13.3 Risk management, corporate social responsibility and sustainability

Question 1

What is corporate social responsibility?

Answer 1

A form of self-regulation that ensures organisations behave in a way that is ethical and consistent with national norms.

Question 2

How do CSR and sustainability differ?

Answer 2

CSR is foscussed on social goals, while sustainability is focussed on environmental goals.

Question 3

What are the three P’s that Ashby assigns to the triple bottom line approach?

Answer 3

People - e.g. fair labour practices, living wage
Planet - environmental protection
Profit - delivering stakeholder value

Question 4

Give two examples of CSR activities.

Answer 4

Offering volunteer days to staff
Donating to charity
Providing free/subsidised services to employees
Marketing campaigns to change social norms
Prividing free goods to clients and customers on low incomes

Question 5

Give three examples of sustainability activities.

Answer 5

Fair trade initiatives
Supply chain selection processes to prioritise local suppliers
Closed loop supply chain to minimise waste
Proactive reduction of carbon foorptint
Reducing pollution
Long term business plans for growth (not short termism)
Initiatives to promote worker health

Question 6

Why does CSR/sustainability require risk management? (Give 1 reason)

Answer 6

1 To create stakeholder value over longer term
2 To address issues such as pollution
3 To avoid loss events such as reputation damage

Question 7

What is SRM?

Answer 7

Sustainability Risk Management