The business environment is changing dramatically. From online transactions and social media to the rise of independent work in the marketplace, the need for ethical business decision-making has never been greater. DSEF’s most recent Campus Event at the University of Texas at Arlington showcased the ethical business practices of seven direct selling companies through presentations and interactions with 700 students throughout the day.

Our nation’s universities are increasingly looking to the business community to share expertise and model practices with faculty and students. The Business Ethics Forum on October 18, executives from AdvoCare International, Mannatech, Inc., Mary Kay, Inc., Nerium International, pawTree, Stream and Zurvita led discussions that helped students understand the changing business climate, the need for ethical decision-making and effective community involvement strategies.

Dr. Larry Chonko, a Professor of Ethics and DSEF Circle of Honor recipient, hosted the Foundation’s event. “As faculty, we are third parties in describing how companies conduct business – what selling practices they use, how they develop products, how they behave ethically, how they give back to their communities,” Larry says. “When representatives of those same companies come to campus they not only tell that story, they can talk about living that story, which is an invaluable experience for students.”

Mark “Bouncer” Schiro, Chairman of the Board of Stream, says campus events are a valuable experience for direct selling executives as well. “While we were on campus interacting with the students, you couldn’t ask for a better situation for reaching millennials,” Bouncer says. “I personally had more than 200 students listening to what it takes to be an ethical entrepreneur. Our time there was priceless.”

Business ethics is the pedestal on which every truly successful direct selling company has been built. One of the most fundamental business ethics issues is trust between a company and its customers. “Direct selling is a relationship marketing enterprise,” says Rick Loy, Vice President of US Sales Training and Field Development at AdvoCare, “People do business with people they like and trust.”

Developing a company culture that instills honesty and integrity in your independent salesforce is the first step, says Michael Lunceford, Senior Vice President of Public Affairs at Mary Kay and a member of DSEF’s Circle of Honor, “Never sacrifice growth and profit for integrity.” he says.

Businesses of all sectors, not just direct selling, have the responsibility to develop a framework for ethical decision-making. “People have a tendency to go along in order to get along,’” Michael says, “We have a moral obligation to say, ‘no, that is wrong.’ Just because something is legal, doesn’t make it right.”

Identifying potential ethical dilemmas and developing courses of action is a top-down business strategy. “You have to be proactive to make sure people are doing things the right way,” says Dick Laurin, Director of Business Ethics at AdvoCare, “And you have to understand the legal landscape.”

In addition, companies—and their independent salespeople—benefit from a code of ethics that every member of the organization must follow and put into action. “Whether you are a consumer, distributor or both, look for a member company of the Direct Selling Association (DSA),” says Rick. “They have a Code of Ethics and we, as member companies, must abide by it.” As a condition of membership in DSA, every applicant must agree to a comprehensive ethics compliance evaluation that takes at least one year. “We make changes to our products and marketing materials, based on this oversight,” Rick says.

When business challenges arise, direct selling companies work with their salespeople to resolve the issue. Direct selling companies closely monitor product claims on social media and are continuously work to improve their processes and communications. “At Zurvita,” says Director of Compliance, Erin McGuiness, “our policy for open communication and dialogue often results in our field coming up with the best marketing solutions.” Professor Omar Itani teaches the Social Media class in UTA business school. “We discuss social media strategies in my class, but having a real example of how one company controls its social media presence is a rare opportunity,” he says.

The event also provided a forum for direct selling executives to demystify the industry and explain the business model to students. “We were able to clarify that direct selling is a channel to market your products, not a stand-alone industry,” Bouncer says.

Al Bala, President and CEO of Mannatech points out that direct selling cuts out the middle man by redistributing the costs of advertising and distribution to pay independent salespeople. “Every time you buy a product, you pay for advertising,” he says. “As a consumer, wouldn’t you rather benefit from the opportunity and your own productivity?”

Another unique aspect of smaller direct selling companies is its immediacy. “Being connected to your customers – to 130,000 salespeople –enables us to problem-solve and course-correct in real time and results in innovations that wouldn’t otherwise be possible,” says Deborah Heisz, President and COO of Nerium.

