Comments on: The Debate is Over …. Friedman Lost http://franklycsr.wordpress.com/2007/11/17/the-debate-is-over-%e2%80%a6-friedman-lost/ A blog about Corporate Social Responsibility Fri, 25 Jul 2008 06:28:48 +0000 http://wordpress.org/?v=MU By: jamesfarrar http://franklycsr.wordpress.com/2007/11/17/the-debate-is-over-%e2%80%a6-friedman-lost/#comment-47 jamesfarrar Thu, 29 Nov 2007 21:53:10 +0000 http://franklycsr.wordpress.com/2007/11/17/the-debate-is-over-%e2%80%a6-friedman-lost/#comment-47 I agree, I think we all are. There is a certain irony that CSR advocates, for sake of argument, are more capitalist than the capitalists themselves. I think the problem lies around below the line philanthropy. Not only is this contrary to shareholder value but businesses who practice below the line philanthropy really lack a democratic mandate to do so. It is much harder to practice integrated CSR that is not only good practice in terms of governance, risk and compliance but seeks to innovate new business models but when it works the results are spectacular. Friedman was very much influenced by Cold War politics and almost saw CSR as a threat to national security in it's perceived subversion of capitalism. Frank is right to say that the global conditions business face today are very different. Bottom line - in a global economy there are no effective global rules. Businesses therefore have to collaborate to create their own social boundaries and manage the externalities intelligently and to go for growth and cpature new and dynamic markets defined by developing economies (BRIC) and dveloping technologies (web 2.0). In both cases we go forward without precedent. In terms of full on free enterprise ideology this is the smart thing to do. I agree, I think we all are. There is a certain irony that CSR advocates, for sake of argument, are more capitalist than the capitalists themselves. I think the problem lies around below the line philanthropy. Not only is this contrary to shareholder value but businesses who practice below the line philanthropy really lack a democratic mandate to do so. It is much harder to practice integrated CSR that is not only good practice in terms of governance, risk and compliance but seeks to innovate new business models but when it works the results are spectacular.

Friedman was very much influenced by Cold War politics and almost saw CSR as a threat to national security in it’s perceived subversion of capitalism.

Frank is right to say that the global conditions business face today are very different. Bottom line - in a global economy there are no effective global rules. Businesses therefore have to collaborate to create their own social boundaries and manage the externalities intelligently and to go for growth and cpature new and dynamic markets defined by developing economies (BRIC) and dveloping technologies (web 2.0). In both cases we go forward without precedent. In terms of full on free enterprise ideology this is the smart thing to do.

]]> By: Lisa Brand http://franklycsr.wordpress.com/2007/11/17/the-debate-is-over-%e2%80%a6-friedman-lost/#comment-41 Lisa Brand Mon, 19 Nov 2007 23:14:09 +0000 http://franklycsr.wordpress.com/2007/11/17/the-debate-is-over-%e2%80%a6-friedman-lost/#comment-41 I agree with gator80 and just did a post to this effect over at <a> Identity Commerce</a>. If Frank is right (and I think that mostly, he is), CSR may be the sweet spot of Friedman's theory. I agree with gator80 and just did a post to this effect over at Identity Commerce. If Frank is right (and I think that mostly, he is), CSR may be the sweet spot of Friedman’s theory.

]]> By: gator80 http://franklycsr.wordpress.com/2007/11/17/the-debate-is-over-%e2%80%a6-friedman-lost/#comment-39 gator80 Sun, 18 Nov 2007 15:18:16 +0000 http://franklycsr.wordpress.com/2007/11/17/the-debate-is-over-%e2%80%a6-friedman-lost/#comment-39 You say, "Today, companies are learning they can increase profits as a result of their CSR efforts, not despite them." Nothing about that statement is in conflict with what Milton Friedman believed. You say,
“Today, companies are learning they can increase profits as a result of their CSR efforts, not despite them.”

Nothing about that statement is in conflict with what Milton Friedman believed.

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