by Scott James
This month I spent time with serial entrepreneur Dal LaMagna to ask him about his new book, “Raising Eyebrows, A Failed Entrepreneur Finally Gets It Right.” He’s been called an irrepressible capitalist (among other things) which made for an interesting conversation.
Scott: In your book you suggest that you were more successful with your company than you would have been had you not followed principles of Corporate Social Responsibility. Talk to me more about that.
Dal: Building Tweezerman as a company that practices what I call “responsible capitalism” resulted in a team of competent, happy employees, loyal customers, satisfied vendors, and a community that supported the company as much as the company supported the community.
Scott: I see the positive upward cycle of that. How did that contribute to your success?
Dal: My definition of success is the quality of life the company provides for me and for my employees. As the company grew my empowered employees – a critical element of CSR – took over, and my work became more strategic and less mundane. I didn’t have to sell, collect money, go to trade shows or worry about much except the strategic trajectory of the company. Had it been up to me alone I would never have grown Tweezerman to a 65,000-square-foot facility with 250 employees. When you run a business that takes care of its employees, its vendors, its customers, and its community…well, all these stakeholders then take care of you.
Scott: What were the salient CSR practices that you felt made the difference?
Dal: Employees sharing in the profits made a significant difference; after a trial period every one of them became shareholders in the company. We promoted from within and hired from the community. When things went wrong we concentrated on solving the problem rather than pinning the blame. We provided health and job security. It took the agreement of at least two of the top three managers to fire someone which we did rarely.
Scott: And how about outside of the company?
Dal: We respected our vendor’s right to make a living and did not exploit them. For example when we were late paying bills we added interest to the payment (equal to what we would have paid our bank). We gave back 5% of our profits to the communities we served. We had a lifetime guarantee for all our products and didn’t even charge shipping when we repaired or replaced them. Over the years we found that people cared more and more about the kind of company they were doing business with. Loyal customers, vendors, and workers made a big difference during those times over the 25 years especially when things got tough.
Scott: I’ve heard you say several times that you sold your company for much more money because it practiced responsible capitalism. Why?
Dal: The company that acquired Tweezerman paid more because our brand had a great reputation not only for quality but also for practicing CSR. We developed employees who were empowered people from the President down to the worker who cleaned the bathrooms. We delivered a turnkey operation. The company that acquired us, J.A. Henckels, a division of Zwilling, only needed to send in two people, a CEO to replace me and a CFO to work with our existing CFO to match up reporting to the home office. Initially eight bidders were involved and through mutual eliminations we ended with the one whose policies of CSR most closely matched our own. We sold the company for about 14 times earnings and 1.5 times sales.
Scott: Would what you’ve done – establishing Tweezerman as a CSR company – work for any company?
Dal: Every company is different, but I believe that most companies can benefit from some CSR practices. Part of being a CSR company involves paying a living wage. I would think that a company that sells a commodity would have difficulty in paying this. I had the capability to pay my employees well, provide benefits, share profits, make charitable contributions, and more because I created a brand, which commanded a solid profit margin.
Scott: What about the international aspects of your company?
Dal: How your company treats the supply chain is a crucial aspect of CSR. We paid a living wage in India (of course much lower than what a living wage is in the U.S.) and operated our factory responsibly. We paid our China supplier more money so they could improve working conditions for their employees. If your business model is to exploit foreign labor you are not a CSR company. The marketplace is constantly punishing companies that have a product that can be easily replicated. If you are the kind of person who wants to get more out of your company than money, and strives to build a company that practices responsible capitalism, then avoid situations such as unreasonably tight profit margins that force you to exploit everyone and everything to make your company work.
“These days people are gathering in unusual groups. Not large groups but different ones. They are the ones who grew were the sensitive children. These are the ones that wanted to save the polar bears and save the world and were disturbed by the mistreatment of others. This tribe is just beginning to find each other. There are more people entering life who are sensitive. Something happening where humanity is being tested and if we don’t pass nothing will be left. Will humanity prove to be a blessing or a curse. This the first time technology and size make up a force of nature. The creator could have made us as robots he did not. We are something more interesting. We have free will, choice and decision making abilities. All other species are set in process.
As I travel around the globe speaking and training, I have consistently found that most people ask me the same question, ‘how do I discover my purpose in life?’ In the past, who you became was determined by your family and circumstances. You didn't have much choice. But now there is an open moment in history where you have the chance to tap into the soul of your purpose.
This month we have a tale of civil disobedience and the corporate response that touches nearly every household in North America. It stretches from old growth forests of Canada to corporate boardrooms in Dallas. Oh, and a visit from Dr. Seuss’ Lorax. But first, my guest for this month’s interview, Dr. Michael Conroy.
Here it is mid August and already I have to start working on my conference attending schedule for the fall of 2011. It seems like I have to do this earlier and earlier each year primarily because there are so many LOHAS oriented conferences being added or are catching my attention that I did not know of before. I have done a post on what events I think are important the past 2 years and here is my 3rd installment of top green/health and wellness/social enterprise/sustainability/leadership conferences worth considering as you plan your conference schedule for the fall.
