企业伦理学（原书第5版）教案指导 第5章　企业社会责任

Chapter05-CorporateSocialResponsibility

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IMChapter5:

CorporateSocialResponsibility

Chapter5continuestodeveloptheframeworkintroducedintheopeningchapters.Chapters1-3introducedadecisionmakingmodelandfocusedonindividualsastheeagentsofdecisions.Howshouldanindividualemployee,manager,executivedecidewhattodo.However,werecognizedthatindividualdecisionmakingoccurswithinaninstitutionalcontext,andafullaccountofdecisionmakingmustacknowledgethatfact.BeginninginChapter3,butasthefocusofChapter4weeintroducestudentstocorporatecultureasprovidingthecontextforindividualdecisionmaking,andinwhichgoodorbaddecisionscanbereinforced,conditions,discouraged.WithChapter5,weturntothatcorporateinstitutionitselfastheagentofdecisionmakingandaskwhatresponsibilitiesdobusinesses,andinparticularcorporationshavetothesocietyinwhichtheyoperate?

ChapterObjectives

Afterreadingthischapteryouwillbeableto:

1.Definecorporatesocialresponsibility.

2.Distinguishkeycomponentsofthetermresponsibility.

3.Describeandevaluatetheeconomicmodelofcorporatesocialresponsibility.

4.Describeandevaluatethestakeholdermodelofcorporatesocialresponsibility.

5.Describeandevaluatetheintegrativemodelofcorporatesocialresponsibility.

6.ExplaintheroleofreputationmanagementasmotivationbehindCSR.

7.EvaluatetheclaimsthatCSRis“good”forbusiness.

OPENINGDECISIONPOINT

ThisnewFacebookdecisionpointraisesbroadquestionsabouttheroleofcorporationswithinasociety,andinparticularcorporateresponsibilitytothepoliticalsysteminitshomecountry.

Thephrase“corporatesocialresponsibility”(CSR)isusedinavarietyofways.Forsome,itisessentiallyequivalenttobusinessethics,particularlywhencontrastwiththetraditionalfreemarket,MiltonFriedmanviewwhichassertsthatthereisnoresponsibilityotherthantoincreaseprofits.OthersunderstandCSRtorefertoanarrowviewofcorporatephilanthropy.TheFacebookcasefocusesonCSRinthesenseofresponsibilitiestothesocietyinwhichabusinessoperates.

StartingintheBritishcommonlawtraditionandextendingintomostcontemporarylegalframeworks,corporationshavelongbeengrantedcertainlegalrightsincluding,mostimportantly,therighttoownpropertyandenterintocontracts.WithintheUnitedStates,recentSupremeCourtdecisionssuchasCitizensUnitedandHobbyLobbyappeartoextendthisunderstandingasincludingrightsofpoliticalspeechandreligiousliberty.ThisDecisionPointpicksupfromthatframeworkandasksaboutthewhatdutiesandresponsibilitiesshouldaccompanythoserights?

Thisdecisioncasefocusesonissuesinvolvingthe2016U.S.presidentialelection,butitprovidesanopportunitytoraiseanumberofotherethicalissuesthatpromisetoemergeincomingyears.Topicssuchasprivacy,freespeechandfreedomofexpression,equalopportunityandconsumerautonomyintheageofbigdata,A.I.andsocialmediaallcanbeteasedoutofthiscaseandsetthegroundsforfutureconversationsthatmightariseintheremainingchapters.

Introduction

Thischapteraddresses:thenatureofCorporateSocialResponsibility(CSR)andhowfirmsopttomeetanddemonstratetheirfulfillmentofthisperceivedresponsibility.

WhatResponsibilityDoesBusinessHave?Ataminimum,itisindisputablethatbusinesshasasocialresponsibilitytoobeythelaw.

Economistsmightalsosaythatbusinesshasasocialresponsibilitytoproducethegoodsandservicesthatsocietydemands.

Ifafirmfailstomeetsociety’sinterestsanddemands,itwillsimplyfailandgooutofbusiness.

