"There is one and only one social responsibility of business," Nobel Prize-winning economist Milton Friedman famously declared more than 50 years ago. It is “to use its resources and engage in activities designed to increase profits so long as it.. engages in open and free competition without deception or fraud.”
Times have certainly changed, especially in the past two decades. Today, corporate leaders and brands know that they can't always follow Friedman's advice, and are expected to step forward and contribute to solving crises facing society. But there are often hazards in doing so. Walt Disney, Delta Airlines, and Larry Fink, Chairman and CEO of BlackRock, have all faced harsh criticism for their public stands.
We discuss the hazards and opportunities for corporations and their leadership with the author, researcher, and facilitator Elizabeth Doty, Director of the Erb Institute's Corporate Political Responsibility at the University of Michigan. She suggests constructive ways for businesses to play a key role in countering hyperpartisanship and other divisions in society.
"Companies are on the receiving end of a lot of criticism," Elizabeth tells us. "We felt they needed a place to get foresight for companies to dig into what's behind these complaints." In our podcast we hear ways businesses can benefit society and themselves with a constructive forward-facing, deliberative approach.
When confronting divisive issues, corporations should consider how to "raise the quality of the argument rather than pick a side in the argument", says Elizabeth.
In a statement on its website, the Taskforce says: "Unfortunately, many executives operate without an integrated view of their firms’ engagement with governing or electoral processes, or clear principles to ensure transparency, accountability and responsibility. As we have seen in 2020, in an environment of polarization and distrust, inattention to CPR can increase reputational risk, destabilize the civic and business environment, threaten the credibility of other efforts and undermine the positive systemic changes society needs."
Learn more here. The Taskforce invites business leaders, academics and others with an interest in this topic to get involved.
Recommendation: Jim is enjoying "Walking the Floor" a music podcast hosted by Chris Shiflett, lead guitarist of The Foo Fighters.