The social responsibility of business | Alex Edmans | TEDxLondonBusinessSchool

Alex Edmans talks about the long-term impacts of social responsibility and challenges the idea that caring for society is at the expense of profit.
Alex is a Professor of Finance at London Business School. Alex graduated top of his class from Oxford University and then worked for Morgan Stanley in investment banking (London) and fixed income sales and trading (NYC). After a PhD in Finance from MIT Sloan as a Fulbright Scholar, he joined Wharton, where he was granted tenure and won 14 teaching awards in six years.
Alex’s research interests are in corporate finance, behavioural finance, CSR, and practical investment strategies. He has been awarded the Moskowitz Prize for Socially Responsible Investing and the FIR-PRI prize for Finance and Sustainability, and was named a Rising Star of Corporate Governance by Yale University. Alex co-led a session at the 2014 World Economic Forum in Davos, and runs a blog, “Access to Finance” (www.alexedmans.blogspot.com), that aims to make complex finance topics accessible to a general audience.
This talk was given at a TEDx event using the TED conference format but independently organized by a local community. Learn more at ted.com/tedx

[@lemalaise]

How did we end up in a world where scientists have to prove to society with extensive research that if you treat people like people you gain something?.

[@AhmedMohsen83]

+Aleksandra Kanischeva :)

[@DominikSchwindt]

Best comment ever!!!

[@ethicsexpress5259]

This is the dilemma with CSR research so far. Most of the academics treat it as a predictor of the financial well-being of the company. We very seldom work on what results in CSR?

[@realityphanatic5849]

Because you need a renown scientist to make such a simple, basic thing credible. You see, leaders these days do not care so much about their employees unless they create problems. Whenever you treat people badly , you are demotivating them but if you treat them right you actually gain their trust and loyalty. But if you are trying to point this out they wont care. However when a famous scientist makes a study about these issues, they will start to listen.

[@mohammedelyoussofi8045]

Same world where it seems we haven't even proved (yet) that polluting is bad, damaging, potentially irreversible and very very costly. Ethical priorities. Morality strength. The world of now. The world of Instagram.

[@Ojflex1996]

Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money. I started investing with $150k and in the first 2 months, my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and get more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.

[@Ojflex1996]

@jadonsmith_ However, if you do not have access to a professional like JUDITH ANN PEACE, quitting your job to focus on trading may not be the best approach. It is important to consider all options and seek guidance from reliable sources before making any major decisions. Consulting with an AI or using automated trading systems can also be helpful in managing investments while balancing other commitments

[@Ojflex1996]

@jadonsmith_ Judith Ann peace is her name

[@Ojflex1996]

Lookup with her name on the webpage.

[@Ojflex1996]

@jadonsmith_ You are welcome

[@namonjemukomba8222]

His such a good speaker, I was forced to pay attention

[@BelovedKanika]

This talk deserves an award! Wow! Thank you Alex.

[@iamwce3746]

Who else is here for a CSR assignment? 😅

[@user-zn5xu3dj5t]

I am taking an Organizational Behavior class and I truly love your whole discussion about Corporate Social Responsibility. Truly magnificent!

[@AlexEdmans]

Thank you! Glad it was helpful!

[@AlexEdmans]

Yes, but I thought that would be too generic (the phrase "Corporate Social Responsibility") is very common. Also, my title is deliberately the same title as the Friedman article in 1970, to show that thinking has changed dramatically in the past 35 years!

[@waynejdunn]

Perhaps THE best CSR video I've seen. Very insightful. Great information, great examples, great delivery.

[@AlexEdmans]

Thanks Wayne - keep up the great work that you're doing!

[@yogayoguini1560]

Good day I am doing an investigation on Corporate Social Responsibility, soon it will be a qualitative scientific thesis but I would like to receive your advice and suggestions on a subject involved in CSR that needs more study. Thank you in advance for your valuable time.

[@XU0038221]

I think a good topic to research is how much corporate social responsibility is good. Too much probability is bad for long term profit

[@waynejdunn]

Hi Charlie - I think you are looking at it as a CSR Sum situation where money spent on CSR takes away value. A value distribution model where CSR is essentially about distributing value from company to society. Many companies do practice that; approach CSR through a charity and philanthropy lens. A far more effective approach is to look at value alignment and generation and find those areas where there is an alignment between corporate value, social value and environmental stewardship. Far more rewarding for all involved.

[@nicoledc2560]

Wayne Dunn I totally agree!

