Exploring Corporate Responsibility with Christopher Marquis: Insights from The Profiteers
The DoneGood team is excited to chat with Christopher Marquis, the author of The Profiteers: How Business Privatizes Profits and Socializes Costs. In his book, Christopher highlights DoneGood as an example of a company making a positive impact. We wanted to dive deeper into what inspired him to explore this topic, his vision for the future of corporate responsibility, how DoneGood plays a role in this evolving landscape, and more.
Check out our interview with Christopher below, and be sure to check out his newest book, The Profiteers.
Could you tell us a bit about yourself? We’d love to hear about your career, your interests, as well as your hobbies outside of work!
Thanks for this interview! I am a professor at Cambridge and have dedicated my career to researching and writing about how business can be a force for good in society. My academic journey began with a Ph.D. in sociology from the University of Michigan, followed by faculty positions at Harvard and Cornell. My research focuses on corporate sustainability, social innovation, and the role of business in addressing global challenges like climate change and inequality. I have authored several books, recently The Profiteers: How Business Privatizes Profits and Socializes Costs, and my earlier books include Better Business: How the B Corp Movement Is Remaking Capitalism and Mao and Markets: The Communist Roots of Chinese Enterprise.
My academic pursuits keep me pretty busy! I am deeply passionate about my work and fortunately enjoy my teaching and research and all the people I get to meet though that, so it is not really like work! But a few other things I enjoy include travel, and since I have relocated to the UK I have really enjoyed visiting Europe more frequently. And I also very much enjoy different kinds of exercise. Almost 10 year ago I started doing yoga and became hooked and before leaving the USA for the UK I became a certified yoga teacher, although since being in the UK have not been able to practice as much as I should.
You recently released a new book called The Profiteers: How Business Privatizes Profits and Socializes Costs. Were there any key events or specific moments that drove you to investigate the real costs of corporate business practices?
I guess the start of this specific line of research was when I was teaching a class on corporate responsibility about 15 years ago and a student asked why we were studying large companies with peripheral philanthropic programs instead of those like B Corporations, which integrate social and environmental responsibility into their core business. That question led me to cold-call the B Lab office in Philadelphia to see if they would allow me to research and write about their work, and it opened up a whole new perspective for me on how business and society interrelate.
But I think I had been puzzling about these issues for a long time. I open the The Profiteers with another influential event, although I did not realize it had a fundamental affect on me until later. I was attending a talk by GE’s legendary CEO Jack Welch about 25 years ago. Welch’s defiance to GE take responsibility for the clean up the million-plus pounds of carcinogenic PCBs they had dumped into the Hudson River and also questions about the fairness of hiring processes at GE left a bad taste in my mouth.
I have been trying to unpack how any why businesses can be so irresponsible at times, and led to this most recent book.
Another set of inspirations for this new book was the amazing entrepreneurs I have met who are trying to orient their businesses around making the world better. For instance, Grove Collaborative, a California-based company that sells health, beauty, and home care products is a company whose work I discuss in The Profiteers. When I spoke with one of their co-founders, Stu Landesberg, he explained how a major focus of their is on eliminating plastic because it's a huge externality for them. I had never thought about plastic as an externality - when companies push costs they should pay onto society. Stu highlighted how using virgin plastic is often cheaper than recycled plastic, which leads companies to choose the less expensive but more harmful option. What is important is that having this core focus for the company has led to lots of innovation. Grove has made impressive strides in reformulating products to eliminate plastic use, such as offering shampoo bars instead of liquid shampoos in plastic bottles, and are creating standards to help individuals identify products made with recycled materials. Approaches like this to tackling externalities inspired many ideas in the book.
Writing The Profiteers was an opportunity to synthesize these experiences and insights into a comprehensive examination of the ways in which businesses privatize profits and socialize costs, and also how and why they can effectively change. It is my hope that this book will contribute to a broader conversation about corporate accountability and inspire meaningful change in how businesses operate.
Can you elaborate on some specific examples of how corporations evade their environmental and social responsibilities?
Corporations often use a variety of tactics to evade their environmental and social responsibilities, significantly impacting society and the planet while attempting to hide these actions from the public. This evasion is a key focus of my book.
A striking example is the misinformation campaigns funded by fossil fuel companies to downplay the climate impacts of carbon emissions. Despite overwhelming scientific evidence linking fossil fuel consumption to global warming, these corporations have heavily invested in lobbying to delay regulatory actions and used extensive PR campaigns to promote skepticism about climate science. This not only hampers progress in addressing climate change but also shifts the burden of environmental degradation onto society, while those companies benefit.
