CSR? Why?

There is no doubt that capitalism has an ugly side and corporations can do great harm to communities and individuals. That always gnawed at me. I was raised on Christian ideals of charity, generosity, and the benefits of providing for needy people. I was also raised in the cold war and knew the evils of socialism and restricted markets. That is the source of my split personality.

The article that introduced me to CSR explained how Russians who were raised with communist paradigms could come to terms with capitalist principles by learning about CSR. This would allow them to seek profits while keeping the community in mind. In fact, it can be shown that including your stakeholders (employees, vendors, communities, governments, and special interests as well as your customers and shareholders) in your decisions can often make you more profitable, reduce your costs, improve your marketing efforts, and prevent many costly liabilities. According to the authors, who are American professors with extensive experience among Russian companies, this is a message that many Russians are waiting for. It is a message I had been waiting for as well.

Is it possible to be a company that really cares about people and remains profitable? Is it possible to insist that your employees, vendors, and customers all embrace certain ethical and environmental standards without losing your competitive edge? Is it possible to gain a competitive edge by being a good employer, a community partner, and leaving a soft footprint on the planet? CSR says yes.

If more companies said yes to the principles of CSR, we would have cleaner air and water, we would have more people gainfully employed and less cut loose after years of loyalty, we would have more employees who loved and were loyal to their company, and we would have safer products. The benefits of CSR-embracing companies never end.

Best of all, we would have an answer to America-haters. People once looked up to America and spoke of us in respectful awe because our freedom and prosperity was so rare. As democracy and globalization spread, people began to see America as a greedy, oppressive profiteer. I don't think that the military actions of Truman, Kennedy, Reagan, Clinton, and the Bushes are to blame for most of the ill-will towards America. I do not think the CIA is to blame. I think that the actions of so many corporations headquartered in America, sending American managers to foreign cultures to produce at low-cost and high-productivity and then send all of the wealth back to America is the cause for 99% of the ill-will aimed at us today.

If my generation, known as X, were to begin exporting socially-responsible policies among the multi-national corporations that we are gaining control of from the baby-boomers, then Generation Y (my kids) would get to know America as the baby-boomers did: the prosperous and high-minded nation that makes the planet better for everyone.

The authors of this article, Professors David S. Harrison and Patsy G. Lewellyn, spoke of how Russians lost that sense of purpose and working for the good of the community that they had under communism, a void that could be filled by the principles of CSR. I think that we, the western half of the Cold War, lost something too when communism fell.

America stood for democracy; we were the beacon of freedom. Now that freedom and capitalism is almost commonplace around the world, what do we stand for? Are you satisfied to be the leader against Islamic-fundamentalist terrorism (the so-called Global War on Terrorism)? Somehow, that isn't as sexy as opposing communism. What will we stand for once we have evidence of bin Laden's demise and the terrorist networks are rendered ineffective? What if the whole Muslim world decided as one to liberalize tomorrow? What would America stand for if we didn't have Terrorism to oppose?

Do we need to stand for anything? I say yes. If we are the leader, then we have more control over our destiny. Do we want to be Mexico or Canada and have people snicker when we assert ourselves? If we do not lead, then we will lose ground in the global market and will attract much less Foreign Direct Investment--in other words, there will be less money in America to go around. Are you willing to make do with less? How much less?

My vision for America is that we stand for being socially responsible and profitable. As Generation X retires and Generation Y takes the helm, let America be looked up to for her prosperity and her benevolence. I hope that 30 years from today, as I may be retired or close to it, that America will not be known as a has-been but as a must-be.

Our schools are not preparing our kids to compete with Asia and Central Europe. Our companies are losing their dominance. America is losing its bragging right as the most benevolent, free, and prosperous nation. The environment has certainly been affected by the actions of humans and may jeopardize our future health and happiness.

Maintaining the status quo is not an option. We need a change. I vote for free markets dominated by socially-responsible corporations. Do you have a better idea?