Mr. Fred L. Smith, Jr. of the Competitive Enterprise Institute was today’s guest speaker as part of the 2007 Acton Lecture Series here in Grand Rapids, speaking on the topic of The Irresponsibility of Corporate Social Responsibility.
Smith argues that Corporate Social Responsibility (CSR) has become the new rationale for old policies of transforming private firms into public utilities—and forcing them to perform whatever duties are politically attractive at any one time. The corporation is an extremely valuable way of organizing large numbers of people to produce goods and services efficiently—that is, to create wealth. That wealth then flows into the hands of shareholders, workers, customers, and suppliers, who are then empowered to advance their own individual goals and values. According to Smith, to “socialize” this process is to reduce the ability of individuals to advance their goals, placing the values of politicians as paramount. Nothing would do more to reduce the world’s ability to address poverty and pollution than to force CSR onto the world economy.
You can listen to his address by clicking here (7.4 mb mp3 file). We’ll be posting video of today’s event tomorrow, so stay tuned!