Corporate Social Responsibility

Question 1

What is CSR?

Answer 1

Corporate Social Responsibility.
CSR is about the relationship between the business (corporate) and society (social, including environment) and the degree to which the business impacts society. It engages with the idea that the business should not only focus on its own profits, bit also has a responsibility towards people and the environment.

Question 2

What is the Triple Bottom Line?

Answer 2

The top priorities for a business, the 3 P’s:
People,
Planet and
Profits

Question 3

Discuss corporate social responsibility in a business context.

Answer 3

The business should be managed in a way that ensures sustained profit while contributing to society and the environment. It is the businesses’s responsibility to add value to society over and above selling goods to them.

Question 4

What should be noted when it comes to investment in CSR?

Answer 4

Investing in CSR may seem expensive or irrelevant short term, but it will create a positive impact long term due to positive brand reputation.

Question 5

What are 8 CSR issues that need to be tackled?

Answer 5

Crime
Poverty
Poor housing
Lack of education
Inequality
Poor health services
Environmental concerns
Unemployment

Question 6

Discuss crime as a CSR issue to be tackled.

Answer 6

• crime =unlawful act punishable by state
• people in poverty commit crimes for many reasons (e.g, survival / retaliation to violence / ineffective parental practises)

Question 7

Discuss poverty as a CSR issue to be tackled.

Answer 7

• Relative poverty refers to a standard which is defined in terms of the society in which an individual lives and which therefore differs between countries and over time.
• Absolute poverty: a condition characterised by severe deprivation of basic human needs, including food / safe drinking water / sanitation facilities / health / shelter / education / information

Question 8

Discuss lack of education as a CSR issue to be tackled.

Answer 8

• South Africa is in an education crisis (measured by metric pass rates)
• Thousands of students are not able to attend school due to lack of schools and space in classrooms
• Have more teacher training colleges to fill vacant teaching posts
• Education can help break the poverty cycle (however there is a lack of resources due to mismanaged funds in certain schools and education is not adequate)

Question 9

Discuss unemployment as a CSR issue to be tackled.

Answer 9

• SA unemployment is at 32%
• Largest job loss occurred in construction and manufacturing sectors in 2016
• Leads got social and economic problems such as crime and an increased strain on the government (they have to pay more grants and citizens have to pay more tax)

Question 10

Discuss environmental concerns as a CSR issue to be tackled.

Answer 10

• Due to global warming people are starting to look at alternative sources of energy (e.g, solar power)
• Therefore changes in marketing strategies must be made
• Resulted in Pressure Groups
• e.g, dove vs greenpeace

Question 11

Discuss poor health services as a CSR issue to be tackled.

Answer 11

• Poverty is a major cause of ill health for people around the world
• many developed countries around the world have poor health systems that lead to many deaths. Increased death rates lead to decreased productivity and poor economic performance, which can result in the country going into a depression/recession.

Question 12

Differentiate between an economic depression vs an economic recession.

Answer 12

Depression: no economic growth
Recession: slow economic growth

Question 13

Discuss inequality as a CSR issue to be tackled.

Answer 13

• Difference in categories (size / wealth / education / circumstances)
• Inequality in the past has lead to new legislation being introduced into SA

Question 14

Discuss poor housing as a CSR issue to be tackled.

Answer 14

• Lack of affordable low cost housing in SA, which leads to the encouragement of development of slums
• Often a result of poor planning on behalf of town planning

Question 15

Give detail on how to design a CSR program.

Answer 15

1. Management must communicate the need for CSR across the business
2. Management should create a CSR policy
3. Management needs to communicate the CSR policy throughout the businesses and ensure buy-in takes place.
4. Management should link CSR to business success factors.
5. Employees across the business should brainstorm CSR initiatives.
6. An inventory of skills and resources needed to implement the programme must be drawn up.
7. Implement the CSR project.
8. Monitor the CSR initiatives.
9. Make the necessary changes if needed or go back to brainstorming.

Question 16

What are the main arguments for CSR?

