Beyond corporate social responsibility: minnows, mammoths and markets

‘Corporate Social Responsibility’ (CSR) has become the mainstream prescription by business and governments for dealing with social and environmental ills. It is a voluntary form of self-regulation that aims to tackle everything from human rights and labour standards to limiting carbon dioxide emissions that lead to climate change. But because CSR ultimately lies within the framework of markets, and requires market-based incentives for companies to invest in such programmes, it ultimately falls prey to the vagaries of the market. The myths of CSR include that voluntary reporting improves performance; that codes and management systems change corporate behaviour; the consumer will drive change and that the investment community will provide the best incentive for business to perform in a more sustainable manner. Re-envisioning ethical business requires us to look at opportunities below the radar screen: not at minimising the impacts of big business. Understanding and providing the institutions to support the ‘ethical minnows’: those business that operate on a sustainable platform and provide a social return on investment, beyond mere financial profit. Ultimately, we need to transform markets in such a way as to see an end to the larger corporate winner-takes-all approach if we are to see a sustainable future. q 2004 Elsevier Ltd. All rights reserved.