7gen Bloc

Capitalists Hail the End of Corporate Responsibility
Posted By
Inspired Protagonist
March 9, 2009

Reduced Greed AheadGiven that our financial system is teetering at the edge of a very deep, very scary abyss, it's certainly understandable that alpha capitalists -- the folks who believe that business' only "responsibility" is to maximize profits for shareholders -- are desperately scrambling for something, anything, to grab onto. Something reassuring. Some signal that the world is at least starting to return to their definition of "normal."

The Financial Times' Stefan Stern thinks he's found the beginning of the new normal: the end of values-driven business. In a column last month, he opined that, "now the recession's here we can forget all that nonsense about corporate social responsibility and get back to trying to make some money." In his view, there's a silver lining to the world economy's near-collapse: it has chastened the "politically correct…global elite" and finally put those "burbling do-gooder[s]" to flight.

I realize that Stern is writing with tongue somewhat in cheek, as he is careful to acknowledge "wise CSR practitioners." And I share his impatience with companies that appropriate the images of sustainability -- flowers, forests, and frolicking kids -- in a shallow attempt to burnish their brand. But he's got it backwards. If anything, the recession has shown that in these tough times, the surest way to make money is to be responsible to all of your constituencies -- employees, customers, suppliers, and society itself. Do this, and it's far more likely that shareholders will benefit.

The latest evidence that a good company is a resilient company comes from A.T. Kearney. In a recent report, Kearney examined the financial performance (pdf), over the past six months, of 99 companies in 18 industries. It found that those companies that are authentically committed to sustainability outperformed their business-as-usual peers by 15%. The performance differential worked out to an average of $650 million in market capitalization per company. Companies that put a premium on sustainability, the report understates, "may well emerge from the current crisis stronger than ever."

We have seen what's befallen those giants of the greed-based economy -- AIG, Citigroup, Countrywide, Merrill Lynch, and the rest -- whose soulless purpose was to use money to make money. As others have noted, Citi's share price has lately traded for less than its ATM fee. And now, as Stern asserts, we can go back to making money? If only it was that simple.

photo: David T. McFarlane, Jr.


Category: Sustainability
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Comments
Change
Posted by davidcoethica | Mon, Mar. 9, 2009

A certain Mr Einstein once said, "We can't solve problems by using the same kind of thinking we used when we created them."

I also see the fight of the alpha capitalists trying hopefully in vain to retain control of the financial territories and ethos, but with forces as dominant as population growth, climate change and peak oil we all need to change our way of thinking.

The future is by no means a Utopian vision and it will unfortunately take sacrifice by those who are unaware and commitment combined with passion by those who are to advocate this new era.

http://davidcoethica.wordpress.com

Change (Greed!)
Posted by ka8uet | Wed, Mar. 25, 2009

Let us hope that the "greed as usual" folks read how much better their socially conscious counterparts are doing, and see the light! However, I'm not going to hold my breath! There are those who will never change, and, like all other unchanging things in a changing world, they will eventually become extinct. Darwin was right, and is david. Let us hope that when this "recession" (a word invented after the Great Depression") is over,we will see the same spate of new ideas driving our economy as happened then. That growth was, in part, driven by new science discovered during the war, and this one could be driven by new science discovered by those hoping to save the planet.

So What Are You?
Posted by Katerina | Sat, Mar. 28, 2009

Since the "Evil" capitalists are all about making money which according to your title is such an evil thing too, what are you? Are you a socialist then if your are not a capitalist? Are you a communist or a nationalist?

The "evil rich people" are being hung out to dry in this country and we have seen many of them moving to Costa Rica and Panama where they are not taxed like here. So they closed their businesses, had to lay off their employees who now have no jobs and take their money elsewhere since it is no longer acceptable to make money here unless of course it is for the green purposes or to give it to our government who is totally inept at handling money.

Who is going to oversee this greening regulations? And under what standards and under what authority? Who is so much better than the rest of us to regulate the "greed" and who is the better judge of this? It is an oxymoron for the green industry is in and of itself filled with "greed", all one way.

Since 7th generation has taken this stand against free markets and capitalism and started taking a political left stance on this newsletter we and all the many families that I turned on to buy 7th generation are no longer buying 7th generation. We even helped your products to get carried in our local grocery stores here so you benefited from our brand loyalty but now have lost it. We tell everyone about your political views now so you have lost a lot of the young enterprising conservatives who tend to have brand loyalty.

Change and What are you
Posted by indygirl | Fri, Apr. 17, 2009

Although I believe that the big corporations and CEOs hope this is the end of corporate responsiblity, I also believe (and hope) they are mistaken. The US already lags far behind many other countries in use and production of alternative fuel vehicles, alternative power, and environmental regulation. We will either change or continue to fall behind in every way, and in every segment of our society. China's cars are already as fuel efficient as ours are slated to be in 2020, wonder where they will be then??
Katerina you are buying into the corporate line. My husband is a small business owner, and my father is self-employed. Are they "capitalists"? As defined by Websters:"a person who has capital especially invested in business"; the answer is yes. Are any of us wealthy? Hardly. Are we "socialists"? Websters says "any of various economic and political theories advocating collective or governmental ownership and administration of the means of production and distribution of goods"; the answer is also yes. You are too if your children attend public school, visit public parks, you drive on public roads, and expect the police or fire deparments to show up when you dial 911. I work for a City government, all of our services are "socialized".
I suggest you buy products because they aren't destructive to the environment. Because they are sustainable, or organic.
If you have children or grandchildren (as I do) you'd better be concerned with the enivronment and their future in it. Don't get hung up on some sort of percieved (and media directed) idea. THAT IS EXACTLY WHAT THE ALPHA CAPITALISTS (aka those at the very top) WANT YOU TO DO. That's what they're hoping for. We will all live with the consequences of those decisions.