Ethical Dilemmas and the DPH Industry

You can't open the papers today without seeing front-page news of corporate malfeasance. From Tyco and Enron to WorldCom and Martha Stewart, corporate governance and business ethics have come under public spotlight. Mutual fund scandals, shady financial deals and legal maneuvering for the self-aggrandizement of publicly traded company executives grab headlines. They are symbolic of a new challenge facing all businesses, including those involved in the decorative plumbing and hardware industry.

Although most businesses in our industry are privately held, decorative plumbing and hardware is not immune to corporate hypocrisy, dishonesty and business practices that show disrespect for employees, suppliers and customers.

For evidence, think back to the recent K/BIS. The echo of security personnel voices in the New Products Pavilion continues to resonate. "No photographs, please. Do not take pictures. No cameras allowed. Anyone taking pictures will be removed from the exhibit hall." Over and over again, the warnings were issued, but even those admonitions failed to keep cameras off the show floor or cheap copies of innovative design, advanced technology and unique applications from appearing in exhibits at the show and in showrooms throughout the kitchen and bath marketplace.

Many of the copies are sold at a fraction of the original cost because the companies producing them don't need to invest in research, development or design. Their labor supply is often plentiful and compensated at rates that are impossible to match in a developed country.
And, there's no requirement to comply with environmental regulations in many of the places where these copies are made, which lowers the cost of creating them even more.

So, what's the answer? We must continue to innovate. If we don't, the defining characteristics of our industry will gradually erode, leaving price as the primary differentiator.

It's easy to use those who mimic designs, manufacture them in the third world and bring them to market as commodities as scapegoats. But we can't use that as an excuse for declining market share or other issues.

We live in a global economy where markets are unforgiving. We need to reward the entrepreneurial spirit responsible for the industry's success.

Showrooms must continue to educate their sales personnel to understand and appreciate the differences between original designs and copies. They need to recognize quality differences between different components, as well as finish quality and other defining factors that differentiate products.

Once they can do this, they can better educate customers so they can make informed purchasing decisions about these products. For that reason, the Decorative Plumbing & Hard-ware Association Education Program is providing an invaluable service to the industry. This program is the only educational offering that combines technical training with guidance to improve sales capabilities.

Industry organizations such as the DPHA and the National Kitchen & Bath Association and publications such as Kitchen & Bath Design News, among others, must continue to provide forums where innovation is recognized, honored and promoted. The industry has to take advantage of awards programs to showcase creativity and to promote the differences between unique product lines and copies.

This isn't easy. Clarity is clouded further by intellectual dishonesty among those who claim to be industry advocates. There are several highly visible industry professionals who make their living as consultants and professional conference speakers. They supplement their income by charging fees to mention company names in their presentations and they do this without notifying their audience of the compensation that they receive.

Showrooms and manufacturers must consider the disservice that paying these marketing and consulting fees has on their businesses and on the kitchen and bath industry as a whole.