Hertz: Chapter 9Mother Business

Denationalizing Compassion

It is not just governments that are capable of providing compassionate social programs

Latest stage in the Silent Takeover: Corporations providing a variety of social programs; education, health care, welfare, environmental protection

Good for Business

Global corporations have come to realize that unrest, instability, and poverty are not good for business

As governments withdraw from these responsibilities, corporations are stepping in

What Motives the Corporations?

Profits. It is easier to do business in a stable, well-educated, safe, healthy environment

Employees are bringing their values into the workplace

Citizens are “voting” with their pocketbooks

Corporate Uniqueness Corporations are in a unique position to

provide social aid They are not tied up with bureaucracy They don’t have to worry about elections They can act single-handedly They can transcend boundaries

Hertz: Chapter 10Who Will Guard the Guards?

But is Corporate Welfare Good? In Hertz’s view, it is not ideal that

corporations are taking on government’s role

Corporations are not elected Social functions are alien to them Their first loyalty is still profits They may move on Possible IOUs with government

Still, There is a Role for Business

In much of the third world, business is better placed to act for justice and social welfare than governments

The Worry Corporate charity is, in the end, based on

the market, not need We can’t count on corporations to always

act in our best interest, no matter how compassionate they seem

Do we really want to depend on corporate charity?

When the Party is Over Corporate charity blossoms in good

economic times, but where does it go in bad economic times

And, it is bad economic times when social assistance is most needed

Sometimes business and ethics will coincide, but sometimes they will not