Corporate social responsibility considerations for an operations system

Question 1

Corporate Social Responsibility:

Answer 1

Takes into account an approach that is both ethical and socially responsible. It goes beyond what the law requires to express concern for the environment, employees and society.

Question 2

CSR in Inputs: Environmental Sustainability

Answer 2

Environmental sustainability is the ability of an ecosystem to maintain itself into the future, it involves businesses using inputs at a rate that they can be replenished.

Question 3

Businesses should consider environmental sustainability of their inputs by:

Answer 3

> Use of supply chains: using suppliers who have an Environment Management System (EMS). They could also ensure they have ISO assurance and that their suppliers pay employees fair wages and provide adequate conditions.
Using renewable energy: Businesses can also consider CSR in inputs by purchasing green energy options, sustainable technology and equipment, and committing to renewable sources and solar power.

Question 4

CSR in Processes:

Answer 4

Businesses should consider the amount of waste generated from processes by:
> Recycling resources: recycling inputs to reduce the negative impact on society and the environment. This can lower material costs as less inputs are required to be purchased.
> Disposal of waste: should be minimal. Using JIT and Lean Management reduces impact on the environment. Disposal should be ethical.

Question 5

CSR in Outputs:

Answer 5

CSR involves considering the production of outputs.
> Outputs should add value for consumers, they should be non-harmful and they should use packaging with minimal environmental impact.
> Outputs should be promoted to the consumer through honest marketing that is truthful and non-deceptive.

Question 6

Advantages of CSR in operations:

Answer 6

> Reduced impact on the environment through less waste.
Increased productivity through new, cleaner choices.
Addresses societies demands and attracts shareholders so reputation is increased.

Question 7

Disadvantages of CSR in operations:

Answer 7

> Financial cost in relation to aspects not directly related to core business.
Stakeholder conflicts (of interest) as money being spent on CSR initiatives could have spent elsewhere
Time consuming – new policies, links in the mission statement, training of employees