185
multiregional and global corporations started to become involved since they owned
the production and distribution infrastructures need to provide access to food.
7.4 A Shift in Values: The Emergence of Corporate Social
Responsibility (CSR)
As governments of developed countries reduced food relief efforts in emerging
economies, corporations began to see an opportunity for growth through expanded
markets. In lieu of reduced government intervention, corporate social responsibility
(CSR) programs began to develop, designed to benefit the triple bottom line of economic, social, and environmental stewardship. The failure of Enron, WorldCom,
and Tyco led to an increased mistrust of corporations and their ability to work
toward the public good (https://hbr.org/2009/06/rethinking-trust). As a result, governments and NGOs pushed to solidify the need for better corporate oversight and a
rethinking of responsibilities to consumers and the society. CSR initiatives are to
some degree a result of the need for large corporations to regain public trust and
provide better environmental and social stewardship.
CSR initiatives in the food and agriculture sector often started as environmental
sustainability efforts to improve all aspects of the supply chain from farming practices to the use of renewable and biodegradable packaging. As consumers became
more aware and vocal about environmental issues, large corporations saw the need
to communicate positive results in environmental and sustainability activities. Large
corporations have embraced CSR programs as they try to shake the image of “Big
Business” and become more socially aware. Large agri-food companies also see
CSR initiatives as a direct response to more persistent activism by NGOs focused
on social justice topics. In a landmark 2011 Harvard Business Review article,
Michael Porter and Mark Kramer argued that a new definition of values creation
was emerging in the capitalist system (Porter and Kramer 2011). The concept of
shared values was focused on a more sustainable capitalism by ensuring that limited
resources such as land, energy, environment, and labor were considered in the overall strategy of profit optimization. As they sought to improve their firms’ reputations, the resolution of societal problems, once the realm of governments and NGOs,
became a focus for large multinational corporations who realized they could create
economic value by creating societal value through a more efficient use of resources
and reconceiving products and services.
Today, according to a recent KPMG survey, over 93% of the top 250 global companies report CSR initiatives.
7
As they began to value CSR as an indicator of good
corporate governance and business growth governments, stock exchanges and regulators are helping drive global corporations’ participation in CSR initiatives. In
7 https://assets.kpmg/content/dam/kpmg/be/pdf/2017/kpmg-survey-of-corporate-responsibilityreporting-2017.pdf
7 Innovation and the Quest to Feed the World
multiregional and global corporations started to become involved since they owned
the production and distribution infrastructures need to provide access to food.
7.4 A Shift in Values: The Emergence of Corporate Social
Responsibility (CSR)
As governments of developed countries reduced food relief efforts in emerging
economies, corporations began to see an opportunity for growth through expanded
markets. In lieu of reduced government intervention, corporate social responsibility
(CSR) programs began to develop, designed to benefit the triple bottom line of economic, social, and environmental stewardship. The failure of Enron, WorldCom,
and Tyco led to an increased mistrust of corporations and their ability to work
toward the public good (https://hbr.org/2009/06/rethinking-trust). As a result, governments and NGOs pushed to solidify the need for better corporate oversight and a
rethinking of responsibilities to consumers and the society. CSR initiatives are to
some degree a result of the need for large corporations to regain public trust and
provide better environmental and social stewardship.
CSR initiatives in the food and agriculture sector often started as environmental
sustainability efforts to improve all aspects of the supply chain from farming practices to the use of renewable and biodegradable packaging. As consumers became
more aware and vocal about environmental issues, large corporations saw the need
to communicate positive results in environmental and sustainability activities. Large
corporations have embraced CSR programs as they try to shake the image of “Big
Business” and become more socially aware. Large agri-food companies also see
CSR initiatives as a direct response to more persistent activism by NGOs focused
on social justice topics. In a landmark 2011 Harvard Business Review article,
Michael Porter and Mark Kramer argued that a new definition of values creation
was emerging in the capitalist system (Porter and Kramer 2011). The concept of
shared values was focused on a more sustainable capitalism by ensuring that limited
resources such as land, energy, environment, and labor were considered in the overall strategy of profit optimization. As they sought to improve their firms’ reputations, the resolution of societal problems, once the realm of governments and NGOs,
became a focus for large multinational corporations who realized they could create
economic value by creating societal value through a more efficient use of resources
and reconceiving products and services.
Today, according to a recent KPMG survey, over 93% of the top 250 global companies report CSR initiatives.
7
As they began to value CSR as an indicator of good
corporate governance and business growth governments, stock exchanges and regulators are helping drive global corporations’ participation in CSR initiatives. In
7 https://assets.kpmg/content/dam/kpmg/be/pdf/2017/kpmg-survey-of-corporate-responsibilityreporting-2017.pdf
7 Innovation and the Quest to Feed the World