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Cake day: June 15th, 2023

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  • Stakeholders are people with any kind of interest in the company doing well

    Corporate social responsibility as a concept is even broader than that – it’s not just anyone who has interest in the company doing well, but broad consideration of anyone impacted by the decisions of the company.

    A company might be able to save operational costs by dumping toxic sludge in a river, but within a CSR framework, people living downstream would be considered stakeholders and the potential negative impact of the decision on those people is supposed to be taken into account when decisions are made. The corporation is supposed to have a responsibility to do right by anyone impacted by their actions wherever possible.

    At least that’s the theory. It shouldn’t be surprising that the language of CSR gets pretty commonly coopted by companies looking to whitewash what they’re actually doing.