‘Corporate responsibility’ is the phrase used to describe businesses which have decided to behave in a deliberately socially responsible manner. For example, it may be perfectly legal to dump waste at sea, but many people would consider this to be unacceptable behavior, which means it’s not ethical.

In many cases different ethical principles pull in opposite directions. For example, closing a polluting factory may be good for the environment, but it is not going to help the local community who need the jobs and the incomes.  Businesses which get caught acting unethically suffer much more damage than used to be the case. The press is much more active in investigating and publicising such cases. The population at large takes more interest, has their own views, and is more willing to let their displeasure be known. Pressure groups opposed to some activities of business are much better organized, better financed and better able to attack such businesses.

The internet now allows very rapid sharing of information across the world (and MNCs operate across the world). There are many web sites devoted to publicising and discussing the behaviour of businesses. Whistle-blowing is more acceptable, and even protected by law in some countries, so access to secret information is now better.

Increasing Consumer Activism

Consumer campaigns can be very effective. If enough consumers stop buying from business revenues will fall until the business is forced to change or go bust. Managers don’t like the negative publicity, and are sometimes embarrassed by their own decisions anyway; they know they are dubious decisions. Suppliers may want to switch away from such a business because there is guilt by association. In extremes there may be an investor’s strike where large numbers of people refuse to buy the shares of such a business and the business cannot raise finance.