CSR activists are playing hardball, impatient to let free-market Darwinism decide the fate of business. Fighting for a personal platform, they do not see the damage they cause.


An article in Townhall argues "when the heavy hand of government is used to change the rules of the game entrepreneurs are prevented from creating better products and consumers suffer the consequences."

The author, Wayne Winegarden, poses a valid point - lobbying in any form, be it lobbying an issue to the government or private business, changes the rules and upsets the balance. Consumers should buy, business should provide, and government should ensure that the buying and providing can happen.

I beg to differ.

The Means are More Important than the End

My proposal is CSR activists are barking up the right tree, but for the wrong reasons. They shouldn't be fighting for companies to mimic or match the activist platform - on that I agree - but activists most certainly should lobby governments and companies for better transparency practices.

Transparency and a face to face consumer base have been shown to accelerate corporate accountability and socially responsible practices. When a company is more able to be held accountable to the public, they are more likely to be socially responsible.

"An example was grocery store chains in Britain that had been competing to "out-green" each other as the most environmental-friendly and organic of grocers..." - The Star Online

The Bursa Malaysia [wiki] stock exchange has the right idea. Last September, Bursa announced they would only list companies who reported their CSR procedures and activities, even if there are none, with a cutoff date of December 31st this year.

So far, the top 100 stocks are on the ball, with 100% compliance. The next 250 however, will likely need to seek out a quick fix or face the consequences.

It would seem Asia is yet again ahead of the game. If only the remaining global economies would take note and follow, the free market could operate as it should - the buyers buy what businesses provide, and government just makes sure those transactions can happen.