Former Secretary of Labor Robert Reich breaks down why "corporate social responsibility" is a total farce, and explains why corporations can never be trusted to do the right thing on their own.
Last August, the Business Roundtable – an association of CEOs of America’s biggest corporations– announced with great fanfare a “fundamental commitment to all of our stakeholders” and not just their shareholders. They said “investing in employees, delivering value to customers, and supporting outside communities“ is now at the forefront of their business goals — not maximizing profits.
The truth is, American corporations are sacrificing workers and communities as never before, in order to further boost runaway profits and unprecedented CEO pay. This has never been more apparent during this pandemic, as corporations and their billionaire executives push to reopen the economy no matter the cost. Against the warnings of public health experts, companies are determined to force their employees back to work before it's safe — all to protect their bottom line.
The only way to make corporations socially responsible is through laws requiring them to be. As we've seen during this pandemic, corporations will not keep their workers safe, provide them with hazard pay and paid sick leave, or even keep them on the payroll unless they are forced to.
If the CEOs of the Business Roundtable and other corporations were truly socially responsible, they’d support such laws, not make phony promises they clearly have no intention of keeping.
Part 2: How CEOs are Ruining America