Sustainability and the bottomline

On EBBF, a quote on the connection between CSR and the bottomline.

“The vast majority of CSR research is attempting to establish a
correlation between the bottom line and CSR. For an excellent overview
see a recent book by Vogel (2005): The market for virtue. His conclusion
BTW is that: there are indeed cases of companies that have gained a
competitive advantage from being responsible. However, that there are
also many companies with good records of corporate responsibility that
have done poorly financially, and that there are many companies who
have pretty irresponsible records of corporate responsibility that have
done very well.

He argues that corporate responsibility, purely from a
self-interest perspective, is like any other business strategy.
It
makes sense for some of the companies some of the time. A strong
neo-liberal agenda does not only determine the research agenda but also
the focus of practical CSR efforts. As the CEO of GE remarked: “We are
investing in environmentally cleaner technology because we believe it
will increase our revenue, our value and our profits… Not because it is
trendy or moral, but because it will accelerate our growth and make us
more competitive.” (Economist, 2005).

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