Is Corporate Social Responsibility the New Competitive Differentiator for Capitalism?
“The epicenter of the world economy is moving out of the west and changing the focus of corporate investment strategy. As a result, the 
20th-century business model, which says business only exists to make a profit, is no longer valid. The new model is to build on the profit goal via sustainable globalization. This means business has to address global challenges in emerging markets like clean water, education, AIDS, and climate change in order to pave the way to growth and profits. Successful businesses in 5 to 10 years will be the ones that recognize this opportunity to address these challenges as a step to leading in emerging markets. Those who don’t will be left behind.”—E. Neville Isdell, chairman of Coca-Cola (now retired), paraphrased from remarks at the 2008 Clinton Global Initiative
This is excerpted from a speech delivered last year at the Clinton Global Initiative. With the epicenter of the world economy moving out of the west and into developing nations, how will this changing the focus affect corporate investment strategy? Is it fair to say that because of this changing focus the 20th-century business model, which says business only exists to make a profit, is no longer valid? The rate and by any means necessary philosophy that built the now industrialized nations, can certainly not be sustained as new epicenters of industrialization now begin to exist thought out the world. Climate change is a real threat. We know that industrialization drives pollution which threatens the atmosphere. The new corporate social responsibility will be to industrialize and develop up and coming nations but not at the tax of the land, the people or the planet. Companies operating in these developing countries will have to spend a little more time ensuring that their business practices are not harming the local ecosystem. That they are contributing to the well being of the people that work at their operations, local stakeholders and becoming a part of the community. We are seeing today that it is driving a new level of competitiveness, in fact it is the building blocks to sustainability and it is the new Corporate Social Capitalism.
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