Responsibility Has Layers; Donations Record Only One

CONTENTS

A company that donates nothing may be the most responsible company around — provided its responsibility has layers. Social responsibility has no single definition: employee welfare, governance transparency, environmental friendliness — everyone reads it differently. One borrowed model draws it as three circles. The inner circle is the basic economic function — growth, products, jobs. The second layer demands that the exercise of that economic function stay sensitive to changing social values. The outermost circle is actively participating in improving the social environment. Three circles, not three kinds of responsibility — one responsibility, on three floors.

Paying Wages on Time Is the First Layer

Some say the amount donated is the only yardstick of social responsibility. That yardstick measures the wrong thing. Running the business responsibly is itself one of the most important social responsibilities: providing products for the public to use, hiring people and paying wages, employees supporting their families on those salaries, contributing to the economy. A company that employs one million people is one million households receiving income on schedule — that is already a benefit society actually collects. No one should be labeled irresponsible for not donating. Judging the business itself by a donation receipt is mistaking the third layer for the whole building.

Running the Business Well Is Not a License to Look Away

Others say: run the business well, and everything else can be ignored. Doing the first layer well is a qualification, not an acquittal. The second layer demands that the business itself stay sensitive to changing social values. In the 1980s, factories discharged wastewater into groundwater — what got harmed was not just the river but society. Today’s younger generation wants work-life balance; they should not be pushed into endless shifts the way the previous generation was pushed — 996, nine to nine six days a week, and 007 beyond that, is not right: people need time to enjoy life and care for their families. One generation fought its way out of poverty and had to chase money hard; things are decent now, so why keep forcing people? Voluntary overtime chosen freely is one thing; pushing people into it is another. The way the economic function is exercised is itself part of the responsibility.

The Outer Circle Is Surplus Capacity, Not Decoration

Still others say that if the first two layers suffice, the third is hypocritical decoration. The outer circle is not decoration; it is where surplus capacity goes. The model itself says not every company can be expected to reach that layer — but it never said that reaching the first two earns the right to mock the third. The point of layering is not exemption; it is ordering. Putting a roof on before the foundation is finished is performance. Finishing the foundation and then building upward is surplus. The order cannot be reversed.

The Ledger Must Be Kept by Layer, or Anyone Can Cheat

To judge a company, first see which of the three layers it stands on, then see whether it misreports its floor. The ledger of social responsibility has to be kept by layer: the inner circle is judged on operations, the middle on sensitivity, the outer on surplus. Add it all up on a single donation receipt, and anyone can cheat — donate once, and cover the two layers underneath. Responsibility has layers; evaluation must have layers too.

Fengyu WANG
Fengyu WANG

Markets, investing, engineering — one person, one underlying logic.