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The social
responsibility of business
John Mackey's "new form of capitalism" ("Rethinking
the Social Responsibility of Business," October)
is as suspect as an organic label on a Whole Foods apple.
Before we concede that Mackey has somehow superseded the
Darwinian forces that shape all free-market businesses,
let's remember this: Social responsibility is a defining
feature of the niche that Whole Foods has carved out of
the cut-throat grocery business.
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Consumers can buy an apple anywhere. They go to Whole
Foods to buy a Socially Responsible Apple. A small but
loyal segment of mostly rich liberals have sustained
Whole Foods because they buy into this larger "value
proposition." Thus for Mr. Mackey, social responsibility
is not an option, or even just good PR. It is a mandatory
cost of doing business, without which Whole Foods would
become just another commodity retailer.
T.J. Rodgers is guilty of a different
offense. He argues that irrational value propositions,
like organic labeling, are scams unworthy of the free
market. Not so fast: If both sides of the transaction
derive value, who are we to tell them otherwise?
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