MORAL RESPONSIBILITY
When we talk about responsibility of an individual we almost always mean moral responsibility. We are told we need to use savings lights because it is good for nature. And we are all feeling green because we eat biological, as long as we can afford it.
If the bank tells me I can afford another loan I am perfectly responsible in my actions. If my shareholders reward me with bonuses for taking risks I am not irresponsible.
DEFINING RESPONSIBILITY
Responsibility is a relationship between 2 entities that are capable of consciously acting, persons, companies, etc. This relationship can be initiated without consent of both parties, this is holding someone responsible. You can have this responsibility relationship with yourself. This can be called weak responsibility.
A responsibility relation with the environment is non-existent and therefore meaningless. But caring for the environment can be part of your responsibility, as a thing necessary to fulfill your obligation. I can even hold you responsible for that.
CORPORATE SOCIAL RESPONSIBILITY
CSR is a movement, a movement that has gotten a very powerful boost by the UN PRI. Investors realize that addressing environmental, social and governance issues is a necessary ingredient to ‘good ‘business. Not altruistic but preserving, survival.
Corporate social responsibility behaves exactly like ‘normal’ responsibility. Only a corporation is not required to be enlightened or have a consciousness. And they are constantly being held responsible by the consumer, to produce something they want.
Or produce what they ‘really’ need (and thus can afford)? In case of mortgages business produced what consumers wanted (high mortgages, big houses -> cultural status), but there is where responsibility plays a part, what was responsible?
In Holland for example consumers gambled big time on lower than low interest rates and for only let’s say 5 years hoping that interest rates would even get lower than lowest forgetting that if interest rates would almost double they couldn’t afford that big mortgage anymore.
Again, bounded rationality is an important concept also in this case. Nobody, consumers AND corporations alike, is able to know everything! So, people guess and gamble on the basis of ‘trust’… And when things go wrong they blame the other they trusted. Life is dangerous ;-)
(In fact, this crisis is a perfect example of both sides not taking responsibility because of being part of the same culture maybe? And we should not forget that here in Holland the crisis is less destructive than in other countries…)
what i tried to show in this model of responsibility is that ‘holding responsible’ is much more important for results than ‘taking responsibility’. we (humans) are much more inclined to act when held responsible. don’t you agree?