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In this episode, we welcome back Dr. Kimberlee Josephson for her fifth appearance on The Soul of Enterprise. Dr. Josephson, an associate professor of business at Lebanon Valley College and adjunct research fellow with the Consumer Choice Center, brings her extensive expertise in global sustainability, international marketing, and workplace diversity to our discussion.
We delve into the complexities of Environmental, Social, and Governance (ESG) criteria, examining their impact on business operations and economic freedom. Dr. Josephson shares her insights on the challenges ESG poses to free-market principles and the potential consequences for entrepreneurs and consumers alike.
Join us for a thought-provoking conversation that explores the intersection of corporate responsibility and economic liberty, and gain a deeper understanding of the current debates surrounding ESG in today’s business landscape.
SHOW NOTES
Segment one
Who remembers that great Penn and Teller show called B*llshit? Classic Libertarian move as Ed brings this up at the beginning of the show. https://en.wikipedia.org/wiki/Penn_%26_Teller:_Bullshit
“When we think about corporate social responsibility, businesses feel they need to be giving back to society. However, conscious capitalism leads to putting my stakeholders even before the interests of the firm.” —Dr. Josephson
“The purpose of business is to create and keep a customer.” —Peter Drucker
“My students—the majority of them are business majors—they have a vested interest in business. But most of them are interested also in serving or starting a non profit. So even those who are pursuing a business major don't have a positive view of the profit motive which I find to be pretty disheartening.” —Dr. Josephson
Segment two
Dr. Josephson wrote a great article called, “Co-opting Capitalism: From Value Creation to Virtue Signaling” https://thedailyeconomy.org/article/co-opting-capitalism-from-value-creation-to-virtue-signaling/
In Dr. Josephson’s article she references Dr. Carroll’s pyramid of corporate social responsibility. Here is a quick picture to help you visualize it
Andrew Carnegie famously said, "The man who dies thus rich dies disgraced," meaning that it is more difficult to give away wealth wisely than to earn it in the first place
“The beauty of a business is that it is made up of a network of people who create, coordinate, and collaborate the means for exchange, without necessarily sharing social values — which is why capitalism doesn’t need to be changed.” —Dr. Josephson in this article https://thedailyeconomy.org/article/co-opting-capitalism-from-value-creation-to-virtue-signaling/
Segment three
“Do ESG and DEI Follow a Product Life Cycle?” by Dr. Josephson (hint: yes they do) https://thedailyeconomy.org/article/do-esg-and-dei-follow-a-product-life-cycle/
Here is a great visual from Kimberlee’s article that shows the typical product lifecycle
“Yes, the pendulum for ESG and DEI has swung, but not all the way. It would be wise to remember that today’s decline can become tomorrow’s trend if situations and circumstances along with market interest shift once again.” —Dr. Josephson in this article https://thedailyeconomy.org/article/do-esg-and-dei-follow-a-product-life-cycle/
Here is a link to the Harvard implicit bias test, largely considered flawed today but extremely widespread in its use when released. https://implicit.harvard.edu/implicit/takeatest.html
Segment four
“How Ethical Consumption Emboldens Certification Systems and Rent Seeking Agencies” by Dr. Josephson https://thedailyeconomy.org/article/how-ethical-consumption-emboldens-certification-systems-and-rent-seeking-agencies/
Today I learned, when Fair Trade first came about, it was actually done primarily through church activist groups, and it was seen as well intentioned and meant to help poor producers in third world countries
“If it’s really about the economy, can Dollar General fulfill its ‘food first’ mission?” by Dr. Josephson https://www.fastcompany.com/91235714/if-its-really-about-the-economy-can-dollar-general-fulfill-its-food-first-mission
Kimberlee brought up food deserts today on the show. Food deserts are areas where you have populations that have limited access to healthy foods and then also affordable foods
“Business Schools Undermine Wealth Creation” by Dr. Josephson https://thedailyeconomy.org/article/business-schools-undermine-wealth-creation/
A big THANK YOU to Dr. Kimberlee Josephson for joining us today. She is a PROLIFIC writer and professor. Please check out more of her work at this link https://kbjosephson.com/
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