By David Henderson
The doctrine of company Social accountability (CSR) now enjoys frequent aid. businesses are enjoined no longer just to search revenue yet to illustrate their 'corporate citizenship' via operating with a number of stakeholders to extra environmental and social in addition to fiscal objectives. Pressures for such behaviour have come from NGOs yet were taken up by way of lecturers, different commentators and multinational corporations themselves. David Henderson examines the CSR doctrine, subjecting it to basic ciriticisms. during this arguable textual content he argues that, faraway from being risk free, its adoption threatens prosperity in negative nations in addition to wealthy. it truly is more likely to lessen pageant and monetary freedom and to undermine the marketplace financial system.
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Additional info for Misguided Virtue: False Notions of Corporate Social Responsibility (Hobart Paper, 142)
195) that: As this new world takes shape, large enterprises will be 59 m i s g u i d e d v i rt u e more socially responsible than many governments . . The startling social responsiveness of Levi Strauss to its suppliers and employees, for example, exceeds that of many nation states . . Companies like Levi Strauss and Body Shop will be the rule, not the exception as now. As luck would have it, Hopkins’s book must have gone to press just too late for him to take account of an article by Nina Munk which appeared in Fortune magazine in April 1999.
Given the widespread allegiance to the concept of sustainable development thus interpreted, and the extent of outside support for the view that it should be explicitly endorsed by enterprises, it would be surprising if the business world had held itself apart. As it is, the companies that have embraced the principle, and taken it as the basis for redefining their role and their conception of their social responsibilities, can think of themselves as having fallen into line with a near-universal consensus.
Giving preferences, formal or informal, to local suppliers and contractors. • Giving preferences to particular suppliers as a way of promoting ‘equal opportunity’, as in the case of Shell Oil of the United States, which ‘has a target to spend 10 per cent of 61 m i s g u i d e d v i rt u e its expenditure [excluding raw materials] with supplying companies owned by women or people from ethnic minorities’ (SR2000, p. 13). • Refusing to buy from firms whose business practices are viewed as unacceptable, as for example in the case of Shell, whose companies ‘do not work with suppliers and contractors who are not able to meet Shell standards’ (SR98, p.
Misguided Virtue: False Notions of Corporate Social Responsibility (Hobart Paper, 142) by David Henderson