Development: Corporate Social Responsibility or Exploitation?

April 3, 2009 by Robert.

Many companies are scrambling to demonstrate their “social responsibility” and even to involve their employees and clients in charitable activities as a way to build their brand. But when businesses try to “pluck the heartstrings” of their customers and employees, they quickly run into uncomfortable grey area.  This blog article, “Poverty Isn’t Always Pretty,” was written Kiva Fellow RobC, wrapping-up his six-month fellowship in the Philippines.  It’s clear from the context that he considers his work philanthropy (”giving” as opposed to “investing”).  Nevertheless, the article deals directly with difficult issues that are pertinent to corporate investment, private charitable donations, and even family relations.

“The greatest thing I see in Kiva and its lenders is the ceding of decisions to the borrower.   Making a loan in essence conveys a trust in the borrower and preserves the dignity of the relationship.   But it also means that borrowers may make decisions at odds with your own thinking.   A recent borrower in the Philippines took a loan to raise fighting cocks.   This is a very popular and legal activity which provides an income for many families throughout the country. While many lenders may not want to fund such a loan (and exercise their own free will through such a choice), is it appropriate to deny this borrower access to Kiva since we may not agree with how she chooses to legally pursue her livelihood?This is one of the more difficult questions we face when we engage in charity of any sort.   Do we give with the expectation of control?  Or do we give with the acknowledgment that we are empowering others?”

It reminds me of when grandparents give money to their grandkids.  Is it purely a gift? Or is there an expectation of Return on Investment (ROI)?Certainly the PETA crowd would say that Kiva is funding the abuse of animals.  Such controversy will limit the growth and breadth of organizations like Kiva, which depend on crowd funding.  If donors don’t like the projects that Kiva is funding, Kiva could lose a huge customer/investor base.  So it makes sense for Kiva to poll their donors, “choose their battles,” and steer clear of “torpedo issues” that could sink them in a high-profile ethical controversy.

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