This is the world we cover. CSR considers the general public to be stakeholders and also addresses holistic stakeholder concerns. Karnani's article seems almost deliberately provocative, generating more than comments and this response from Liz Maw, Net Impact's Executive Director.
If you consider that of all the institutions which are currently getting more powerful in the world, they are essentially the global players - the multinational corporations and the non-governmental organisations.
A great example of long-term thinking is management of hazardous waste. And amazingly, he agrees. Free markets by themselves are not going to work.
Check out my other blog Delicious and Sustainable. Karnani at his word, we have to assume that the payoff from their efforts was worth more than the sacrifices. The Power of Regulation So how can that balance best be struck?
Reducing that pollution is costly to the manufacturers, and that eats into profits. Wal-Mart saw a need that it could uniquely meet, but it would mean sacrificing cash and inventory for the benefit of the community.
Balancing the needs of people, impact on the planet and making a profit is not easy. But I don't see them everywhere. The law formalizes and recognizes the social boundaries already in place.
Ultimately, the only way to protect the public from inevitable corporate abuses is legislating government regulation that places people ahead of profits. However, there is a strong case that says that the democratic deficit created by such a process is too important to ignore.
I've got to get out and sell more to make our profit line. I believe the trend toward sustainability stems from a common realization of scarcity and the instinctive imperative to husband our resources.
Many people call that bluewash, because blue is the color of the United Nations. And, of course, it is admirable and desirable for the leaders of successful public companies to use some of their personal fortune for charitable purposes, as many have throughout history and many do now.
It is tempting therefore to look towards the multinationals to take a lead in creating solutions for global problems where the governments seem incapable of achieving co-operative solutions. Ballinger believes that the corporate social responsibility movement undermined Nike contract workers' demands for a decent wage.
These companies are benefiting society while acting in their own interests; social activists urging them to change their ways had little impact. We should take heart that so many companies are looking now to develop sustainability standards and systems so that they can manage the impacts of their businesses.
Companies that simply do everything they can to boost profits will end up increasing social welfare. But these are weak reasons for the magnitude of this trend. Many developing countries have yet to implement laws to deal with the scourge of toxic waste.
While it may not have been his intent, Dr. Sure it may be more work and some initial investment to responsibly manage a business, but when left unchecked, poor conditions can go awry costing many thousands of times more.
MBD outlines a three-step strategy: Every business has a responsibility to be looking beyond compliance at the horizon of social acceptability. Karnani will have a chance to share his views with the Net Impact audience at his campus this October…I volunteer to moderate the panel! Many developing countries have yet to implement laws to deal with the scourge of toxic waste.
Can companies do well by doing good? Having stirred up legions of impassioned objectors, he has added momentum to the movement.
This is true for most of society's pervasive and persistent problems; if it weren't, those problems would have been solved long ago by companies seeking to maximize their profits.
In some areas, this is right - albeit that it is getting increasingly difficult to sustain. While a litany of doom for some, these issues can also look like opportunities for a wise business manager.
It's all very well for the very big companies with lots of resources at their disposal. When the market fails, Karnani would impose government regulation.
We must remember that the financial accounting standards and systems grew out of a desire by merchants to manage their businesses, not out of a government mandate. It will take a long time and a change in fundamental attitudes towards doing business before this one shifts.The idea that companies have a duty to address social ills is not just flawed, argues Aneel Karnani.
It also makes it more likely that we'll ignore the real solutions to these problems. Opinion: The Case Against the Case Against CSR Sep 1, | Business Ethics, Corporate Social Responsibility, Economy & Society. Director of Corporate Responsibility, AMD With apologies for the double negative, the rest of this piece will be a more straightforward argument for why Corporate Social Responsibility (CSR) is not only a good idea but – like breathing – somewhat necessary.
The Business Case for Corporate Social Responsibility:A Review of Concepts, Research and Practice ijmr_ Archie B. Carroll and Kareem M. Shabana1 Director, Nonproﬁt Management & Community Service Program & Robert W.
Scherer Professor Emeritus. Arguments against corporate social responsibility (CSR) Some of the most commonly heard arguments against CSR you will hear include: Businesses are owned by their shareholders - money spent on CSR by managers is theft of the rightful property of the owners.
The Case against Corporate Social Responsibility Corporate Social Responsibility, or CSR, is frequently put forward by transnational corporations and governments as a way of altering corporate behavior and improving records on such issues as human rights, labor standards, and the environment.Download