Let me return to the issue of plastic. Many people believe that plastic recycling is a viable solution to the pollution crisis. However, the reality is that less than 10% of the trillions of tons of plastic produced has been recycled. But what do companies like Coke, Pepsi, and Dr. Pepper do? They often run advertisements advocating for recycling, which gives the impression that they are part of the solution. But the truth is that these companies should focus on eliminating plastic use altogether rather than promoting recycling, which is largely ineffective. But it is cheaper and easier for them to just work to place the responsibility on our shoulders.
Another example in the plastic realm is the use of the "chasing arrows" recycling symbol, often seen on plastic products. This symbol and placing numbers inside the logo was purposely designed to make people believe items are recyclable, when in fact, many are not, which came out in lawsuits. The plastic industry has basically manipulated the use of this symbol to give a false sense of environmental responsibility to individuals so we did not ask more of them.
What are the best actions or strategies that pioneering leaders are using to change business operations?
Many pioneering business leaders are increasingly recognizing the need to integrate sustainability and social responsibility into their core operations, which beyond the critique we have discussed, is a key focus of my book. This shift is driven by a combination of ethical considerations, regulatory pressures, and market demands. These leaders are employing several innovative strategies to transform their business practices, creating a more sustainable and equitable future.
One important part of such strategies is transparent reporting and accountability, which is also a cornerstone of the B Corp movement. For instance, companies like Allbirds are leading the way with their decarbonization efforts through rigorous accountability processes. Allbirds has implemented many measures to reduce carbon emissions throughout their supply chain and is committed to achieving net zero emissions. By transparently reporting their carbon footprint and progress toward decarbonization, Allbirds not only holds themselves accountable but also sets a benchmark for the industry.
Ethical supply chain management is another critical area where pioneering leaders are making a difference. Tony's Chocolonely is a prime example here, working tirelessly to ensure their chocolate is sourced without the use of slave labor and that farmers and workers get a fair wage. By maintaining direct relationships with cocoa farmers and implementing stringent standards, Tony's Chocolonely aims to not just ensure its supply chain adheres to global human right standards, but also make 100% slave-free chocolate the norm through the entire industry. Their efforts include thorough audits and collaborative projects to improve working conditions and environmental practices.
Investing in fair employment practices is also at the forefront of transformative business strategies. Greyston Bakery's open hiring model is an important example I profile in the book. This innovative approach removes barriers to employment by hiring individuals without asking about their background or requiring a traditional interview. By providing fair wages and opportunities for growth, Greyston Bakery not only supports its employees but also fosters a more inclusive workforce.
Another vital strategy is advocacy and policy influence. Natura, a Brazilian cosmetics company, exemplifies this approach. Natura actively engages in policy discussions and advocates for stronger environmental and social regulations and combating deforestation and promoting sustainable development in the Amazon.
These strategies are some examples of how businesses take a holistic approach to sustainability and social responsibility. By integrating these practices into their operations, pioneering leaders are contributing to a more sustainable and equitable future. Their efforts demonstrate that businesses can be a force for good, driving positive change while achieving long-term success.
In your research, did you encounter any surprising or particularly impactful stories of companies that successfully reformed their practices?
Throughout my research, I have come across numerous impactful stories of companies that have successfully reformed their practices, demonstrating that meaningful change is possible. One particularly inspiring and well known example is that of Interface, a global leader in modular flooring. The company’s journey towards sustainability began in the mid-1990s, when its founder, Ray Anderson set Interface on a path to become a sustainability pioneer, with the ambitious goal of eliminating any negative impact the company might have on the environment by 2020.
Interface’s journey towards sustainability was marked by a series of innovative initiatives. One of the key strategies they employed was the implementation of the Mission Zero program, which aimed to achieve zero environmental impact by 2020. This involved a comprehensive approach to redesigning their products, processes, and supply chains to minimize waste, reduce carbon emissions, and use renewable energy sources.
A significant part of Interface’s transformation was its focus on creating a closed-loop manufacturing process. The company invested in technologies to recycle old carpets into new products, reducing the need for virgin materials and diverting waste from landfills. They also developed innovative carpet tile designs that could be easily replaced and reused, further extending the lifecycle of their products.
Interface’s commitment to sustainability extended beyond its own operations. The company actively engaged with suppliers, customers, and industry partners to promote sustainable practices across the entire value chain. They pioneered the use of biomimicry in product design, drawing inspiration from nature to create products that were both functional and environmentally friendly.
