Key Facts
The Wrong Goal
There is a growing movement for corporations to prioritize social responsibility over profits. It is a well-meaning notion, but it is ultimately misguided.
Making the Right Moves
Notions supporting corporate social responsibility assume that when companies prioritize profits, they must treat their employees poorly or break the law in their pursuit of making money. But, typically, companies that don’t comply with the law or operate unethically are either fined or shut down. These days, the pressure to treat employees well is global. Think of how international labor standards have risen in response to allegations of poor working conditions.
Survival Is Key
Companies that go beyond what is responsible in the name of serving the greater social good risk not being able to pay their employees or offer lower prices to their customers. Only successful companies are able to keep paying their employees well, especially in the long run.
The Power of Competition
Our continued economic prosperity is dependent on firms that compete with one another for our business. Ultimately, the best defense for workers is for there to be a healthy and competitive market.