Fairmont State University
Explain what social responsibility means to the author of the book you selected. How does he believe it relates to the current model of corporate accountability as structured through the legal system? The authors of “Natural Capitalism” in my opinion believes that the form in which corporate business creates capitalism is solely allied with social responsibility. If the world were to view capitalism as a living system that matter, social responsibility would benefit (Hawken, Lovins & Lovins, loc. 316, 1999). According Hawken and Lovins (1999), “when the environment becomes a major factor of production, the economic values are not substituted or have no market value, and when resource productivity is increased”, social responsibility will be logical more than monetary value way of thinking. In the simplest form, the economy should be accountable for social responsibility (Hawken, Lovins & Lovins, loc. 288 1999). The authors of “Natural Capitalism” states that we live in a conventional form of thinking, which creates “conventional capitalism”. Hawken and Lovins use the idea of hypercars compared to the regularly produce cars to explain this logic. The conventional car in society at the time when Hawkins and Lovins published “Natural Capitalism”, was steel based. Car industries believed that mass production was consider efficient. The usage of steel was the answer to producing a lot cars at a faster rate. Though steel may have produce at unbelievable rate efficiently, compare to Hawken and Lovins ideology logic, steel wasn’t the answer linking capitalism to social responsibility. Steel is heavy, which bears down on the tires of cars that waste energy by flexing and heating up combine with operated internal combustion engine. The hypercars are environmentally socially responsible because they are created by light aluminum and hybrid electric flex engines, which are costly material, but resource waste more efficiently. The authors believed that resource productivity “doesn’t just save resources and money but it also improves the quality of life” (Hawken, Lovins & Lovins, 1999). The era when “Natural Capitalism” was published was when major industries like the car industry were measured by production, mass production to be exact. The faster the rate cars are produce to the demand of consumers is consider productivity. The car industry used steel which was cheaper in expense to create cars, but written by Paul Hawkins in his book, the social responsible way would not be trading economic values for market value. Free markets ethics is the term in which corporate business operate today, managers are answerable to the owners of a company and its stockholders. Milton Friedman, a well-known free market economist, enlightens the idea further by claiming that the responsibility of corporate executives “is to conduct the business in accordance with desires, which generally will be to make as much money as possible while conforming to the basic rules of society” (Halbert, Ingulli, 2012). Friedman further argues that it is wrong for corporate resources to deal with problems in society at large, complete opposite of Paul Hawkins stated beliefs in “Natural Capitalism”. As a democratic country, in society, business, or nature, we all have choices, and a legal systems that keep us in line with those choices we wish to make. Legally it is not our “duty to rescue”, certainly sums the dissimilarity between our corporate accountability and Hawkins & Lovins idea of social responsibility. If a human being does not have to help a random man that needs help medically or physically, why do major business help the environment or the economy in that matter if that business is not breaking any rules? The BP deep sea drilling is a primary example, as much as drilling under water for oil was socially harming to society, I guess BP was conforming to the...