Corporate Social Responsibility: Profit and PR

A corporation is an artificial person and as such, has the constitutional rights of an individual, that is, except for the Fifth Amendment protection against producing books and records. As a separate person, a corporation is an entity independent from the shareholders and has all the protections that a person would have other than the Fifth Amendment.

Each corporation is expected to behave as a good citizen of the community and participate in its activities in some way. Corporate Social Responsibility (CSR) in the United States is self-regulating corporate behavior. In theory, the corporation is part of the community and has an ethical responsibility to contribute to the health of the community and avoid harming the community. Some may view CSR as being at odds with the goals of a corporation, which are to take full advantage of all opportunities to increase profits for the shareholders. Others may view CSR as a corporation's moral and ethical obligation, giving back to the local and global community that gave to the corporation in terms of providing labor and skills and purchasing products and services. Still others may perceive CSR as good public relations. No matter whether or not we eat a Big Mac, we all recognize Ronald McDonald. Most of us know that Ronald McDonald helps the families of sick children.

This article, however, is not about theory, but about practice. No laws or regulations govern CSR. Each corporation determines its own CSR programs. In practice, the bottom-line and the shareholders are the primary focus of a corporation, and CSR may or may not play an important role in the corporation. A corporation should, but doesn't necessarily, have a legal obligation to do no harm. Unfortunately many corporations with CSR programs do harm, significant harm.

In Peru, Chevron is fighting for oil against the indigenous population. The government of Peru supports Chevron because it wants the oil from Chevron. At the same time, the government supports the police and blames the indigenous people for the deaths of the police. The indigenous people are simply fighting for their own land. Chevron, while bringing in huge profits for its shareholders, significantly harms both the earth and the people living on it in Peru. Still Chevron has a CSR program.

In Thailand, Chevron launched a long-term CSR project to encourage students to develop their schools in an environmentally responsible manner, which would boost student awareness of environmental issues. Chevron cooperates with Chulalongkorn University to develop a master's-degree program in petroleum geology by providing $10,000,000.00 over the next five years. Although this is termed CSR, the reality is that the program is to provide Thai experts for Chevron.

The Ronald McDonald CSR image is positive, but we know that the beef that we eat is destroying the rainforest. Rainforests cover approximately 6 percent of the earth's surface. McDonalds is the largest seller of beef. Large parts of Central American rainforests have been decimated for cattle ranching and sugar cane. McDonalds clears trees in the rainforest so that their beef will have grazing land. You know already that we need the rainforest to prevent global warming.

The intent here is not to vilify McDonalds. It is not the only corporation destroying our environment. We look at McDonalds because it has the most visible CSR image: Ronald McDonald. We notice the contradiction in what McDonalds does, McDonald the destroyer, and Ronald McDonald, the caretaker for families of sick children.

When I read an article such as this, I ask myself what can I do? If you are asking yourself the same question, and you may or may not be, you might already have ideas for what you can do. Listed below are our nine suggestions:

1. Avoid eating at McDonalds

2. Ask your friends not to eat at McDonalds

3. Eat less meat

4. Educate yourself about the rainforests

5. Know that McDonald employees are not unionized

6. Educate yourself about unions

7. Question advertisements

8. Question CSR programs

9. Become a knowledgeable and engaged consumer and citizen

When you have accomplished all nine suggestions, you'll understand the globe needs help and you have the ability and the skill to help reduce some of the ailments that plague the rainforests. When you get that far, you'll find others to work with to make a positive impact on our planet.


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