Corporate social responsibility Flashcards
What is CSR within an organisation
CSR is when organisations go above and beyond the law to do goos things for stakeholders and the idea community.
This can include taking action to support the environment and the planet
What factors led to CSR becoming apart of the business policy 5
-Increased competition- CSR allows companies to create a better image and increase media coverage which helps them stick out
-desire to save money, if you reduce packaging or recycle goods then you can save money and increase profits
-attract and keep investors- investors are more likely to be attracted to and support companies that demonstrates a commitment to employees and costumers, and the affect of other lives
-rise in public awareness for CSR and changing of consumer demands- if businesses dont take action in these areas customer will choose other brands
-attract higher standard staff- employees like working for companies that have good images , meaning a better output
Whats the positive impact of perusing a policy of ethical and CSR for the business 4
- employees who are aware their company operates in an ethical manner are more likely to be committed to the success of the business, motivated and work harder
- supporting local charities often result in a more loyal workforce who are keen to stay with the company, cutting down recruitment and training costs
- it can be used as a marketing tool- activities undertaken can be used in advertising and public relations which may result in higher sales which means more dividends to shareholders
-firms will be able to charge a premium price as consumers will be more willing to support ethically strong products
-good publicity and reputation which they can use to promote the business
May be able to pay a premium price as some consumers will be willing ti pay higher prices for ethical goods and services
whats the negative impacts of pursuing a policy of ethical and CSR for the business
- backlash may occur if consumers or tax payers doubt the intentions of new CSR policies or incur additional charges to implement them
- being ethical may mean that firms have to spend more money on environmentally friendly equipment, and ethical sources of supplies eg better wages and conditions for employees, this would increase costs and reduce profitability
- companies which publicise their ethical stance may be subject to greater public scrutiny than others, create bad publicity and damage the business
Increases business total cost, resulting in then wither having to increase prices making them have a less competitive edge or accepted the reduce profits
Failure to meet the targets will result in adverse publicity which can damage the reputation and image of company
Ho does being ethical and having CSR affect marketing positively within a business 3
- an organisation can target an eco friendly market segment to gain new customers ho would previously not buy from there- increasing sales and revenues
- can be used as a marketing tool in adverts to improve reputation as an ethical organisation
- can add CSR branding to packaging to promote sales and can sell at a more premium price and customers know they are buying from a good company
How can being ethical and having CSR affect operations positively within a business 2
Inventory management may be improved- having lean production eg just in time will mean there is less wastage and less carbon footprint
- reduce the level of pack agains used in the product to require less wastage and storage space. Attract ethically aware customer
How can being ethical and having CSR affects Human Resources positively within a business 3
- higher standard set of employees who knows the company is an environmentally aware. Pick from better pool of candidates due to wanting to work there
-reduced staff turnover if the employees feel the company is being responsible- more productive
-staff are being more responsible- less chance of legal action if lower risks of chemical actions which makes the company look bad
How can being ethical and having CSR impact finance positively within a business 1
-being eco friendly may improve its ability to obtain finance from ethical lenders, increase shares and help the growth of the business
How can being ethical and having CSR impact marketing negatively within a business 3
-the packaging of products may need to reflect new ingredients. This may mean a new marketing campaign which takes time and money
- may limit who a business targets in advertisement eg not targeting children or vulnerable adults
- may limit who a business can advertises with. Can’t advertise with inappropriate employees who have a controversial stance on certain situations
How can being ethical and having CSR impact operations negatively within a business 3
- non- hazardous chemicals may not be effective, which may slow the speed of production. This may affect delivery times and make customers unhappy
-environmentally friendly products may involve more time and effort to source. May also cause increased costs
- may have to change the production process, staff may be reluctant to do so which can increase staff turnover
How can being ethical and having CSR impact Human Resources negatively within a business 1
- training may have to be changed to accommodate a different production process. This takes time and money to implement t
How can being ethical and having CSR impact finance negatively on a business 2
- company may have to spend capital on new machinery to accommodate different environmentally friendly processes
- may have to pay a higher purchase price for the quality required, which will increase the cost of the product and create customer dissatisfaction
What is CSR 4
Going above and beyond the law
It’s the responsibility than an organisation has to its internal and external stakeholders
Public is very aware if CSR and expect businesses to conduct their operations in a socially responsible manner
Organisations engaging in positive CSR will have a better opportunity to minimise financial risk by anticipating change and planning for the future accordingly
