Aneel Karnani says 'NO!"
Large companies now routinely claim that they aren't in business just for the profits, that they're also intent on serving some larger social purpose. They trumpet their efforts to produce healthier foods or more fuel-efficient vehicles, conserve energy and other resources in their operations, or otherwise make the world a better place. Influential institutions like the Academy of Management and the United Nations, among many others, encourage companies to pursue such strategies.
It's not surprising that this idea has won over so many people—it's a very appealing proposition. You can have your cake and eat it too!
But it's an illusion, and a potentially dangerous one.
To read the article, click here.
I belong to the Academy of Management! An influential institution - lol
ReplyDeleteI think a lot of companies do take on some projects stating that they are simply wanting to "give back to the community". I think if the CEO or others in upper level management have a genuine care and concern for the community then they will take on these projects without worrying about how great it makes the company look. I do know that companies who participate in charitable works or community service usually have a greater level of support from the community.
ReplyDeleteI think that companies are usually split on this. Some companies do the good works simply because it makes them look good and they can profit from that extra marketing. On the other hand, some companies truly do wish to make a difference. I believe it all depends on top management and how much they push the issue.
ReplyDeleteFrom my standpoint, I think that the majority of large corporations are solely focused on profits, however, there are a select few that do truly care about being socially responsible. As Amanda said above, I think it depends on whose in charge.
ReplyDeleteThis article was pretty convincing. I am persuaded that the authors are correct: we should not rely on corporations to solve social problems. We can be glad to see some companies making changes to be more socially responsible, but this tends to happen more when it is in their interest in terms of profit too.
ReplyDeleteOK let us just face it we all know it is all about the money. It is heartwarming in small communities when you see local owners make decisions based on what is best for their community and not their company but in the great big corporate world that just is not the case. Unless it is something that makes them look good but still gives them profit then it is probably not a real gesture from the heart
ReplyDeleteI agree with my classmates. While I feel that there are some companies who truly want to be socially responsbile, I feel there are those out there that only do things to make themselves look good in the media and to the public. I beleive there are some companies that are socially responsbile only if they are making a profit.
ReplyDeleteIt does seem that social resposibility has become the "but my friend has one and everybody likes him!" tactic of the business world....It may help them make more now...but as it becomes the norm (like it seems to have), some new thing will become the next craze in gaining the competitive edge...
ReplyDeleteDon't get me wrong...I would love it if every company out there truly cared about making the world a better place, but the reality is that when it stops being profitable most will stop being charitable.
I don't think any large company does something merely for social good. It's either economically or PR based. If the acts were for social consciousness only, it would not be so public. It would be quietly incorporated into the way of doing business.
ReplyDeleteIt seems we have some divergent viewpoints on this topic. The author defines his position well but goes too far in making broad statements that companies only give back when it benefits them. Grouping all public companies into one mold ignores the many corporations and business leaders that have given back without expecting anything in return. The healthcare company I work for donates many medical supplies and awards large grants to hospitals that are making advancements in patient care; many of these efforts are never made public and don't help the bottom line, but are small ways of making our world a better place.
ReplyDeleteVery well said, Nathan. And there are those rare instances such as your company's anonymous giving, but most do charitable work knowing that it makes them look good to the public. Even in your instance, employees like yourself, are aware of your company's anonymous donations, and it makes them happy and proud to work for such a caring company. And, as we all know, happy employees perform better and help businesses to be more profitable.
ReplyDeleteI think that most people realize that a corporation is not going to do something if it does not benefit them in some way. Corporations are not the type of entities that will give for the joy of giving. They are after the attention that they receive by doing something the consumers want. This is much like politics within our own government.
ReplyDeleteSad but true. The majority of companies only care about the environment when its profitable. If the US didn't have clean air acts passed in the 70's we would still live in smog filled cities and have the air quality of China and India.
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