Quote of the week: Aneel Karnani
From MIT Sloan Management Review: “Can companies do well by doing good? Yes—sometimes. But the idea that companies have a responsibility to act in the public interest...
“Can companies do well by doing good? Yes—sometimes. But the idea that companies have a responsibility to act in the public interest and will profit from doing so is fundamentally flawed. In cases where private profits and public interests are aligned, the idea of corporate social responsibility is irrelevant: Companies that simply do everything they can to boost profits will end up increasing social welfare. In circumstances in which profits and social welfare are in direct opposition, an appeal to corporate social responsibility will almost always be ineffective. In the end, social responsibility is a financial calculation for executives, just like any other aspect of their business. The only sure way to influence corporate decision-making is to impose an unacceptable cost—regulatory mandates, taxes, punitive fines, public embarrassment—on socially unacceptable behavior.”
Aneel Karnani in MIT Sloan Management Review