2.1 Internal Business - Corporate Social Responsbility

Question 1

What is Corporate Social Responsibility?

Answer 1

Corporate Social Responsibility is when a business makes decisions that may benefit
stakeholders other than just shareholders within the business.

Question 2

What is the quadruple bottom line?

Answer 2

Instead of judging a business based on its profit, judging it against:

economic performance (profit)
environmental performance
social performance
cultural performance

Question 3

Why do businesses use Corporate Social Responsibility?

Answer 3

Enhances the brand and makes customers more loyal to you
Ensures sustainability
Builds employee loyalty to company

Question 4

What is Philanthropy?

Answer 4

Giving money or resources to charity

Question 5

What is the difference between Corporate Social Responsibility and Philanthropy?

Answer 5

Philanthropy is just giving money, whereas Corporate Social Responsibility is getting involved and integrating their business into the community.

Question 6

Why is Philanthropy important?

Answer 6

Companies who undertake Philanthropy have a higher retention rate because employees who enjoyed their workplaces were less likely to leave. This directly affects the company’s profit because it will spend less on recruiting, hiring and training new employees.

Question 7

What are some examples of Philanthropy?

Answer 7

Donating money to a local sports team

Question 8

What are some examples of Corporate Social Responsibility?

Answer 8

Giving employees more breaks or better working conditions
Using recyclable packaging
Recycling waste
Involving the local community in business decisions

Question 9

What are the disadvantages of Corporate Social Responsibility?

Answer 9

Might result in more costs to the business, lowering profit
Takes time to implement into the business
May impact on efficiency