Should business have a purpose?

Business is not separate from society.

In February the Public Services (Social Value) Act came into force. The Act very simply requires public authorities to procure services in a way that generates social value. This was a piece of Tory legislation (gasp), so well done to Chris White on seeing his private members bill through to the end.

Social Value seems a long way away from the capitalism of the 1970s and 80s when Milton Friedman famously wrote in his book Capitalism and Freedom: "there is one and only one social responsibility of business–to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engages in open and free competition without deception or fraud."

This is often condensed into the “business of business is business” quote. This finds clear resonance in the UK Companies Act where the goal of business is to maximise profit for shareholders.

Apologists for Abstract Expressionism in New York in the early 20th Century, Alfred Barr and Clement Greenberg, made strenuous claims that painting was about surface and colour and nothing else, getting rid of the difficulties of subject matter. Like those art critics, doesn’t Friedman’s abstract view strip business activity of all sense of production, all politics and all purpose, leaving it to do its own thing and have no particular social relevance? Such commentary allows for a discussion of business in the absence of any knowledge of what they actually do and what impacts they may have.

Isn’t it just very convenient to isolate business from society when society isn’t very happy with it and is losing a strongly-held faith in the world of business? 

The Edelman Trust Barometer for 2013, which surveyed over “31,000 respondents in 26 markets around the world and measured their trust in institutions, industries and leaders”, opens with the words:

“The 2013 Edelman Trust Barometer demonstrates a serious crisis of confidence in leaders of both business and government.”

The Barometer shows that whilst trust in institutions including businesses rising modestly, the quality of that trust is feeble: the respondent’s category for “Trust a great deal” is at 16 per cent in government and 17 per cent in business and media.

This is pretty lamentable. Business is not separate from society; it is a social activity, literally being busy. To make this clear, the now well-worn quote of Bjorn Stigson, when president of the World Business Council for Sustainable Development, that “businesses do not succeed in societies that fail”, needs to be read alongside the Kofi Anan comment that it is the absence not the presence of business that has condemned the much of the world to poverty. 

We have started to see the emergence of a new sense of entrepreneurship which is increasingly called responsible capitalism in the shape of businesses and social enterprises that combine a sense of social or environmental purpose with profit. We can see this in the Social Value Act. How long, we might wonder, before it is common practice for all organisations to think about the social value they create. Would then the Companies Act, instead of enshrining the purpose of business to be profit maximisation whilst nominally nodding at the needs of society and the environment, in fact require businesses to have a purpose in society and, in fulfilling that purpose, they should of course make a profit. 

That might make people trust businesses more; it might make people feel that instead of being self-serving, businesses are in fact part of society.

Richard Spencer is Head of Sustainability at ICAEW.

Photograph: Getty Images
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France’s burkini ban could not come at a worse time

Yet more legislation against veiled women can only further divide an already divided nation.

Since mayor of Cannes David Lisnard banned the full-body burkini from his town’s beaches, as many as 15 French resorts have followed suit. Arguments defending the bans fall into three main categories. First, it is about defending the French state’s secularism (laïcité). Second, that the costume represents a misogynistic doctrine that sees female bodies as shameful. And finally, that the burkini is cited as a threat to public order.

None of these arguments satisfactorily refute the claims of civil rights activists that the bans are fundamentally Islamophobic.

The niceties of laïcité

The Cannes decree explicitly invokes secular values. It prohibits anyone “not dressed in a fashion respectful of laïcité” from accessing public beaches. However, the French state has only banned “ostentatious” religious symbols in schools and for government employees as part of laïcité (the strict separation between the state and religious society). And in public spaces, laïcité claims to respect religious plurality. Indeed, the Laïcité Commission has tweeted that the ban, therefore, “cannot be based upon the principle of laïcité”.

While veils covering the entire face such as the burqa or niqab are illegal, this is not to protect laïcité; it is a security matter. The legal justification is that these clothes make it impossible to identify the person underneath – which is not the case for the burkini.

 

By falling back on laïcité to police Muslim women in this way, the Cannes authorities are fuelling the argument that “fundamentalist secularism” has become a means of excluding Muslims from French society.

Colonial attitudes

Others, such as Laurence Rossignol, the minister for women’s rights, hold that the burkini represents a “profoundly archaic view of a woman’s place in society”, disregarding Muslim women who claim to wear their burkini voluntarily.

This typifies an enduring colonial attitude among many non-Muslim French politicians, who feel entitled to dictate to Muslim women what is in their best interests. Rossignol has in the past compared women who wear headscarves through choice to American “negroes” who supported slavery.

Far from supporting women’s rights, banning the burkini will only leave the women who wear it feeling persecuted. Even those with no choice in the matter are not helped by the ban. This legal measure does nothing to challenge patriarchal authority over female bodies in the home. Instead, it further restricts the lives of veiled women by replacing it with state authority in public.

Open Islamophobia

Supporters of the ban have also claimed that, with racial tensions high after recent terrorist attacks, it is provocative to wear this form of Muslim clothing. Such an argument was made by Pierre-Ange Vivoni, mayor of Sisco in Corsica, when he banned the burkini in his commune. Early reports suggested a violent clash between local residents and non-locals of Moroccan origin was triggered when strangers photographed a burkini-wearing woman in the latter group, which angered her male companions. Vivoni claimed that banning the costume protected the security of local people, including those of North African descent.

Those reports have transpired to be false: none of the women in question were even wearing a burkini at the time of the incident. Nonetheless, the ban has stood in Sisco and elsewhere.

To be “provoked” by the burkini is to be provoked by the visibility of Muslims. Banning it on this basis punishes Muslim women for other people’s prejudice. It also disregards the burkini’s potential to promote social cohesion by giving veiled women access to the same spaces as their non-Muslim compatriots.

Appeals to public order have, occasionally, been openly Islamophobic. Thierry Migoule, head of municipal services in Cannes, claimed that the burkini “refers to an allegiance to terrorist movements”, conveniently ignoring the Muslim victims of recent attacks. Barely a month after Muslims paying their respects to friends and family killed in Nice were racially abused, such comments are both distasteful and irresponsible.

Increased divisions

Feiza Ben Mohammed, spokesperson for the Federation of Southern Muslims, fears that stigmatising Muslims in this way will play into the hands of IS recruiters. That fear seems well-founded: researchers cite a sense of exclusion as a factor behind the radicalisation of a minority of French Muslims. Measures like this can only exacerbate that problem. Indeed, provoking repressive measures against European Muslims to cultivate such a sentiment is part of the IS strategy.

Meanwhile, the day after the incident in Sisco, riot police were needed in nearby Bastia to prevent a 200-strong crowd chanting “this is our home” from entering a neighbourhood with many residents of North African descent. Given the recent warning from France’s head of internal security of the risk of a confrontation between “the extreme right and the Muslim world”, such scenes are equally concerning.

Now more than ever, France needs unity. Yet more legislation against veiled women can only further divide an already divided nation.

The Conversation

Fraser McQueen, PhD Candidate, University of Stirling

This article was originally published on The Conversation. Read the original article.