The Concept of the Corporate Social Responsibility - Assignment Example

? The Corporation: The Pathological Pursuit of Profit. This is a documentary produced in the year 2003 in Canada with the aim of sensitizing and challenging the lawmakers. A certain professor Bakan inspired the filming because of his wide research in that field. The film digs in on the current corporation, putting into consideration the legal status under the class of ‘Person’. The film also attempts to evaluate the behaviour of the ruthless behaviour of corporation towards the society. Corporations have become the source of all the modern problems despite the fact that those in charge might not be like the at all. The documentary encouraged the writing of a book by the same title around the same time it showed on television. The documentary exposes reality through extensive research and expertise analysis and opinions (BAKAN, 2004, p. 56). The film documents the series of developmental stages of a corporation. The growth of a corporation occurs fast and in an unjustifiable way the government knows and protect. The law of the land stipulates that growth and profits given to shareholders is compulsory for all corporations, and for the reason they all feel duty bound. An amendment in favour of this situation is in place making them independent bodies classified under ‘persons’. The film majorly concentrates on corporations in the United States. According to an 1886 case in the Supreme Court of the US, corporations received the same rights as human beings (BAKAN, 2004, p. 57). The case watched the transition of corporations from just a business body to their equality to individual people (GLASBEEK, 2002, p. 145). One of the addressed topics was Business plot. In 1933, General Smedley Butler brought to light an alleged corporate plan that was against the U.S. president of that time; Franklin Roosevelt, and a few others. The general warned people to be alert on the controversial issue of Military- Industrial complex, the suppression the investigation news story on Fox News, the Cochabamba protests of 2000 raised by privatization of municipal water in Bolivia (MULLERAT, 2010, p. 149). The corporation makes claims in its rise to dominance. Interviews and Vignettes carried out clearly show the many critics of corporate business practices (MULLERAT, 2010, p. 153). Some of the claims made include 1. The corporate social responsibility serves to mask the true character of the corporations even though sometimes yields positive results. 2. All corporations legally have the obligation to elevate or heighten their personal interests above the interests of others. For this reason, they are prone to exploiting others without any regard for the moral limit or the legal rules. 3. Recent Wall Street scandal revealed that their unbridled self-interest is harmful because of victimizing individual, stakeholders, and environment and can cause the collapsing of these them. 4. Regardless of their flawed nature, the freeing of corporations by government from legal constraint through deregulation has granted it greater power over the society. This is through privatization of the corporations. All these claims have to consider reviews in order to restore the original purpose of corporations, which include serving the public interest, and re-establishment democratic control over the institution. All kinds of reforms ranging from Concrete to pragmatic to the realistic reforms are vivid as a requirement. The film tries to compare how corporations’ behaviour (contemporary profitable businesses) and that of a psychopath resemble. However, this belief goes against that of a psychology professor at University of British Columbia, and consultant of the FBI who claims not to include psychopath diagnosis but rather proposed their antisocial nature, which he says, is one of the diagnostic criteria and is not synonymous to their claims (ANNANDALE, 2005, p. 123). The film is extremely intriguing because it incorporates interviews with top of the ladder critics such as Naomi Klein, Michael Moore, Noam Chomsky and many other important figures. This move of employing a wide range of employees and a well-detailed scheme that allows attention to move around in a humorous and inter-connective hit and run fashion not only makes it the most influential institution of all times, but also brings out their monstrous nature. Opinions also feature in this documentary making it lively and realistic. Such opinions of directors like Ray Anderson are real testimonials that elaborate on the seriousness of the matter. The national figures who rarely want to be in the spotlight make the documentary worth to watch. Samuel Epstein, who sues Monsanto Company on the issue of corporations overstretching their power and mandate, also features in the documentary making it a true reflection of the real world (MULLERAT, 2010, p. 148). However, the documentary heats up many debates on the ‘fake’ facts present in its 145 minutes of showing. Economists argue that it work of fiction since they barely understand the forces of business at play in running a corporation. They also continue that such documentaries and other works of fiction continue to ruin the capital markets. The reviewer acknowledges the fact that the film heavily weighs in favour of public ownership as a solution to the depicted evils without considering the evils committed by the government as a public owner just like in the case of the Communist party or Monarchies and the church. The film production crews are experts who get the basic economic facts wrong according to other critics. The documentary also misstates Hare’s supposed ‘diagnosis’ of the psychopath theory and this make it unauthentic (ANNANDALE, 2005, p. 123). The documentary succeeds in portraying the true monstrous nature of corporates, and it is a revelation to most of the ignorant citizens, and to all corporations not only in the United States, but also in all parts of the world. The opinions by most of the featuring celebrities confirm the seriousness of the matter and pressures reforms from all corporations. The documentary is also an awakening call to the government to take necessary measures and especially consider reviewing the constitutional view of the corporations (FRIEDRICHS, 2010, p. 120). Regulations that reduce corporation power are appropriate in order to keep the best interest of the normal man at heart (GLASBEEK, 2002, p. 98). Analysis of Problems Discussed in the Documentary One of the problems expressed in the documentary is how a corporation conducts so much evil to harm the normal man, cause so much pain, suffering and death all over the globe, and just get away with it. Very courteous and literate people who are probably the cream of the society and who have ethics run corporations, and yet it becomes evil. This is a