corporate social responsibility Flashcards
social responsibility
the responsibility on an individual to contribute to the well being of the community which they operate in
corporate citizenship
the responsibility of the management team ion the business to protect and enlarge the interest of the business together with the welfare of the community, this should be done by means corporate social investmenst
corporate social responsibility
this is when a business voluntarily takes step to improve the quality of life for employees and their families, the local community and society at large.
what does CSR encourage businesses to consider
the interests of their society by taking responsibility for the impact of the businesses activities on the customers, employees, shareholders, communities and the environment
Positive impacts of social responsibilities on business
creates positive business environments
delivers quality workers with the correct skills
provides a productive work environment for all workers
satisfies all stakeholders
negative impact of CSR on business
businesses can often lack financial resources to support programmes
business often have little knowledge about which programs to invest in or which are appropriate for the community
More Human Resource is needed to implement these programs
positive impact of CSR on Community
businesses can provide essential services to people in the community… ex healthcare
people in the community are lifter and poverty is reduced
job creation for people in the community
skills training intervention provides training for people in the community
negative impacts of CSR on community
project could last for limited amount of time… therefore initiative is not sustained and community will soon be back at where it started
companies often feel that projects are forced on them and they don’t often have a choice, therefore making them not as enthusiastic
corporate social investment
the money that a business spends on a community to improve the standard of living in the community… funds allocated to that project aims to improve the standard of a commuity
CSI focus areas…
Environment- to protect the environment by conservation projects
employees- investing in the well being of employees
rural development- projects focusing on human rights.. ex housing developments
community- initiatives to help combat crime
how do business contribute
assisting in poverty alleviation
protecting the environment
providing education and training to disadvantaged people
investing in the well being and advancement if employees and their families
sponsorship to sports events
delivering services that government is unable or slow to deliver
investing in job creation projects
the CSI process?
the business decides which programs to implement
business must ensure that they are target specific to an issue
must register project with relevant authority
partnerships can be formed between businesses, government and communities
management needs to draw up budget for project
businesses must dates the identified issue by spending allocated funds on the project
advantages of CSR on business
assists in solving socio-economic problems like poverty
give business tax advantages (reductions/rebates)
improves the image of the business
increases workers productivity because they are proud
can be a good marketing strategy
helps attract investors the want to invest in a socially responsible business
creates loyalty within business
increases chances attracting highly qualified employees and keeping them
Challenges of CSR on business
businesses don’t always have the skills/knowledge to solve problems
it costs money and business could have invested it else where
sufficient funds to really get involved are difficult to have and can create financial burdens
can be problematic to keep the project going during economic downturns thus creates pressure from community
business could lack skilled workers to manage these projects
time consuming
could result in double taxation
CSI projects could lead to more employees being needed… costly
businesses are required to prepare detailed reports of their CSI programs
Advantages of CSR on communitues
improves standard of living
generate employment by creating job opportunities
education and training can be provided
contributes towards health care and social development
help improve infrastructure
helps to reduce socio economic issues
challenges of CSR on communities
community may become to dependent on CSR
some businesses are not sincere and only do it to look good
often CSI programs try to distract community from ethical issues
CSI doesn’t always focus on sustainability and creates problems in long run
businesses force their policy on community
Triple bottom line
provides a framework to measure corporate performance against social and environmental factors
The JSE launched the social responsibility index to identify those companies on the JSE that integrate the triple bottom lin into their business
the three pillars of triple bottom line
social sustainability-people
environmental sustainability -planet
economic sustainability-profit
people
companies must implement strategies aimed at social upliftment, development and reduction of poverty
planet
businesses must ensure that their impact that they have on the environment is controlled and they must try act sustainable
profits
companies must not only use profits for short term projects but must also focusing on wrong towards long term growth.. continuos increase in productivity to ensure national income levels
Impact of EEA on CSR and CSI
act requires employers to create opportunities for previously disadvantaged groups
must make sure that remuneration is fair in all aspects
failure by employers could result in rise with the labour court
Impact of CSR and CSI on SDA
education and training will have the effect of increased employment
companies have to pay skill development levy to offer learnerships
private secrets needs to assist governments and contribute towards increase of skilled labour in SA
impact of CSR on BEE
private companies must apply the codes of good practice if they want to do business with any government enterprise
impact of CSR on NSDS (SETAS)
skills development laws aim to improve the love of skills in the workforce
businesses pay towards skill development levy so that SETAs can provide learnerships
SETAS also pay out grants to businesses when they comply with regulations concerning workplace skill plans
what are socio economic issues
they are issues which effect negatively the business and the economy ex… HIV/AIDS, poverty, crime, unemployment
unemployment?
workers who are actively seeking a job but can not find one
possible solutions to unemployment business can do…
provide education and training through skill development
implementation of SDA and expanding of SETAs
job creation by local municipalities and other institutions
learnerships, as it gives people salaries while the learn skills
encourage learners to qualify themselves in sectors where there are lots of job available
development entrepreneurial skills so they can advance themsleves
what are poverty stricken people
don’t have basic goods to comply with the minimum life standards… these people don’t have income for food, housing, clothing, education
the poverty cycle
economic decline low personal income no money for food or education hunger and no education disease and lack of skills depleted and unskilled workforce
Crime
a result of poverty and unemployment
negativity effects business and economy
therefore business must increase precautionary measures to protect themselves… ex.. alarms, insurance, security guards
these extra expensed decrease profits which mean that workers are paid off
injuries/death of skilled workers are a burden on business
clients avoid business in high crime areas
foreign investors don’t want to invest in SA due to high crime rate
govt. and business have responsibly to help deal with crime
HIV/AIDS
people dying of this illness reduce labour force and potential customers
solutions to HIV problems
businesses can contribute towards medical aid schemes
education programes to prevent illness or treat it
HIV awareness programs and support programs
CSI can try establish feeding schemes for AIDs orphans and health centres
train counsellors at assist people with HIV
provide ARV to people with HIV/AIDS
