Corporate social responsibility

Question 1

Key elements to CSR

Answer 1

Environmental sustainability

Social impact

Community engagement

Ethical business practices

Employee well-being

Supply chain responsibility

Governance and ethics

Corporate philanthropy and giving

Question 2

Environmental sustainability

Answer 2

Involves minimizing the company’s negative impact on the environment and promoting practices that preserve natural resources and ecosystems.

Initiatives may include:

reducing carbon emissions

adopting renewable energy sources

implementing eco-friendly manufacturing processes

Question 3

Social impact

Answer 3

Focuses on the company’s contribution to addressing societal challenges and improving the well-being of communities.

CSR initiatives may include:

support for education

healthcare, poverty alleviation

access to clean water and sanitation

Question 4

Ethical business practices

Answer 4

Principles of integrity, honesty, fairness, and transparency in all aspects of the company’s operations.

Includes:

adhering to legal and regulatory requirements

upholding ethical standards in relationships with stakeholders

avoiding unethical behaviors such as bribery, corruption, and exploitation.

Question 5

Employee well-being

Answer 5

Ensuring the health, safety, and satisfaction of the company’s workforce.

Initiatives may include:

providing a safe and healthy work environment

promoting work-life balance

offering fair wages and benefits

Question 6

Community engagement

Answer 6

Entails actively participating in and contributing to the welfare of local communities where the company operates.

May involve:

supporting community development projects

volunteering efforts, partnerships with nonprofit organizations

starting initiatives to address local needs and priorities

Question 7

Supply chain responsibility

Answer 7

Involves ensuring ethical and sustainable practices throughout the company’s supply chain.

Includes:

promoting fair labor practices

preventing child labor and forced labor

fostering responsible sourcing and procurement practices

Question 8

Governance and ethics

Answer 8

Encompasses establishing robust governance structures and mechanisms to oversee CSR initiatives and ensure accountability and transparency.

Includes:

ethical decision-making processes

stakeholder engagement mechanisms

transparent reporting on CSR activities and outcomes.

Question 9

Corporate philanthropy and giving

Answer 9

Can play a significant role in addressing pressing social issues and supporting communities in need

Involves:

donating money, resources, or expertise to charitable causes and nonprofit organizations.

Question 10

Theoretical foundations of CSR

Answer 10

Stakeholder theory

Agency theory

Institutional theory

Ethical theories

Resource-based view

Legitimacy theory

Corporate citizenship theory

Question 11

Stakeholder theory

Answer 11

Organizations have a moral obligation to consider the interests of all stakeholders, not just shareholders.

Stakeholders include employees, customers, suppliers, local communities, and society at large.

CSR involves addressing the concerns and expectations of various stakeholder groups beyond shareholders.

Question 12

Agency theory

Answer 12

Examines the relationship between principals (shareholders) and agents (management) and addresses issues of agency conflict and alignment of interests.

CSR initiatives can align the management interests with shareholders’ interests by:

promoting long-term value creation

reducing agency costs

enhancing corporate reputation.

Question 13

Institutional theory

Answer 13

Suggests that organizations are influenced by societal norms, values, and institutional pressures.

Organizations conform to institutional expectations to gain legitimacy and social acceptance.

CSR practices may be driven by external institutional pressures:

regulatory requirements

industry norms

stakeholder expectations

internal organizational values and culture.

Question 14

Ethical theories

Answer 14

Utilitarianism

Deontology

Virtue ethics

Question 15

Utilitarianism

Answer 15

Emphasizes maximizing overall societal welfare

Suggests that CSR should aim to produce the greatest good for the greatest number of people.

Question 16

Deontology

Answer 16

Focuses on moral duties and principles

Suggests that CSR is an obligation rooted in ethical norms and values.

Question 17

Virtue ethics

Answer 17

Emphasizes the development of moral character and integrity

Suggests that CSR reflects the virtuous behavior of ethical leaders and organizations

Question 18

Resource-based view (RBV)

Answer 18

Emphasizes the strategic importance of intangible resources, capabilities, and organizational competencies in achieving competitive advantage.

CSR can be seen as a source of intangible value creation:

brand reputation

customer loyalty

stakeholder trust

Question 19

Legitimacy theory

Answer 19

Suggests that organizations engage in CSR to maintain or enhance their legitimacy and social license to operate.

Companies seek to demonstrate their commitment to ethical behavior and societal well-being

This gains acceptance and support from stakeholders and the broader community

Question 20

Corporate citizenship theory

Answer 20

Views corporations as members of society with rights, responsibilities, and obligations akin to those of individual citizens.

CSR reflects a company’s role as a corporate citizen, contributing positively to the economic, social, and environmental fabric of society beyond its primary profit-seeking objectives.