Santa Claus, the Easter Bunny and Corporate Social Responsibility
“A comprehensive history of great business fortunes would show a disconcertingly large number that were made [where...] the enterpriser devised a silent way to commonize costs while continuing to privatize the profits.” — Garrett Hardin (http://www.garretthardinsociety.org/info/quotes.html)
British Petroleum (“BP”) scored a 90 out of 100 on Ceres’ “2006 Corporate Governance and Climate Change: Making the Connection” report (Source: http://www.ceres.org/resources/reports/corporate-governance-and-climate-change-2006/view). Keeping in mind the fact that BP is the proud sponsor and creator of what I affectionately refer to as “a big fat hole in the ocean floor which is still spewing oil into the Gulf of Mexico and killing things” or, as it is also known (a somewhat more specific but much less robust name, in my opinion) — the Deepwater Horizon oil spill, I really think that such a high score might have been a bit optimistic, back in 2006. I would compare and contrast that with more recent scores; except that I can’t seem to find that same report published for any other years anywhere on Ceres’ site.
Well, we do have the 90 out of 100. Hmm. That is 90%. BP got 90% of the Corporate Governance and Climate Change Making the Connection categories correct. Wow. I only hope I do so well on my finals. 90% in 2006. Let’s have a moment of silence while we think about that for just one minute. Are you making the proper connections between Corporate Governance and Climate Change? I certainly hope so.
Perhaps if my pen explodes and leaks all over my exam, I will also get high marks. What do you think?
Corporate social responsibility (CSR) is yet another pretty pattern embossed on the shiny foil paper, lovingly decorated with the big plastic sparkly bow and cellophane ribbon, that we are to unwrap as the latest boon to humanity from corporations. Packaging and PR are corporate specialties, and this is how they have gift-wrapped the pack of lies that we, as caring and decent individuals, want so badly to believe. We want to believe that if corporations can possibly take even a tiny part of the responsibility for the environmental degradation, social inequality and political and cultural instability they continuously foster, it will all be okay.
Not. So not.
This is an excerpt from the Canada Business Corporations Act:
Indemnification
· 124. (1) A corporation may indemnify a director or officer of the corporation, a former director or officer of the corporation or another individual who acts or acted at the corporation’s request as a director or officer, or an individual acting in a similar capacity, of another entity, against all costs, charges and expenses, including an amount paid to settle an action or satisfy a judgment, reasonably incurred by the individual in respect of any civil, criminal, administrative, investigative or other proceeding in which the individual is involved because of that association with the corporation or other entity. (Source: http://laws-lois.justice.gc.ca/eng/acts/C-44/page-46.html?term=monetary#s-124.)
The corporation’s directors and officers have indemnification, and can’t be held personally liable for damage payments in a court proceeding?? Not only the directors and officers but also the former directors and officers? That is so cool, if you are a CEO or perhaps the Vice President in charge of CSR. Very handy. Who prepares and signs the Corporate Social Responsibility reports? Just wondering.
You can play this game too, if you want. It’s fun! Go here: http://laws-lois.justice.gc.ca/eng/acts/C-44/ and type in the search terms “social responsibility”. Get any hits? Nope? Try “environmental responsibility”. Get any now? Hmm. Try searching “society”. Try environment. Try ecosystem. Equality. Still nothing? Umm, okay, surely “green” is in there. Oops, we are on the wrong track, I think. Try “financial”. Lots of those in there. Are you still playing? Try “limited liability” – ooh, that one is interesting. Are we having fun yet?
The point is, unless a requirement for social responsibility is written into a corporation’s charter, there is no way to enforce any lack thereof, or even to ensure that the reporting is in any way, or even the least bit, accurate. There are no requirements under Canadian law – at least, none that I am aware of, correct me if I’m wrong — for a corporation to report any sustainability measures, indicators or even greenhouse gas emissions. Finally, even if there was some kind of corporate responsibility requirement, the indemnification of the directors and officers effectively gives them the leeway to do and say pretty much whatever they want. Check out Bob Dudley’s cool bonus for “turning BP around” after the spill. $1.6 million bucks. (http://www.guardian.co.uk/business/2012/mar/06/bp-chief-bob-dudley-payout-bonus). I wonder if he signed off on BP’s Corporate Social Responsibility Report? I’d look, but I can’t find it anywhere. Feel free to share if you can find it.
I, too, once believed in the good and pure ideals represented by Santa Claus, the Easter Bunny and CSR. But I am really not listening any more. I don’t think we have the time or luxury. If CSR can change our economic system for the better, then bring — it –on. I will applaud. Otherwise, until I see some corporations putting some literal money where their figurative mouths are, I’ll be a bit skeptical. I’ve heard way too many bedtime stories already where the wolf dressed up in sheep’s clothing chuckles maniacally while the little boy runs around crying and looking for Grandma’s big teeth and the little elves finished all the shoemaker’s shoes in one night. (They just did it, kind of like Nike, so to speak.) Good grief, and good night. Try not to have nightmares.
(As an added bonus for playing my game today, if you look closely at those three mythological creatures in my subject line, you will realize they are actually three faces of the same ideological system encouraged by those very same corporations we have just been talking about. How cool is that?)
