Corporate responsibility is a buzz term of the new millennium that has come to mean different things in different rooms. In the living room and the oval office, it has to do with throwing over a well-entrenched way of doing business that rewards individual failure at the highest levels, leaves investors unprotected and forces taxpayers to bear the direct and immediate consequences or risk losing a way of life that once depended only on the strength of their work ethic.
In the boardroom the phrase corporate responsibility is all about opportunity. It is the stuff of press releases and marketing campaigns. One can hardly find an annual report that does not trumpet some social initiative evidencing the corporation's commitment the planet or the underprivileged.
This is, of course, good except to the extent that it diverts attention from executive junkets to Bora Bora, the acquisition of a Rodin sculpture to adorn the powder room of the CFO or windfall rewards to failed and ousted officers. Admittedly, whenever a corporation pours resources into creating, and then promoting efforts to be green, or to meet legitimate needs of a community, everyone benefits, especially the corporation.
Harvard Business School professor and former editor of the Harvard Business Review, Rosabeth Moss Kantner, makes this case in her new book, SuperCorp: How Vanguard Companies Create Innovation, Profits, Growth, and Social Good.
Without a hint of irony, professor Kantner points out that it is a mistake to make social commitments that do not have an economic logic that sustains the enterprise by attracting new resources.
In other words, good deeds sell product.