CSR is a waste of time, and may even do more harm than good, according
to one of the most vociferous non-governmental organizations in the
field.
Corporate Watch, which monitors corporate behaviour worldwide, has
declared ‘CSR is a problem, not a solution’, on the grounds that the
voluntary efforts it encourages are ‘a vehicle for companies to thwart
attempts to control corporate power’. In a new paper, What’s wrong with corporate social responsibility,
the group argues that ‘CSR has ulterior motives’ largely aimed at
improving brand image and avoiding regulation. It dismisses most
programmes as ‘greenwash’, and adds: ‘The problem isn’t simply that
companies aren’t practising CSR very well. It’s that the corporate
structure is not capable of social responsibility.’
Although not in the top rank of NGOs, the UK-based organization has
influential supporters, such as the Joseph Rowntree Charitable Trust,
which gives it funding, and the new paper has attracted media attention
in the UK.
Despite the trenchant views, industry specialists have reacted in
restrained fashion. ‘Where I agree with Corporate Watch is that often
companies want to trade a token bit of good behaviour for the freedom
to behave as they like,’ said Hilary Sutcliffe, senior partner at the
Acona consultancy. ‘On the other hand I don’t think the motives of
“improving brand image” and so on are actually “ulterior” at all. They
are called the business case.’