Behind the Mask: Corporate Social Responsiblity

I have revisited the topic of corporate social responsibility (CSR) several times, citing companies like Toyota and their “Ideas for Good” campaign, as well as the more unintentional perk of the iPad’s ability to reach beyond entertainment and be used as a learning and recuperative tool for the disabled, and the idea that corporate irresponsibility is the product of consumer behavior.

If you’re not familiar with CSR, it is a form of self-regulation that pre-empts the role of government agencies as watch dogs. In theory, this form of built-in self-regulation is in place to institute a code of ethics and encourage the positive impact of business practices on the environment, employees, consumers, community, and shareholders.  

On the surface, CSR appears to set a standard for business ethics, but many opponents of corporate self-regulation see CSR as a marketing tool used to take focus off the negative and enhance their public perception. Essentially, these critics are blaming companies for exploiting world issues by using them as leverage in “socially responsible” campaigns, advertisement, perceived practices, etc. In short, products and actions don’t change, but corporate reputations and perceptions are enhanced.

Take the Toyota “Ideas for Good” campaign for example. Do you think this would have happened if Toyota’s string of bad luck with their brake systems hadn’t drastically dipped their sales? Probably not. Translate “Ideas for Good” to “Think We’re Safe.” Motives for CSR campaigns generally fall in the realm of profit and image enhancement, not goodwill.

Corporations hold only one responsibility, and that is to their shareholders. It is through CSR campaigns that they produce a perceived responsibility to the public sphere and therefore produce both monetary and image based value for their company, brand and community investment. But what about companies and business markets that are inherently controversial, how does corporate social responsibility work for them?

Take the “not so respectable” industries like tobacco, alcohol, porn, and oil for example ‑ these are inherently controversial and by some seen as unethical simply because of what they represent. However, they have a following, and generate tremendous profit compared to other business markets, making bank for their shareholders. These controversial businesses especially use CSR to take focus off the negative ‑ and people buy it, literally.

Are Consumers to Blame for Corporate Social Irresponsibility?

I’m guilty of it, and I’m sure you are too... buying gas; or clothes; or food; or anything, and not knowing where it came from, how it got there, the working conditions under which it was made, the environmental impact of its manufacturing, etc., etc.  

Do you know how your new favorite dress got to the store or if the person who picked those green beans you’re eating was only 5 years old? … Oh, you don’t wear dresses and you don’t eat green beans? Well I do, and I don’t know where they come from, along with pretty much everything else I consume.

As consumers, we are generally ignorant and purchase without background info on the production, shipment, and marketing of the products. This type of “blind purchasing” leads to and encourages corporate laziness. If we don’t care, why should they?

Not only is blind purchasing encouraging of corporate social irresponsibility, but what about those people who work for companies that act out against the better interests of society to make an extra buck simply because they can or because it is the nature off their business? Should employees give up their job, or fight for improved business practices, or just keep working? Are there different levels of responsibility depending on the employee's influence in the company? These are tough questions, and honestly, I don’t know what I would do. I’ve worked for corporate restaurants that waste obscene amounts of food and for offices that throw away paper even when it’s sorted in the recycle bin. Although these examples are nowhere near the worst of the worst business practices, should I have said something? Should I have walked out the door when I realized what they were doing? Maybe, but I didn’t and I doubt many people do.

Most of the products that we love come from controversial industries that use the image of corporate social responsiblity to mask the real effects of their business in the public eye. Think about gas, tobacco, coffee, and energy  used to power your computer... how do these industries treat their employees and surrounding communities? How do these markets impact the environment and what responsiblity are they holding for the enhancement of the public sphere versus the enhancement of their shareholders' wallets?

Ignoring both community and world issues, and simply not thinking about the things we use, buy, and take for granted everyday are all ways we as consumers allow and aid in the continuation of corporate social irresponsibility and in-turn, a less rich community and public sphere. Here is a list of the Top 10 Socially Resonsible Corporations, now go research your favorite products and business to see how socially responsible they are!!

Next week’s blog: Does corporate social responsibility really exist or is it just a marketing scheme?