Corporate Social Responsibility

Question 1

def corporate social responsibility

Answer 1

new business model in which profit companies seek to create social and environmental benefits while pursuing financial goals, such as maximising stakeholders’ value.

Question 2

what is the maxim (short, pithy statement expressing a general truth or rule of conduct) of CSR?

Answer 2

do well by doing good

Question 3

what is CSR conserned with? (in terms of performance)

Answer 3

the triple bottom line (profit, people, and the planet)

Question 4

what are the three theories of CSR that together show its evolution?

Answer 4

1. Friedman’s classical theory
2. Bowie’s neoclassical theory
3. Freeman’s theory of stakeholders

Question 5

define the three components of CSR

Answer 5

1. ethics
2. corporate social responsibility (narrow understanding)
3. sustainability

Question 6

what are the two principles of CSR?

Answer 6

1. charity principle (voluntary contributions to less fortunate)
2. stewardship principle (companies still act in self interest, but also look out for the society - so it is not harmed or that it benefits)

Question 7

state an example of a company that adopted CSR and how the do it (4 actions)

Answer 7

lego.

1. decrease use of paper (smaller boxes)
2. pieces made sustainable sugar canes
3. removing all single-use packaging by 2025
4. environmentally friendly materials used for all core products by 2030

Question 8

what is the highest honour for companies that adopt CSR?

Answer 8

to get a Golden Halo Award

Question 9

state the pyramid of CSR. who developed it?

Answer 9

Carroll.
TOP
Philantropic responsibility (improve quality of life)
Ethical responsibility (avoid harm, do what is good)
Legal responsibility (obey the law)
Economic responsibility (be profitable)
BOTTOM

Question 10

what are some arguments for CSR? (6)

Answer 10

1. responsibility
2. balancing corporate power with responsibility
3. discourages government regulation
4. promotes long-term profit
5. improves business value and reputation
6. corrects social problems caused by businesses

Question 11

what are some arguments against CSR? (5)

Answer 11

1. lowers economic efficiency and profit
2. imposes unequal costs among competitors
3. imposes hidden costs that are passed onto stakeholders
4. requires social skills (some businesses may lack it)
5. shifts responsibility to businesses from individuals

Question 12

how can technology power-up CSR? (4)

Answer 12

1. reduction of environmental impact (working flexibility, ethical production, less commuting)
2. Internet of Things analytics (addressing env issues in cities)
3. digital ticketing + big data - reduce congestions in traffic
4. blockchain (enables transparency and ethical production)

Question 13

describe the matrix of technological social responsibility.

Answer 13

proactive VS reactive
conservative (cost reduction, labour substitution) VS innovative (augmentation)

1. proactive, conservative = low growth, managed transition
2. proactive, innovative = high growth, managed transition
3. reactive, conservative = low growth, low economic welfare
4. reactive, innovative = high growth, low economic welfare