Activists have argued for decades that companies, as good corporate citizens, are morally obligated to adopt socially responsible business practices. On their end, companies say they exist to sell products, make money and please shareholders - not to save the world.
There's growing evidence that companies are embracing CSR practices - whether it's reducing factory and transportation pollution, using natural materials for packaging or treating workers fairly - because they believe such strategies can be profitable and socially responsible.
"All of a sudden, corporate responsibility is an idea whose time has arrived," says Julie Fox Gorte, chief social investment strategist at the Calvert Group, which manages socially responsible mutual funds. "We're seeing more companies who think it's not just a philosophy, but good for business, too."
Study shows value
Christine Arena, a San Francisco business consultant and author of The High-Purpose Company, says more corporations are using CSR not for feel-good philanthropy or to polish their public image, but as long-term corporate strategy.
Arena and 10 MBA students at McGill University studied 75 U.S. corporations, including Wal-Mart, McDonald's, Volvo, JetBlue, outdoor retailer Patagonia, clothing designer Eileen Fisher and agricultural products company John Deere.
They found that many are visionary, risk-taking companies that Arena calls "the early adopters, the alphas of the modern business world." The companies are staking their business growth and future on environmental and social goals. For instance:
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Source - USATODAY
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