Monday, February 27, 2012
The Case against Corporate Social Responsibility
The Case against Corporate Social Responsibility.http://sloanreview.mit.edu/executive-adviser/2010-3/5231/the-case-against-corporate-social-responsibility/
The case I chose to read for this blog was The Case against Corporate Social Responsibility. The article begins with a very good question that can companies do well by doing good? I believe this is a topic that creates a very good discussion. There is always the outlook on large companies that they are strictly in business just for the profits and could care less at times on the public and how decisions may affect them. I disagree with this outlook, I believe that companies focus a lot of their efforts on creating good business and this leads to profits. Companies are always trying to produce healthier products and alternatives for consumers; however, you will never satisfy everyone’s needs. The problem is that sometimes these healthier products and alternatives are simply short term fixes that create the illusion that the business cares about the environment and making a change. Businesses tend to focus on making minor changes but ignore the real solutions.There article discusses several examples of increasing social welfare such as the fast food industry offering new alternatives with healthier options such as salads that create a positive outlook on the company.The second example displays the need for more fuel efficient vehicles. Both examples leading to positive environmental practices however, in the long term these companies have benefited largely through profits which is the real drive associated behind creating these products.The following quote is from the article “It is the relentless maximization of profits, not a commitment to social responsibility, that has proved to be a boon to the public in these cases.” I think this is a strong example as to how businesses really look at increasing profits rather than just a commitment to corporate social responsibility.The problem with companies not engaging in these opportunities results in a loss of social welfare and profits. After reading this article it really made me think about the benefits gained from executives trying to increase profits. The reputation large companies get with being associated with driving profits may not always be positive but in the long term there is good things that come out of it. There will never be a solution to fix everything involved with CSR in companies but practicing good tactics can always help the outlook consumers have on your business as a whole.