Archive for November, 2007

The Debate is Over …. Friedman Lost

I was having a conversation with a friend the other day on the topic of CSR. I was on the pro-CSR side (of course); he had the anti-CSR position. Predictably, as the conversation got spirited, he invoked the name Milton Friedman and his famous 1970 article in The New York Times Magazine, “The Social Responsibility of Business is to Increase its Profits.” It was predictable because there is hardly a debate on CSR that does not at some point find its way around to Friedman’s position on the topic.   

In case you’re not familiar with Friedman’s article, his closing sentence provides a great summary:

“There is one and only one social responsibility of business–to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engages in open and free competition without deception or fraud.”

I admit to some dramatic license in my headline. Friedman didn’t necessarily lose the debate, but the “game” he referenced is very different today. From changing consumer expectations of businesses to the corporate accounting scandals that took place from 2001 through 2003 to the environmental issues we face today, a lot has changed in the 37 years since Friedman penned his article. Today, companies are learning they can increase profits as a result of their CSR efforts, not despite them.

Not one for long philosophical debates, I put it to my friend this way: You can oppose the expanding role of social responsibility in business; however, you can’t deny it and companies ignore it at their own peril. 

 

Jeff

 


3 comments November 17, 2007

CSR: Getting the Attention of IT Analysts

We all want our views validated.  In the IT industry that often comes via analyst firms.  A year or so ago when Lawson began looking at the role IT in CSR, very few analysts were talking about it. That’s changing – quickly. Some recent examples include:

At its recent Symposium/ITxpo in Orlando, Green IT topped Gartner’s list of the top 10 technologies and trends that will be strategic for most organizations in next few years.  Gartner focused primarily on hardware and data centers.  Green IT occupied the top 10 list with more “traditional” IT topics like business process modeling, metadata and Web platforms.

Forrester recently released a report entitled, Creating a Green IT Action Plan. It’s essentially a “how to” guide CIOs can use to create and implement Green IT programs.  The report has a broader perspective than just hardware and data centers, looking at the role of the IT organization in an organization’s overall CSR initiative.

AMR Research has probably done more than any analyst firm around the area of CSR and sustainability.  AMR launched a green technology research service in 2006 and most recently initiated the Sustainability Peer Forum. Introduced in August 2007,  the forum brings together a variety of environmental and sustainability industry leaders to share and discuss best practices, lessons learned and business strategies that support their sustainability efforts. 

I’m excited about how this focus by analysts will help validate the topic and drive the CSR message to more organizations.  In particular, I hope it will get IT professionals thinking about how they can lead the way.


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Jeff


Add comment November 8, 2007


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About Frankly CSR

Lawson Software Vice President Jeff Frank discusses his views on CSR, compliance and sustainability related issues.

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