The success of Interface serves as a powerful example of how a company can fundamentally transform its practices and make a positive impact on the environment. Ray Anderson’s vision and leadership were instrumental in driving this change, demonstrating that a committed and visionary leader can inspire a company to achieve extraordinary goals. Interface’s journey underscores the importance of setting ambitious targets, embracing innovation, and fostering a culture of transparency and accountability.
How do you envision the future of corporate responsibility evolving, and what steps can the average consumer take to support this transformation?
Future expectations for corporate responsibility will likely evolve significantly as businesses, governments, and individuals increasingly recognize the importance of sustainable and ethical practices.
This evolution will be driven by a number of factors including regulatory changes, market demands, and a growing awareness of the interconnectedness of environmental, social, and economic issues.
One major trend in this evolution is the strengthening of regulatory frameworks. Governments worldwide are implementing stricter regulations to hold companies accountable for their environmental and social impacts. The European Union (EU) is at the forefront of this movement with initiatives like the Green Claims Directive and the Corporate Sustainability Reporting Directive (CSRD). The Green Claims Directive aims to ensure that companies' environmental claims are substantiated and verified, combating greenwashing and fostering greater transparency.
The CSRD requires companies to report on a broad range of sustainability issues, including their impact on the environment, human rights, and social factors. These regulations not only compel companies to adopt more sustainable and ethical practices but also provide people with reliable information to make informed choices. As regulatory frameworks become more robust, companies around the world will need to align their operations with these standards, driving a shift towards greater corporate responsibility.
Another influential trend is the increasing adoption of regenerative business practices, exemplified by companies like Patagonia. Patagonia has long been a leader in environmental sustainability and social responsibility. Recently, the company has turned its focus towards regenerative projects, aiming to restore and replenish natural systems rather than merely sustaining them. This includes regenerative agriculture initiatives, which promote farming practices that enhance soil health, biodiversity, and ecosystem resilience, are a prime example of this approach. They also have worked with other pioneers in the space such as Dr. Bronners and the Rodale Institute to create a verifiable standard for regenerative organic agriculture to promote learning across many industries and so companies can’t just use the term to fool people. This shift towards regenerative practices represents a significant evolution in corporate responsibility, highlighting the potential for businesses to contribute to the restoration and healing of the planet.
Individuals also can play a crucial role in supporting corporate responsibility, and their actions can help drive change in business practices. While making informed purchasing decisions is important, at this point, engaging in policy advocacy can often be more effective in creating systemic change.
First and foremost, individuals can make informed purchasing decisions by choosing products and services from companies that prioritize sustainability and ethical practices. Sites like DoneGood are thus very important for both educating people and making such choices easier.
Certifications such as Fair Trade, B Corporation, and Regenerative Organic Certified, and others are also valuable tools for identifying responsibly produced products. By supporting businesses that demonstrate a commitment to positive change, individuals can encourage more companies to adopt sustainable practices. For example, purchasing from brands that use eco-friendly packaging, ethically sourced materials, and fair labor practices directly supports their efforts and sends a message to the market about the individuals’ priorities.
Beyond individual purchasing decisions, individuals can advocate for change by voicing their concerns and demanding transparency from companies. This can be achieved through various means, such as participating in campaigns, and using social media to raise awareness about corporate practices. By engaging with companies directly through feedback and reviews, individuals can influence corporate policies and encourage businesses to adopt more responsible practices. For instance, highlighting concerns about environmental impacts or labor conditions in product reviews can push companies to address these issues more proactively.
Moreover, supporting policy initiatives is a powerful way for individuals to promote corporate accountability and sustainability. Voting for candidates and policies that advocate for stronger environmental and social regulations can create a more equitable and sustainable business landscape. By backing legislation that enforces transparent reporting, carbon reduction, and fair labor practices, we all can help establish the legal frameworks necessary for holding corporations accountable. Engaging in local and national political processes, joining advocacy groups, and participating in public consultations on policy proposals are effective ways to contribute to broader systemic change.
By combining informed purchasing decisions with active participation in advocacy and policy support, individuals can significantly influence corporate behavior and contribute to a more sustainable and ethical world.
DoneGood and Karma Wallet deeply value the insights of individuals like Christopher Marquis, who are addressing corporate gaslighting and our environmental crisis. His work not only highlights the importance of accountability but also reinforces our commitment to promoting ethical and sustainable business practices.
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