Monday, June 27, 2016

Rewarding Corporate Social Responsibility

Companies hold powerhouses of knowledge and financial resources the average American could never hope to muster in their lifetimes. These companies live and work within the nations that helped make them and have some responsibility to the society in which they exist. Corporate social responsibility helps create a better world and greater cohesion in society.

We are coming into some rocky times and global changes are brewing that will have influence on American's lives. Corporations will be part of that change and will expected to be forces of positive  influence versus simple profit driven enterprises. As people become aware companies will be expected to be more philanthropic in addition to more competitive.

What should be and what is are two different things. Those companies that really try to do well should be supported but those that violate ethical rules and laws should be punished by the market. As the law doesn't typically apply to ethical violations it is necessary to ensure the market encourages pro-social behavior.

Ethical pro-social behavior applies to corporate giving, building neighborhoods, fundraising, philanthropic investments, and volunteering. These are the companies that are actively involved in their communities and make positive things happen.

As the public becomes more aware of corporate activities and more conscious of how corporations contribute to society market forces will start to play a role in the value of these companies. Ethical companies that contribute to society will have stronger corporate images and potentially higher market performance through customer loyalty and support.

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