AOS2 Chapter 9 (Corporate Social Responsibility and Global Issues in Operations Management)

Question 1

Corporate social responsibility (CSR)

Answer 1

-Takes into account an approach that is both ethical and socially responsible
- It express concern for how a business practices affect:
the environment
society’s health and welfare
ethical concern for its workforce and their families

Question 2

Environmental sustainability of inputs

Answer 2

• Purchase and use of green house options (solar panels, IKEA)
• Buying a forest to use and regrow trees for inputs (IKEA)
• Reusing of the most sustainable input options (recyclable water to clean all equipment and machinery in CUB)

Question 3

Global sourcing of inputs

Answer 3

• Involves cheaper rates of raw materials and labour cost from overseas suppliers

Question 4

Overseas manufacture

Answer 4

• The transformation/process stage in the operation system occurs in an overseas location due to cheap labour costs

Question 5

Global outsourcing

Answer 5

• When a business organisation contracts another overseas business to perform some of its roles of function ( IT etc.)

Question 6

Global sourcing: advantages

Answer 6

• Opportunity to take advantage of global efficiencies
• Skills and resources not found in the home nation can be tapped
• Jobs and economic opportunity are provided in economically disadvantaged areas