Is CSR Theft?

The long standing argument that claim that philanthropic efforts like CSR, corporate philanthropy, and cause-marketing products are tantamount to stealing profits away from company shareholders has re-emerged.

I have a bias in that I train non-profits in both forming business partnerships (and understanding businesses's CSR is one part of that); and also in obtaining major philanthropic gifts from individuals.  The latter, in my view, is by far the most effective mechanism for non-profits to obtain needed resources.  One argument suggests CSR is wasting the money of shareholders who are perfectly capable of giving their share of the corporation's profits to charity if they so choose.

However, the reality is that the majority of business after tax profit flows to institutional investors i.e. other corporations, not individuals.  Fortunately, many of these corporations recognise their corporate social responsibility.  Effective corporate social responsibility recognizes the importance of human and social capital.  It recognises that strong communities in which both customers and employees are safe, healthy and educated make profit and enduring sharholder value possible. In all, I believe the plurality of contribition to creating a better society is to be encouraged and that there are a multitude of examples of how a business in a better society is a better business.