Direct selling companies also have a positive effect on the US economy. “Mary Kay does business in 38 countries,” says Kerry Tassopoulos, Vice President of Public Affairs, Compliance and Risk Management, “but what people often don’t realize is that 60 percent of our global product line in manufactured is the Dallas-Fort Worth area.”

DSEF campus events advance knowledge of direct selling and demythify the business model to the benefit of companies, executives, professors and students. “The best way to grow a positive image of direct selling is to have executives visit with students and professors and show them, first hand, what direct selling truly is all about,” says Dr. Chonko.

The event exposed students to direct selling as a micro-entrepreneurship opportunity in what can be a competitive job market. “Many of my students are facing tough times finding jobs after graduation, so I also wanted them to understand that direct selling is a viable opportunity to work and earn income,” says Professor Itani.

Roger Morgan, Founder and CEO of pawTree agrees, “We had the opportunity to speak with hundreds of students who are already in the job market and help these students see direct selling as the powerful and viable selling channel we all know it is,” he says. “We appreciate the DSEF providing these opportunities to raise awareness and respect for our entire industry.”

Every day, direct selling companies and the independent salespeople that represent them make a difference in the lives of their customers and their communities. The Direct Selling Education Foundation (DSEF) shared that message nearly 1,000 students and their 13 professors at the University of Georgia(UGA) and Athens Tech during the “Entrepreneurship and Social Responsibility: We Can Make a Better World” multi-campus event on February 23.

To bring our industry’s commitment to social responsibility and entrepreneurship to the classroom, DSEF partnered with Dr. Brenda Cude, Professor and Undergraduate Coordinator in UGA’s Department of Financial Planning, Housing and Consumer Economics (and DSEF Board Member) and Jared Bybee, Director of ThInc UGA.

ThInc is a celebration of innovation and entrepreneurship through events that engage, inspire and transform ideas to reality. “This campus event was an invaluable opportunity for students and their professors to see companies putting into practice ideals of social responsibility—in the company’s own business model in the case of Trades of Hope and through 4Life Research’scommunity outreach programs,” says Brenda.

Trades of Hope Founders Chelsie Antos and Elisabeth Huijskens shared their companies’ unique story of service, empowerment and compassionate entrepreneurship. The hand-made products designed by women artisans indeveloping countries are then sold through “Compassionate Entrepreneurs”—or direct sellers—in the United States. “Women want to be financially self-sustaining; charitable donations dry up over time,” says Elisabeth. “Only compassionate business can give women in poverty a job.”

4Life Research Founders David and Bianca Lisonbee created immune health supplements for optimal living built on the principles of science, success and service. Today, the Foundation 4Life focuses on child nutrition, shelter and education in 24 markets in the world. “Brand lives in the mind of the consumer,” says Calvin Jolley, 4Life’s Vice President of Communications. “Lots of companies sell supplements, but we differentiate ourselves through service.”

For professors, DSEF Campus Programs provide access to leading industry executives on important issues and business solutions. “The speakers presentations fit well with the concepts we’re studying in class – marketing, branding and how corporate social responsibility influences customer perception,” says UGA Professor Diann Moorman, who teaches an Introductory Consumer Economics class.

In a changing economy, people are more interested than ever in independent work, entrepreneurship and finding fulfilling career opportunities. “We interacted with educators, administrators, and approximately 1,000 students,” says Calvin. “These types of exchanges between our industry and higher education provide an invaluable opportunity to raise awareness, impact perception, and instill a sense of credibility for our businesses among an important cross section of the general public.”

Chelsie agrees, “We love DSEF and its mission to educate America about the direct selling business channel. Together, we are inspiring the next generation of entrepreneurs.”

DSEF’s next Campus Program will be held March 30, 2016, at Belmont University in Nashville, TN. Linda Ferrell, DSEF Board Member and Belmont University’s Distinguished Chair in Business Ethics, will host and moderate a panel discussion on Ethical Leadership in the Gig Economy.Speakers include Lori Bush, Rodan + Fields; and Will Reinhart, American Action Forum. For more information, contact Kimberly Harris Bliton, DSEF’s Director of Academic Initiatives.

