To cynics, the notion of Corporate Social Responsibility may seem like an oxymoron. The Corporate Age has been demonized - and perhaps rightly so - for the seemingly ruthless pursuit of profit. For some, corporations who present themselves as concerned with inequalities and injustices in society are only employing marketing or public relations tactics intended to strengthen their brand name. Indeed, the goal of changing the view of the corporation from a self-important entity to a healthy contributor to society can be a daunting challenge. The continued rise of Corporate Social Responsibility in the business world More and more, corporate decision-makers are enacting principles meant to meet or exceed the public’s vision for what a business should contribute to humanity and the environment. Unlike some programs drawn up in boardrooms, Corporate Social Responsibility initiatives are not being closely guarded. In fact, these platforms are making public appearances like never before. The Business Roundtable, an association comprised of CEOs of elite U.S. corporations, introduced in September 2005 an initiative called SEE (Society, the Environment and the Economy) to encourage corporations to develop measurable strategies for growth while still sustaining their social commitments to the environment and the health of employees, consumers and communities. This group is only among the latest to join the “CSR” frenzy. Some big names, including the two below, have already grabbed headlines for their seemingly newfound social awareness. GE’S BRIGHTER MOOD Labeling GE as eco-friendly might have seemed like a slick PR gambit in the past, but because of the implementation of Corporate Social Responsibility policies the company is being taken seriously for its interest in the environment. Under the “Ecomagination” plan, GE has committed to reducing its greenhouse gas emissions by 1 percent by 2012. If no action were taken during the seven-year period, the corporation’s GHG emissions would have risen 40 percent, according to Forbes. For anyone interested in tracking GE’s progress, CEO Jeffery R. Immelt pledges to report on the efforts of “Ecomagination” and its goals. WAL-MART A CSR BELIEVER In October 2005, Wal-Mart CEO Lee Scott announced, “To be successful and continue to grow, we must operate in a world that is healthy and successful.” Scott then declared that Wal-Mart intends to annually invest $500 million into environmental technologies to benefit its 5,000-plus stores worldwide. Wal-Mart’s environmental sustainability commitment will also develop means to eliminate the waste it produces and utilize fuels from renewable resources. In its December 7, 2005 issue, Ethical Corporation reported that Scott’s initiative likely would not impact Wal-Mart’s low prices because the operational savings gained by the upgrade in technology would be significant. For example, Scott noted that $52 million could be saved annually if the fuel mileage of each truck owned by Wal-Mart was cut by one mile per gallon. Environmental groups such as The Sierra Club and the Rocky Mountain Institute—who are most often antagonists of Wal-Mart and Big Business—applaud Scott’s ambition and says his company can have a “profound impact” on the health of the world.
lends hope.
In May 2005, General Electric announced that by 2010 it will annually contribute $1.5 billion to an initiative called “Ecomagination”. The program encourages GE employees and engineers to develop innovative products that feature enhanced operating and environmental performance. So unique and original is “Ecomagination”, Forbes ran an article headlined “GE Turns Green” in its August 15, 2005 issue. What better publicity for a corporation that was once vilified for polluting the Hudson River in New York with PCBs?
Few corporations have been criticized as vehemently and as widely as Wal-Mart, the mega-store known for low prices, low wages and, according to critics, a rock-bottom social conscience. However, the Wal-Mart head office is making change and winning believers.
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