Companies aren’t charities

24 oktober 2010

“Schumpeter” in this week’s Economist (October 23rd) states that companies aren’t charities. This statement is part of the elaboration on “The case for business in developing economies” a new book by Ann Bernstein. The fact that she writes on companies from an African position makes her statements fresh, according to The Economist. In poor countries the problem is not that businesses are unethical but that there are too few of them. Citizens of rich countries often fret about the occasional harm that corporations do, yet take for granted the prosperity that they create. People in developing countries do not have that luxury.

I fully agree with these statements, and I have ordered the book in order to be able to read it myself. However, the notion in the same article that “advocates of CSR miss this point” comes across as too short-sighted to me. It is not wise to assume that all advocates of CSR always have the same opinion. Putting a CSR lens on the company does not mean that one by definition does not appreciate the impact of the core activities of corporations, however signifies that one understands the dynamics in which companies have to operate nowadays. Anticipating issues, explaining objectives and approaches as part of a ‘license to operate’ and understanding the socio-economic impact is crucial in dealing with stakeholders in a “YouTube world”. Corporations cannot be successful without understanding their broader responsibilities.
 
Schumpeter notes that Ms Bernstein “glosses over the innovative work a few companies have done in integrating CSR into their strategy and she is better at identifying problems than offering solutions.” Yet another reason to read this book! Maybe the solutions we offer in our work can fill this gap.

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