Chapter2: CSR (Corporate Social Responsibility)

Question 1

CSR

Answer 1

• The business making sure it is profitably sustainable while also contributing to the communiities and environment
• Stakeholders will aplpy pressure for the business to attend to their best interest
• Implemented by the King Code
• Withing CSR businesses have two tyes of responsibilty: Primary and secondary/broader

Question 2

Primary responsibility

Answer 2

When the business has to look after the stakeholders of the business who are directly affected by the business

Question 3

Secondary responsibility

Answer 3

When the business has to look after the community and the environment(anyone outside the business’s name)

Question 4

Other responsibilities of a business

Answer 4

• Economic- They must sell their products/services at a profitable price
• Legal- Must abide by the law
• Ethical- Must make decisions ethically
• Discretionary- Not enough to just not harm people, mist go out of your way to give back specifically

Question 5

Arguements for CSR

Answer 5

• When businesses give back to the community, the community becomes loyal because they feel like theu are cared for
• Taking care of the community could improve their standard of living and therefore have more sustainable income
• Using resources sustainably makes sure that future generations have enough resources
• If the business does not act on what affects their community, then people could start moivng away to places wherer that problem does not affect them

Question 6

Arguments against CSR

Answer 6

• Distracts the business from their goals
• Not all CSR projects are sustainable
• Investing in CSR could mean less profit
• CSR takes responsibility away from the State

Question 7

Sustainable business practices

Answer 7

• Maing operations environmentally sustainable
• Making operations socially sustainable
• Making operations societally sustainable
• Influencing suppliers

Question 8

Creating a CSR program

Answer 8

• Communicate the need for CSR
• Compile a CSR policy
• Communicate the policy
• Link CSR to business success factors
• Brainstorm CSR initiatives
• Inventory of skills and resources needed should be drawn up
• Implement the CSR
• Monitor it
• Make ant necessary changes/go back to brainstorm

Question 9

Implementation of CSR

Answer 9

• Concept of citizenship-Understanding the business’s role in the community
• Strategic intent- Knowing the reason for the CSR
• Leadership-Make CSR apart of daily lifw of the business, Offensive or Defensive
• Structure and management- All resources must be alignedd with the Csr initiative
• Stakeholder relationships- Maintain good relationship with internal and external stakeholders bby opening communication channels
• Transparency- Communicate everythingg regarding the initiative even if its bad

Question 10

CSR Reporting

Answer 10

Business reports to stakeholders and shareholders regarding the business’s social, environmental, and economic performance, which is a more accountable and transparent way of sharing info

Question 11

CSR Report

Answer 11

• Business profile
• Board committment
• Environmental and Social Business Policy
• Management systems
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