Monday, May 4, 2009
Sustainable Practical Economics
Can a company truly say it is sustainable and socially responsible when it appears the primary motivation for some companies to "go green" has to do with the color of money? For example, the clear wrapping on some vegetables at Wal-Mart is corn based rather than petroleum based but it is also less expensive. McDonald's uses humane cattle herding at their slaughterhouses but all is not entirely as it seems. Such techniques put the cattle under less stress thus yielding more meat per head of cattle and fewer lost-time worker's compensation case claims. What do you think, Pilgrim? Is it only about the money or does the corporate social responsiblity idea come first?
Subscribe to:
Post Comments (Atom)
This comment has been removed by the author.
ReplyDeleteI certainly would agree that the corporate social responsibility efforts need to be sustainable from a financial standpoint to be implemented by the organization. Without some regulations, I don't think organizations will adopt many green efforts that are not financially viable. Great question.
ReplyDeleteAgreed, Aaron. But I wonder what the right balance is between laws and regulations, which usually come after something happens, and proactive behavior on the part of organizations? For example, we didn't get the Sarbanes-Oxley Act until the crooks at Enron and elsewhere had already behaved unethically. Is there a direction we can move to become proactive? If so, what are some of the steps?
ReplyDeleteAs Uncle Miltie claims, "A corporation's main responsibility is to its shareholders".__Milton Friedman. However, his dictum is unclear about the social responsibility of business, and his philosophy may not capture the needs our current changing markets. With old guard businesses failing daily and efforts to reduce greenhouse gas occurring worldwide, room exists for innovative sustainable businesses that are socially responsible to their shareholders.
ReplyDeleteIn essence, any viable society requires social responsibility in all human endeavors. The idea isn't a new one. It dates back to Aristotle who argues in The Politics that the foundation of any society is an ethical code. Applying Aristotle's idea of society to a contemporary setting, we need to emphasize an ethical approach in all business ventures if we're to succeed as a society.
I believe that Uncle Miltie's ideas and those of Aristotle are not mutually exclusive and can exist concurrently. Thus, if going green makes a company as profitable or more profitable than not going green then Uncle Miltie's dictum as well as Aristotle's philosophy take on a new, complete meaning.