THIS WEEK: SHOULD WE ONLY WORK WITH THE GOOD GUYS?

Dear DOYLE,

I run a listed accountancy firm and lately we’ve been under a bit of pressure to ‘refine’ our client list. Noisy activists want us to drop certain clients from our roster, namely the sin stocks we work with. The people putting us under pressure are small in number but loud in voice, and I feel like I’m being put in the stocks day after day. Do they have a point – should we ditch these clients? 

Reyna, Manila

The first thing to remember is that nobody can or should tell you how to run your business. That may sound dogmatic, but ultimately as it’s you who's responsible for its success or failure, you need to make the final call.

Issues of morality are often more complex than the black-and-white picture they are painted as. The airline industry has a large carbon footprint, but equally has helped drive the economies of the destinations they serve (not to mention democratised foreign travel). Scotland has issues with alcohol, but the sector is also a huge part of its economy, culture and employs a lot of people (including in rural communities). What’s the difference between a company that drills for oil and one that pumps out junk food? Why is a tobacco company so much worse than a business that dodges tax or doesn’t treat its workers properly (or worse still, uses forced labour)? There is often a lot of hypocrisy from rival suppliers too - in my own industry I have seen many an agency publically lambast a competitor for working with out-of-fashion sectors whilst turning a blind eye to the wrongs in their own house or client list.

The simple truth is we all have our red lines – you just need to decide what and where yours are, and don’t let anybody else shame you into action. Their principles are not necessarily your principles. 

That’s not to say that you are not within your rights to review and refresh who you do business with, but you need to respond to the reality ahead of you rather than someone else’s moral compass. As an outside contractor you likely won’t be privy to your customer's full business roadmap (for example, is your fossil fuel client looking to transition to green energy?), so the first action is to establish the facts and go from there. 

On a practical level, if you do decide to keep things as they are and you do face opposition there are practical things you can do. If your team show resistance to working on certain accounts, you can, to use a popular British phrase, tell them to like it or lump it (that is, either leave their personal preferences at home and get on with the job or look elsewhere for employment). Netflix and certain publishing houses have used this approach lately, telling revolting staff that unless they are prepared to work across a range of output then they aren't the place for them, or perhaps more conciliatory, ask them to sign a waiver saying they are happy to work on all your business. 

On a side note, you need to be pragmatic; if you were to ditch so-called problematic clients, what impact would that loss of billings have on your ability to pay your staff’s wages? Keep this in mind when making your decision.

If it’s your shareholders causing you trouble, you have a couple of options here too. First, do nothing – they knew what they were getting into when they invested in your company and if they don’t like it they can take their money elsewhere. Alternatively you could look at hiving off the accounts in question into a new operating unit, separating them from the main business and keeping it ‘clean’ for all intents and purposes. This will satisfy their demands and keep the revenue on your books.

The author has a lot of sympathy for the position you find yourself in – you can’t do right for doing wrong – but if you ignore the posturing and keep a clear head you’ll find your way.

DOYLE

NEXT WEEK: BOOMERS OR BUST

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