Chapter 5 - Corporate Social Responsibility

Question 1

CSR (corporate social responsibility) is an umbrella concept that recognises what points?

Answer 1

1) responsibility for their impact on society and the natural environment
2) responsibility for the behavior of others with whom they do business
3) need to manage their relationship with wider society - whether for own gain or to add value to society

Question 2

Which report provide a wider definition for CSR?

Answer 2

The King III report

Question 3

The responsibility of companies for the impact of its decisions and activities on society and the environment has to be transparent and ethical in which ways?

Answer 3

• contribution to sustainable development (incl health and welfare)
• takes into acc legit interests and expectations of stakeholders
• is in compliance with law and is consistent with international norms of behavior
• integrated throughout the company and practiced in its relationships

Question 4

What does the Triple Bottom Line advocate in terms of CSR?

Answer 4

That a company’s ultimate worth should be measured in:
financial,
social and
environmental terms.

Question 5

What is the aim of the United Nations Global Compact’s “Equator Principles”?

Answer 5

To improve the social and environmental aspects of bank’s project finance

Question 6

How can companies reduce costs through CSR?

Answer 6

• By avoiding fines
• avoiding legal costs
• using resources efficiently eg. use less paper
• using alternative raw materials
• reducing recruitment costs
• increasing staff retention
• reducing cost of capital

Question 7

Name the 10 principles of the United Nations Global Compact.

Answer 7

Human Rights

1) respect and support internationally proclaimed human rights
2) not complicit in human rights abuses

Labour Standards

3) uphold the freedom of association; recognise the right to collective bargaining
4) no forced and compulsory labour
5) no child labour
6) no discrimination in employment and occupation

Environment

7) support a precautionary approach to environmental challenges
8) promote greater environmental responsibility
9) develop and diffusion of environmentally friendly technologies

Anti-Corruption
10) work against all forms of corruption, incl extortion and bribery

Question 8

Which 4 factors are drivers for CSR in business management?

Answer 8

1) Social drivers (reputation)
2) Governmental drivers (legislation)
3) Market drivers (costs)
4) Ethical drivers (business ethics)

Question 9

The King III Report provides 7 primary principals for good corporate governance. Name them.

Answer 9

1) Discipline
2) Transparency
3) Independence
4) Accountability
5) Responsibility
6) Fairness
7) Social Responsibility

Question 10

Name the 8 levels of Engagement with Stakeholders in the CSR process?

Answer 10

1) Remain PASSIVE (no goal, no engagement)
2) MONITOR (monitor views)
3) INFORM (educate stake holds)
4) TRANSACT (work together)
5) CONSULT (gain info)
6) INVOLVE (work with)
7) COLLABORATE (partner or network)
8) EMPOWER (delegate decision making)

Question 11

What are the 5 key approaches in stakeholder engagement?

Answer 11

1) Involvement
2) Candour (candid)
3) Relevance
4) Learning
5) Action

Question 12

What are the 6 steps in the process of stakeholder engagement?

Answer 12

1) prepare (identify and understand)
2) plan (set objectives)
3) design (co-develop)
4) engage (meet objective throughout)
5) evaluate (assess outcomes)
6) apply (share info)

Question 13

What is Corporate Social Responsibility ?

Answer 13

Its about proactive efforts on the part of the companies to make a positive contribution to society.