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Thinking for the future: global corporate responsibility in the twenty-first century
Institution:Fellow of Lucy Cavendish College, Judge Institute of Management Studies, Trumpington St, Cambridge CB2 1AG, UK
Abstract:This paper reflects on the kinds of responsibility businesses today must exercise in order to be part of the solution to the problems of a globalising world. These problems are to a large extent rooted in the dynamics of a globalization that is driven by business objectives and operations. They are brought to the fore of global consciousness by civil society protest on the one hand and investor pressure on the other in a manner that reminds us of Adam Smith's anxieties concerning the threats posed by corporate power. It is clear that in our time the systemic complexities of global interdependence magnify these threats in ways beyond the control of governments and nation states. The remedy must thus lie with the companies themselves. Businesses, whether global or local, must recognize that as agents of global change they are acting not simply as economic but also as moral agents. They must assume the responsibility for the effects of their actions, and we argue that the best way to do this is to commit to the primacy of human rights as an overarching value governing all their internal and external dealings. This has its difficulties, as we discuss in the latter part of the article: we use the example of a Brazilian study to illustrate some of the problems of acting out such a commitment. This study also illustrates the point that the futures of business and of the communities in which they exist are intertwined; shareholder value and human rights are interactive elements of ‘good’ business.
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