Andrew Crane, director at the International Centre for Corporate Social Responsibility, says the roles of corporations and governments are beginning to blur. But can businesses ever really work for the greater good of society when their loyalties lie with shareholders?
Are corporations becoming more like governments? At one level, the answer has to be a resounding “yes”. After all, many of the roles, responsibilities and functions that we once considered to be the sole preserve of governments are increasingly shouldered by corporations. This is the brave new world of corporate responsibility, where firms are extolled to protect human rights, safeguard the environment, stamp out corruption, provide schools and hospitals in developing countries, rebuild communities and contribute to any number of other social initiatives. What happened to human rights being a governmental responsibility? Or health and education being a matter solely for politicians to decide on?
To see just how far this is changing the business landscape, just think about what it means to be a citizen now in various parts of the world. Consider the case of a basic social good like water: 460 million people around the world are now dependent on private water corporations, not their governments, to provide them with adequate service. While this may improve quality and value in some cases, in other cases water corporations such as the French multinational Suez have been able to simply up sticks and cut off supply to citizens because of poor profitability, even in major cities such as Buenos Aires and Manila.
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