Business Ethics, Global Competitiveness, and Personal Morals?

After reading an article on the Industrial News Room, I was left with a few questions. None of them really came from one cohesive train of thought. First, should the leaders of today’s government and business be held accountable for their actions outside of the office? The article mentions the recent downfall that was Governor Spitzer’s career and how ethics and moral behavior is always being pushed into public discourse when it comes to business. The question here is, do the leaders that tout themselves for being socially responsible in the boardroom, need to be socially and morally responsible in their personal lives? Does it even matter, unless it directly affects the consumer?

 

Another question that stemmed from further reading was whether or not the costs of compliance tests are too high for these businesses? Could this be a downfall to having governmentally regulated CSR standards? Or are big businesses just looking for a way to explain their outsourcing so they don’t look like the “bad guy”?

Honest Tea, really honest?

Today our beloved Bethesda, MD based beverage firm, Honest Tea, announced that it sold the Coke Corporation a 40% stake in its business with an option to by within the next 3 years. Many question the motives of the holistic company’s CEO Seth Goldman.

Is he selling out to the big corporation for the money or are his intentions just as wholesome as the tea he’s served for the past 10 years? Goldman argues that with the Coke Corporation backing him he will need 10 times as many organic ingredients thus creating a demand for “a more sustainable system of agriculture, one that doesn’t rely on chemical pesticides and fertilizers”. Goldman continues to insist that as opposed to him “selling out” they are “buying in”.

What we want to know from you is whether or not socially conscious independents can do more good with the backing of large corporations or are they better off remaining independent? For the Washington Post article on the purchase click here.

Should the government regulate CSR?

Corporate Social Responsibility is at the forefront of “bigger, better, brighter” business. Many companies have voluntarily adopted policies that make them more appealing to the eco-friendly and socially responsible consumer, but for the most part these efforts are left largely uncoordinated across the varying fields of business.

An event hosted by the Brookings Institute discussed topics relating CSR to government policy and what the link between the two should potentially be. The question that this brings to mind is: should the government have regulation over CSR practices? If the government does gain control of these policies will the “good natured” connotation behind a company practicing social responsibility change? How could government regulation affect business? The event summary and transcript from the event can be found here. Seeing the growth of CSR in the recent years, what do you see for its future (with or without government regulation)?

Can Wal-Mart make-up for its tarnished irresponsible past?

One of our students, Matt Dowthit, e-mailed out this recent NYTimes article highlighting Wal-Mart’s promise to be more socially responsible. As many of you know, Wal-Mart has an all but retched reputation when it comes to corporate citizenship. The article describes chief executive, H.Lee Scott’s promises:

“In a lofty address that at times resembled a campaign speech, the chief executive of Wal-Mart Stores, H. Lee Scott Jr., said that ‘we live in a time when people are losing confidence in the ability of government to solve problems.’ But Wal-Mart, he said, ‘does not wait for someone else to solve problems.’”

Can Wal-Mart actually change its perception? Can it really be responsible? Will you start shopping at Wal-Mart because of these promises?