Corporations and the Public Interest: Guiding the Invisible Hand

Corporations and the Public Interest is very helpful in understanding the structure of the investment side of CSR. I finished Corporations and the Public Interest understanding how to achieve CSR though pressure from shareholders and the investment community, quite an achievement in a single short read. The book's contention that altering the balance between business and government to make companies more accountable grounded this reader in the author's underlying thesis, creating the tension that makes the book so absorbing while maintaining objectivity. The author makes a compelling case that the most efficient way to change behavior is by establishing government standards and measurement, with tangible penalties administered through the investment marketplace. Examples of successful re-balancing, as with CRA, show how effective that method can be. In addition, Corporations and the Public Interest cites European examples in government regulation, data collection and rating, and points out how remarkable their success with CSR has been. The tone is optimistic while maintaining objectivity. I closed the book thinking that corporations doing the right thing was not only inevitable, but would happen in the very short term. As the author puts it in his very clear and eloquent style, "Distinctions between socially responsible investing and the mainstream financial world will blur, as will the lines between CSR and the responsible management of a firm."