Business ethics award revived

By Dan Nakaso
Advertiser Staff Writer

Fred Kamaka, of Kamaka Hawaii Ukulele, knows good advice when he hears it: "Our father always said, 'If you're using the family name, don't ever make junk.' " Advice like that has helped the company survive for 88 years. Deborah Booker • The Honolulu Advertiser

They took over the 'ukulele business founded in 1916 by their father, Sam Kamaka Sr., with a clear and simple mandate: "Our father always said, 'If you're using the family name, don't ever make junk,' " said Fred Kamaka.

It's the philosophical foundation of a business that has never produced a complaint to the Better Business Bureau of Hawaii in all of the company's 88 years.

And it's the kind of attitude that the Better Business Bureau is trying to once again honor with the revival of its business ethics awards after a seven-year hiatus.

"There's so much customer disgust with the Enrons and WorldComs and the Martha Stewarts and real questionable attitudes in business that it's important to refocus on what's good about business," said Anne Deschene, president of the Better Business Bureau of Hawaii. "We want to reintroduce the concept that ethics hasn't gone away."

The Hawaii chapter stopped giving its ethics awards after 1997, when it had to cut staff following a decline in membership from 1,400 to 1,100.

Many members went bankrupt or shut down as Hawai'i's economy faltered. "It was a pretty sad time," Deschene said.

But now the number of members has jumped to 1,500, and bureau officials think it's time once again to highlight integrity and ethics in business, she said.

Honesty is a must

Individuals and big and small companies that are nominated may have their policies, procedures and training guidelines reviewed. A screening committee may also ask for specific examples of ethical practices, Deschene said.

All of the nominees also will have their complaint histories checked against Better Business Bureau records. But having Better Business Bureau complaints won't necessarily rule out a nominee, Deschene said.

"If you have 4 million customers and 42 complaints that are as varied as your customers, that's a very healthy customer relations program," Deschene said. "But if you have 150 customers and 200 complaints and all of the people go away mad, that could be indicative of misleading advertising and deceptive practices."

The exact criteria that will determine the winners is intangible, she said, but basically boil down to an honest approach to customers and employees.

True Value Hardware Hawaii won in 1992 and had letters of praise for referring customers to competitors when True Value didn't have what they needed, Deschene said.

Skitch Miyahana joined Ultimate Innovations, an Iwilei landscaping company, five years after it won the last Better Business Bureau of Hawai'i ethics award in 1997 for a small business. Miyahana, the company's general manager, quickly realized why.

Ultimate Innovations' president and owner Brian Vidinhar tells the company's workers to do the best landscaping job even if it means providing plants and material for free, Miyahana said.

"He wants the client to go, 'Wow,' " Miyahana said. "The landscape architect or owner may have come up with a plan for the exact number of plants, but it's our reputation. If there are areas that need more plants or won't look right for a few more months, we'll add them and we won't bill the customer."

Award can make a difference

But do those kinds of attitudes translate into sales?

Jim Rudosky, who represents businesses through his Rudosky Agency marketing, advertising and public-relations firm, believes consumers may gravitate to a small business that won an ethics award over one that didn't.

"If I had seen that a business had won the Better Business Bureau award, I would think that would make a difference in choosing one over another," Rudosky said.

Ruth Ann Becker, who also represents large and small business clients through her Becker Communications public-relations firm, isn't so certain.

"On its own, I'm not so sure that it would lead directly to additional sales," Becker said, "although I could see where it would enhance a word-of-mouth reputation. At the same time, I have to say that it's a sad sign of the times that we have to reward companies for good ethics. Isn't that what we're all supposed to do?"

Chris Kamaka thinks so.

He and his cousin, Fred Kamaka Jr., have since taken over Kamaka Hawaii Ukulele from their fathers.

The 4,000 square-foot shop and factory still displays some of the original 'ukulele that Sam Sr. made back in the early 1900s. His work, and his legacy, are everywhere and live on through the current generation of Kamaka boys.

Chris Kamaka, who is now the company's production manager, remembers the simple lessons he learned from his father, Sam Jr., that were passed down from Chris' grandfather.

"Just be up-and-up with the customers," Chris said. "My dad always told us that."

Reach Dan Nakaso at dnakaso@honoluluadvertiser.com or 525-8085.