Corporations can be citizens.

In last Sunday’s Toronto Star there was an interesting juxtaposition of two letters-to-the-editor on the SNC-Lavalin affair. It reminds me of the time I spent over the years lecturing business students at Ontario universities on corporate social responsibility. Despite the assumption by the public that you cannot charge a car for someone’s careless driving, you can certainly charge the manufacturer with liability if the fault is in a manufacturing defect.

Companies are people too, as far as the law is concerned.

And companies can also suffer double jeopardy as they have their own judge and jury when they are found at fault. The company that has just paid a fine or a court ordered recompense, is hardly going to say, “It is just the cost of doing business!” The company’s reputation is an asset and you besmirch it at your peril. I have helped carry boxes of a few careers to the parking lot and have seen how it can be an object lesson for others.

And while baksheesh can be considered a tip, a small gratuity, or a charitable donation in many countries, in large amounts, it is a bribe.

While many think corporations lack a brain, a soul and a moral compass, the truth is they have many. From the night cleaning staff to the chief executive officer, everybody has an investment in their company. And they do not always look favourably on people around them who disrespect the company’s moral compass.

People who invest in shares of companies for their retirement years should always look beyond the public relations department’s hand-outs. How employees think of their company, the rate of turn-over of staff and how their suppliers feel about them tells you far more.

Thinking of another example of corporate social responsibility, I am disappointed that General Motors Corporation has broken faith with William C. Durant’s vision for the company and certainly the deal made with Sam and George McLaughlin when GM bought their company in Oshawa, Ontario and made Buicks and Chevrolets there for the Canadian market. GM gave up more than just market share when it made the decision recently to end a hundred years of Oshawa manufacturing and leave North American production to the U.S. and Mexico. People do not buy your products quite so readily when you disrespect  them.

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Copyright 2019 © Peter Lowry

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