contradicting issue, and the answer lies in the documentary (FRIEDRICHS, 2010, p. 111). Corporations get out of control and become self-feeding monstrosities since they only have one purpose in life, and that is their nature to survive. Their sole purpose is to provide profits and value to its shareholders as it continues to grow and develop. It is in fact, extremely sad to notice that profit making and growth of corporations are a basic requirement by law. For this reason, they extend their problems to the society and the public at large as the film calls them externalities. A good example is the way Junk food externalizes costs to healthcare. Consumption of Junk food brings long-term healthcare costs and hence the film tries to show how they get out of control and become evil machines (ANNANDALE, 2005, p. 126). The documentary also extends the problem of the evil nature to not only corporations but also other organizations that the federal government owns. Their sole purpose is to make a profit and grow. The institutions that are in fact, supposed to be owned by common people have also become evil machines. The American Diabetes Association gets money from the largest manufacturer of soft drinks and candy. It is absurd that an organization that should fight against diabetes takes money from another that is responsible for the spread of diabetes and obesity. The effects of organizations getting out of control in the film seem to be terribly disturbing. Environmental effects and cruelty to animals are images shown to be intensely disturbing. The documentary also shows the treatment of pigs and that of human beings in underdeveloped countries as similar (BLOWFIELD, 2008, p. 58). Another problem addressed in the film is the psychopathic nature. Since corporations are a legal entity independent of the people who run it, one observes that is the type of person with no regard for safety of human beings. The type of person who harms the society, and is unpredictable. The type whose comparison is similar to that of a human being with a mental illness that is disturbing him. This is the behaviour considered as egocentric and harmful to oneself and the society. This is why pharmaceutical companies continue to manufacture harmful drugs with their complete knowledge. All these corporations just care about their profit margins and their obligation towards the law (FRIEDRICHS, 2010, p. 138). The problems caused by corporations are regulatory deficits at both the corporate level and the national level. At the corporate levels, corporation have an obligation to deliver quality services to the people. This obligation should not be impossible or nonviable because of their commitment to the law. The law provides that profits and growth are compulsory for corporations and the unfairness of the law should not be their method of justifying wrongful activities. Other ways of generating profits and observing growth are available to all if only they show dedication. Humanity and morality dictate that harming other people through malicious activities is not acceptable and corporations should heed to this (BAKAN, 2004, p. 67). However, the amendment of the law that made corporations a ‘person’ underwent implementation without serious thought and hence the law can be unfair. It is at the national level that a country can review their constitution and make the necessary amendments. The amendment or changing of the constitution should be in such a way that individuals running the corporations can become responsible for some of the corporation’s actions. Action at the national level if implemented can easily affect the rules at the international level. Corporations all over the globe should mobilize the government in reviewing the constitutions of their respective countries (BLOWFIELD, 2008, p. 65). The International level is the most suitable for reviewing the problems and enhancing implementation of constitutional amendments of various countries. One of the principal reasons is the power bestowed upon the international community, which gives them the influence over many countries. The international level can easily receive attention quickly in their campaign for change. This level also has both the resources and expertise to influence against these deficits. A lot of knowledge and money is a requirement in the campaign for change of regulations. Follow up on different countries is easier from the international level. These among many other reasons make the international community most appropriate to induce this regulatory change (GLASBEEK, 2002, p. 145). The Cochabamba Model The Cochabamba protests occurred in the year 2000. They were also Cochabamba Water War. They were a series of protests that occurred in Bolivia in the city of Cochabamba in April 2000. The protests were in response to the Municipal council’s water supply privatization. There was a wave of demonstrations, rioting and police violence allegedly because of hiked water prices. Tension build up was because of a new firm, Aguas Del Tunari who wanted to build a new dam and they dramatically raised water rates (AJAMI, 2006, p. 234). Riots were on going for the first three months where tens of thousands marched downtown causing problems with the police. One civilian emerged dead in the midst of the riots, and that is when the government reached an agreement with the Coordinadora and reversed the privatization. This model worked on pressuring the government to intervene, but it is not an appropriate way forward. In critical review of the situation, millions of shillings and a person’s life were the cost of the model. That money would have been useful in that dam. There are better ways of attracting the government's attention, and demonstration is not one of them. Its cost is far more expensive than the cause of the demonstration (AJAMI, 2006, p. 234). References BAKAN, J. (2004). The corporation: the pathological pursuit of profit and power. New York, Free Press. MULLERAT, R. (2010). International corporate social responsibility: the role of corporations in the economic order of the 21st century. Austin, Wolters Kluwer Law & Business. BLOWFIELD, M., & MURRAY, A. (2008). Corporate responsibility: a critical introduction. Oxford, Oxford University Press. ANNANDALE, D. (2005). Making profits, protecting our planet corporate responsibility for environmental performance in Asia and the Pacific. Metro Manilla, Asian development bank (ADB). AJAMI, R. A. (2006). International business: theory and practice. Armonk, N.Y., M.E. Sharpe. GLASBEEK, H. J. (2002). Wealth by stealth corporate crime, corporate law, and the perversion of democracy. Toronto [Ont.], Between the Lines. http://site.ebrary.com/id/10134705. FRIEDRICHS, D. O. (2010). Trusted criminals: white collar crime in contemporary society. Belmont, CA, Wadsworth Cengage Learning. Read More