Corporate Social Responsibility - A Complex Concept

Innovative culture is a responsible culture - Mike A.

When “Big-Box” multi-national corporations open up branches in various communities, a wide host of positive and negative changes are ushered into the society.[1] On a positive side, a boost of new-product availability is presented to the shopper. Consumers are given a choice to select from a wider variety of good, at competitive and possibly lower prices.  

These firms operate at such low costs, that once they enter a community, existing small businesses seldom can compete with them, and are usually forced out of business. [2]  The city of Kaufman, Texas is one of the rare cities in US that opposed establishment of Wal-Mar, Lowes or Home Depot. According to them, they are “fortunate to still have a thriving downtown and small businesses and no Wal-Mart and Home Depot. [3]  Such issues create concerns about corporate social responsibility and consumer social responsibility.[4]  The chart below may help us better understand the pyramid of corporate social responsibility.

   

[1] Stacy Mitchell, Big-Box Swindle: The True Cost of Mega-Retailers and the Fight for America’s Independent Businesses, Beacon Press, 2007

[2] Donald D. Taylor, Jeanne Smalling Archer, Up Against The Wal-Marts: How Your Business Can Prosper In The Shadow Of The Retail Giants, AMACOM Div mgmt. Assn, 2005

[3] Kaufman, Texas, www.growmap.com, found online at http://growmap.com/kaufman-texas/

[4] William M. Pride, O.C. Ferrell, Marketing: Concepts and Strategies, Cengage Learning, 2006

Creative Destruction & New Technologies

Definition:

Creative Destruction – Schumpeter suggested that new innovations and entrepreneurs that enter the market can render their rivals obsolete – he pointed out that this process of creative destruction is the key driver of economic growth in capitalistic systems.[1]  Creative destruction is one of the facilitators of culture of innovation.[2]

  

New Technologies and Creative Destruction:

Based on creative destruction, products in high-tech environment have a finite shelf-life before being made obsolete by better products. Better products will constantly arrive, if not by the company, by its rivals for sure. To stay relevant, and fearful of obsolescence, some companies cannibalize their own successful products. However, in this model of competition, ongoing leadership in innovation is required.

Positive and Negative Effects:

Andrew Grove, former CEO of Intel said: Business success contains the seeds of its own destruction. [3]  Destruction of a business can hurt the economy, work-force and the society, but in truth, nothing lasts forever. The constant impact of introduction of new technology can leave the consumers, companies and the society feeling confused and ill-at-ease. However, the resulting wealth, technology advancement and cross-cultural exchange can contribute to positive global experience. [4]  

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[1] Zoltan J. Acs, David B. Audretsch, Handbook of Entrepreneurship Research: An Interdisciplinary Survey ad Introduction, Springer, 2010

[2] Jakki J. Mohr, Sanjit Sengupta, Stanley F. Slater, Marketing of High-Technology Products and Innovations, jakki Mohr, 2009

[3] What is Enlightened Leadership, Univeral Constants of Business Leadership, found online at http://www.enlightenedleadershipnow.com/Home/business-leadership/universal-constants-of-leadership

[4] Tyler Cown, Creative Destruction: How Globalization Is Changing the World’s Cultures, Princeton University Press, 2004

Intellectual Freedom - Are We Ready For It?

Innovative culture is fueled by intellectual freedom  - Mike A.

“Intellectual freedom” is at the very core of generating new ideas.[1]  many feel “intellectual freedom” will usher in a viable energy source. But the bigger question is:

• Is our culture supportive of intellectual freedom? 

Intellectual freedom requires an “outside-of-the-box” thinking and approach. But since our culture’s adoption of new ideas is usually slower, we tend to label these efforts as “ alternative”. Unfortunately there is a negative stigma associated with an “alternative” approach. In most cases, alternative methods don’t get the same attention or financial support for development as the mainstream methods would. For example alternative fuel options has never been taken seriously by our culture and society. The reasons for that could range from inhibition, fear, monopoly, comfort, politics, economics, etc.[2] In this case, when our entire society is so dependent on oil and its powerful, wealthy and influential industry, even the most intellectually free minds would find it difficult to compete with these forces. [3]  

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[1] Oster, G. (2007, July 16). The Urgency of Innovation., from Regent.edu: https://regent.blackboard.com/bbcswebdav/institution/School%20of%20GLE/Course%20Materials/BMBA/611/Innovation%20A.pdf (p.14).

[2] Renick Mayer, Lindsay, Big Oil, Big Influence, PBS Now, August 1, 2008, found online at http://www.pbs.org/now/shows/347/oil-politics.html

[3] J.W. Smith, The World’s Wasted Wealth 2: Save Our Wealth, Save Our Environment, Institute for Economic Dem, Press, 1994

Life-Changing Technologies - Two Examples

Innovative culture must strive to change lives - Mike A.

On November 8, 1895 Wilhelm Conrad Roentgen, accidentally discovered X-rays in his lab in Bavaria. This X-rays (X meaning unknown) would easily penetrate flesh and leave an opaque impression of bones.[1] This discovery provided a powerful tool in diagnostic medicine.[2] The introduction of this technology has had a tremendous impact on the way medicine helps individuals and the society. Diagnostic x-ray can help individuals in medical cases such as broken bones, detecting and treating tumors, cancer (radiation therapy) chest x-rays, surgery and much more.[3] The change it has brought to the society includes accurate diagnosis, prognosis, and treatment leading to higher life expectancy and general health.[4] 

In 1928, in St. Mary’s Hospital in London, Scottish scientist Alexander Fleming discovered penicillin, a revolutionary antibiotic that is capable of combating serious diseases such as syphilis, infections and other bacterial diseases.[5]  Penicillin works by preventing some bacteria from creating new cell wall. As such bacteria cannot divide and multiply and dies.[6]  Many individuals where cured form once-fatal bacterial infections. During World War II the true effect of this so-called “miracle drug” saved hundreds of lives. [7]  The individual and society impact of this antibiotic is that it still continues to save lives around the globe. Penicillin’s germ-killing power has probably saved most of our lives from infections.

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[1] Otto Glasser, Wilhelm Conrad Rontgen and the Early History of the Roentgen Rays, Norman Publishing, 1993

[2] Francis Henry Williams, The Roentgen Rays in Medicine and Surgery, Macmillan, 1903

[3] Richard Francis Mould, A Century of X-Rays and Radioactivity in Medicine, CRC Press, 1993

[4] Clarence Bartlett, A Textbook of Clinical Medicine, Volume 1, Boericke & Taffel, 1903

[5] Guy De la Bedoyere, Camilla De la Bedoyere, The Discovery of Penicillin, Gareth Stevens, 2005

[6] Richard Tames, Penicillin: A Breakthrough in Medicine, Heinemann-Raintree Classroom, 2006

[7] Robert Bud, Penicillin: Triumph and Tragedy, Oxford University Press, 2007