Why Corporates Should Pay for Proposals

So here is a radical thought.

Actually, it's not radical at all, it's common sense.

I believe if I am all about leadership being BRAVE then I should walk my talk.

Walk with me.

For those of you not familiar with The BRAVE Model?, it is a leadership model I designed for my work, made up of five pillars. Bold Leadership. Resilient Leadership. Agile Leadership. Visionary Leadership and Ethical Leadership.

For me, ethical leadership is the cornerstone of trust, innovation, and sustainable growth. Yet, one practice that continues to challenge this principle in business is how companies, especially larger ones handle proposals, especially when they contain intellectual property (IP).

Each year, countless professionals like myself who run small businesses invest their expertise, creativity, and resources into crafting tailored proposals. Often, these proposals include original ideas, proprietary frameworks, or innovative strategies designed to address specific business challenges. However, in too many cases, companies request these proposals with no intention of paying for the work, even when they plan to implement the ideas.

This is more than just an unfair practice, it’s an ethical blind spot.

Last year I dropped the ball twice. Maybe it was fighting for space in an increasingly competitive market but I spent time going back and forth with two potential clients discussing some of my ideas around inclusive leadership and how it ties into leadership development and company growth.

No contracts were signed. No clear budget was defined, but I realised I gave away some goodies. Goodies that I have evidence when implemented right you can track the impact through not just specific metrics but also through assessments that speak top those outcomes.

To be frank I am not shy about coming forward about how much my services are. I don't do cloak and dagger because it wastes everyone's time. If you want my work, it starts with a minimum of two numbers before the comma as a jump-off point.

Both of those proposals floundered. And here's the thing. I ain't mad at them. I am mad at me.

Now I ain't mad when people want a discovery call. That's all well and good, but when it comes to drafting a proposal now that's chargeable.

Allow me to explain

Why Paying for Proposals Matters

Firstly it is important to respect Intellectual Property. A proposal isn’t just a document. It’s the culmination of expertise and effort. Using these ideas without proper compensation is a disregard for intellectual property. Ethical leadership demands recognizing the value of others’ work, time and energy.

Secondly, it is about Fairness and Equity. Small businesses and independent consultants often lack the resources to absorb large swathes of unpaid work. Paying for proposals levels the playing field and demonstrates a commitment to fairness. At a bare minimum, you get some good content and framing for the programme

Thirdly it encourages Innovation. People are more willing to share their best ideas when they know they’ll be fairly rewarded. Conversely, exploiting their work stifles creativity and discourages collaboration. Unfortunately, way too many large organisations talk a big game about innovation and values but rarely do they align when it comes to work like this.

Finally, it is building trust and Relationships. Ethical leaders understand that relationships matter more than short-term transactions. Paying for proposals shows respect for potential collaborators, fostering goodwill and trust for future partnerships. Rather than seeing this as a one-sided transaction, it speaks to value from both sides of the agreement.

The Business Case for Ethical Practices

Whilst some may baulk at this and see paying for proposals as an unnecessary cost, it’s an investment in long-term success. Take it from a former accountant who understands how you can extract goodwill, profit and value from a well implemented proposal.

There is a case to be made for attracting external talent. You build reputations that attract top-tier collaborators and partners and people talk. Many of us who are out here know which companies to swerve when we are asked to submit hefty proposals

Offering compensation motivates creators to deliver their best work. People committed to delving into resources and research to bolster your business, or scenario planning which could be blind spots for those within the organisation.

Finally, there is the avoiding legal and ethical Risks. Transparent and fair practices reduce potential disputes over IP and just because some of us have had to sign NDAs or had to enforce cease and desist orders to companies, doesn't mean we don't talk. But this could be avoided with a new way of looking at proposal submission.

How to Lead Ethically with Proposals

So for those in whatever level of procurement or buying in an organisation, allow me to offer a guide on how this can be done.

1. Be Transparent. Clearly outline how the proposal will be used and set expectations upfront so that there is no misunderstanding. Make a distinction between a one pager idea which addresses top line problems rather than a full proposal
2. Offer Proposal Fees. For those who make it through to the final rounds for decision then offer a fee on a sliding scale of your choosing. At least to let the suppliers know. This is particularly important when original ideas or extensive work is involved.
3. Honour Confidentiality: Ensure the ideas in proposals aren’t shared or implemented without consent. I have had two suppliers I know terrified that I would sue them for using my inclusive leadership model with them when my proposal was passed on to them, with my name and company included in the shared document.

Paying for proposals isn’t just the right thing to do, it’s a strategic choice that reflects a commitment to ethical leadership. It shows respect for innovation, fairness, and the value of relationships.

Ethical leadership isn’t about cutting corners; it’s about doing what’s right for the long term.

It is quite simple to set a standard for integrity. One that aligns with the lovely values and principles on the walls and websites of businesses. All it takes is commitment and a little bit of ethical leadership to make it happen, one proposal at a time.