The corporate response to the tsunami disaster was heartening, but it highlighted the need for concerted action to help developing nations, says Jem Bendell
The Indian Ocean tsunami was shocking: the greatest natural disaster in modern times. The reaction from individuals, governments and businesses was great to see: a tidal wave of compassion to push back a tidal wave of destruction, as one relief worker put it.
The most urgent need was for supplies of water and medicine, especially as development agencies warned that disease could double the initial death toll. Many firms responded, including Coca-Cola and PepsiCo, which quickly provided bottled water as well as cash support.
But now that some weeks have passed, there is a broader discussion about disaster relief, poverty and the roles and responsibilities of corporations. This was apparent at the Davos forum, where an audience dominated by chief executives voted poverty the number one global challenge.
That challenge is huge. While everyone rushed to get clean water to people affected by the tsunami, one in five in the developing world still did not have access to safe drinking water. Around 2.4 billion people live without basic sanitation. This means about 5500 children die every day from diseases linked to polluted food, air, and water. Every month there are tsunami-like casualty figures among the world’s children.
So the corporate generosity is heartening to see, but cannot cover the disgusting level of inequality on our planet. The world spends three times as much each year on bottled water as it would cost to ensure everyone has safe drinking water. The challenge of making clean water available to all, and eradicating poverty more broadly, is not one that can be met through charitable acts stirred by disasters. Instead, the way current patterns of globalization affect the access of poor communities to the basic necessities of life must be examined, critiqued and ultimately changed.
This is the new frontier for corporate social responsibility – how corporations affect the lives of the world’s poor. There has been a quiet change in the opinion of key business leaders. Many now see poorer regions as places they can do business, helping local people. At this new frontier of CSR there are not only business opportunities, but also tough questions about normal business practice that will need answering. Exploitative supply chains, tax avoidance and anti-competitive practices undermine corporations’ contributions to development. The financial sector’s influence on governmental macroeconomic policy can also be questioned for its impact on the poor. Such basic issues can no longer be ignored by mainstream work on CSR.
