Corporate social responsibility practices and impacts

Corporate Social Responsibility

Unfortunately, corporations are given considerable leeway by the government and are allowed to sidestep rules, misinform or withhold information from the public; and otherwise avoid accountability. As Estes writes in his article "Punitive Damages Remind Companies Not to Sin," "We'll continue to have exploding automobiles, unsafe workplaces, sweatshops, toxic pollution and waste until corporations are made to put the public interest over private profit." Exploding cars are only one of many symptoms of corporate irresponsibility. Putting private profit over public interest, integrity, and even common sense is immoral and unethical because it leads directly to physical harm and even death. Other symptoms of corporate irresponsibility include environmental degradation and poverty. The government and the justice system need to encourage corporate responsibility through a strict enforcement of reasonable laws based on public welfare. Awarding large punitive damages to victims of corporate irresponsibility is one way of creating public awareness and can in some cases create change in corporate behavior. However, in many cases, large corporations feel only a slight sting from large damage settlements. Forced to pay a fraction of their annual profits does nothing to encourage change. Therefore, the government needs to step in by creating and enforcing laws. Outside the courtroom and beyond legislation, watchdog groups should take solid action, but in order for watchdog groups to be effective they should receive considerable amounts of public funding. Furthermore, the media plays a key role in promoting corporate responsibility and alerting an otherwise ignorant public about some of the alarming instances of corporate irresponsibility.

Corporations will not change their behavior out of kindness, compassion, or ethical awareness. The bottom line takes precedence over all these things because the CEOs and upper level managers of major corporations are not the victims of their crimes. When a factory dumps toxic waste into a low-income neighborhood, no CEO's children are affected. When a Pinto explodes, no CEO's skin gets burned because he or she already knew about the faulty design. When a company opens a sweatshop in a developing nation, no CFO's children will have to work fifteen hours a day for mere pennies. When a woman gets asthma from inhaling toxic substances in her place of work, no CEO is affected because his office is located on the top floor of an office building in a city thousands of miles away.

The victims of corporate irresponsibility often have no recourse. To take on a major company in court is a daunting and incredibly expensive process. Even when lawyers are willing to work pro bono, the emotional toll taken by a lawsuit can negatively impact the health and well-being of the person. Successful lawsuits and settlements are relatively rare compared to the instances of corporate irresponsibility. Because corporations are so powerful and so coddled by government, many victims feel -- and effectively are -- powerless.