WecansaythattheprimaryquestionofCSRistheextenttowhichbusinesshassocialresponsibilitiesthatgobeyondproducinggoodsandserviceswithinthelaw.

*ChapterObjective1DiscussedBelow*

CorporateSocialResponsibility:Referstotheresponsibilitiesthatabusinesshastothesocietyinwhichitoperates.

Fromaneconomicperspective,abusinessisaninstitutionthatexiststoproducegoodsandservicesdemandedbysocietyand,byengaginginthisactivity,thebusinesscreatesjobsandwealththatbenefitsocietyfurther.

Thelawhascreatedaformofbusinesscalledcorporations,whichlimitstheliabilityofindividualsfortherisksinvolvedintheseactivities.

*ChapterObjective2DiscussedBelow*

TheeconomicmodelofCSR,holdsthatbusiness’soledutyistofulfilltheeconomicfunctionsbusinessesweredesignedtoserve.

Onthisnarrowview,thesocialresponsibilityofbusinessmanagersissimplythepursuitofprofitwithinthelaw.

Becauseprofitisanindicationthatbusinessisefficientlyandsuccessfullyproducingthegoodsandservicesthatsocietydemands,profitisadirectmeasureofhowwellabusinessfirmismeetingitssociety’sexpectations.

Corporationsareexpectedtoobeythelegalmandatesestablishedbythesociety.

ThiseconomicmodelofCSRdeniesthatbusinesshasanysocialresponsibilitiesbeyondtheeconomicandlegalendsforwhichitwascreated.

Profit-BasedSocialResponsibility:MiltonFriedman’s1970NewYorkTimesarticle“TheSocialResponsibilityofBusinessIstoIncreaseItsProfits”isperhapsbestknownasanargumentforthiseconomicmodel,orprofit-based,socialresponsibilityofbusiness.

Friedmandoesnotignoreethicalresponsibilityinhisanalysis;hesuggeststhatdecisionmakersarefulfillingtheirresponsibilityiftheyfollowtheirfirm’sself-interestinpursuingprofit.

Friedmanexplainsthatacorporateexecutivehasaresponsibilitytoconductbusinessinaccordancewithhis/heremployer’sdesires,whichgenerallywillbetomakeasmuchmoneyaspossiblewhileconformingtothebasicrulesofsociety,boththoseembodiedinlawandthoseembodiedinethicalcustom.

Thiseditionintroducesthephrase“managerialcapitalism”toidentifythisperspective.Thisphraseisdescribedasthetheorythattheprimaryobligationofbusinessmanagersistoservetheinterestsofstockholdersbymaximizingprofits.

Thisviewofcorporatesocialresponsibilityhasitsrootsintheutilitariantraditionandinneoclassicaleconomics.

Asagentsofbusinessowners,thecontentionisthatmanagersdohavesocialresponsibilities–theirprimaryresponsibilityistopursuemaximumprofitsforshareholders.Bypursuingprofits,abusinessmanagerwillallocateresourcestotheirmostefficientuses.

Consumerswhomostvaluearesourcewillbewillingtopaythemostforit;so,profitwillcontinuouslyworktowardtheoptimalsatisfactionofconsumerdemandwhich,inoneinterpretationofutilitarian,isequivalenttomaximizingtheoverallgood.

DebatesconcerningCSRstartwithalternativestothenarrowviewexpressedbyFriedmanandothers.

Asalternativestotheeconomicmodel,wedescribethreemodelsthatprovideahelpfulwaytounderstanddebatessurroundingcorporatesocialresponsibility:theeconomicmodel,thestakeholdermodel,andtheintegrativemodel.

EthicsandSocialResponsibility

*ChapterObjective3DiscussedBelow*

Thewordsresponsibleandresponsibilityareusedinseveraldifferentways

Whenwesaythatabusinessisresponsiblewemightmeanthatitisreliableortrustworthy.

Asecondmeaningofresponsibleinvolvesattributingsomethingasacauseforaneventoraction.

Athirdsenseinvolvesattributingliabilityoraccountabilityforsomeeventoractioncreatingaresponsibilitytomakethingsrightagain.

