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Jenifer,

Corporate Social Responsibility

Garrison, Noreen, and Brewer (2015) define Corporate Social Responsibility (CSR) as organizations considering the needs of all stakeholders when making decisions.  They claim that companies’ financial performance may be adversely affected by failure to satisfy the needs of six stakeholder groups including customers, employees, suppliers, communities, environmental and human rights groups, and shareholders.

There are at least two reasons why businesses need to operate in a socially responsible manner.  Fundamentally, there is the free-market concept.  In order for businesses to successfully operate, they must have customers who are ready and able to buy their product.  They also must have products to sell, which requires employees and suppliers.

There is also the idea that businesses have an ethical obligation to pay-back society for the success they have received from it. Tim Barnett discusses the origins of this concept of CSR in the 1950s and ‘60s,

Based on the general idea that those with great power have great responsibility, many called for the business world to be more proactive in (1) ceasing to cause societal problems and (2) starting to participate in solving societal problems. Many legal mandates were placed on business related to equal employment opportunity, product safety, worker safety, and the environment.

I worked for JPMorgan Chase during the banking crises (2008-2011), and my manager was the head of Corporate Responsibility.  At JPMorgan, the Corporate Responsibility group is huge.  It includes government relations teams (federal, state, and international), socially responsible investment funds, community development programs, small business initiatives, environmental sustainability programs, the JPMorgan Chase foundation, and much more.  By including all of this under a single individual, JPMorgan is able to leverage all of the goodwill that it builds through these programs to shape the corporate image and target and influence key decision makers.  At JPMorgan, being good corporate citizens is part of the company culture.  The idea is that as leaders in our field, “we have the responsibility to use our expertise and resources to invest in our communities and to help them address the social and environmental challenges they face.”   (JPMorgan Chase)

The Bible speaks to the importance of a good name.  Proverbs 22:1, “A good name is to be chosen rather than great riches, and favor is better than silver or gold.” (KJV)  The Bible also instructs us to be generous with what we have.  Luke 6:38a says, Give, and it shall be given unto you” (KJV)  Matthew 10:8b says, “freely ye have received, freely give.” (ESV) And, Proverbs 19:17 says, “Whoever is generous to the poor lends to the Lord, and he will repay him for his deed.” (ESV)  Finally, the Bible advises us to be ethical and advocate on behalf of the oppressed, Isaiah 1:17-19 says, “Learn to do good; seek justice, correct oppression; bring justice to the fatherless, plead the widow’s cause. ‘Come now, let us reason together says the Lord: though your sins are like scarlet, they shall be as white as now; though they are red like crimson, they shall become like wool.  If you are willing and obedient, you shall eat the good of the land.” (ESV) 

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