Corporate Social Responsibility Flashcards
What is CSR?
A concept where companies integrate social and environmental concerns in their operations and in their interaction with stakeholders on a voluntary basis
What is sustainability?
Meeting the needs of the current generation without compromising the ability for the furture generations to meet their own needs
Where do companies sometimes report their CSR in terms of sustainability?
in their balance sheets - accounting for sustainability - record usage
How do companies document their CSR activities?
In CSR reports - water usage, carbon emissions etc
Why don’t some companies want to be socially responsible?
- Their role is to provide profits for shareholders, feel its not their responsibility
- Doesn’t always improve reputation - some people don’t care
- Don’t want to compromise profits - cost passed to customers
- Damages innovation
Why do companies operate in a socially responsible way?
- Ethical - pleases stakeholders
- Morally right
- Improves reputation: attracts customers
- Can be profitable - reducing waste, access to grants
- Helps avoid excessive regulation
- Can increase employee motivation - helps recruit
- Helps correct social problems caused by business
How are businesses socially responsible to their consumers?
- Value for money
- Product quality and safety
- Fair and honest advertising, responsible selling/promo
- Sustainable products, local sourcing
- After sales service, fair handling of complaints
- Product testing
- Labour rights
How are businesses socially responsible in the workplace?
- Equal opportunities, diversity
- Fair pay above inflation
- Enough breaks
- Good conditions, health and safety
- Work life balance, social facilities
- Training in new skills, participation in decision making
How are businesses socially responsible in the community?
- Offering jobs to local community
- Community projects
- Minimise polution/disruption to community
- Consult on major change
- Source from local suppliers
How are businesses socialy responsible in the environment?
- Low pollution - co2 emissions
- Sustainable resources
- Reduction in waste - packaging, energy
- Recycling, waste management
- Congestion minimised
How can CSR be a threat?
- higher costs
- programme investment
- management and reporting - time consuming
Why might there be pressure for CSR?
- Senior management attitude/experience
- Strength of stakeholder pressures
- Competitor actions/attitudes
- Risks of being irresponsible and being caught out
Why is CSR and opportunity?
- USP
- Subsidies
- Builds a brand
- Motivate and retain employees
- Grow revenue and profit
- Reduce waste
