The Community Obligation of Business

The community obligation of business

In 2005, Nestlé S.A. CEO Peter Braeck-Letmathe explained, “Companies shouldn’t feel obligated to ‘give back’ to communities because they haven’t taken anything away. Companies should only pursue charitable endeavors with the underlying intention of making money. It is not our money we’re handing out but our investors’. A company’s obligation is simply to create jobs and make products. What the hell have we taken away from society by being a successful company that employs people?” Which model of CSR would the Nestlé CEO advocate, and do you agree with his assessment?

My initial reply to Mr Braeck-Letmathe’s comment would be “you got to be kidding”. I do somewhat understand what Mr Braeck-Letmathe is saying but I highly disagree. To me Mr Braeck-Letmathe is addressing the issue that his success is not an ATM card for society to cash in. And, he does not have to apologize for being successful and not giving back to society. Nevertheless, I believe that firms should give back to the society that supports them and that this obligation is greater than the debt of the individual members of society. I consider the core of the human spirit is entangled in the exchange of giving and receiving. More over this concept should extent to the corporate social responsibility. Corporate social responsibilities include the commitment that firms have to the communities within which these businesses operate. It has been suggested that a business recognizes its core supporters incorporate their needs and values within its strategic and operational decision-making process.

My wife stated that one of the issues that are decaying the moral fabric of our country is corporate greed that is united with an attitude that dismisses corporate social responsibility. Corporate greed has been repeatedly blamed for the current economic turmoil. Some think corporate greed is a good thing – a motivating force for business and industry. Others say it...