The Importance of Corporate Social Responsibility (csr) and E-harmony

Understanding Corporate Social Responsibility (CSR)

Corporate Social Responsibility (CSR) is the social responsibility of a company to act based upon the “right” thing to do versus the legal actions that they are required to perform. In other words, CSR is a decision-making process that business owners undertake to determine what they should do in contrast to what they are mandated to do by law. It’s a moral issue often involving their customers’ mass satisfaction and demand for changes in how a company operates. CSR can also be a decision based on its employees and their satisfaction with the company as well. An example of a customer-based CSR issue might be a demand for a food product to be “gluten-free” for customers experiencing gluten intolerance. Similarly, an employee-based CSR matter might concern minimum wage, where a company is not obligated to pay its cashiers more than the minimum wage but feels the need to do so to satisfy its employees.

The Importance of Corporate Social Responsibility (CSR) and E-Harmony

There are pros and cons to using a CSR model, and it all depends on how it is utilized. A good example of a company’s decision to practice CSR would be E-Harmony. E-Harmony was originally founded in the year 2000 by Dr. Neil Clark Warren, a psychologist and a Christian theologian. Warren’s original idea as the site’s CEO was to use his patented matchmaking algorithm system to connect Christian couples and serve as a convenient way for like-minded individuals to date and then get married. Over a decade, Warren broadened the website's scope and, although a proclaimed Evangelist, did not limit it to “Christian only” relationships. After spending up to $700 million in advertising, Warren claims that his site has facilitated over 560,000 marriages (Levy, 2012).

The CSR Challenge: Addressing Discrimination

The CSR issue within Warren’s website was highlighted by individuals who identified as gay. One could not log in or register an account with E-Harmony to search for a date with someone of the same sex. The option of “I am a male looking for a …” was only open to “female” and vice versa. In 2005, the company was sued for the discrimination against same-sex couples. Due to Warren’s past with the website as a “Christian couple” based matchmaking site, individuals assumed that Warren was enforcing a heterosexual agenda. It was evident that as a customer, one could not choose the option of “seeking” a same-sex partner on the website. When this lawsuit was brought to light, E-Harmony lost 350,000 customers. Warren stated that these individuals left due to the principle of the matter. As his public relations representative, Warren also argued that he was not “anti-gay” but that his patented algorithm program was not designed for homosexual relationships, which he described as “…a different [type] of match” (O’Brien, 2016).

Creating Compatible Partners: A CSR Response

In 2009, responding to a demand for equality among E-Harmony daters for same-sex relationships, Warren created a separate website, “Compatible Partners.” This website was a begrudging decision by Warren, following pressure from his customer base and employees, posing a real Corporate Social Responsibility problem. Although Warren claimed he was not “anti-gay,” up until the lawsuit for homosexual discrimination, he had no intention of changing E-Harmony’s dating options. In fact, Warren refused, despite numerous inquiries, to change E-Harmony’s profile options from matching a man with a woman, which hurt his company. Instead of changing E-Harmony’s policies to accommodate all types of couples, Warren remained within his original boundaries and stance on the issue and opted to create a separate website. This is believed to have further segregated the matter and highlights the suggestion that despite his words, his actions spoke for themselves. In a 2013 interview, Warren suggested that gay marriage and equality laws had negatively impacted his life and company. He mentioned receiving hate mail and threats from devout Christians who opposed his gay matchmaking website “Compatible Partners” (Hallowell, 2013).

Consequences of Failing to Uphold CSR

In this situation, Warren failed to uphold CSR. His personal religious beliefs and stubbornness were of greater value to him than the changing environment surrounding him in American society. Due to his lack of integrity in addressing customer demands, he lost a significant number of customers on principle alone. The website “Compatible Partners” was not sufficient for gay singles, as it was a result of something Warren never intended to do. When he was sued for homosexual discrimination, it not only alienated his LGBT customers but also angered proclaimed heterosexual, Christian customers. Warren failed to satisfy both types of customers and lost a substantial number of clients. His personal stance on gay marriages and his deep involvement in the Evangelist Christian community resulted in him being perceived as a bigot and a hypocrite by both heterosexuals and homosexuals.

Reflections on CSR and Its Importance

Personally, I believe that Warren could have avoided a decline in customers by looking beyond his personal beliefs and offering E-Harmony as a website for both heterosexual and homosexual couples. He had a second opportunity to do so after the lawsuit in 2005 but failed to make it official because he did not want to change the foundation of his original Christian ideals for the website. He exacerbated his situation by creating a separate website after claiming that homosexual algorithms were “different” and thus excused his reluctance to change the policies of the E-Harmony website.

The Role of CSR in Modern Business

I think CSR is important because it involves making changes as the world evolves. From a moral standpoint, CEOs need to remain as adaptable to change as their lower-level management and understand that it is not just about themselves anymore. In the long run, a company will benefit from increased morale and potentially financial gains by practicing CSR.

References

• Hallowell, B. (2013). E-Harmony founder says gay marriage and equality laws have damaged his life and company. The Blaze. Retrieved from http://www.theblaze.com/stories/2013/11/06/e-harmony-founder-says-gay-marriage-and-equality-laws-have-damaged-his-life-and-company/
• Levy, A. (2012). The man who founded E-Harmony: Neil Clark Warren. Forbes. Retrieved from https://www.forbes.com/sites/abrambrown/2012/11/26/the-man-who-founded-e-harmony-neil-clark-warren/
• O’Brien, S. (2016). How E-Harmony’s CEO learned to embrace diversity. CNN. Retrieved from https://money.cnn.com/2016/10/12/technology/e-harmony-ceo-diversity/