TITLE:
Mandatory Corporate Social Responsibility: A Utilitarian and Deontological Perspective
AUTHORS:
Harshita Jain
KEYWORDS:
Corporate Social Responsibility, Triple Bottom Line, Utilitarianism, Deontology, Greenwashing, Government Regulation
JOURNAL NAME:
Open Journal of Business and Management,
Vol.8 No.5,
September
18,
2020
ABSTRACT: Most companies engage in some form of corporate social responsibility,
yet very few would support legislation to make such activities mandatory. On
the other hand, social activists and environment protectors strongly advocate
for such policies. However, the final decision rests in the hands of the
government. Therefore, this paper analyses two different ethical frameworks: utilitarian
and deontological, to evaluate if it is ethical for governments to obligate companies to
follow their policies on corporate social responsibility. For the utilitarian
theory, the paper discusses the consequences of mandatory corporate social
responsibility (with direct examples from India), including the reduction of
greenwashing and the increase in the prosperity of social entrepreneurship and
the overall welfare of a nation. In contrast, the contradicting obligations of
a government, such as protecting the freedom of choice and ensuring the
well-being of its citizens, are the basis of the deontological discussion.
Ultimately, the ethicality of making corporate social responsibility mandatory
depends on the moral priorities of the government. Still, it is essential to
note that these policies’ specifics can be adapted to promote both
self-regulation and the common good.