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How Moral Values Boost Innovation

Doing the right thing can be a profitable source for differentiation

Paul Sloane
Tue, 03/10/2015 - 11:38
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In 1959 Nils Bohlin, an engineer at the Swedish car manufacturer Volvo, invented the first three-point safety belt. It was far more effective than the standard lap belt, like the ones still used on airplanes. Volvo, realizing the importance of this invention, chose not to patent it but rather shared the idea with other vehicle manufacturers. They may have lost some revenue, but their action undoubtedly saved many lives and cemented Volvo’s reputation as a highly ethical company committed to safety.

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During the 1970s Anita Roddick founded The Body Shop and deliberately chose a radically different approach from other vendors of cosmetics and toiletries. The Body Shop’s products were shipped in cheap clear plastic bottles with an emphasis on simplicity, sustainability, and fair trade. This company differentiated itself by stating that it would never use animal testing in its product development. The Body Shop grew rapidly, using social and environmental campaigns to promote its business. 

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