During a week when people are talking about the recent accidents
in Bangladesh, and
what that means for companies sourcing from the developing world, I have been
thinking about another subject that has great social impact potential, Corporate
Social Responsibility (CSR). CSR in the US came of age in the 90s when
companies like Nike and the Gap were called out for using supply chains that
had questionable sources, including sweatshops. Companies began to focus more
on improving the image of their social impact, and CSR was one way they have
tried to do that.
CSR comes from well-meaning companies, but is often of
limited impact on society. Sure, you can recruit star employees who care about
working for a company with “heart,” and customers might view you more favorably
if you can show a social concern. But unless you are a social enterprise that
incorporates social impact into your business model, your CSR program is probably
not making the most of your company’s potential impact.
