Corporate social responsibility

Question 1

what does sustainability mean?

Answer 1

It’s about taking what we need to live now, without jeopardising the potential for people in the future to meet their needs. If an activity is said to be sustainable, it should be able to continue forever.

Question 2

What is green washing

Answer 2

green washing is used to make a company appear to be more environmentally friendly that what is actually is. it can be used as a tool to make a company’s product or service appear more Environmentally friendly than its competitors. Many firms have used this approach and will claim to recycle, energy saving, environmental friendly etc, they promote through labelling all there packaged goods.

Question 3

What is CSR reporting

Answer 3

​A sustainability report is a report published by a company or organization about the economic, environmental and social impacts caused by its everyday activities. A sustainability report also presents the organization’s values and governance model, and demonstrates the link between its strategy and its commitment to a sustainable global economy.

Question 4

What does GRI stand for?

Answer 4

Global reporting initiative

Question 5

What 3 core elements does CSR consider

Answer 5

ECONOMIC, ENVIROMENTAL AND SOCIAL

Question 6

Who was one of the companies to start CSR reporting in 1990s

Answer 6

3M

Question 7

Whats the advantages to producing a CSR report

Answer 7

Can help enhance a companies image 
Attracts and retains employees 
Increases a companies understanding of risk 
Engages stakeholders 
Attractive to some investors 
Creates healthy competition

Question 8

What are the disadvantages of CSR reporting?

Answer 8

It can be very costly and time consuming

Companies manipulate reports and highlight positive information and hid negative information.

Question 9

What are the four elements of carrolls CSR pyramid

Answer 9

from bottom up!
Economic responsibility
Legal responsibility
Ethical responsibilities 
Philanthropic responsibilities

Question 10

What does carrolls Economic responsibility mean

Answer 10

this refers to fundamental responsibility of business to produce goods and services that society wants, and which sells at a profit. However there may be many that would argue that this is the limit of a company’s responsibilities and anything more is a misuse of shareholders money (Friedman).
the idea here behind Carroll was that companies have other purposes too not just to simply make money, he thinks they should not only consider profitability but also the way in which profits are made, this is central to understanding corporate responsibility in terms of business relationships to society.

Question 11

What does Carroll’s Legal responsibility mean?

Answer 11

legal responsibilities refer to the obligation of business to fulfil its economic mission within the confines of the law. It is expected by society that all companies follow the laws. Local, nation and international laws set out the rules by which companies have to play by, and over the years has put in place regulations within employment, environmental protection, corruption, human rights and product safety.
However the law itself will never be able to define everything that society expects corporations to take responsibility for, and furthermore companies have a significant influence on what is passed as law, and spend large sums of money persuading any law-makers about how to apply their powers.
Companies that don’t follow the law will be fined. For example in 2013 HSBC got fined over £6 billion for mis-selling their products and money laundering.
Legal requirements vary greatly from country to country and some businesses may take advantage of the lack of requirements in some countries like US Company Nike

Question 12

What does carrolls ethical responsibility mean?

Answer 12

Ethical responsibility refers to the responsibilities of companies that go beyond legal compliance. This part is the most interesting part of corporate social responsibility because it is asking what companies can do beyond what is demanded by regulation. In the 1980s the body shop gave a significant boost to campaigners who had wanted testing of cosmetics on animals illegal. This has led to the Ethical treatment of animals group being successful in getting companies such as McDonalds to improve animal welfare.

Question 13

what is Carroll’s Philanthropic responsibility mean

Answer 13

(philanthropy - the desire to promote the welfare of others, expressed especially by the generous donation of money to good causes)
Corporate responsibility is what lies beyond the law, and an important area is that businesses “give back” to society through philanthropic donations. Business leaders such as Rowntree and ford gave back large amounts of their individual wealth to establish foundations or to invest in favoured projects. Some companies are even given tax breaks providing they give back a certain percentage to specific charitable cases.

Question 14

What was carrolls first name?

Answer 14

Archie

Question 15

what year did Archie Carroll release his article about the pyramid?

Answer 15

1991

Question 16

What is globalisation?

Answer 16

Globalisation is the process by which the world is becoming increasingly interconnected as a result of massively increased trade and cultural exchange. Globalisation has increased the production of goods and services.

Question 17

Whats the effects of globalisation?

Answer 17

globalisation reduces sovereignty (the authority of a state to govern itself) globalisation weakens governments and increases pressure on.

Question 18

Challenges faced for businesses with globalisation?

Answer 18

corporations face different cultural expectations with issues such as bribery, corruption, taxation and philanthropy.

Question 19

negative impact of globalisation?

Answer 19

Exploitation

Question 20

who supports shareholder theory

Answer 20

Milton Friedman

Question 21

When was Milton Friedman Born?

Answer 21

1970

Question 22

Whats was Friedmen’s

Answer 22

The social responsibility of a business is to increase profits”

Question 23

What was Friedmen’s argument?

Answer 23

Milton Friedman argued that business should focus on the shareholders as they are the only stakeholders who matter, the point of a business is to make profit and building shareholder value is the prime purpose.

Question 24

what was Friedmens view on the Ford Pinto

Answer 24

He thought that it was okay for the company to keep on selling the cars, as it would cost to much money to recall them.

Question 25

What was the title of freeman’s Book, and what was it about?

Answer 25

“Strategic management: a stakeholder approach”. The core idea behind the theory is that organisations that care for there shareholder relationships will survive longer and perform better than organisations that don’t bother. In order to keep a strong relationship organisations should monitor there stakeholders interest, develop strategies to deal with stakeholders and there concerns, ensure its business activities address the needs of its stakeholders.

Question 26

What did friedman think out responsibility to other stakeholders?

Answer 26

He felt there was no other responsibility other than its shareholders. providing it is within the confines of the law.

Question 27

Why did Friedman think that the companies only duty was to make money?

Answer 27

Because the companies are owned by there investors, the investors have decided they want to invest in it because they want to make a profit and to action any other way would violate there contract to make the investors a profit.

Question 28

What did freeman believe in?

Answer 28

Stakeholder theory

Question 29

When was freeman born? and where was he born?

Answer 29

1951, United states Georgia.

Question 30

What was freemans view on stakeholder theory?

Answer 30

freemen supports the stakeholder theory in saying that anyone who as a stake/claim in the a firm has the right to be treated as a participating determining factor in the direction of the firm

Question 31

What did freeman think of Friedman’s approach?

Answer 31

That it was the quickest way to destroy shareholder value

Question 32

What are the 3 branches of stakeholder theory?

Answer 32

Descriptive
Instrumental
Normative

Question 33

What does Descriptive mean (stakeholder theory)

Answer 33

Used in research to describe and explain the firms behaviour and characteristics, including how companies are managed, how the managers think about managing and the nature of the firm itself.

Question 34

what does instrumental mean (stakeholder theory)

Answer 34

Uses imperical data to identify the connections that exist between management and stakeholders groups and its achievement of corporate goals,

Question 35

What does Normative mean? (Stakeholder theory)

Answer 35

Identified as the core, it examines the function of the corporation and identifies the moral or philosophy guidelines of the management of the corporation

Question 36

who are primary stakeholders?

Answer 36

INTERANAL stockholders, customers, suppliers, creditors, and employees

Question 37

who are secondary stakeholders?

Answer 37

EXTERNAL general public, communities, activist groups, business support groups, and the media