This week I came across an online article on USAToday.com
entitled Businesses grow more socially
conscious. The article discusses how several companies have chosen to
become more responsible for aspects of their company that directly effect the
environment, employee benefits and overall perception. As the article mentions,
corporate social responsibility (CSR) appears to be a growing trend within small
to large corporations because it’s not only good for a company to do positive
things for the community and environment, but CSR is economically beneficial as
well (Iwata, 2007, February 14). One of the examples used was the 2000 launch
of the Toyota Prius that has proven to be both environmentally friendly and an
economic win for the company. With the success Toyota has seen, other car
makers have jumped on the bandwagon with the creation of electric and hybrid
cars such as Honda, Nissan, Ford and GM (Iwata, 2007, February 14).
The bonus to this article was that it made me think about how
CSR has been around for quite some time addressing sweatshops, child labor
laws, products harmful to the ozone layer, etc.
It also included a bold and generalized statement about
companies who say “they exist to sell products, make money and please
shareholders – not save the world.” This is very true for companies like Enron
who were concerned with increasing their yearly net worth verses addressing
their unfavorable behavior (Iwata, 2007, February 14; Franklin, 2008).
As a consumer, I personally and like most others, have seen
more and more retail brands recreate their seasonal marketing plans so that the
focus is not only on what they are selling, but also how they are doing
something that benefits others. For example, many companies (e.g. Whole Foods,
Trader Joes) take part in reusable bags and reward customers a $0.5 discount
each time they use these bags. Another example is from my previous employer who
rewarded employees for car-pooling or taking public transportation to work.
Each employee would receive $100 each month for helping to reduce air
pollution. Although these initiatives are just a few from a larger list of what
companies are doing to claim CSR, I hope more companies will agree that it’s
not always about the shareholders, but rather what is right for the world.
References
Franklin, D. (2008). Just Good Business: A Special Report on Corporate
Social Responsibility, The Economist, January 19, pp.1-14
Iwata, E (2007, February 14). Businesses grow more socially conscious. Retrieved March 9, 2011, from http://www.usatoday.com/money/companies/2007-02-14-high-purpose-usat_x.htm
Crystal,
ReplyDeleteI thought you used good examples of companies like whole foods and trader Joes who promote socially conscious behavior. Certainly, many of their customers, including myself, prefer to shop at companies that are promote responsible behavior.
Certainly there is a lot of debate over whether the government should mandate certain behavior, i.e., banning plastic bags. Or promote it, with the use of car pool lanes. I was wondering if you think that many of the corporate social responsibility programs that are out there are influencing many of the socially responsible laws that are being passed?
Joshua,
ReplyDeleteThank you for the feedback and question. I actually do believe that CSR programs are playing a big role in socially responsible laws being passed because people are more receptive to change, in this instance with our environment, than ever. Metro has created several new buses that use cleaner fuel that emits less toxic fumes. In recent years, products (notebooks, trash bags, clothes, etc.) are 15% - 100% made from recycled items. Also, the government has recognized the importance in rewarding people who incorporate eco-friendly materials into their living and work space. I definitely feel that all of these initiatives have a positive impactive on the laws being created.
Crystal
Crystal, you provide some good examples of CSR efforts. You note that there was a bold statement about companies who say “they exist to sell products, make money and please shareholders – not save the world.” Did they provide any examples of such companies? What did they have to say about them?
ReplyDeleteYou make the observation that it’s not always about shareholders, and that companies need to do what’s right. However, the bottom line is also important. It was noted in the article from the Economist that “the truly responsible business never loses sight of the commercial imperative.” How do you think companies can manage the balance between doing good and making money?