Corporations are part of our society. But without a well-functioning social environment, a company cannot financially survive. A country’s prosperity stems from the success of its competitive businesses. But the state-sponsored security that until now has been provided to corporations has reached its limit in today’s globalized and financially interdependent world. The old mechanisms don’t work anymore. This is why there are discussions around the world about “corporate social responsibility”—the responsibility that large corporations have for their society. Smaller and midsize corporations as well can no longer dodge the issue of their social responsibility.85
What does corporate social responsibility mean, and how is it to be taken on? It means contributing to the well-being of a society by acting above and beyond its legal obligations. It means laying claim to responsibility by coordinating its value creation processes with ecological and social parameters, and by making a commitment to the design of its social environment.
The social responsibility of a company is not a one-way street. Both the company and society stand to profit:
Good working conditions foster employee motivation.
The responsible use of resources leads to sustained viability for the company.
A well-functioning infrastructure secures long-term competitiveness.
Fair practice in product creation supports trust and improves the life and working conditions in developing and threshold countries.
A commitment to social and cultural initiatives promotes stature and trust in business transactions.
Of course, corporate action cannot replace political action. It can, however, be a meaningful addition to politics. With this in mind, it is interesting to note that eight of the ten richest countries in the world, measured according to gross national product, are functioning democracies.86 All available investigations point out that countries with a functioning democracy have a higher economic performance, possess a better infrastructure, and offer a higher measure of internal and outside security than nondemocratic nations.87 If our society wants to be ready for the future, then responsibilities for politics and economy must be redistributed. We cannot meet the constant pressure on our social and educational systems to reform without the involvement of all the players and without the close cooperation among all the social policy decision makers. While the decision-making processes and the plans for action may differ among the various players, goals that create commonalities such as sustainability, social responsibility, education support, and family-friendliness should supply the necessary target orientation for all those involved.
The Bertelsmann Foundation is fully committed to these goals on the local, regional, and international levels. On a local level, we work to initiate the cooperation between social organizations and commercial enterprises. On a regional level, we support the creation of a network that connects businesses, politics, and the community so that they can jointly develop solutions for pressing regional problems, like business locations, lack of skilled labor, lack of social cohesion, or environmental challenges. The regions are supported by a nationwide initiatives group, which is made up of well-known businesses that have recognized that assuming responsibility for one’s society is an irrefutable part of their commercial activities.
Many companies are now represented worldwide and maintain production sites all over the world. They must coordinate deliveries with suppliers and manage the sale of the product on the world market across many continents. Businesses that are internationally active are often presented with diverse issues, especially in developing and emerging countries. Poverty, a lack of adequate medical care, and education deficits are often part of daily life there. The players on the global market now have a unique task ahead of them, especially because in these countries the local governmental institutions are often strained. The amount of social responsibility that a corporation is willing to take on is a deciding factor for creating a fair plan for globalization. The benefit of this type of involvement is not just the securing of the respective markets. Businesses have the opportunity to actively participate in creating a balance between rich and poor and securing long-term peace in a globalized world.
Compared to other countries, in Germany the encouraging successes at the international as well as the regional level are unfortunately still barely taught in universities. This is especially regrettable, because conforming company projects efficiently and effectively to the guidelines of corporate social responsibility places high demands on management. Expert knowledge is indispensable. For this reason, a greater commitment to corporate social responsibility in higher education and training is especially important. The students of today are the future of our society. The Bertelsmann Foundation has launched a number of pilot seminars at various German universities to introduce the concept of “social responsibility” to economics and business administration students.88 Real-world examples are used to demonstrate the possibilities of social engagement that are available to a corporation, and to show how corporate and economic ethics can be a key to the future success of our society.