I don't disagree, but in terms of a framework for evaluating the behavior of businesses I think the following is reasonable:
Businesses should act within the law, and lawmakers and the public determine what legal safeguards are necessary. For example, if you start a restaurant you must comply with health code, fire code, etc. If you start a bank you need to keep a certain amount of risk capital, etc., etc.
One could argue that all dishes used by a restaurant should go through hospital level sterilization, or that banks should contain more risk capital than they are required to by law. Such arguments would be in the name of safety or quality.
One could similarly argue that restaurants should use at least 20% locally grown produce or that banks should lend 20% of capital to underprivileged groups. Such arguments are in the name of moral responsibility, etc., and lawmakers have actually implemented many such laws for banks.
For an investor who wishes to invest in a bank or a restaurant, there are many options. Being able to compare financials and other metrics will help the investor figure out which is the smartest investment (based on her risk appetite, etc., etc.)
Why might a restaurant decide to focus on locally grown produce or a bank decide to focus on its ethical treatment of subprime borrowers? Largely for PR/marketing reasons. If such marketing campaigns are successful, customers will flock to the bank or restaurant in question and (assuming they are still able to be profitable) make the bank or restaurant a more desirable investment.
One can pick any business and any metric that he thinks has moral significance and claim either "regulators should require x, y, or z" or that "that practice is horrible". One might be right... essentially ahead of the game morally from society's average.
The perception of moral progressiveness, like the font chosen for a brand, is one factor that helps determine a business's success. It may be the case that most of the meat we eat was raised in unconscionable conditions, or that 30% of imported electronics were assembled by modern serfs in near-slavery. The more we are aware of such things, the more likely firms are to make the most progressive choices.
Businesses should act within the law, and lawmakers and the public determine what legal safeguards are necessary. For example, if you start a restaurant you must comply with health code, fire code, etc. If you start a bank you need to keep a certain amount of risk capital, etc., etc.
One could argue that all dishes used by a restaurant should go through hospital level sterilization, or that banks should contain more risk capital than they are required to by law. Such arguments would be in the name of safety or quality.
One could similarly argue that restaurants should use at least 20% locally grown produce or that banks should lend 20% of capital to underprivileged groups. Such arguments are in the name of moral responsibility, etc., and lawmakers have actually implemented many such laws for banks.
For an investor who wishes to invest in a bank or a restaurant, there are many options. Being able to compare financials and other metrics will help the investor figure out which is the smartest investment (based on her risk appetite, etc., etc.)
Why might a restaurant decide to focus on locally grown produce or a bank decide to focus on its ethical treatment of subprime borrowers? Largely for PR/marketing reasons. If such marketing campaigns are successful, customers will flock to the bank or restaurant in question and (assuming they are still able to be profitable) make the bank or restaurant a more desirable investment.
One can pick any business and any metric that he thinks has moral significance and claim either "regulators should require x, y, or z" or that "that practice is horrible". One might be right... essentially ahead of the game morally from society's average.
The perception of moral progressiveness, like the font chosen for a brand, is one factor that helps determine a business's success. It may be the case that most of the meat we eat was raised in unconscionable conditions, or that 30% of imported electronics were assembled by modern serfs in near-slavery. The more we are aware of such things, the more likely firms are to make the most progressive choices.