Small Farm Rising 

US media coverage of China frequently focuses on environmental problems, but rarely investigates how Chinese consumers incorporate environmental concerns, health and nature into their lifestyles.
- Luxury is in. LOHAS products are often associated with luxury in China, which is a good thing for a market that is gobbling up luxury products – both home and abroad. Western tastes like wine and chocolate fall into this category and also take advantage of Chinese customs of gifting and “showing face”.
Casey Sheahan:
We each make choices according to the unique timing and circumstances we meet on the mountain of life -- so noting my own specific choices may not serve anyone else. As the proverb says, "Maybe the only people who profit from the experiences of others are biographers." But I can share this: As I point out in "The Four Purposes of Life," there is no such thing as a future decision; all meaningful choices are made in the moment, and they are made through action. As E.M. Forrester wrote, "How do I know what I think until I see what I do?" Thinking about doing something is the same as not doing it. So don't think without acting (or act without thinking). Make a choice and stand by it until you have seen clearly where it may lead. Faith is the courage to live as if everything that happens is for our highest good and learning.
When I was a senior in high school, I came to a pivotal point in my life: I could go to college like I had always planned on doing and worked so hard for, or I could take a year off and put everything I had into becoming a professional snowboarder. At the time, being a professional snowboarder was not something a lot of people took a crack at; let's just say that route was obviously not the safe bet! I knew that I could go to school, just like all of my best friends, and live a happy life but I also knew that if I really gave it my all I could live an extraordinary life doing what I absolutely loved. A formal education is invaluable but you can also learn about the world and your place in it in other ways. The reason I choose snowboarding is because I knew that this path was my unique way and my individual gift. Every single one of us has a unique set of talents, gifts and skills and when you have the courage to pursue these no matter what or where they lead you, you will run head first into success. The key is knowing when to take that 'leap' and the answer is within you always, you just have to listen and have the courage to act.
From as far back as age 5, I have been utterly fascinated with the raw power of music. By 12, I became so intrigued with the piano that I practiced eight hours a day and that singular focus laid the foundation for the blessing of a music career that has taken me all over the world. I also love to work in the business world where there is a constant search for a more sustainable paradigm -- particularly by sharing music as a multi-tasking power tool for so many of our challenges today such as leadership, collaboration and time management. This has kept me in the mode of service, learning and contribution, which in turn sustains my personal and professional life. I believe that we are teachers sometimes and students ALL the time! This is especially true of becoming a father -- we don't raise our kids, they raise us! Finally, I'd say the most important choice I have made is to call my everyday intention toward living in a state of constant gratitude -- when we can be in that perspective, we can see the potential of light in everything.
Buzz. Chatter. Talk of the town. There’s no denying excitement is building as we approach the 2011 LOHAS Forum. Here’s your chance to turn thought provoking conversation into a FREE ADMISSION to the
Scott: What country should serve as a model for the U.S. community of CSR professionals and why?
How do consumers know if a business is really green? This age-old question has been nswered by the
Moving into a dorm room can be a tumultuous experience for many
Hey sports fans, did you see that six professional teams from the Pacific Northwest just banded together to launch a new
I am writing to you from a hotel along the shore of Biwa-ko, Japan's largest lake some 528 km west (and slightly south) of the Fukushima nuclear power station. Fresh snow is covering the landscape in what would, normally, be a very idyllic setting.
I feel so very sorry for the people who are, right now, sacrificing their future health, and some of them their immediate lives, working to stop the disaster at the Fukushima Daiichi Nuclear Power Station. They may be described as "heroes" - and surely their efforts as such are heroic - but in a wider perspective they are victims of an industry in which the brainwashing of contractors and workers to believe that what they work with is safe has been pervasive.
It’s never to early to
Last week I was fortunate enought to attend
Another thing that really struck me was that this event attracted people at a personal level and not professional. Usually it is the opposite. We go to conferences for professional reasons with a professional agenda and if we connect with people we get to know them a bit more personally and establish a relationship that is personal afterwards. TED flips that and puts personal interests first and professional second. I found this quite fascinating to watch and experience. The venue had all kinds of things to promote creativity which was awesome. They had a Lego corner with tons of Legos to make things. They gave out colored pencils and paper when you arrived to sketch and draw - even doodle!. There was a sculpture you could add your own designs - all in the spirit of creativity. It allowed me to recall my inner playful child that I had forgotten.
We were presented a question - “How can TED to make sustainability grow?” – a simple question with a pig of an answer to try to manifest in 3 days from group of individuals coming from all over the world with various backgrounds and various definitions of what ‘sustainability’ actually means. Needless to say, it was challenging. Initially our group was all gung-ho but as we shared ideas the different definitions of sustainability emerged as well as various agendas of how to go about the process. In some instances this could have built up into factions and lead to the separations that we commonly see with committees and governments. But in the spirit of collaboration that TED fosters, we were able to push through our differences and work together. It was a ride that was uncomfortable at times, but in the end we felt in was a great experience to be a part of and we were satisfied with our overall results.