Working on the Wiring: Preventing Ethical Failures in Socially Responsible Businesses.

Socially responsible businesses should be encouraged to make regular assessment and self-criticism a priority, which in turn will make them less vulnerable to destructive criticism. Socially responsible businesses have experienced serious ethical failures and lapses, and there are many factors that make it difficult for organizations to carry out strong social missions.

Introduction

Recently, journalists and professors have investigated some of the better known socially responsible businesses, such as Ben & Jerry's and the Body Shop. These businesses look beyond the demands of shareholders and address the needs of stakeholders, including communities and employees. Investigations of socially responsible businesses have called into question whether a business can make a profit and at the same time help solve society's most pressing problems. Investigators have strong evidence supporting a gap between what some socially responsible businesses promise and what they actually deliver. Reports and audits suggest that businesses that call themselves "socially responsible" demonstrate ethical failures and lapses. Some investigators wonder whether these businesses are better than businesses whose primary aim is to maximize profits for shareholders. Possibly, self-declared socially responsible businesses are worse because they fall to live up to their lofty claims.

The point is to encourage socially responsible businesses to make assessment and self-criticism a priority. Pioneers in the social responsibility movement should take the lead in moving toward this goal. If businesses espousing social responsibility do a thorough job of highlighting the difficulties of carrying out a social mission and assessing whether they truly make a difference, they will not be vulnerable to attacks by "bubble bursters," people who attack these businesses in a way that is not constructive.

Ethical Failures and Lapses

Jon Entine, a freelance journalist, has authored or co-authored several articles that provide important contributions to the debate about whether companies can "match good intentions with ethical accomplishments and commercial success" [4]. His work is important because it raises a question regarding assessment. He asked whether businesses with missions that emphasize social responsibility are really making a difference. Additionally, he made a strong case that some socially responsible businesses have experienced serious ethical lapses and failures. Entine is one of the few writers questioning socially responsible businesses. Most people assume socially responsible businesses "do well by doing good."