A number of American and British newspapers have recently published articles and commentary exposing the poor treatment of the Chinese workers who produce the popular iPod. Yet Apple Computer Inc. has reported a substantial increase in profits, boosted in part by record iPod sales.


The financial markets responded by raising the value of Apple's shares by more than 10 percent. What is the significance of these events? Does the apparent indifference of consumers and investors all over the world to these media exposés of the factories in which iPod's are made mean that corporate social responsibility no longer matters?


The vision of many social activists that there was, in fact, a market for virtue - and that consumers could be counted on to "vote" their values through their purchasing decisions - was always unrealistic. Consumers primarily choose which products to buy on the basis of price, quality and convenience. They rarely pay attention to the social or environmental practices of the company that produces them. Only a handful of companies have ever been rewarded by consumers for being responsible or punished for acting irresponsibly. While a few "ethical brands," such as Fair Trade coffee, do exist, their American market shares are extremely modest. In short, consumers cannot be counted on to drive corporate social responsibility.

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