[@jaypatel1758]

I see some people watching this video just for the sake of their MGS 350 assignment 😂

[@ariyanshaikh4907]

Four views on social responsibility and business. Inherence: This view suggests that the primary responsibility of a business is to maximize profits for its shareholders. It argues that businesses exist to generate profits and any diversion from this goal would be inappropriate. Enlightened Self-Interest: This perspective recognizes that a company’s primary purpose is to make profits, but this goal can be achieved by fulfilling its social and environmental responsibilities. It suggests that businesses can increase their value by identifying and responding to societal needs. Invisible Hand: Introduced by Adam Smith, this metaphor describes how self-interested actions of individuals in a free market economy can lead to beneficial social and economic outcomes. It suggests that businesses, by pursuing their own interests, can indirectly benefit society. Social Responsibility: This view posits that businesses should operate in a way that benefits society, beyond just maximizing shareholder value. It encourages businesses to engage in ethical practices and contribute to community well-being. these prospectives are used to answer these questions 1. Whose interests should a corporation serve? 2. To whom should a corporation be responsive in order to best serve that interest? You're welcome

[@OneWorldLiving]

Truly appreciate your research on this topic. Validates the qualitative, intrinsic values of social responsibility perfectly. Excellent presentation too! Thank YOU Alex!!!

[@AayushVarma18]

Who else is here for their CTWS assignment? 😂😂😂😂

[@adityamiglani1835]

😂

[@chiragsharda7799]

Me 😂😂😂

[@krishnanthyagarajeswaran7276]

😂

[@ashwinkumar5547]

HAHAHAHAHAHAHAHA

[@jonathanmadria3505]

Me

[@recrdx]

Fantastic view of CSR. It pulls together the essential elements of People AND Profit. Just imagine if we put a third leg on the corporate stool of Planet, too?

[@AlexEdmans]

Much appreciated, thanks!

[@theminuteman6211]

That is indeed one of the responsibilities of corporations.

[@RamazahRazvi]

What an enthralling speech about corporate responsibility. Nobody else could’ve put it better than you Prof. Alex Edmans👏🏻

[@kimberlycalvo6554]

This video was packed with amazing information! I love how he ended the talk. "To reach the land of profits, follow the road of purpose." Wow!

[@altfeb7]

I'm currently taking business ethics class which cover CSR. This video helped me a lot. Thank you very much Alex Edmans and TEDx

[@johanlindstrom2718]

I am studying Corporate Law in Sweden. This speech really helped me to understand the concept of CSR. Great performance!

[@totosheila4586]

On a light note, this theory reminds me of Micheal Scott, branch manager of Dunder Mifflin, Scratton( The Office Series). The way he treated his employees, like family meant that they were actually more productive.

[@wolfcub824]

Employee turnover is a huge expense, so it makes sense that treating employees right is profitable. If you treat them right, they tend to stay with the company and then they become a part of your marketing. Happy employees promote their company to those who might need the company's services. It's all very logical...

[@ishaisha-k8v]

Thankyou for this useful video

[@ravan288-n1c]

L for the people who came to complete their BCVS assignment

[@MichaelAlexander1967]

Alex Edmans! Wow. Dude, you rock. "Companies that treat their workers better, do better" - great statement.

[@NumerologyQueen]

listening to number of controls used in the research - suddenly I have a huge crush on you.

[@TanweerSatar]

Thank you for this great explanation. really enjoyed your talk. it's very helpful for my CSR assignment i'm currently working on for a BSc in sociology. cheers.

[@noella46mang]

CRS assignment 😂

[@soukainaaziz768]

I am writing my MA thesis on SRI, you speech has been inspirational! Thank you

[@dr.shekharupadhyay2942]

Excellently covers the core understanding of CSR.. We need practical and vivid ideas which in return can become an instrument of societal change not only in developed parts of the world but in LDCs too. I liked the presentation and oratory excellence.. We still need a system which inherently checks the implementation of CSR initiatives assumed by companies regardless of their size.

[@NobodyDungeons]

The funny thing about business is that there are profits that aren't money such as good will, dedicated consumers, and a positive public image. If you maximize everything that isn't monetary then refine your business as much as possible without harming others you end up making just as much money in the end even though your goods cost the same as the competition. Why, because people see your brand, and automatically know its quality and know your company is one worth supporting. A good example is Bethesda as they hit a jackpot with the elder scrolls morrowind, and fallout 3 which were great games despite their bugs with Tod Howard being loved as a CEO and face of the company, however, in recent years Bethesda has soiled that positive image and will likely suffer for it either now or later.

[@DonttagmeBruh]

Was about to watch an episode of a TV series and stumbled across during my study break, absolutely no regrets!

