Are We Putting Undue Burdens on Business to be Socially Responsible?

Does Society Expect Too Much from Corporations?

Corporations need to re-think how they are doing business today if they want to stay in the good graces of customers, investors and the government.

It is not enough for companies to be competitive and do well. We also want corporations to help protect the environment, build roads, fight corruption, advance human rights, support the arts, contribute to local communities, compete globally, and create immense shareholder value, all at the same time.

While these are real concerns, the expectations may be a bit too high. After all, the main duty of a corporation is to provide a quality good or service and return a reasonable profit to its shareholders. If they can find a way to do that, and be socially responsible too, they will be rewarded in the marketplace, but it is not easy.

Among the companies who have balanced these challenges successfully, I cite the following:

Microsoft; Wal-Mart; Exxon-Mobil; Chevron; General Motors; Conoco Phillips; Ford Motor; Citigroup; Bank of America; ATT; JP Morgan Chase; HP; IBM; Valero Energy; Verizon; McKesson; Procter & Gamble; United Health Group; Kroger; Boeing; Target; State Farm; Well Point; Marathon Oil; United Technologies; 3M; Aetna; the Walt Disney Company; Home Depot; Johnson & Johnson, and Marriott.

My new book, Doing Good--the New Rules of Corporate Responsibility, Conscience & Character lays out 55 simple, easy-to-follow rules for CEOs and business leaders to succeed amids the new challenges of today's global marketplace in the areas of ethics, governance, citizenship, philanthropy, diversity, privacy and public policy.

Balancing these competing expectations remains a daunting challenge for many corporations, but with focus and commitment, they can succeed.

(c) Adonis Hoffman

2010