Radical Transparency

	Book review on Ecological Intelligence by Daniel Goleman (2011) Reviewed by David Lorimer, 2011 published in Network Review No 106
	(order this book from amazon.co.uk)

Daniel Goleman is best known for his work on emotional intelligence, which he then developed into a theory of social intelligence. He introduces the idea of ecological intelligence, not so much as a capacity but as a means of knowing more about what we buy and therefore being able to apply our values to our consumption. Industrial ecology can now give us a complete life cycle assessment of the impact of products from manufacturer to disposal. This enables us to make choices based on full information and play our part in helping create a more sustainable society. It is surprising to learn that the cotton made into a T-shirt to 2700 L to grow, and even more so to read that between 4,000 and 6,000 t of sunscreen is washed off swimmers each year and contributes to the growth of a virus that attacks coral reefs. Few people would know to give this a second thought. We haven't noticed many of the hidden costs of what we buy. This is one way in which we are implicated in the environmental problems which we ourselves berate. It is not enough to blame these activities on corporate behaviour.

Ecological intelligence implies both knowledge and empathy, based on the realisation that we are embedded in ecological systems. We now need a more intelligent collective response to our predicament. One example is the use of antibiotics in farm factories which lead to the breeding of resistant bacteria that eventually make the antibiotics redundant and necessitate a stronger version. Awareness of this fact would increase resistance to such factory farming methods. Joseph Stiglits has shown how information can shape the operation of markets, especially when sellers know more than buyers and can withhold information in order to maintain a competitive advantage. Once this information becomes available, transparency is increased and consumers can make a more informed choice. This process is being facilitated by websites such as GoodGuide who provide the necessary background information. The more consumers know, the more informed choices will become, and this will then drive the market to make changes in accordance with the preferences expressed. This in turn will bring together ethics and good business practice. So changes in brand preferences can be fed back to the company to encourage them to modify the product. For the purposes of consumer information, a traffic light system can simplify the translation process.

Social networks can also function to pass ethical messages around. People won't necessarily buy the cheapest item, but two-thirds of shoppers are prepared to pay more to make an ethical choice, so the emergence of radical transparency enables them to do this more easily. This proportion may well be set to increase among the young. There is an interesting discussion of the shampoo market, analysing different price points and also discussing the nature of the chemicals that make it up. Many of the ingredients are potentially carcinogenic, but few consumers are aware of this and decisions to purchase are more strongly correlated with emotions than cognition - this new discipline is called neuroeconomics. Being aware of this can potentially enable us to make more rational decisions.

 Over the next 20 years, we will have the opportunity of making upgrades to products and great deal more sustainable than they currently are. It is not enough ecological impact, we must seek to manufacture more sustainable products. In addition, life cycle assessment will enable governments to impose taxes that fairly reflect environmental damage. This creates a form of incentive through regulation. With radical transparency, companies will find that they can more easily retain customers by looking after the environment - they can gain market share through ecologically superior products. So shareholder value may be more closely aligned with public good. The book breaks a new frontier in bringing together business and the environment with our consumption patterns.

(order this book from amazon.co.uk)