Chapter 2: CSR Flashcards
What does CSR stand for, and in simple terms, what is it about?
CSR stands for Corporate Social Responsibility. It’s about how a business interacts with society and the environment and the positive impact it can have.
Name some of the difficult social issues that businesses might need to think about when considering their stakeholders.
Some difficult social issues include: Crime, Poverty, Housing, Inequality, Lack of Education, Health Services, and Environmental concerns.
According to experts, what are the two main levels of responsibility that a business has regarding CSR?
The two main levels of responsibility are:
Primary responsibility: Looking after the interests of stakeholders directly affected by the business’s success (e.g., employees, shareholders).
Secondary/Broader responsibility: Towards stakeholders indirectly affected by the business’s activities (e.g., the community, government, and the environment).
Blowfield and Murray suggest a pyramid to understand a business’s level of responsibility. What is the most basic level of this pyramid?
The most basic level is Economic Responsibility, which means the business needs to be profitable and benefit employees and shareholders.
What does Legal Responsibility mean for a business in terms of CSR?
Legal Responsibility means that all businesses must follow the laws of the country where they operate.
Explain Ethical Responsibility in the context of a business and CSR.
Ethical Responsibility means making business decisions that are morally sound and won’t negatively impact stakeholders or the future of society and the environment.
What is Discretionary Responsibility, and what is it about for a business?
Discretionary Responsibility is about going beyond just avoiding harm and actively giving back to the community or other stakeholders. It’s about building a brand with values that are put into practice.
Give 5 arguments for businesses engaging in CSR.
1.Businesses get more support from the community when they help through CSR programs.
- Acting on social issues can prevent problems like increased crime in the community.
- Voluntary CSR might prevent the need for government laws.
- Helping the community’s
living standards can lead to more customers. - Sustainability efforts protect resources for the future.
Give 5 arguments against businesses engaging in CSR.
- It takes away from the business’s main activities.
- Money spent on CSR reduces profits.
- It can be hard to measure the benefits of CSR.
- Businesses might feel pressured to keep giving.
- Some CSR projects might not be sustainable.
Name the four areas of “Sustainable Business”
- Making Operations
- Environmentally Sustainable
- Making Operations Socially Sustainable
4.Making Society Sustainable - Influencing Suppliers
What does “Making Operations Socially Sustainable” involve in the workplace? Give 6 examples.
- BBBEE (Broad-Based Black Economic Empowerment)
- Trade union involvement
- Socially sustainable workplace practices
- Addressing HIV/AIDS
- Occupational Health and Safety
- Empowerment and skills development
What does “Influence Suppliers” mean in the context of CSR and sustainable business?
It means that a business should be aware of any negative social or environmental impacts its suppliers might have and encourage them to be more sustainable.
Name the different types of stakeholders a business might have.
Staff, Unions, Clients, Suppliers, Shareholders, Communities, Media, Government, and Regulators.
Name the six principles a business should think about when putting a CSR strategy in place.
1.Concept of Citizenship
2. Strategic Intent
3. Leadership
4. Structure and Management
5. Stakeholder Relationships
6. Transparency
What kind of information are businesses increasingly reporting on, besides just financial results?
Businesses are increasingly reporting on their social and environmental performance in addition to their economic (financial) performance.
According to the Sustainable Business Handbook, name the things a CSR report should include under “Business Profile.”
- Vision and mission of the business
- The size and operations of the business
- The markets in which the business operates
- The overall brand of the business
- The areas of impact - both internally and externally
What is meant by “Board Commitment” in CSR reporting?
“Board Commitment” means that the leaders of the company (like the CEO and board members) and management need to publicly support and be dedicated to CSR and sustainability.
What does “Environmental and Social Business Policy” refer to in CSR reporting?
This refers to statements from the business that explain their impact on the environment and society.
What aspect of a business does “Management Systems” in CSR reporting usually discuss?
“Management Systems” usually discusses the business’s audit procedures for checking their performance, both internally and with outside auditors.
