CH4 - Ethics & Social Responsibility

Question 1

What is Ethics?

Answer 1

Ethics are the moral principles that governs one’s behaviour.

Question 2

What is business ethics?

Answer 2

Application of ethical behaviour in a business context.

Question 3

What are the benefits of being identified as an ethical business?

Answer 3

It can improve a business’ reputation and result in:
1. Greater employee engagement and retention
2. Customer affinity
3. More sales.

Question 4

What are the manager’s responsibilities?

Answer 4

1. To generate profit and increase the value of owners’ investments through profitable operations.
2. To manage employees
3. To provide the owners and stakeholders with accurate and reliable financial information.
4. The safeguard the company’s assets
5. To handle funds in a trustworthy manner.

Question 5

What are the example of ethical issues?

Answer 5

1. Product fault.
2. Insider trading
3. Bribes vs gifts
4. Conflict of interest
5. Conflict of loyalty
6. Whistleblowing

Question 6

What are ethical decisions?

Answer 6

Ethical decisions are the decisions that the right from wrong is clear.
They are the ones where there is a clear right and wrong.

Question 7

What are Ethical dilemmas?

Answer 7

A situation in which a difficult choice has to be made between two courses of action, either of which entails transgressing a moral principle and or being unsatisfactory to a stakeholder!

Question 8

What is an ethical lapse?

Answer 8

An ethical lapse is where one fails to follow ethical principles.

Question 9

What are the underlying responsibilities of an ethical corporation?

Answer 9

1. To pay appropriate wages and benefits
2. To treat workers fairly
3. Provide equal opportunities for all employees
4. Guard all workers’ safety and health and provide them with a work environment that’s free from sexual harassment!
5. To provide safe products, market them honestly and hear customer complaints.
6. To Comply with the law and regulations
7. To address the needs of other stakeholders like suppliers, the local community and environmentalists.

Question 10

What is CSR?

Answer 10

Corporate Social Responsibility or CSR is the way corporations achieves a balance between economic, social and environmental responsibilities in operations so as to address shareholder and other stakeholder expectations.

Question 11

What are some reasons for involvement in CSR?

Answer 11

Corporations and business owners are part of the society they live in and must play their part in achieving society’s goals.
2. Prevent criticism and regulation
3. Certain Social and Environmental issues present profit opportunities.

Question 12

What is Corporate Citizenship?

Answer 12

Corporation playing its part in society.

Question 13

What are the benefits of corporate citizenship?

Answer 13

1. Reputation management
2. Risk management
3. Employee recruitment, motivation and retention.
4. Investors relation and access to capital.
5. Competitiveness and market positioning.
6. Operational efficiency.
7. License to operate.

Question 14

What is Business Citizenship?

Answer 14

Business citizenship is the extension of the responsibilities of corporate citizenship to a global scale.

Question 15

What are the 4 different theoretical approaches to CSR business cases?

Answer 15

1. Reactionary
2. Reputational
3. Responsible
4. Collaborative

Question 16

What is the Reactionary approach to CSR business case?

Answer 16

Business case focuses solely on increasing profit and or reducing cost.

Question 17

What is the Reputational approach to CSR business case?

Answer 17

Business case focuses on portrayal by media and or society.

Question 18

What is the Responsible approach to CSR business case?

Answer 18

Business case focuses on striving for business excellence measure by CSR indicators.

Question 19

What is the Collaborative approach to CSR business case?

Answer 19

Businesses focus on benefits of engagement with broad range of stakeholder with cross industry and or society initiatives.

Question 20

What are some of the stand alone activities included in CSR?

Answer 20

1. Philanthropy
2. Volunteerism
3. Sponsorship
4. Community investment

Question 21

What are the main ingredients of a CSR program?

Answer 21

A plan plus support from top management is needed to effectively implement CSR.
CSR can form part of the core activities of a business such as an ethical supply chain, diverse employment policy.

Question 22

What is corporate philanthropy?

Answer 22

It is an effort by business to contribute to society by “donations of money or services in kind”.

Question 23

What are some arguments against corporate philanthropy?

Answer 23

1. Some believe that the money would be better distributed to shareholders who can then choose whether or not to support the relevant charities.
2. Concerns about how efficiently corporations distribute their charitable donations.
3. The metrics used to analyze if the donations affect and or success.

Question 24

What is Social Venture Philanthropy?

Answer 24

This is the investment of human and financial resources in non-profit community development agencies to develop a social return.
It applies venture capital management practices to social responsibility with aim of having greater social effects per dollar invested.

Question 25

What is Corporate volunteerism?

Answer 25

This is with the support of employers, the time and talent of employees is applied to volunteering in the community.

Question 26

What is Corporate Sponsorship?

Answer 26

This is a partnership for mutual benefits between business sponsor and an event, organization or non-profit.

Question 27

What is community investment?

Answer 27

This is when an organization invest in developing a community and create economic opportunities through a variety of means from donations to investment in commercial undertakings or social enterprises.

Question 28

How to Measure, Report and communicate on CSR?

Answer 28

1. Corporate must audit the CSR against general standards.
2. Then it must prepare reports based on the audit.
3. Then it must communicate these reports in various forms to stakeholders.
4. The contents of the audit and the response to the reports creates a feedback loop to enable the corporation to shape future CSR policy.