[@randomcrapstudios5918]

I watched this for school. I didn't want to at first because of the time. I watched the first five minutes and couldn't stop watching it! Great job Alex!

[@eajiy]

00:20 Businesses exist to earn profit and serve a purpose for shareholders, society, customers, employees, and the environment. 02:22 Profit is a by-product, businesses exist to serve a purpose 04:31 Employee well-being at best companies to work for positively impacts stock returns. 06:35 Treating employees better leads to better company performance 08:48 Treating employees well leads to higher firm value 10:52 Investing in socially responsible companies can lead to higher returns 12:59 Investors should look beyond short-term financial numbers and consider long-term value and qualitative measures. 15:06 Businesses exist to serve a purpose and generate profits in the long run. Crafted by EasonAI AI.

[@heraldjansol9004]

Its really a great reminder for individual who have a business ownership which it is a perfect enlightenment for them responsible owners. As a speaker point out that being socially aware of our business means we are capable towards the success of our economy. I am so eager to learn his thoughts that we must have the capacity to be well rounded. Honestly, business is really essential in all walks as it promote and empower good governance and corporate social responsibility. Indeed, the author is amazing on his standpoints.

[@evgeniaaulova7212]

Hi everyone. Does anyone have the names of this research and the research mentioned by mr Edmans? Or may be some new research...? I'm wiritning my thesis paper on the topic of csr and would really appriciate the help!

[@EndishGal]

Please tell me im not the only one here for the translation assignment..

[@tomcognilio1816]

I work at Costco, started looking for a corporate job, after watching this, gave up my search and I am content with costco

[@edrickt5907]

I love how in the end the question and answers goes like that meme People: so why do businesses exist, for profit/investors or purpose/sustainability Alex: Yes

[@marcosrissi]

I liked it but there are more issues to think about in depth such: 1) Amazon is doing so well and it doesn't only mistreat his employers but don't pay them well; it doesn't only not care for the environment but doesn't pay taxes and so on. 2) how about the plastic, the environmental impact marks and Spencer have with some of its products imported from all over the world and also the packaging? And many other things we could identify. Thanks

[@lifeoffreedomcoaching5327]

Great delivery Alex! I was engaged throughout and had to watch a few times to make notes for a boarder prospective in my business ethics lectures. Thank you ...

[@Xelss]

this is sigma

[@stormyzee5272]

This speech was just way too perfect urgg watched it more than once. Thank you😍

[@honeybees1820]

thank you! amazing video! i totally understand csr now. keep it up!

[@chiletraveladventures]

Very good talk!... And your accent is to die for

[@AlexEdmans]

Haha, thanks! I spent 10 years in the US, but still can't do an American accent.

[@brucecovert3188]

Yes. I agree, it's captivating for listening enhancement, and elegant.

[@SuperRaikouz]

amazing video. thank you.

[@juliad160]

magnificent speech ! very helpful ! Thank you very much

[@nunotelesdemenezes7783]

Awesome

[@bjjoshi5193]

Listened to it as it was part of the MBA coursework. Good details and great delivery, and especially liked the shout-out to Costco. Can someone please correct the transcript? For example, that accent caused "2015" to be transcribed as "2050"

[@SkyeLanderKids]

Wow! Thank you, Prof. Alex. This is perfect!

[@thomascolasante]

Watched this alongside my lecture this week on CSR, and this was an amazing illustration of it all - SO enthralling

[@angieblack93]

I really enjoyed it, it was easy to understand and the delivery was great too. I'm an undergraduate and I work on the innovation and CSR report so it was helpful. Thank You

[@davidk3971]

Hi Alex, I am entering my senior year in my university and your speech was very inspirational and gave me motivation along with insight on my future approach. Thank you very much!

[@AlexEdmans]

You're very welcome David! A separate talk on "the future" aimed at university students is "Fulfilling Careers and Full Lives" at bit.ly/fulfillingcareers. Good luck with everything!

[@lilirose6176]

Well done, Alex. Very helpful 😘

[@ankitmandal64]

Madam gave me assignment isliye aya hu 🥲

[@euniceseong3554]

I've watched this 4 times now. Simply incredible.

[@Sarah1627]

wow I've enjoyed every minute of this vid.. thanks for the great lecture

[@femiakande5244]

Terrific speech, and incredibly insightful and helpful. Thank you

[@TheCorporateKindergarten2023]

Best talk ever. Alex Edmans is amazing please check out his other talks.

[@saranajihah6257]

VERY GOOD SPEECH I LIKE IT. WITH THIS SPEECH I CAN COVER TWO SUBJECT IN MY COURSE. THANK YOU ALEX

[@moumitagope7023]

I like your talk Alex. Business need to work through their purpose for increasing profit. It's just fine balancing game .

