Corporate Social Responsibility And Corporate Governance Flashcards
What are CSR and CSI
CSR-Corporate Social responsibility: moral obligation the businesses contributes to the community
CSI-Corporate Social Investment: factors of production business gives to help community (putting in money)
What does sustainability mean?
The ability the be maintained at a certain level. The projects can continue even without the presence of the business
What are the benefits for a business who has CSR?
- helps to recruit best employees
- gives a favourable image of the business
- builds employee loyalty
- creates customer loyalty
- attracts investors
What are the problems for a business who has CSR?
- business does not always have the skills to solve societal problems
- CSI costs money small businesses may not have
- CSR is time consuming
- community may have high expectations from the business
What are the benefits of CSR for a community?
- improves quality of life
- generates employment through skills development
- improvement of infrastructure
What are the problems of CSR for a community?
- communities may become dependant on CSR initiatives
- some CSR initiatives are not sustainable
What are the areas that CSR is needed in SA?
- inequalities of the past
- cycle of poverty
- dualistic economy
- years of apartheid
- crime and violence
- HIV/ AIDS epidemic
What is poverty?
Poverty is the state of having little or no money as well as few or no material possessions
What is extreme poverty?
People are incapable of fighting diseases due to lack of adequate nutrition or medical care
What is moderate or subsistence poverty?
People have little income and face chronic financial hardship
What is triple bottom line/integrated reporting
PEOPLE, PROFIT, PLANET
What are the primary characteristics of good governance?
TRANSPARENCY: activités should be visible and clear to all
INDEPENDENCE: avoidance of any undue influence by interested shareholders that may contaminate decisions
ACCOUNTABILITY: to be answerable for actions taken and decisions made
FAIRNESS: avoiding bias
INTEGRITY: doing business in a honest and truthful manner
What are the three aspects of discipline?
Self-discipline: personal level of integrity
Market discipline: investors are willing to pay premium for companies that are viewed to be well governed
Regulatory governance: reinforce self-discipline and promote high levels of integrity within enterprises
What do companies look at when promoting ethical and responsible business decisions?
- clarifying standards of ethical behaviour for all stakeholders
- complying with all legal requirements
- have reasonable expectations of their stakeholders
What are the 4P’s of marketing?
PRODUCT: business should consider using recyclable/reusable materials
PROCESSES: processes should be environmentally friendly
PRACTICES: using paper straws instead of plastic
PREMISES: eco-friendly buildings
