The Economy, Stupid

Is corporate social responsibility dead?

Nov 27, 2025
Narelle Hooper, a corporate advisor and ethics board member, and Luke Hilbath, a sustainability consultant, dive into the crisis of corporate social responsibility. They debate whether companies should pursue profit at any cost, highlighting the disconnect between legal action and social licensing. The duo explores the pitfalls of ESG becoming mere virtue signaling and examines failures in sectors like childcare. They advocate for long-term incentives and call for a shift toward genuine stakeholder engagement in business to foster a more responsible future.
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ANECDOTE

Juukan Gorge As A Social‑Licence Failure

  • Narelle and Luke cite Rio Tinto's destruction of Juukan Gorge as a classic social licence failure.
  • They note that legal actions can still devastate reputation and trust over time.
INSIGHT

GFC Sparked Investor Focus On Governance

  • Post-GFC investors recognised governance failures create systemic risk and shifted expectations.
  • That awakening helped embed ESG into investor risk frameworks.
INSIGHT

Overpromising Made ESG Political

  • Overclaiming 'win-win' outcomes invited backlash and politicised ESG, especially in the US.
  • That politicisation weakened public trust and turned ESG into a culture war lever.
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