The Problem of Corporate Solutions to Public Needs

For Vox, Emily Stewart writes about the shortcomings of the, er, system we’ve developed here in America of outsourcing public needs to private industry: Corporations aren’t going to save America.

Across various segments of American life, the private sector has begun to take on tasks big and small that one might think should be tackled by the public sector. Domino’s filled in potholes. Dawn’s dish soap saved ducks. American Express pitched in on historic preservation. Walmart started selling low-priced insulin. A slew of companies help workers pay for school. Much of America’s health care system is still handled through private insurers and your job. As people lose faith in government to act on sweeping issues such as climate change and guns, they’re increasingly looking to corporate America and asking whether there’s something they can do about it. If Congress won’t tackle gun violence, maybe Dick’s Sporting Goods can try.

It’s not a bad thing for brands and companies to try to make the world better. Starting a business often involves identifying a problem to solve, and it’s much better for companies to help than to do harm. Corporate social responsibility is fine. There are, however, limits.

“Of course we want businesses to be responsible,” said Suzanne Kahn, managing director of research and policy at the Roosevelt Institute. But she emphasized that this does not constitute a plan for how to organize society. “Private companies don’t, can’t, or won’t plan with the same values that we demand and expect the government to.”