enough to snap me out

of it I can remind myself of this at the

mall but also at the office when I'm

preparing my financial results or when

standing in a group of friends trying to

decide whether to speak up after someone

tells a racist joke or when I'm standing

in front of the kitchen sink trying to

decide whether to wash out the peanut

butter jar before putting it in

recycling if all of us acknowledge this

tension between ethics and self-interest

were in a better position to do better

if we have the courage to acknowledge

this tension in community my experience

tells me that it not only results in a

special type of human connection but

also an ethical ripple effect this

simply is impossible if we make these

hard decisions on our own now these

decisions still aren't easy but the

garments business model helps make them

just a little bit easier by making the

economics of ethics work when brands

like the New Year's Eve dress company

say that they can't afford more

inclusive sizing the garment sponsors

those larger patterns and helps the

brand's make more money and bigger

ethical shifts by selling those new and

improved larger garments to members of

our community when individual consumers

say that ethical fashion

is too expensive too hard to find and

not cute enough we find the cute quality

responsibly made things and connect them

to our community members with a discount

something which makes it easier for them

to follow through on their anti

sweatshop labor convictions the model

helps make it easier for people and

companies to behave the way we they want

to and it works

last year in its first corporate year

the government did over 1 million

dollars in responsible garment sales

I want to come back to Andy from Enron

intrigued by how someone as smart as

Andy could get himself in a situation

where he spent six years in prison I

sent him a message hi Morgan he

responded yes I don't think the

challenge is getting people to do the

right thing 99% of us always want to do

the right thing the challenge is even

realizing we have this decision to make

what we've learned here today is that

that's hard to see because of our

self-interest and that we can be better

when we realize this is the case

speaking of which you might be wondering

what happened with the egg donation we

spent the first few months after our

appointment with a specialist grieving

then I acknowledge the tension between

my ethical concerns for the donors

well-being and our self-interested

yearning for a baby open my heart and

open I emailed a friend from the

Netherlands who has her PhD in bioethics

and together we drafted a series of

robust questions about compensation and

informed consent which my husband and I

proceeded to ask every clinic we looked

at in addition to questions about ethics

we also asked them questions about their

success rates and didn't stop until we

found one with high levels of both and

in case you're wondering it cost more

the quality and ethical things usually

do so that blue dress I told you I made

in the sewing class it was for my

daughter

her sister now wears it

and because of our dive into the gray we

have not one wonderful daughter

by two

you