by Nicole Brusco | Responsible business is not just for Leftists.
The phrase “corporate responsibility,” until now, has left a bad taste in conservatives’ mouths. The term is generally defined as a corporation’s policy of engaging in activities or business practices that are implemented with concern for the welfare of the community. The Right dislikes this term because leftists use it to assert that corporations must be punished for damage to communities and the environment.
It is time for conservatives to adopt “corporate responsibility.” This phrase has been used by socialists and communists to undermine our economy and capitalist principles, yet the concept fits well with conservative values, and has proven to be a profitable business practice.
What should “corporate responsibility” mean to conservatives? “Responsibility” implies obedience to someone, and owing something. Corporate executives are responsible to their shareholders and must implement the best methods to grow and strengthen their corporations.
Corporate responsibility can also mean that companies act in a responsible manner, by not knowingly deceiving or mistreating customers, or malevolently causing damage to their surroundings. This is, of course, a conservative’s definition of the term. The way the Left has used corporate responsibility has done nothing but harm our economy by over-regulating business and opening the courts to frivolous lawsuits.
Conservatives have historically argued against corporate responsibility as leftist propaganda, trendy, and unprofitable. However, the proven benefits to this approach are long term, and not easily recognizable. Firms will profit if they act in ways that help to improve the surrounding communities and environment. These economies will become more prosperous and demand will increase for the goods and services. A healthy environment will be able to produce more useable resources, but a damaged environment can and will hurt the economy. In order to operate on this higher moral ground, corporations must forego short-term profits for long-term successes.
Recently, an entire conference was held on “corporate responsibility” at Boston College, as part of the StartingBloc Institute for Responsible Leadership. Students from Boston-area schools, including more than 20 Tufts students heard industry leaders talk about how corporate responsibility has helped their companies. The Boston Globe Foundation is initiating a student-run, inter-high school newspaper for Boston schools that are not able to have their own newspapers. This is a relatively cheap investment for the Globe, which they hope will provide them with many more interested and skilled reporters in the future.
Corporate responsibility programs help to drastically improve human resources by decreasing turnover and increasing the attractiveness of a company to potential employees. Employees are more loyal to corporations that they believe care about the welfare of the community. In particular, the practice of giving employees paid time off to do volunteer work has been proven to beeffective in building a more productive, happier workforce. John Hancock Insurance practices this volunteer program by sending its employees to Boston schools to teach children about the Boston Marathon. John Hancock is a major sponsor of the marathon and brings the children to the race every year. This program has received a lot of media exposure, including television coverage during the marathon. Investing its employees’ time in Boston children has proven an extremely inexpensive way for John Hancock to receive positive press.
Advertising is not the only benefit reaped from practicing corporate responsibility, as discovered by IBM while working on their Eternal Egypt Project. In conjunction with Egyptian museums, IBM created a website offering interactive images and tours of ancient treasures, which are accessible from any mobile device, including cell phones. This project served as research and development for the company, requiring them to create new technology that will be used in future products, as well as effectively promoting a positive image of IBM.
The key to implementing corporate responsibility is not simply giving money away, but using it actively to most effectively benefit the shareholders and community. A corporation’s leaders are responsible to the shareholders to increase the company’s capital as much as possible. This should also be the goal of corporate responsibility, although some of the capital involved is good will and reputation, not financial assets. This is a capitalist goal, and one that should be embraced by conservatives.
Moral and honest business practices, which are also covered under the umbrella of corporate responsibility, are also consistent with conservative values. In theory, corporations should strive to abide by those business practices, which may be more costly in the short-term but are beneficial in the long-term. If corporations did this, there would be no need for government to strictly regulate and pry into business’ practices because laws are generally passed in reaction to an event. Legislation will never be able to keep pace with unethical business practices. In the end, it is up to the executives in the boardroom to treat customers, communities, and the environment with respect.
Miss Brusco is a sophomore who has not yet declared a major.
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