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Do Corporate Execs Need A ‘Climate Change’ Oath?

hippocratic_oath.jpgManagers “need to break away from misleading and simplistic ideas that caricature managers as the hired hands of shareholders,” according to an article in HBRGreen by Rakesh Khurana and Nitin Nohria.

Management should, in other words, should put the well-being of society above the well-being of the people that own the company.

A management oath should be created to encourage business leaders to be aware of the broader implications of their actions, including those related to the environment. Simply survey the history of management or business schools’ curricula, and you will see that the notion that corporations have a responsibility to society is not a new idea, simply a forgotten one.

Want an opposing point of view? Corporate CSR activities raise the cost of doing business and lower corporate productivity without a net benefit to free enterprise or the human condition, according to a recent Investor Business Daily article.

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One thought on “Do Corporate Execs Need A ‘Climate Change’ Oath?

  1. Corporate managers follow the market…which happens to be consistent with the desires of their shareholders. As the market becomes more aware of our environmental challenges, corporate managers are forced to pay attention. Market forces will correct this problem without needing to force managers to serve this new “constituency”.

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