Answer 16

• Businesses that assist the community receive greater support from the community (e.g: Ww clothes bank will encourage current customers to remain loyal to WW)
  > These businesses and brands have a reputation for caring
  > The community supports these businesses
  > Community becomes brand loyal
• Businesses need to act on social issues in their communities, otherwise people will move away (important to engage with employees from these communities)
  > Increase in poverty = Increase in crime = people have less money to spend at business
• Arguments that the King Code should be implemented by law
  > If business do CSR voluntarily, then no need for pressure from law good corporate governing= a > Less red tape to police it
• Business assists increase in standard of iving through education and health programs
  meeting Triple Bottom line
  > Higher standard of living = more disposable income
• By giving back to the environment, businesses are ensuring future generations will have resources needed to prosper
• Businesses that operate sustainably are innovative in identifying additional avenues of income
• Businesses that have CSR initiatives are concerned about the impact they have on stakeholders (Promotes ethical business practices)
• Most business have programs to deal with social issues (EG. leadership and entrepreneurship)

Question 17

What are the arguments against CSR?

Answer 17

• Detracts from core businesses activities (making profit)
• Businesses and shareholders see money spent on CSR as less profit
• DIfficult to measure the benefits of CST (CSR reflects an intangible ROI)
• Often additional pressure to keep CSR initiatives going, which costs time and money
• Business might not be able to meet all the needs of the community (can cast them in a negative light)
• Not all CSR programs are sustainable (often don’t last long/long enough), thus businesses are wasting time and valuable resources on “hit and run” program
• CSR sometimes leads to businesses misleading stakeholders regarding their environmental practises (this is called greenwashing)
• CSR is allowing the State to shift its responsibility

Question 18

What is sustainable business practise?

Answer 18

The ability of a business to operate in the long term.

Question 19

Sustainable businesses….?

Answer 19

-Make operations environmentally sustainable
-Make operations socially sustainable
-Make society sustainable
- Influences suppliers (backwards integration)

Question 20

Advantages from CSR for a business?

Answer 20

• Media attention and positive publicity
• Better functioning society
  > Socio-economic problems have been dealt with
• Making a sustainable difference in people’s lives
• Score more points on the JSE SRI
• Image of sound corporate governance
• CSR becomes part of organisational culture
  > Unites team members in a common goal
  > Lead to better teamwork

Question 21

Advantages from CSR for Community?

Answer 21

• Healthier environment
  > Less pollution
  > Healthier people
• More skills leads to less unemployment
  > Contributes to higher standards of living
  > Less crime
  > More productive society
• Better control over diseases
• Feeding schemes make better education possible
  > Children focus on their school work
• Individuals may be sponsored for sporting events or a career

Question 22

Discuss businesses making their own operations environmentally sustainable.

Answer 22

• Business must ensure it acts in a responsible manner
  > Greater global awareness of:
  • Pollution
  • Depletion of natural resources
  • Destruction of ecosystems increasing
• Businesses are looking at ways to cut back on wastage
  > And ensure non-renewable resources are treated with respect
• Businesses are held accountable for their environmental practices
  > CO2 tax to force businesses to act responsibly
• Make its own operations socially sustainable
• Business will take responsibility for ensuring important issues are addressed

Question 23

Discuss a business having a socially sustainable workplace.

Answer 23

• BEE/BBBEE
• HIV/AIDS and health issues
• Empowerment/skills development
• Operational Health and Safety
• Trade Union involvement
• Making society sustainable
• Important to focus on the impact the business has on the community
  > Must ensure strong, happy and stable community
• Business should develop capacity to address social issues
  >Through programmes aimed at quality health care and education.

Question 24

How can a business influence suppliers to ensure they are a sustainable business?

Answer 24

• Ensure operations do not negatively affect the environment and society
  > Business must monitor supply chain/value chain.
  > Businesses will be actively aware of any possible negative effects the suppliers have on society and environment
• Put pressure on suppliers to make sure their businesses are sustainable
  > Alternative suppliers might be found
• Business must take all the necessary precautions to remain sustainable
  > Cannot be associated with unethical suppliers.

Question 25

Discuss the implications of CSR for the business.

Answer 25

• Employees: improve the quality of life for employees and their families = business has motivated employees who have higher morale / less absenteeism / lower staff turnover
• Customers: Business differentiates itself from competitors and people talk about it in a positive light
• Suppliers: CSR makes a business credible/reputable, ∴ other businesses are more likely to do businesses with such a company rather than one that has exploitation in its history
• Local community: Refer people in the local vicinity of the business and improve people’s quality of life, will have a long term impact on the business
• Government: Less likely to enforce CSR through legislation if businesses do it voluntarily