While leading academics, labor organizations and policymakers publicly discuss the growing trend toward independence in the workforce and its implications on US economy, the direct selling channel has long been a path to market for innovators and a driver of opportunity for entrepreneurs.

DSEF, which serves as the direct selling community’s education ambassador, explored this topic with professors, students and local businesses at the “Micro-Entrepreneurship and the Gig Economy” campus program at Belmont University in Nashville, TN, on March 30.

The campus program featured Lori Bush, Executive Advisor, Retired President and CEO of Rodan + Fields, a premium skincare company that uses the direct selling channel to market and distribute its products, and Will Rinehart, Director of Technology and Innovation Policy from American Action Forum, a policy think tank organization based in Washington, DC.

Lori explained to students and faculty how direct selling fits in the sharing economy—direct selling companies share marketing resources with independent entrepreneurs who can build businesses of their own.

“Direct selling is a shared marketing platform – a business in a box – that provides a royalty-free license to use the company brand, technology and marketing to create a scalable, micro-entrepreneurial business at very little cost,” Lori says. “It’s not an antiquated business model—through the use of technology and crowdsourcing, it’s a mainstream opportunity for entrepreneurs.”

Will explained the gig economy as independent contractors moving from one project or “gig” to another rather than seeking full-time employment. “The economic downturn and technology are driving this shift toward entrepreneurship,” he says. “People don’t think of gigs or collaborative consumption as employment, but rather, supplemental income. People use the resources they have – their car (Uber), their living space (Air BnB) or their artwork (Etsy) – to support their hobbies, meet people, earn extra income and choose their own hours.”

Drs. Linda and OC Ferrell, Distinguished Professors of Leadership and Business Ethics at Belmont University, hosted the Foundation’s event. “Our students are thirsty for knowledge on how to be entrepreneurs. Will presented the opportunities in the gig/sharing economy and Lori nailed the way micro-entrepreneurship (direct selling) fits in. We have an amazing opportunity to connect with faculty and students in a way we have not had before,” Linda says.

OC agrees, “Will defined individuals in the gig economy who move from one project to another as independent contractors. The sharing economy is the online gig economy as represented by Uber, Lyft, Air BnB and direct selling companies who operate an app to allow for ordering. These conceptualizations of how direct selling fits into the gig economy resonated with both faculty and students.”

DSEF plans to significantly expand its academic outreach over the next three years. The Foundation is uniquely positioned to open a dialogue with academic and students to demythify the channel through campus programs, academic symposiums and research.

In just a few days, direct selling company executives and suppliers will gather in San Antonio for the industry’s premier event.  Returning as a highlight of the Direct Selling Association’s Annual Meeting is DSEF’s Experience of a Lifetime Auction.

Marking its second year as DSEF’s marquee fundraiser, the 2015 Experience of a Lifetime Auction includes a new twist: a Silent Auction to complement the Live Auction held at the Awards Gala on June 2. The decision to include a Silent Auction component resulted from the success of last year’s event, which remains among the most memorable fundraisers in DSEF history—and allows the Foundation to expand its work on behalf of the industry.

“Enhancing the reputation of the direct selling channel begins with advancing understanding of our unique business model,” explains Gary Huggins, DSEF Executive Director. “Through research, events, partnerships and education programs, DSEF helps establish the direct selling industry’s legitimacy to key audiences—but none of our work would be possible without the financial support of our donors.”

Last year’s event can be described as nothing less than epic.  Truman Hunt, President and CEO, Nu Skin Enterprises, and Orville Thompson, CEO, Scentsy Inc. went head-to-head in a bidding war for the chance to attend an Orlando Magic game in the Founder’s Suite—as the guest of Amway’s Chief Sales Officer John Parker and President Doug DeVos.  When the bidding topped $50,000, John, who also serves as DSEF Board Chair, agreed to offer the package twice, raising $100,000 for the Foundation in a matter of minutes.

Thanks to his winning auction bid, Truman and a group of Nu Skin executives joined John Parker and Doug DeVos in Orlando for a behind-the-scenes tour of the Amway Center, home of the Orlando Magic. “Our friends at Amway treated our Nu Skin executive team to a VIP experience,” he said.  “We thoroughly enjoyed getting a glimpse of the NBA locker rooms, state-of the art work-out facilities and sitting in the VIP box in the arena, however, the best part of the day was interacting with the Amway team. We enjoyed sharing common experiences, valuable insights and celebrating our common vision of improving people’s lives and making a difference in the world.”

