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DR. MARK W. HENDRICKSON: CORPORATE SOCIAL RESPONSIBILITY AND ITS NEWEST VERSION: ESG |
Bottom line: A corporation can’t be all things to all people. To survive and to prosper, corporations need to focus on satisfying their customers and those to whom they have fiduciary and moral responsibilities, i.e., their shareholders and employees. To get swept up in the latest CSR or ESG fad is bad business. By pursuing partisan political goals instead of traditional business goals, business leaders offend some consumers, demoralize or anger some employees, and poorly serve their shareholders. Since consumers, employees, and shareholders are the members of society that a business affects most directly, it follows that sacrificing their welfare in the name of certain activists’ cause hurts society. In practice, ESG can be very antisocial.
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