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leticia zero
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concern or advantage?
January 6, 2004 - 12:32 PM
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The growing attention for CSR is controversial. Is it that companies are good and concerned about society or is it to their advantage?
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Kate O'Connor
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The bottom line
January 6, 2004 - 02:52 AM
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It is certain that companies will not spontaneously begin to practice CSR because it benefits society at large. Nor, do I think, they will see the long-term benefits of fostering an educated society that will be eventually capable of buying their products. If companies historically had long-term vision built into their business plans, we wouldn't be facing so many sustainability issues today.
Companies, in general, tend to look solely at their bottom line. Therefore, the implementation of CSR relies on directly linking such practices to the bottom line. If consumers support socially responsible companies while boycotting irresponsible ones the link between bottom line and responsible practices will be forged. The challenge, however, lies is motivating consumers to care enough about the consequences of irresponsible practices to ensure responsible consumption.
This suggestion generates a new question: is it the responsibility of the company or the consumer to ensure CSR? Can we place as much blame on the consumers who turn a blind eye as we do on the companies who engage in unethical practices?
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Simon Moss
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The Velvet Glove
January 6, 2004 - 03:48 AM
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It appears as if companies are less choosing to adopt CSR practices, rather they are being forced by some extremely bad PR that is being pushed by the media and some consumers.
But, in making that choice, they figure that they can put a good spin on their new practices, so to counteract the Parmalat rorts, we hear about labour conditions have improved in some impoverished country. Is this good?
I think Yes and no.
It's good that companies are being made more socially accountable for their actions, and that they are being more transparent about what they do. People are increasingly aware of the issues involved.
On the other hand, we run the risk of being white-washed by a well-financed and resourced spin machine from corporations, one that tells that everything is ok, and companies are good social actors.
The response, I think, is to remain vigilant and raise standards where at all possible. We can't take the risk of being reactionary and pointing fingers at what's bad - rather we need to promote good practice, create codes and attitudes that businesses will aspire to reach, both for social and economic reasons.
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Robbie Allan
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Re: concern or advantage?
January 6, 2004 - 03:52 AM
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Interesting you talk about 'good' and 'bad' corporations.
Adam Smith, the granddaddy of Economics said (in essence) that each looking after his own interests simultaneously looks after the interests of the group.
I believe that for CSR to work, it has to benefit both the corporation and society. CSR in the form of youth employment can allow companies to access cheaper, dedicated labour, environmental controls let them have 'green products', pollution credits etc.
I'm not 100% on this, but I believe that the Dow Jones 'sustainable 50'index or whatever of the Sustainable or CSR companies consistantly outperforms the general index.
Check out local Sustainable Business councils, I have found (at least here in New Zealand) that they offer practical, mutually beneficial advice for enterprise and society.
Fundamentally, I contend that CSR must be built on mutual benefit, respect and cooperation, not legislation and ideology.
And at the end of the day, we do need to be sustainable, running out of oil or timber or whatever is bad for both society and business.
~Robbie
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leticia zero
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Re: concern or advantage?
January 6, 2004 - 04:18 AM
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hey Robbie,
I couldn't agree with you more, and this is why I started the thread anyway. Not to specify the line that separates the 'good' from the 'bad', but to foster some debate that I believe will ultimatelly show that this borders are quite blury.
You are so right when you say "for CSR to work, it has to benefit both the corporation and society". And Adam SMiths, well, he said it all. When the corporation is taking care of the well being of the community of employees as well as of the community that surrounds it it will turn to them as a better developed, maybe better educated community who will be able to buy their products, as well as have a critical opinion to criticize it. That's put in a very simple way.
And do corporations want something in return when they apply the CSR guidelines to their business? Yes they do. We all want something back, so do them. What's the problem about that? None in my opinion. Actions usually work better when they are able to benefit different groups. They are also more sustainable that way.
And when any of us get involved in human rights, poverty alleviation and allsorts of community projects, won't we all benefit from the changes in society we wish those actions to bring?
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Simon Moss
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Re: concern or advantage?
January 6, 2004 - 06:37 AM
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An interesting follow up point from the last point is that increasingly, consumers are becoming stakeholders in companies. Although still a minority, there is are ever more middle class investors, who are looking (through their retirement funds, or their own investments) to maximum returns, yet at the same time, are conscious of CSR.
This raises an interesting point, at least for me, as I wonder how companies and their shareholders can come to take a longer-term view - further than the three-year profit projections?
Lastly, I think, yes, we as consumers need to take responsibility for the practices that we have permitted, overtly or otherwise. Companies operate within a society, and will thus tend to operate within social and legal norms and constraints. We effectively condone poor accounting practises and environmental degradation when we ignore the practices of some companies, so if we are serious about CSR, then we need to look at our actions as well as those of others.
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Robbie Allan
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Consumer Power
January 7, 2004 - 11:23 AM
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Ultimatley, I think, the consumer has the ultimate power. As the AGM sits at the top of a NGO, the consumers sit above the Shareholders, in a way, in terms of companies.
Companies like McDonalds (multinationals, a dirty word) exploit cultures by selling them things they want. Obviously I'm being somewhat contrary here, but the idea is that if society didn't want good or service x, they wouldn't buy it. Simple as that, the profit motive in a free (ish) market works remarkably well.
Consumers, then, have a massive role to play. If they decided to make it important in their purchasing decisions that whatever company they bought from needed to have sustainable business practises, businesses would choose / be forced to adopt said practises, or lose all revenue / go bankrupt.
Vote with your wallets, people.
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Aeyz al-hajri
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Re: concern or advantage?
January 10, 2004 - 11:47 AM
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peace
well i think it depend on the minds in the company
i think concerns should come first not advantages
((To have a good friend is one of the highest delights of life ; to be a good friend is one of the noblest and most difficult undertakings ))
ANON
peace to all those who knows the meaning respects 
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