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Sep 9, 2006 11:15:00 AM
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John Gage: In short, no. That is to say, the corporation and disembodied legal entity formed for certain specific functions, a functional thing that enables the law, enables flow of money and flow of responsibility if a disaster occurs, the disembodied corporate form is created by human beings for purposes of production. The simplest models of production depend at the end on the prices of what is an input and the prices of what is an output. In other words, the corporate forms are created for the purpose of providing goods and services at the cheapest possible prices to meet a certain specific set of demands by human beings, these are products. In the calculation, it’s abbreviated simplified form of cost and price. In that revenues and profits, in that simple calculus, there is no room today for the addition of happiness, welfare, richness of life of those that work with long-term implications of a particular product [that’s cost] in the environment, both in making it and using it, in the complete lifecycle costs of these objects that the corporate mechanism creates. Altering the form of accounting alters what today you would call corporate social responsibility. Altering the form in which the responsibility of a corporation, not simply to make a product, but to all those that work there to put their life effort, their knowledge, their capabilities into that corporate, adding that extra dimension is what makes the phrase corporate social responsibility meaningful. So, today, when I hear people say corporate social responsibility, it often means nothing more than a simple foundation, putting some money into small projects where the employees work. In reality, the much deeper responsibility of a corporation is to fully account for its weight upon the environment, its weight upon and inspiration for the lives of those that work in the corporation, its long-term responsibility to the families of those who work in the corporation, and its long-term advantage in recognizing the contribution of creative human beings to the process of fabrication, manufacture, creation, that in fact is the point of the corporation in the first place.
by John Gage
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