BizJournals Portfolio

No Obligations

Let's Make a PAC

Some corporate political action committees and their pet causes. Read More

Act Responsibly, Earn Handsomely

Which companies are making the most by doing good? Read More
PREV 2 of 2

And so it goes. Back in 2005, Kraft Foods announced it would stop marketing certain products to children under the age of 12. The news was hailed as a glowing example of corporate social responsibility, but critics said it was no such thing. A World Health Organization report had already concluded that food advertising directed at children contributes to child obesity, and Congress was considering moves to regulate such advertising. Kraft was most likely trying to stay ahead of the legislation. Alcoa, which is paring its energy use, estimates its efforts are saving it about $100 million a year. McDonald's switch to kinder, gentler slaughtering techniques has helped boost the company's image among consumers.

The companies are simply trying to win, and that's what they're supposed to be doing. Unfortunately, improving the bottom line doesn't always make the public better off, of course. Polluting, stiffing workers on health care, and encouraging kids to eat junk food are often better for profits than taking the opposite approach.

That's why we need government. It's not the job of private enterprise but our representatives in Washington and state capitals to tackle public policy issues. Yet instead of taking the lead, elected officials often allow major corporations to set the agenda through the most effective tool available—money. Every year, companies pour millions of dollars into the system, through political donations and the platoons of lobbyists they deploy to Washington. Wal-Mart has one of the largest corporate political action committees in America. It spent $2.7 million during the 2004 elections and is on the way to contributing even more this time. AT&T's PAC spent $2.65 million during the 2006 elections, and the Altria Group's PAC parted with $1.8 million. (Read about PAC pet causes.)

Consumers and voters who pressure companies into being socially responsible are diverting attention from the harder and more important task of cleaning up democracy so laws can be enacted to reflect what the nation wants of its corporations, beyond profitability. The answer isn't to push companies to be more socially responsible; it's to get corporate money out of politics so we as citizens can decide what the rules of the game should be. Condemning companies for not giving their employees better pay and health benefits may be emotionally gratifying, but it's a sideshow. What we really ought to be doing is condemning large corporations for polluting our democracy.


blog comments powered by Disqus
Real Business, Real Results

Did anyone at Microsoft ever watch the (gasp!) offensively funny show Family Guy?

Ex-Morgan Stanley exec Zoe Cruz is now heading her own hedge fund. Are Wall Street's leaders done?

Martha, Bernie and Skilling know that what you wear for court can go a long way in public perception.

spotlight on

Health Care

Bad to the Bone No More

Companies such as General Mills say they're stepping up efforts to change employees' bad behavior and promote healthier lifestyles. Read More