Forced Social Responsibility (Ikea Update) – Should, Should not and How-to?

Recently, I wrote a blog post criticizing Ikea for charging 5c for their plastic bags at check out time (http://www.doecho.com/2007/12/ikeas-5c-bags-environmental-protection.html). While my blog is read by a wide cross-section of business people, I received only one comment - from an obviously upset Ikea employee. My post was not about the 5c for the bags, but more about forced corporate philanthropy, charity and social responsibility. I realize it is not forced – but it almost is when you are forced to walk to your car with a variety of knickknacks.

I asked for your comments on “forced on customer” social responsibility and philanthropy. So here is my update –

For more information from Ikea see - http://www.ikea.com/ms/en_US/about_ikea/social_environmental/environment.html?

Before the update, take a moment to read this “Conversation Starter” from Harvard Business Review - http://conversationstarter.hbsp.com/2007/12/the_end_of_corporate_social_re.html
As expected, I received very few but excellent comments.

Here are the responses –

Response 1: “IMO, although I do think corporations should serve their owners first and their employees second, they should also serve the communities that enable their existence. After all, corporations don't have inalienable rights. Corporations were created for the express purpose of protecting their owners from liability and accountability. I think (in a democratic society) communities deserve certain compensations, for continuing to allow corporate structures to protect their owners from such accountability.

As for "forcing" customers to be socially responsible or philanthropic, said customers can always walk away and do business elsewhere.”

Response 2: “As a consumer you are paying for the bag whether they point to it and say "Oh by the way, you paid for that bag too and it was 5 cents". Many things don't appear on your receipt like electricity so you don't have to shop in the dark. As an operating expense, you are paying for it.”

Response 3: “Ram, Someone has to step in. And the public at large does not have a great idea about what it is doing. If you were to sell marijauna they would lap it up and not feel an iota of regret. Look at the consumption of cigarettes, they are killing themselves.

So those who have the power to make a difference and want to should. Ever seen how these plastic bags are strewn all over the place in India. We need a similar practice here, even if it makes bad business sense. Great job IKEA.”

I leave it you business folks to decide how you want to treat corporate and social responsibilities.
Ram.