Corporate Social Responsibility – what’s a company to do?

As published in The Daily Maverick.

KFC’s recent advertising campaign, based around their stated concern to rid Johannesburg streets of potholes, brought to mind Milton Friedman’s claim that “the business of business is business”. Although there is some dispute whether the phrase should be attributed to him, the idea that private companies are there only to make money (within the bounds of the law) has never met with universal agreement. Critics assert that the power which companies wield obliges them to demonstrate social commitment, for example via financial contributions towards pothole-repair. These purported obligations are backed up by policy and legislation, such as triple bottom-line reporting and the three King reports.

But we should always be wary of letting convention, as well as law, dictate our perceptions of what words such as hypocrisy, right and wrong, moral and immoral mean. The fact that we may prefer the world to look a certain way, and for companies and individuals to act in accordance with those preferences, does not mean that they are obliged to do so – or that they are morally negligent when they don’t.