Sunday 10 October 2010


A "business" doesn't owe responsibility to anyone. How could it? Only people have responsibilities.

And the responsibility of the directors of a business is to its shareholders, not to the "community". The whole concept of "corporate social responsibility" is a fraud on the shareholders who own companies. I suppose that one could argue that given the irrational climate in which we live some short-term minded company directors might think it's necessary to go along with this pernicious doctrine.

It seems so:

A study of the CSR policies of 12 of Scotland’s largest listed companies, found that spending year on year on corporate good citizenship increased in defiance of the tough economic conditions. They included Standard Life (+12%), Weir Group (+8%) and Wood Group (+5%), even though the latter two companies were found to be among the least active in the area relative to their size. Cairn Energy, Alliance Trust, Aberdeen Asset Management and Stagecoach all also claimed to have maintained or increased spending. This came at a time when spending on advertising in the UK plunged, down 12% between 2008 and 2009.
And how about this:
Jane Wood, chief executive of charity Scottish Business in the Community, said the findings were reflected across the board. She said: “Around 70% of chief executives say the recession has resulted in sustainability becoming more important.”
But directors owe a long-term responsibility to shareholders and it's incumbent upon them to speak out against the CSR fraud. Sustainability should always be a priority for company directors whether there's a recession or not.

Actually, I suspect that we are seeing the first stages of a great depression but let that pass for the moment.

What gives a business sustainability is not pandering to CSR but a resolute defence of property rights. Let's hear it.

1 comment:

David Farrer said...

Comments made on previous template:

Neil Craig
Bet there turns out to be a statistically inexplicable relationship between directors who spend a lot on CSR just as there is for those who donate to politicans.

16 October 2010, 18:01:01 GMT+01:00
– Like – Reply

Colin Finlay
A Company, in its original sense, is simply a company of people. However, as long as laws are not broken there can be no case for wasting shareholders funds on arrant nonsense like Diversity Programmes and other meretricious, equality by command, Marxoid desiderata.

13 October 2010, 10:20:16 GMT+01:00