3.17.2006 ET

(CSRwire) BURLINGTON, Vt.--(BUSINESS WIRE)--March 17, 2006--Renowned Corporate Responsibility experts debated the business case for Corporate Responsibility in a pod cast posted on www.netimpact.org today, sponsored by Seventh Generation and hosted by the Haas School of Business at UC Berkeley. Entitled "Corporate Responsibility: Myth or Reality?" the event featured authors Jeffrey Hollender and Dr.David Vogel.

"In the light of recent ethical scandals and increasing public pressure, corporate America is embracing the ideals of Corporate Responsibility," noted moderator Elizabeth Maw, Executive Director of Net Impact. "Now more than ever, it's especially relevant to explore the legitimacy of the values-led business model."

David Vogel, who teaches at Haas and Jeffrey Hollender, President and Chief Regeneration Officer at Seventh Generation, one of the nation's first self-declared socially responsible companies and the leading brand of environmentally safe household and personal care products, addressed an audience of 200 on the Berkeley campus.

Hollender's book, What Matters Most, illuminates the successful practices of Seventh Generation--and many other pioneering companies around the world--to demonstrate the pragmatic aspects of a corporate strategy that hardwires social and environmental concerns into the company's culture, operating systems, and business relationship. During the debate, Hollender referenced his research, defending the need for both small businesses and large corporations to practice social responsibility and offers practical ways to reach this goal.

Hollender stressed that sustainability must become a foundation of business strategy and not just an afterthought of corporate actions. "As responsible companies begin to think about relationships with customers in a very different way, they will create value way beyond the products and services they're selling."

Hollender acknowledged companies that are taking CR to new levels, and criticized those whose efforts are focused on merely reducing what they have done wrong. "I envision a world where business can improve, not just make things less bad," he said. "I am captivated by the idea of taking what many people perceive to be the most evil business on the planet and harnessing them to make change."

While acknowledging the movement's achievements, David Vogel argued that CR's potential to bring about a significant change in corporate behavior is exaggerated. "It really makes sense for companies to do what they need to do to keep people from vilifying them, but beyond that the business case for CR is weak."

Vogel referenced his book, The Market for Virtue, in his discussion on corporate social responsibility (CSR), validating arguments against CSR and identifying holes in the case for CSR.

Professor Vogel took neither a pro-CSR nor an anti-CSR stance, but rather advanced a clear-eyed perspective on CSR, exposing its attractions as well as its warts. "Firms will engage in socially responsible practices if it doesn't raise their costs," Vogel said.

"The pressures on the financial market are relentless and overwhelming and not concerned with Corporate Responsibility. There is space for CR companies, but it's not going to dominate the American economy."

The pod cast is available for download from www.netimpact.org or audio from http://www.netimpact.org/associations/4342/files/podcast/csrdebate.mp3. It is an mp3 file. Net Impact is a network of more than 10,000 new generation leaders committed to using the power of business to improve the world. The influential network of MBA's, graduate students and young professionals believe that business can both earn a profit and create social change.


Copyright Business Wire 2006

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