eFlash: Global Corporate Responsibility

Intro and Public Opinion

Overall, Americans no longer trust big corporations. Personal experiences and extreme cases of corporate irresponsibility exposed by the media have led the average citizen to suspect that most high-level company employees are greedy and immoral. Historically, there has always been a perception that company executives are crooked and abusive of their wealth and power, but in recent years, “the perception has become the reality,” according to Ira M. Millstein.* Therefore, now even a greater majority of the population is suspicious of corporations. The Minority Corporate Counsel Association discovered this in a survey* that revealed that 75% of potential jurors feel that large corporations are not trustworthy. This is worrisome for big businesses that often end up in court against jurors heavily influenced by the general public opinion. The MCCA survey continued to show that 85% believe that companies not only have bad accountability but also knowingly produce dangerous products and harm the environment. Furthermore, 71% feel that racial discrimination still exists within companies. In almost every aspect of corporate business, the average American suspects that corruption runs rampant.

It is clear, therefore, that top executives face a huge challenge when trying to restore investor confidence and bolster public images. Corporations need to be responsible and prove their integrity to the public in three main areas:

Accounting:
In matters concerning stocks, net gains, and shareholder’s interests, top executives need to be straightforward and honest so that invertors are secure.

Employees:
Company officials need to avoid all types of unfair discrimination in the workplace and when hiring staff. All employees in all parts of the world should be paid fairly and treated with respect.

Resources and Products:
When acquiring natural resources, manufacturing products, and selling goods, corporations should have respect for their customers and for the environment.

* John Gibeaut. “Fear and Loathing in Corporate America”. The ABA Journal January 2003. p. 52, 53