Forexample,thatabusinessisresponsibleforapollutedriverisnotonlytosaythatthebusinesscausedthepollutionbutthatthebusinessisatfaultforitandshouldbeheldaccountable.

Lawsregardingproductsafetyandliabilityinvolvemanyofthesemeaningsofbeingresponsible.

Whenaconsumerisinjured,forexample,afirstquestionistoaskiftheproductwasresponsiblefortheinjury,inthesenseofhavingcausedtheinjury.

Forexample,severalyearsago,acontroversydevelopedoverthedrugVioxx–someevidencesuggestedthatVioxxwasresponsibleforcausingheartattacksinsomeusers.Thedebatesthatfollowedaddressedtwoquestions:WasVioxxthecauseoftheheartattacks?WasMerckatfault,i.e.,shoulditbeheldlegallyliablefortheheartattacks?

Bothethicsandtortlawinvolvedthequestionofliabilityorfaultforcausingharm.

ItisthesenseofresponsibilityasaccountabilitythatisattheheartofCSR.Corporatesocialresponsibilityreferstothoseactionsforwhichabusinesscanbeheldaccountable.

Wecanthinkofresponsibilitiesasthosethingsthatweought,orshould,doevenifwewouldrathernot.

Responsibilitiesbind,orcompel,orconstrain,orrequireustoactincertainways.

Wecanbeexpectedtoactinordertofulfillourresponsibilities;andwewillbeheldaccountableifwedonot.

Totalkaboutcorporatesocialresponsibilityistobeconcernedwithsociety’sintereststhatshouldrestrictorbindbusiness’behavior.

Socialresponsibilityiswhatabusinessshouldoroughttodoforthesakeofsociety,evenifthiscomeswithaneconomiccost.

Philosophersoftendistinguishthreedifferentlevelsofresponsibilitiesinthissenseonascalefrommoretolessdemandingorbinding:

Themostdemandingresponsibilityistheresponsibilitynottocauseharmtoothers:oftencalleddutyorobligation,obligesusinthestrictestsense.Forexample,abusinessoughtnottosellaproductthatcausesharmtoconsumers,eveniftherewouldbeaprofitindoingso.

Thesecond,lessbinding,responsibilityistopreventharmeveninthosecaseswhereoneisnotthecause.Theseareso-calledgoodSamaritan

Finally,theremightberesponsibilitiestodogood,suchasvolunteeringandcharitablework.

Isthereadutynottocauseharm?

Thestrongestsenseofresponsibilityisthedutynottocauseharm.Evenwhennotexplicitlyprohibitedbylaw,ethicswoulddemandthatwenotcauseavoidableharm.

Ifabusinesscausesharmtosomeoneand,ifthatharmcouldhavebeenavoidedbyexercisingduecareorproperplanning,thenboththelawandethicswouldsaythatbusinessshouldbeheldliableforviolatingitsresponsibilities.

Inpractice,thisethicalrequirementisthetypeofresponsibilityestablishedbytheprecedentsoftortlaw.Whenitisdiscoveredthataproductcausesharm,thenbusinesscanappropriatelybepreventedfrommarketingthatproductandcanbeheldliableforharmscausedbyit.

Forexample:Businessesarerestrictedinmarketingproductsthathavebeenproventocausecancerandotherseriousmedicalharms.

Istherearesponsibilitytopreventharm?

Thereareothercasesinwhichabusinessisnotcausingharm,butcouldeasilypreventharmfromoccurring.

Amoreinclusiveunderstandingofcorporatesocialresponsibilitywouldholdthatbusinesshasaresponsibilitytopreventharm.

