Corporate Social Responsibility and Sustainability Flashcards
What is the aim of Corporate Social Responsibility (CSR) in MNEs?
CSR aims to provide knowledge and practical tools & frameworks for executives to integrate social responsibility as part of their corporate strategy
Why is Corporate Social Responsibility needed?
In today’s world, there are increasing expectations of multiple stakeholders to uphold and align the firm with the code of ethics, or what constitutes acceptable behaviour for a business, of the different countries that it operates in or do business with.
As what may seem ethical and just in the cultural lens of one country may not necessarily be right in another country.
CSR helps firms to mitigate political and socioeconomic risks by actively understanding the needs of the people, and further improving the value and brand of the business.
What is the definition of CORRUPTION in the context of business transactions?
it is an exchange between two parties which
a) has an influence on the allocation of business resources either immediately or in the future; and
b) involves the use or abuse of public or collective responsibility for private or personal needs and wants
What are some factors that prime for corruption to occur?
- lack of transparency
- weak legal infrastructure/regulatory framework
- lack of (financial) reporting standards
- culture with high uncertainty avoidance, high masculinity, and high power distance
What can SMEs do to adopt ethical standards in business practice?
- Have unbiased 3rd parties to appraise corporate ethics; self-audit
- Draft a code of conduct, reviewing it annually, and use continual suggestions to improve
- Train workers and managers by using hypothetical but relevant examples
- Solicit feedback by incentivising a safe space for direct contact to senior management
- Senior management should provide ethical leadership and network on these issues with other business leaders
