SeaWorld’s shares are, yet again, in massive decline. The decline is even more so than what analysts had predicted. This trend comes as no surprise to some. After CNN’s release of the film documentary “Blackfish” in 2013, a controversial documentary that revealed the questionable treatment of orcas, SeaWorld’s performance has been seeing a downward slope.
First off, let me say that I care about our earth and the treatment of humans, animals, and living things on it, however, I have always questioned if “Corporate Social Responsibility” made sense from a business perspective. I do believe that a firm’s responsibility should be to the maximization of profits. It does seem like there’s a dilemma in my beliefs (as social responsibility is not always a by-product of profit maximization).
People Protesting Seaworld’s Animal Cruelty
I used to believe that both of these ideals could magically work themselves out. Over the years, I have realized this is not always the case. Rather, my belief has now extended to something in between involving another party, the government, as the rule setters. This recognizes that firms are best at maximizing profits by meeting consumer demands (responsibility to shareholders and consumers), while the government is best at finding something in the public’s greatest interest (social responsibility to stakeholders and society).
What does this all mean and why does SeaWorld’s performance pleasantly surprise me? Well, the market is generally run by consumers voting with their dollars. It is commonly argued that companies have to take the charge with social responsibility. This is a fine pursuit, yet this always feels slightly artificial in a business sense. SeaWorld’s performance is truly when social responsibility meets profit maximization in the most natural sense. Consumers are dissatisfied with SeaWorld’s treatment of animals, they vote with their dollars, and SeaWorld suffers as a result and faces eventual bankruptcy if they do not change their ways (become socially responsible) to meet consumer wants.
When consumers want change, vote with their dollars, and vote for social responsibility, nature takes its course.
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Image source: http://www.peta.org/blog/screaming-orca-fated-for-seaworld-urges-public-to-watch-blackfish/