Example:Merck’sdrug,Mectizan,preventsriverblindness,adiseaseprevalentintropicalnations–infectingbetween40and100millionpeopleannually.AsingletabletofMectizanadministeredonceayearcanrelievethesymptomsandpreventthediseasefromprogressing.MectizanwouldnotbeaveryprofitabledrugtobringtomarketconsideringthelowdemandandthetargetaudiencebeingamongthepoorestpeoplelivinginthepoorestregionsofAfrica,Asia,CentralAmericaandSouthAmerica.However,in1987,MerckstartedaprogramtoprovideMectizanfreeofcharge,forever.Merck’sactionswereexplainedinpartofitscorporateidentitystatement:“Weareinthebusinessofpreservingandimprovinghumanlife.”

Clearly,Merckwasnotresponsibleforcausingriverblindness,thus,accordingtothestandardofCSR,theyhadnosocialresponsibility,buttheirexecutivessawthisissuedifferently.Theyfeltthattheydidhaveasocialresponsibilitytopreventadiseaseeasilycontrolledbytheirpatenteddrug.

Istherearesponsibilitytodogood?

Thethird,andperhapsmostwide-ranging,standardofCSRwouldholdthatbusinesshasasocialresponsibilitytodogoodthingsandtomakesocietyabetterplace.

Corporatephilanthropywouldbethemostobviouscaseinwhichbusinesstakesonaresponsibilitytodogood.

Corporategivingprogramstosupportcommunityprojectsinthearts,education,andcultureareclearexamples.Somecorporationshaveacharitablefoundationorofficethatdealswithsuchphilanthropicprograms.

*Reference:“RealityCheck–CorporatePhilanthropy:HowMuchDoCorporationsGive?”*

Manyofthedebatessurroundingcorporatesocialresponsibilityinvolvethequestionofwhetherbusinessreallyhasaresponsibilitytosupportthesevaluablecauses.

Somearguethat,likeallcasesofcharity,thisissomethingthatdeservespraiseandadmiration;butitisnotsomethingthateverybusinessoughttodo.

Othersarguethatbusinessdoeshaveanobligationtosupportgoodcausesandto“giveback”tothecommunity,asasenseofgratitudeandthankfulness–somethinglessbindingthanalegalorcontractualobligation,butmorethanasimpleactofcharity.

*Reference:“Figure5.1–ModelsofCorporateSocialResponsibility”*

ThemodelsofCSRintroducedinFigure5.1arerevisedfromtheearliereditionofthistext.Forthesakeofsimplicity,wenowdistinguishonlyTHREEmodels:the“EconomicModel”whichcorrespondstotheFriedman,free-market,“dominantmodel”discussedpreviously,the“Stakeholdermodel”whichreplacestheformer“socialwebmodel”andnowmoreexplicitlyfocusesonstakeholdertheory,andthe“Integrativemodel,”whichhasbeenre-workedtoemphasizebenefitcorporations.

*ChapterObjective4DiscussedBelow*

*Reference:Realitycheck–Profits:Pursue,Increase,orMaximize?

ThisRealityCheckwasrecentlyaddedtothetext.Thereisambiguityinmanydiscussionsconcerningthefinancialresponsibilityofmanagement.OneneedonlylookintheclassicarticlebyFriedman,inwhichhearguesthattheresponsibilityofmanagementisto(1)increaseprofits,andto(2)makeasmuchmoneyaspossible.Theambiguityandconfusioniscompoundedwhenoneaddsthetimerange:overwhatperiodoftime?ThisRealitycheckshouldhelpstudentsmoredeeplyanalyzetheapparenttensionbetweenfinancialandsocialgoals.

*Reference:“RealityCheck–PuttingYourMoneyWhereYourMouthIs?”*

Perusetheprogramatalocalartgallerymuseumtheaterschooleventandyouwilllikelyseealistoflocalbusinessesasdonorsorsponsorswhohavecontributedtotheevent.Thesocialcontributionisasmuchaninvestmentasitisacontributionsincethebusinessgetsrecognitionandadvertisingintheprogram.

Therearealsocasesinwhichbusinesscontributestosocialcauseswithoutseekinganyreputationalbenefits.

Somefirmscontributetocharityanonymously.

Somesupportcausesthathavelittleornobusinessorfinancialpayoffasamatterofgivingbacktotheircommunities.