[@rainjankang1833]

I was sleeping in a fundamental of management class, u speech shocked me and I am truly impressed by what u have done and prepared for this presentation.

[@ronaldfurdinhue879]

It helped me understanding CSR and subscribed TEDx Talks immediately.

[@jakelacey3685]

Hi Alex, do you have any published journals which include the research you have conducted regarding socially responsible firms and how it adds value to the business?

[@AlexEdmans]

Thanks for your interest! Yes, faculty.london.edu/aedmans/Rowe.pdf is a published paper in a finance journal and faculty.london.edu/aedmans/RoweAMP.pdf in a management journal. Both are on the paper featured in the talk, but the first is written for a finance audience and the second for a management audience.

[@jameslynch7046]

I was thinking this Jacob, thank you for asking it. Speak to you soon, thank you very much. Also, thank you Alex for the video, love you work.

[@AlexEdmans]

Thanks James for your kind comment!

[@rudh3811]

@@AlexEdmans Thank you I will use for my essay.

[@roselineinyang854]

Absolutely delightful to watch, and your analysis was brilliant. Well done Alex.

[@sophiadundee8910]

Watching this for my GCSE it really helped me understand CSB thanks

[@张佳仪-d8s]

Such a great perspective to have. When you focus on taking responsibility and doing what's right, rather than making profit your sole purpose, the profits tend to come naturally. The real world is just way too complex to quantify.

[@happyb79]

Thank you for your brilliant talks about CSR! I have been watching your video clips on KZbin since I watched this. VERY INSPIRING!!! I am a student in The University of St. Gallen, Switzerland, writing a short essay about CSR/Philanthropy in a banking industry after financial crisis in Switzerland. Would you recommend any scholars or journals regarding this topic? OR Would you please share your thoughts? It would be very appreciated. Thank you again for sharing your thoughts!

[@AlexEdmans]

Thanks for your kind words Boram. Please see "Social Capital, Trust, and Firm Performance: The Value of Corporate Social Responsibility during the Financial Crisis", forthcoming i the Journal of Finance by Lins/Servaes/Tamayo, at ssrn.com/abstract=2555863

[@happyb79]

Thank you for your quick response, Mr. Edmans. I hope to see you in the near future. Just realized that I missed the conference last year in Zurich.

[@amyxmil]

this is incredibly captivating

[@alisoltani8263]

very good presentation and very interesting topic

[@jujulescesar]

That is one killer conclusion :D

[@AlexEdmans]

Thank you! Next challenge is to start implementing it in practice!

[@Valentine650]

I would like to thank you so much for this video, it was so interesting and useful for my final thesis :) Have a great day!

[@blueskyyy2468]

Great talk with clear evidence and very nice accent

[@StephanyAkhile]

Impeccable delivery 👏🏽

[@ProfessorFlowers]

"Costco pays its employees $20 an hour" that's not even a living wage.

[@institutodeinglessanmartin8075]

Very useful talk. Very inspiring too! Thanks from Argentina.

[@AlexEdmans]

Thanks - happy to hear that!

[@ShahidAli-wo7ed]

That was a great presentation

[@caqol]

Thank You for your sacrifices of 4 years and commitment. Very well done. Thank you.

[@dolinmax]

Insightful, well-presented findings!

[@MissAshley42]

It's depressing to think the only way we can effectively work towards helping and saving ourselves is to convince the wealthiest of the wealthy that there's still something in it for them. I wish I could live long enough to see the end of the age of billionaires.

[@CSRAchhad]

our company ists we can do manufacturing capital goods, and want to enter into CSR activities, we tried to registered on Indian Portal Skill India as training partment, but have not got yet registered. Till that time what kind of activities we can do towards CSR till we get official training prrovider registration....

[@vinithahegde4173]

Wow. Excellent content and speaker.

[@themultxverse4248]

Wow! This was so insightful and useful!!👍🏼👍🏼

[@elybuklondon6653]

Hi, Alex. What a delight to find that my mini-MBA course at the LSE has directed all participants in Module 7 Analysing Financial Statements to this TEDx video in order to learn about CSR. Thank you! Everyone had positive feedback.

[@AlexEdmans]

Wow thanks so much for passing this on Eleanor!

[@rebeccate8261]

Brilliant!! To think long term value not short term numbers.

