Garrett Hardin and institutional economists argue that diffuse corporate responsibility for systemic problems like poverty produces collective action failures worse than targeted regulatory regimes.

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Collective action failures(as the negative result of diffuse responsibility): Situations where everyone would be better off if people worked together, but each person's individual choice leads to a worse outcome for everyone—like when everyone pollutes because no single person thinks their pollution matters.
Diffuse corporate responsibility(as the type of responsibility being criticized): When a company's blame or duty for a problem is spread so widely across many people and departments that no single person feels personally responsible for fixing it.
Garrett Hardin(as referenced in the statement about diffuse responsibility): An ecologist and philosopher best known for his essay 'The Tragedy of the Commons,' which argues that when everyone shares responsibility for a resource, people tend to overuse it because the costs of their actions are spread out while they get individual benefits.
Institutional economists(as a school of thought being referenced)

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