Onemaycontendthatcorporatesupportforthesesocialcausesisdoneimplybecauseitisthegoodandrightthingtodo.

Otherswouldsuggestthatthebusinesshasconcludedthatthesocietyinwhichthefirmdoesbusinessisastrongerorbetteroneifthisparticularactivityexists.

SituationswhereabusinesssupportsasocialcauseforthepurposeofreceivingabusinessbenefitinreturnarenotmuchdifferentfromtheeconomicviewofCSR.

Inthesecases,abusinessmanagerexercisesmanagerialdiscretioninjudgingthesocialcontributionwillhaveeconomicbenefits.

Thereisagreatdealofoverlapbetweendecisionmakerswhoengageinthephilanthropicmodelforreputationalreasonsandthosewhofollowtheeconomicviewofbusiness’socialresponsibilities.

Thephilanthropicmodelinwhichbusinesssupportforasocialcauseisdonesimplybecauseitistherightthingtododiffersfromthereputationalversiononlyintermsoftheunderlyingmotivation.

Inonecase,thesocialgoodisdoneasameanstoeconomicends.

Intheothercase,thesocialgoodisdoneasanendinitself.

Fromtheperspectiveoftheeconomicmodel,onlyphilanthropydoneforreputationalreasonsandfinancialendsisethicallyresponsible.

Fromtheperspectiveofthephilanthropicmodel,philanthropydoneforfinancialreasonsisnotfullyethicalandnottrulyanactofsocialresponsibility.

*ChapterObjective5DiscussedBelow*

StakeholderModelofCSR

ThestakeholdermodelofCSRcontainsavarietyofperspectiveswhichallshareincommontheviewthatbusinessexistswithinawebofsocialrelationships.

Viewsbusinessasacitizenofthesocietyinwhichitoperatesand,likeallmembersofasociety,businessmustconformtothenormalethicaldutiesandobligationsthatweallface.

Whileproducinggoodsandservicesandcreatingwealthandprofitsareamongbusiness’responsibilities,theydonottrumpotherethicalresponsibilitiesthatequallybindallmembersofasociety.

PhilosopherNormanBowiehasdefendedoneversionofCSRthatwouldfallwithinthissocialwebmodel.

Bowiearguesthatbeyondtheeconomicview’sdutytoobeythelawbusinesshasanequallyimportantethicaldutytorespecthumanrights.

Respectinghumanrightsisthe“moralminimum”thatweexpectofeverypersonwhethertheyareactingasindividualsorwithincorporateinstitutions.

Bowieidentifieshisapproachasa“Kantian”theoryofbusinessethics.Hebeginswiththedistinctionbetweentheethicalimperativestocausenoharmtopreventharmandtodogood.

Peoplehaveastrongethicaldutytocausenoharm,andonlyaprimafaciedutytopreventharmortodogood.

Theobligationtocausenoharm,inBowie’sview,overridesotherethicalconsiderations.

Bowieacceptstheeconomicviewthatmanagersaretheagentsofstockholder-ownersandthustheyalsohaveadutytofurthertheinterestsofstockholders.

AccordingtoBowie,aslongasmanagerscomplywiththe“moralminimum”andcausenoharm,theyhavearesponsibilitytomaximizeprofits.

Bowiewouldarguethatbusinesshasasocialresponsibilitytorespecttherightsofitsemployees,evenwhennotspecifiedorrequiredbylaw.

Butthecontractualdutythatmanagershavetostockholder-ownersover-ridestheresponsibilitytopreventharmortodo(philanthropic)good.

StakeholderTheory

StakeholderTheoryisperhapsthemostinfluentialversionofCSRthatwouldfallwithinthesocialwebmodel.

Stakeholdertheorybeginswiththerecognitionthateverybusinessdecisionaffectsawidevarietyofpeoplebenefitingsomeandimposingcostsonothers.

Businessdecisionsproducefar-rangingconsequencestoawidevarietyofpeople.Everydecisioninvolvestheimpositionofcosts,inthesensethateverydecisioninvolvesopportunitiesforgone,choicesgivenup.

