9.4 Corporate social responsibility as part of strategy Flashcards
What is the “reputation” of an organisation?
The perception of an organisation by its various stakeholders.
How does the UK Companies Act 2006 capture the obligation of directors to consider CSR?
Section 172 (and the related disclosure requirements in the annual report).
List the obligations of directors under S172 CA 2006.
1 Long-term consequences of decisions
2 Interests of employees
3 Need to foster business relationships for suppliers, customers and others
4 Impact on the community and environment
5 The desirability of maintaining a reputation for high business conduct.
6 The need to act fairly between members of the company
CSR could be perceived as the o_________ that any organisation has to develop and implement its s_________ with a positive awareness of how it is likely to affect s_______.
Organisation
Strategy
Society
Carroll (1991) placed CSR concepts into a pyramid. What is the order of the four levels from bottom to top (i.e. from essential to desirable)?
Economic responsibility
Legal responsibility
Ethical responsibility
Philanthropic responsibility
As with all aspects of organisational life, it is important for d________ to and others to be able to justify the approach taken to CSR with its inevitable use of stakeholder r_________.
directors
resources
Which approach to accounting has attempted to align the concepts of social and financial audits? (Hint: TLP)
Triple Bottom Line
Johnson (2017) suggests that CSR needs to be differentiated into “internal” and “external” aspects.
What are some examples of internal aspects?
Employee welfare
Working conditions
Job design
Intellectual property
Johnson (2017) suggests that CSR needs to be differentiated into “internal” and “external” aspects.
What are some examples of external aspects?
Environmental Products Markets and marketing Suppliers Employment Community activity Human rights
There is an increased l____ expectation to address CSR issues, reflecting s_______ change and an increased expectation that organisational b________ moves from a social expectation to a legal requirement.
legal
societal
behaviour
Give some examples of laws setting out an increased legal requirement for CSR.
S172 CA 2006
Bribery Act 2010
Modern Slavery Act 2015
What is the difference between ethics and ethos?
Ethics - visible behavioral traits
Ethos - ethical stance taken by the organization
Who designed the “Pyramid of CSR”?
Archie Carroll (1991)
Johnson (2017) produced a matrix of CSR stances:
L_______-f____ - “life as normal”
E_________ s___-i_______ - recognises commercial benefit
S_________ i________ - recognises benefit or working closely with stakeholders
S______ of s______ - organisation seen as a visionary
Laissez faire
Enlightened self interest
Stakeholder interaction
Shaper of society
What three elements make up “triple-bottom-line” reporting?
Economic
Environmental
Social
