business ethics - CSR

Question 1

what is corporate social responsibility?

Answer 1

a businesses sense of responsibility towards the community and environment in which it operates
- stakeholders are the main focus
- ethical at every step of the supply chain

Question 2

advantages of CSR

Answer 2

• more loyal customers
• more motivated staff = proud of the business and their needs are met
• more funding + investment as the business is CSR
• good PR
• cost reductions = reducing waste, energy savings

Question 3

disadvantages of CSR

Answer 3

• do people care enough?
• PR tool - actions speak louder than words
• reduced growth - lost innovation/markets/suppliers in efforts to stay ethical
• reduced profits = higher prices = loss of competitive advantage

Question 4

results of following shareholder theory approach:

Answer 4

• relocating to low-cost regions
• constant restructuring and downsizing
• short-termism