Stakeholdertheoryrecognizesthateverybusinessdecisionimposescostsonsomeoneandmandatesthatthosecostsbeacknowledged.

Anytheoryofcorporatesocialresponsibilitymustthenexplainanddefendanswerstothequestions:forwhosebenefitandatwhosecostsshouldthebusinessbemanaged?

Theeconomicmodelarguesthatthefirmshouldbemanagedforthesolebenefitofstockholders.Thisviewisjustifiedbytheappealtotherightsofowners,thefiduciarydutyofmanagers,andthesocialbenefitsthatfollowfromthisarrangement.

Stakeholdertheoryarguesonfactual,legal,economic,andethicalgroundsthattheeconomicmodelisaninadequateunderstandingofbusiness.

R.EdwardFreemanhasofferedadefenseofthestakeholdermodelinhisessay,“ManagingforStakeholders.”Hedescribesbothanarrowandawiderunderstandingoftheconceptofa“stakeholder.”

Inanarrowsense,astakeholderincludesanyonewhoisvitaltothesurvivalandsuccessofthecorporation.

Morewidely,astakeholdercouldbe“agrouporindividualwhocanaffectorbeaffectedbythecorporation.”

Asadescriptiveaccountofbusinesstheclassicalstakeholdermodelignoresoveracenturyoflegalprecedentarisingfrombothcaselawandlegislativeenactments.

Asamatteroflaw,itissimplyfalsetoclaimthatmanagementcanignoredutiestoeveryonebutstockholders.

Corporatemanagementmustlimittheirfiduciarydutytostockholdersinthenameoftherightsandinterestsofvariousconstituenciesaffectedbycorporatedecisions.

Factual,economicconsiderationsalsodiminishtheplausibilityoftheeconomicmodel.Thewidevarietyofmarketfailuresineconomicsshowthatevenwhenmanagerspursueprofits,therearenoguaranteesthattheywillservetheinterestsofeitherstockholdersorthepublic.

Theeconomicmodelappealstotwofundamentalethicalnormsforitsjustification:1)utilitarianconsiderationsofsocialwell-being;2)individualrights.

Thestakeholdertheoryrequiresmanagementtobalancetheethicalinterestsofallaffectedparties,muchlikeutilitarianismrequiresmanagementtoconsidertheconsequencesofitsdecisionsforthewell-beingofallaffectedgroups.

Accordingtotherights-basedethicalframework,theoverridingmoralimperativeistotreatallasendsandneverasmeansonly.

Thestakeholdertheoryarguesthatawider“stakeholder”theoryofcorporatesocialresponsibilityisprovenethicallysuperior.

Freemanarguesthatthe“stakeholder”theorydoesnotgiveprimacytoonestakeholdergroupoveranother,althoughtherewillbetimeswhenonegroupwillbenefitattheexpenseofothers.

Firmsexistinawebofrelationshipswithmanystakeholdersandtheserelationshipscancreateavarietyofresponsibilities.Itmaynotbepossibletosatisfytheneedsofeachandeverystakeholderinasituation,thereforesocialresponsibilitywouldrequiredecisionstoprioritizecompetingandconflictingresponsibilities.

RealityCheck:WhatIsthePurposeofaCorporationAccordingtoLeadingCorporateCEOs?

InAugust2019,theBusinessRoundtable,anorganizationcomprisedofCEOsofmanyoftheworld’slargestcorporations,issuedastatementonthepurposeofacorporation.Thisstatementassertsasa“fundamental”principlethatthepurposeofacorporationistoserveallstakeholders.Forover20years,theBusinessRoundtablehadendorsedtheprincipleofshareholderprimacyasthefundamentalcorporatepurpose.Shareholderprimacy,ofcourse,isanotherwayofexpressingtheperspectivethatthischapteridentifiesastheeconomicmodelofCSR,ormanagerialcapitalism.AsofFebruary2020,theCEOsofmorethan160oftheworld’slargestcorporationshavesignedontothisstatement.FurtherinformationandupdatescaneasilybyfoundontheBusinessRoundtablewebsite.

