Business Social Responsibility begins with the participation of the tradesmen in the American Revolution, and grows with the pioneering spirit and barn-raisings. People help others because it is right and necessary. Fast forward to post-WWII, GI’s return and are assisted by both Federal support in the GI Bill and the rapid growth of the private sector, pursuing education and jobs, building families and homes. The prevailing mindset is, ‘What’s good for General Motors is good for America.’
Product Safety and Environmental Awareness
The 1960’s brought a seismic shift, not only via the Civil Rights Movement, but also through consumer advocacy. The Chevrolet Corvair becomes known as “Unsafe at Any Speed,” because of the success of Ralph Nader’s book of the same name. This launched the campaign for consumer protection rights. Rachel Carson’s book, “Silent Spring,” presented scientific evidence of the dangers of DDT and other pesticides for people and the environment. This launched rules that decrease toxic chemical use by 50% over 10 years. Today, consumer Right to Know laws go well beyond chemicals.
The Energy Crisis and Lifecycle Product Development
Milton Friedman, 1976 Nobel Prize-winner, foreshadows Trickle-Down Economics or Reaganomics, stated that, “the social responsibility of business is to increase its profits.” The 1970’s energy crisis brought, Reduce, Reuse, Recycle into common use. There was a sense that business operates in opposition to the citizenry. The cradle-to-grave product development strategy had its genesis in this period.
Cause-Related Marketing and Consumer Engagement
In 1986, American Express inaugurated the next generation of corporate social responsibility – cause-related marketing – when the company proactively ran a company sponsored, consumer-based campaign to restore the Statue of Liberty. With the activism around boycotting companies (reminiscent of the Civil Rights Era) with investments in Apartheid South Africa, the private sector became globally interconnected with government and the nonprofit sector. Give-back programs, product tie-ins, and executive leadership multiplied.
Addressing Discrimination and Supply Chain
The Consumer Reinvestment Act of 1977 got modern legislation and more enforcement in the banking and financial industry; proper consideration for women and minority-owned businesses became a mandate. The 1990s brought an awareness of the increasing diversity of our population as well as the proliferation of stakeholders in business. Diversity seminars and sexual harassment training spread to help companies navigate these realities. Socially responsible investing and supply chain scrutiny appeared. Companies were censured for the environmental impact of their work and for egregious labor conditions abroad.
21st Century CSR
In the 2000s, companies no longer ignored the impacts of their actions on people, partners, neighborhoods, and the environment. Strategic integration arrived. Leaders got in front of potential issues, leveraged opportunities to contribute, built relationships with nonprofits, and engaged employees, customers, and vendors. Busineses began to see that, “What’s good for the world, is good for The Company.”
Today, corporate social responsibility means, “capacity building for sustainable livelihoods around the globe. It respects cultural differences, and finds the business opportunities in building the skills of employees, communities, and governments.” It is up to each of us to drive how this develops in the future.