Corporate Social Responsibility & Why Good People Behave Badly in Organizations
Original post by Laura Agadoni of Demand Media
Corporate responsibility is the practice of businesses giving back to the community. To understand why there is a need for this and why so-called good people behave badly in business, take note of what psychologist Erich Fromm says: "Greed is a bottomless pit which exhausts the person in an endless effort to satisfy the need without ever reaching satisfaction." You need think no further than Jeffrey Skilling of Enron or Bernie Ebbers of WorldCom, two corporate criminals, to realize the truth of Fromm's observation.
Forms of Corporate Responsibility
Corporations are in business to make profits. However, there are various reasons company would give back to its community. Often many employees of a company live in the surrounding community, and feel responsibility to help. At the same time, it can also be good publicity for company. Corporate responsibility can take many forms, from sponsoring a neighborhood Little League team to running nonprofit organizations.
Tell People What You Do
Many people in polite society believe it is tacky to talk about your own good deeds. But it's good for a company's reputation if the public is aware of the its corporate good will. When you engage in any type of corporate responsibility program, tell people about it through a press release. You can also communicate your message through social networking sites like Facebook or Twitter. These are good avenues for getting immediate feedback for your efforts.
Why people behave badly in organizations is as varied as the people who behave badly. In the 1980s, insider trading was rampant; the 1990s saw creative accounting and financial fraud from executives who received stiff prison sentences. The early 2000s saw Goldman Sachs earning profits during the subprime mortgage fiasco by betting that its investments would fail.
When it comes to business, Congress can pass regulations such as the Sarbanes-Oxley Act of 2002 to make companies accountable for their actions. However, some argue that these types of regulations take the bite out of business. Too much governing can cause businesses to take fewer risks.
- Inc.; The Way I Work: Daniel Lubetzky of Kind; Issie Lapowsky; December 2010
- Entrepreneur; Spotlighting Your Social Responsibility; Rachel Meranus; May 2010
- "PBS Newshour"; Skilling Sentence Marks Latest Crackdown on Corporate Crimes; October 2006
- MSN; How Goldman Profited from Subprime Meltdown; December 2007
About the Author
Laura Agadoni has been writing professionally since 1983. Her feature stories on area businesses, human interest and health and fitness appear in her local newspaper. She has also written and edited for a grassroots outreach effort and has been published in "Clean Eating" magazine and in "Dimensions" magazine, a CUNA Mutual publication. Agadoni has a Bachelor of Arts in communications from California State University-Fullerton.
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