IntegrativeModelofCSR

MuchofCSRliteratureassumesatensionbetweenthepursuitofprofitandsocialresponsibility.But,therehavealwaysbeenorganizationsthatturnthistensionaroundandpursuesocialendsastheverycoreoftheirmission.

Thereisgrowingrecognitionthatsomefor-profitorganizationshavesocialgoalsasacentralpartofthestrategicmissionoftheorganization.

Intwoareasinparticular,socialentrepreneurshipandsustainability,wefindfor-profitfirmsthatdonotassumeatensionbetweenprofitandsocialresponsibility.

TheGrameenBankisoneexampleofthegrowingmovementofsocialentrepreneurship.

Firmsthatmakeenvironmentalsustainabilityascentraltotheirmission,suchasInterfaceCorporation,areanexampleofsustainability.

*Reference:“RealityCheck–“BenefitCorporations”*ThetopicofBenefitcorporations,or“B-Corps,”wasthefocusoftheopeningdecisionscenarioofthepreviousedition.WemovedthattopicintothechapterasarealitycheckcaseoftheintegrativemodelofCSR.

Becausethesefirmsbringsocialgoalsintothecoreoftheirbusinessmodelandfullyintegrateeconomicandsocialgoals,werefertothisastheintegrativemodelofCSR.

EvendefendersofthenarroweconomicmodelofCSR,suchasMiltonFriedman,wouldagreethatownersofafirmarefreetomakethepursuitofsocialgoalsapartoftheirbusinessmodel.Theywouldjustdisagreethatthesesocialgoalsshouldbepartofeverybusiness’smission.

ForacleararticulationofargumentssurroundingeachoftheCSRmodels,seethearticle“RethinkingtheSocialResponsibilityofBusiness,”reprintedattheendofthischapter.

Socialentrepreneursdemonstratethatprofitisnotincompatiblewithdoinggood,andthereforethatonecandogoodprofitably.

*Reference:“RealityCheck–FairnessinaCupofCoffee:ExampleoftheIntegrativeModel”*

However,therearesomewhowouldarguethattheethicalresponsibilitiesassociatedwithsustainabilityarerelevanttoeverybusinessconcern.

SustainabilityoffersamodelofCSRthatsuggeststhatethicalgoalsshouldbeattheheartofeverycorporatemission.

TheImplicationsofSustainabilityintheIntegrativeModelofCSR:AsatopicwithinCSR,sustainabilityholdsthatafirm’sfinancialgoalsmustbebalancedagainstandperhapsevenoverriddenbyenvironmentalconsiderations.

Defendersofthisapproachpointoutthatalleconomicactivityexistswithinabiospherethatsupportsalllife.

Theyarguethatthepresentmodelofeconomics,andespeciallythemacroeconomicgoalofeconomicgrowth,isalreadyrunningupagainstthelimitsofthebiosphere’scapacitytosustainlife.

Fundamentalhumanneedsforgoodssuchascleanair,water,nutritiousfood,andamoderateclimatearethreatenedbythepresentdominantmodelofeconomicactivity.

Fromthisperspectivethesuccessofabusinessmustbejudgednotonlyagainstthefinancialbottomlineofprofitabilitybutalsoagainsttheecologicalandsocialbottomslinesofsustainability.

Afirmthatisfinanciallyprofitable,butthatusesresourcesatunsustainableratesandthatcreateswastesatratesthatexceedtheEarth’scapacitytoabsorbthemisabusinessorindustrythatisfailingitsfundamentalsocialresponsibility.

Afirmthatisenvironmentallyunsustainableisalsoafirmthatisfinanciallyunsustainableinthelong-term.

Abusinessmodelthatignoresthebiophysicalandecologicalcontextofitsactivitiesisabusinessmodeldoomedtofailure.

*Reference:“RealityCheck–WillSustainabilityReportsReplacetheAnnualFinancialReports?”*

*TeachingNote:Engagestudentsinadiscussionaboutwhetherornottheywoulduseacompany’ssustainabilityreporttoevaluateacompan