The fun, camaraderie and healthy competition that characterized 2014’s Experience of a Lifetime auction are only part of the reason that DSEF moved to expand the 2015 effort.

“The proceeds from last year’s auction funded vital DSEF programs that made a compelling, value-driven case for direct selling such as DSEF’s recent Multi-Industry Self-Regulation Panel, Campus Days programs, and National Consumer Protection Week efforts,” says Gary.  “Programs like these show consumer protection advocates, regulators, educators and students the good our industry does wherever you find us.  I thank all who participated last year, and look forward to an equally strong showing next week in San Antonio.”

The enduring excitement from 2014’s auction continues to drive anticipation for this year’s event. In reflecting upon last year’s auction, Traci Lynn Burton, Founder and CEO of Traci Lynn Fashion Jewelry, recalls how her adrenaline took over when she submit the winning $5,000 bid for a skydiving adventure with USANA’s CEO Dave Wentz.

“This was a life changing experience!” Traci says. “So glad I made the ‘jump’ and, yes, I will do it again!”

DSEF’s programs and partnerships would not be possible without the support and engagement of our contributors and volunteers. Connie Tang, President and CEO of Princess House and a DSEF Board Member, is a tireless advocate for the Foundation. We recently spoke to Connie about her—and her company’s—involvement with the Foundation.

How did you become involved with DSEF?

I’m a great believer in the power of direct selling. I don’t know of any other industry that’s so rich in the range of opportunities it provides for individuals. I became active with the Direct Selling Association as a Board Member, and learned more about how the Foundation’s work reaches beyond the obvious stakeholders into the public arena. That was exciting – the opportunity to open minds and eyes to what this industry can do as a vehicle to entrepreneurship, personal/professional empowerment and realizing the American dream – all through the Foundation’s outreach.

How do DSEF programs help Princess House, its salesforce, and the industry?

I can honestly say that there is not one DSA company that doesn’t benefit from the DSEF, and that includes Princess House! Direct selling is an equal-opportunity business that benefits people regardless of background, culture, age and education. That means people who join our industry may have varying levels of education and professional/life experience.

The outreach programs the DSEF supports and/or conducts in collaboration with educators, consumer advocacy administrators and public policy makers are all meant to provide free, open access to information and education to everyone to equalize some of those potential knowledge gaps. The DSEF serves as a source for potential direct sellers and/or customers to find facts about the industry.

The Foundation’s Direct Selling Entrepreneur Program provides college students the opportunity to experience, learn and discover what entrepreneurship through direct selling means. The plus is that the skills sets that can be acquired through the course curriculum are transferable to any and all facets of business or corporate endeavors.

What specific DSEF programs are you most excited about?

In addition to the programs I mention above—the grassroots, face-to-face opportunities that DSEF provides for us—as industry stewards—to meet, engage and interact with future, would-be direct sellers are incomparable.

Participating in the University of Georgia’s Thinc Program recently gave me just that opportunity to be in the presence of our potential next generation direct sellers and plant some seeds, make some (hopefully, positive) impressions and correct some misconceptions or unfounded assumptions about what we do in the world of direct selling.

You’re involved with DSEF in so many ways: You serve on the Board of Directors, the Executive and the Development Committee; you’ve participated in many DSEF programs, including speaking to students last month at the University of Georgia; your company is a DSEF contributor and you also contribute personally. Why do you think it’s important to support the Foundation?

Direct selling is a powerful industry, but it’s also a misunderstood industry. The role of a “good will ambassador” like DSEF is important in saying to people who are looking at our products and our business opportunities, “This is a real, credible business that deserves your consideration.”

The role DSEF plays in supporting and communicating the ethical standards of the industry is very important. Any industry’s credibility comes from its adherence to a rigorous, fully articulated code of ethics. The credibility of DSEF is also reflected by the level of participants/participation and each one of us can directly impact that credibility in an upward and positive fashion.