Two-Faced Capitalism: Unmasking Csr

2.2: Two-Faced Capitalism: Unmasking CSR

Christian Aid is an “NGO”( A non-governmental organization), based in Britain, dedicated to “supporting those which work among unreached peoples where hitherto our Lord has had no people for his Name.” The organization has more than 90,000 native missionaries in the field, establishes more than 52,000 churches a year, and conducts evangelistic campaigns through print and broadcast media. The organization was established more than 50 years ago (1967) and provides assistance to victims of persecution, disease and disasters.

In 2004, the organization published the report, Behind the Mask: The Real Face of Corporate Social Responsibility. The report states that corporations make loud, public commitments to the principles of ethical behaviour and undertake “good works” in communities in which they operate.

On the surface, this looks like selfless philanthropy and might even be motivated by a genuine desire to help communities. These initiatives have resulted in some benefits, but at times have been merely to defend operations or counter public criticism. According to Christian Aid, CSR reporting is merely the use of fine words and lofty statements to describe initiatives that usually do not benefit those who need help.

The Christian Aid report contains case studies to illustrate the failure of CSR to deliver on the promises corporations have made. Among the case study allegations are:

- Shell in Nigeria: It promised to be a better corporate citizen but fails to clean up oil spills and runs community development projects that are ineffective.

- British American Tobacco: It claims to be upholding high standards of employee health and safety but its contract farmers in Kenya and Brazil claim they suffer from chronic ill-health related to growing tobacco.

Christian Aid no longer trusts corporations and wants government to be responsible for ethical operations of corporations. It recommends that the British government adopt new laws to make corporate and social environmental reporting and disclosure mandatory. Christian Aid also wants government to set new responsibilities for company directors and change laws so that people harmed by British companies’ overseas operations can seek redress in British courts.

1. What are the implications of Christian Aid’s recommendations for the fundamentals of capitalism? Be specific and comment on those in evidence.

The Christian Aid’s recommendations mentioned in the case are:

• “ It recommends that the British government adopt new laws to make corporate and social environmental reporting and disclosure mandatory.”

• “Christian Aid also wants government to