Chapter 12: Crafting a Platform for CSR: Letting the Trellis Guide the Vines

In 1970, Milton Friedman, the Nobel Prize-winning economist, declared in the New York Times, “The social responsibility of business is to increase its profits” (1970, p. 1). Some years later, John Mackey, founder of Whole Foods, stated, “I’m a businessman and a free market libertarian, but I believe that the enlightened corporation should try to create value for all of its constituencies” (Friedman, Mackey, & Rodgers, 2005, p. 1). For Mackey, these constituencies include much more than the owners or shareholders of the company.

With which assertion are you most likely to identify? For many who were schooled in “the purpose of business is to make money” mindset, the continued growth of social purpose may seem counterintuitive to good business practices. After all, why would business leaders directly involve themselves with things outside of the purview of business? Can they really address societal needs effectively? And should they even address societal needs in the first place? The answer, it seems, at least to a growing number of consumers, is yes. For many, a corporation’s social responsibility (or CSR) is business—it is not a feature of business, a business’s PR piece, or a nice idea for business. It is an important part of a business model—and it is a growing expectation for consumers. As Mackey further stated, businesses that take this stakeholder view of social responsibility “will dominate the economic landscape. Wait and see” (Friedman et al., 2005, p. 4). Arguably, the business landscape has changed.