Economic development, climate change and the limitations of corporate social responsibility

The chapter argues that the reform of the corporation to promote greater social responsibility is an unlikely solution to the crisis of climate change. The managers of business organisations are relatively powerless in the face of the powerful market forces which drive increasing consumption of the world’s resources. In particular the strong association between the development of oil resources, the worlds markets and productive capacity are noted as the key determinants of climate change. Responses to the challenges of climate change are best formulated through predictive analysis of its key determinants, along the lines of the 2007 Stern Report and the debate it has subsequently engendered. In view of the correlation between oil consumption, world and sustainable population, peak oil poses as strong a challenge to economic growth as does significant climate change.