The Myth of Csr

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The Myth of CSR The problem with assuming that companies can do well while also doing good is that markets don’t really work that way By Deborah Doane Stanford Social Innovation Review Fall 2005 Copyright © 2005 by Leland Stanford Jr. University All Rights Reserved DO NOT COPY Stanford Social Innovation Review 518 Memorial Way, Stanford, CA 94305-5015 Ph: 650-725-5399. Fax: 650-723-0516 Email:, ~ DO NOT DISTRIBUTE ~ FOR PERSONAL USE ONLY ~ [CHECK] REALITY the myth of CSR THE CORPORATE SOCIAL RESPONSIBILITY (CSR) MOVEMENT has grown in recent years from a fringe activity by a few earnest companies, like The Body Shop, and Ben & Jerry’s, to a highly visible priority for…show more content…
pulled companies onto the CSR bandwagon. For example, All of these initiatives have been premised on the notion that companies confronted with boycott threats, as Nike was in the companies can ‘do well’ and ‘do good’ at the same time – both 1990s, or with the threat of high-profile lawsuits, as McDonald’s saving the world and making a decent profit, too. is over obesity concerns, may see CSR as a strategy for presenting The unprecedented growth of CSR may lead some to feel a friendlier face to the public. a sense of optimism about the power of market mechanisms Once launched, CSR initiatives may provoke changes in to deliver social and environmental change. But markets often basic practices inside some companies. Nike is now considered fail, especially when it comes to delivering public goods; thereby many to be the global leader when it comes to improving fore, we have to be concerned that CSR activities are subject to labor standards in developing-country factories. The company the same limitations of markets that prompted the movement now leads the way in transparency, too. When faced with a lawin the first place. suit over accusations of sweatshop labor, Nike chose to face its critics head-on and this year published on its Web site a full list Making Markets Work? of its factories with their audited social reports. And Nike is not At face value, the market has indeed been a powerful force in
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