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False notions og CSR

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Misguided Virtue

Misguided Virtue
False Notions of Corporate Social Responsibility
DAVID HENDERSON

The Institute of Economic Affairs

First published in Great Britain in 2001 by
The Institute of Economic Affairs
2 Lord North Street
Westminster
London sw1p 3lb
in association with Profile Books Ltd
Copyright © The Institute of Economic Affairs 2001
The moral right of the author has been asserted.
All rights reserved. Without limiting the rights under copyright reserved above,
no part of this publication may be reproduced, stored or introduced into a
retrieval system, or transmitted, in any form or by any means (electronic,
mechanical, photocopying, recording or otherwise), without the prior written
permission of both the copyright owner and the publisher of this book.
A CIP catalogue record for this book is available from the British Library.
isbn 0 255 36510 1
Many IEA publications are translated into languages other than English or are
reprinted. Permission to translate or to reprint should be sought from the
General Director at the address above.
Typeset in Stone by MacGuru
info@macguru.org.uk
Printed and bound in Great Britain by Hobbs the Printers

CONTENTS

The author
Foreword by Geoffrey Owen
Acknowledgements
Summary

7
8
14
15

1 The challenge of CSR

19

2 The rise of CSR

29

3 Defining and interpreting CSR
The goal of sustainable development
A hollow consensus
The ‘triple bottom line’
Giving effect to CSR
New horizons

40

4 Capitalism made anew: the CSR blueprint
CSR and profitability: grounds for concern
CSR and profitability: the case in favour
Construing expectations
The strategy of accommodation
Questioning the strategy
Beyond profitability

58

42
46
51
54
56

58
63
66
68
73
75

5 Global salvationism: a shared vision
Alarmism and drama
The supposed impact of globalisation
Twin myths of ‘exclusion’
Three illusions of power
Diagnosis and prescription
6 Reducing welfare:
the costs and risks of CSR
The conduct and performance of enterprises
Norms, standards and regulations
Eroding economic freedom
Regulating the world
A Global Compact
Sleeping with the enemy
Containment or contagion?

82
83
88
90
96
104

107
108
111
113
116
119
124
127

7 Companies, commitment and collectivism
Corporate standards
True commitment
Alternative paths
New millennium collectivism
Rival verdicts

134

8 New developments and final thoughts
A European initiative
Three misunderstandings
Profits, markets and welfare
Responsible business behaviour versus CSR

149

1...
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