According to the Edelman Trust Barometer Special Report: Brand Trust in 2020, 85% of consumers polled want brands to “solve my problems,” 80% want brands to “solve society’s problems,” 69% cite being a dependable provider, 64% cite being a reliable source of information, and 63% cite being a protector.
All in all, it comes down to brands—and companies—doing the right thing.
The origin of corporate social responsibility
While corporate social responsibility practices can be traced back to the late 19th century, it wasn’t until the 1940s that businesses themselves began supporting charities and other nonprofit works—and consumers began to ask what to expect from companies in terms of social responsibilities.
In the early 1950s, these questions of social responsibility were first addressed in literature and academic research. Howard R. Bowen, who would later serve as president of Grinnell College from 1955 to 1964, published Social Responsibilities of the Businessman in 1953. In it, he advocated for large corporations to change their decision-making and think more about their consequent impact on society. Referred to as the “Father of Corporate Social Responsibility,” Bowen worked on defining principles for corporations to fulfill their social responsibilities.
Due to the social context of the 1960s, protests often went against corporations that were seen as part of the “establishment.” Scholar Keith Davis argued that the social, economic, and political changes should pressure businesspeople to reexamine their societal role—and their actions could be linked to economic returns.
This came to a head in 1969, when a major oil spill in Santa Barbara, California, caused nationwide protests—and led to the creation of the first Earth Day in 1970 as well as the Environmental Protection Agency by the end of the year. Corporations now had a new regulatory framework to follow.
The publications of both A New Rationale for Corporate Social Policy and Social Responsibilities of Business Corporations by the Committee for Economic Development helped lay out the social expectations of corporations at the time. By 1979, the phrase “corporate social responsibility” had been thrown around, and scholar Archie B. Carroll proposed the first unified definition of corporate social responsibility: “The social responsibility of business encompasses the economic, legal, ethical, and discretionary expectations that society has of organizations at a given point in time.”
Why companies are sometimes ranked as good and sometimes as bad
Fundera published an article just this year outlining “25 of the World’s Most Socially Responsible Companies.” On the list? Google and Microsoft—they were listed in the top 10. Fundera cites Microsoft’s philanthropy efforts with youth and minority-owned businesses—focusing on educational efforts and access to technology. Google’s ranking relies predominantly on its company culture, commitment to its employees, and its carbon footprint.
And yet, it depends where you look.
In 2020 Worth Rises, a nonprofit advocacy organization, published its annual report: The Prison Industry—Mapping Private Sector Players. They called out some big names in the sector, and for the first time introduced a harm score for each corporation that measures involvement in human rights violations in the prison industry and flags corporations that support prison labor. Corporations that scored more than 10 points are recommended for divestment. Microsoft and Google both have a harm score of 11.
So whom do we trust? What model do we look to when wanting to support ethical business practices?
“Company concerns about whether to be more responsive to consumers and the public good or meet shareholders’ expectations is an age-old problem in the marketplace. And many organizations continue to wrestle with this dilemma today,” says Tom Hayashi, Ph.D., program director for the Department of Leadership and Management at Saybrook University, a partner college of Pacific Oaks.
Evolution of CSR: B-Corps and the Triple Bottom Line
CSR gave rise to companies like The Body Shop and Ben & Jerry’s—both are B Corp certified. The nonprofit B Lab provides B Corp Certification.
In order for a company to become B Corp certified, they must complete the B Impact Assessment (BIA). This assessment, updated every three years, is designed to measure the impact of a company’s daily operations and their business model. With a total of 200 questions, B Corp certification requires a minimum of 80 points. After the BIA, companies then engage in a multi-step process and meet other transparency requirements.
B Lab was founded in 2006, and to date, there are 3,500 B Corps in 70 countries and 150 industries.
While B Corps are a way to recognize organizations for CSR efforts, many other companies follow different guidelines. Modern management philosophy embraces what is commonly referred to as the Triple Bottom Line, which can be summarized by a focus on each of the three P’s: people, planet, and profit.
Companies have tremendous sway in the world—and they need to start acting accordingly. Those who are helping to prepare the future leaders of these companies though must also have a role.
“Over the years, business schools were blamed for failing to integrate and promote corporate social responsibility (CSR) in their curricula. Focusing on the bottom line and ignoring the well-being of the community is not acceptable. CSR must be undertaken by businesses to ensure a better tomorrow,” said Dr. Jack Paduntin, president of Pacific Oaks College and Children’s School. “Pacific Oaks College’s B.S. in Business Administration program incorporates CSR in various ways. We are proud to play our part and help our students develop socially responsible mindsets, creating both conscientious and successful leaders for tomorrow’s business world.”
Pacific Oaks’ emphasis on CSR in its BSBA program can help set students on a path to making positive change in places that can truly make a difference.
“The new bachelor’s degree in Business Administration at Pacific Oaks is designed to prepare students for a successful career in business and management,” says Dr. Theresa Greene, who leads Pacific Oaks’ business and management programs. “For adult learners who have been in the workforce for many years and want to make a positive impact in the world, the program allows individuals to bring their real-world contributions to the classroom while also carving out a pathway that is meaningful in their workplace, elevating them both on a personal and professional level.”
Learn more about the B.S. in Business Administration program at Pacific Oaks College
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