[@lynnnguyen2828]

I could listen to him all day! great voice and presentation

[@awnammar7660]

such a good speaker and amazing performance

[@kaliswaransomasekar3891]

I would like to thank you so much for this video,,,Thank YOU

[@Nandocas27]

I love it and I definitely agree with you 100%

[@fod293]

Really good presentation, thank you

[@jeremiahhandcock1795]

Good, only for profits company are lack of visions, only-profits-derived capitalism is going no where, We need more insightful entrepreneurs like this/

[@greenfrog8871]

the 'owner on the floor is mostly gone' so the very removed share holders do not care about staff... ...or anything else except their profits and they want them now >> this talk is grounded in common sense and data, but the 'opposition' is grounded in greed masked as 'efficient use of capital, where the owners decide on the best use of the profits for the long term' Mr. Milton gave them the recipe; •So per Friedman, the focus on maximizing profits is by societal and legal norms (the rules of the game). •This is probably NOT what he meant, but it is the obvious conclusion if you are driven to maximize profits at all costs. •Norms can and do change; not overnight, but steadily and unfortunately with malicious intent in some cases. •Freidman probably naively thought that societal norms were somewhat immutable; he is a economist, not a social anthropologist. If he was advocating for dismantling the norms on purpose, then he is truly devious. •If not Naïve, then lazy; the economics of externalities in business is very very •Change the societal and legal norms (the rules of the game) so that nothing gets in the way of my profits. - •M • -Launch PR campaigns to distract the less rich; get them focused on the wrong agenda; promote the good life & blame the ‘others’ if you don’t have it yet -want to), so leave my pile alone -Convince them they are winning if some other group obviously has less than them (this is human nature so not a difficult sell) -As I take from you to grow my wealth, you take from them to grow yours, it is really trickle up economics better known as Sell, sell, sell the myth: ‘The good-life is real for all of us, you just have to choose to become wealthy, put in your time & work hard’; you too can be one of the super rich, but only if you play by our rules, keep the undeserving away, they will steal your turn

[@grahamstephan6344]

Talking about Luiz he is someone anyone shouldn’t doubt or been afraid about settling up his/her investment with him.i too I I’m trading with his broker service.second wave of covid is here we need to be smart by making investment.

[@fergaldownes]

Hey there mate, cool flick that you have here. Great stuff.

[@brucecovert3188]

I did hear what was said there about stock investing and about effects, pressuring the managers to concentrate on shorter terms in productions in response to market investment behaviors. I really wish people would depend less on that as the first priority and reinvigorate your workers and customers in the areas of human service and relations ESPECIALLY WITH REGARD TO THE PRODUCT INTRO. AND REPRESENTATION. There is a lack ,dying in fact in investment thru acting in stores or market retail places to activate the" product partying " product knowledge and experiencing it,more concentrations on expertise of products,experimenting using,trials,in store hosting. It used to be about that stuff that we shopped or got into working somewhere in retail markets. Now it's all darkened with weirdness of Orweillian interferences. Walgreens, I'm surprised they can stay open for business with all the focus on Orwell police robot observance by humans , it's a mysterious tasteless turnaway. Shoplifters can be discouraged from better product representing and interaction, bar style crowd tending. Let trials be with products and human natural liberation socially!

[@chlooeydeschanel5159]

Really powerful delivery Very glad I came across this

[@AzoozOmar]

This was one of the best Tedx talks ever. THIS TALK IS WOTH LISTENING TO.

[@ArlenGriswold]

Thanks I understand CSR better now

[@davidchavez6037]

Basically, he assumes if profit & purposes are balanced the other dimensions of CSR, will too perhaps equilibrate. By other dimensions, I refer to economic, political, cultural structures. As he assumes a bottom-up approach, not an integrated-structural one. We can only hope that economic, social, political and cultural structures will find their correct-balanced and path to transform a better CSR, simply by having happier employees.

[@yvonneg7901]

Social Responsibility, Tired of being a thought when making attempts to make myself happy. Thoughts observed while reading and comprehending, after refusing a conversation and subjects about people, places and things!!!! Help! Being talked to after saying, No.

[@nadineengl3300]

thank you very much for your inspiring speech. Our professor told us to watch it :)

[@AlexEdmans]

You're very welcome - please thank your professor from me!

[@aparajitahembrom1712]

@@AlexEdmans terrific. I am starting to work on corporate social responsibility for my PhD thesis. I am still clueless about how to proceed but this was really really helpful

[@tarunhiremathdr]

from the PMBA - Business Ethics assignment

[@sirisaksirisak6981]

Have to accuse society like to adore money and power,but there's a lot of rich who donate to society in return.See the world see yourself, when you leave what you left.

[@xpmester007]

Businesses exist to gain profit and in the long-term they have to serve a purpose otherwise they get lower profits :/ It's all about profit