Corporate Social Responsibility (CSR)

Question 1

What is Corporate Social Responsibility?

Answer 1

The duty of a company’s management to work in the best interests of the society it relies on for its resources (human, material, and environmental), to advance the welfare of society, and to act as a good global citizen through its policies.

Question 2

Corporate Social Responsibility
Can take many forms, including:

Answer 2

• Making charitable donations
• Treating employees ethically
• Being environmentally conscious
• Ensuring safe working environments
• Sponsoring local sports teams
• Creating and promoting diverse workplaces

Question 3

BENEFITS OF CSR

Answer 3

• Can be used as a marketing tool
• Dissuades governments from implementing regulations that could interfere with business
• Helps companies attract and retain excellent employees

Question 4

CRITICISMS OF CSR

Answer 4

• Costs money, detracts from profits
• Uses employees’ time and energy
• Can distract customers from problems a company creates
• A company may act ethically in one country, but not in another

Question 5

Stakeholder Analysis

Answer 5

• Used to determine which group’s interests are most important when a company is faced with an ethical dilemma.
• Primary stakeholders directly affect the company and its profitability.
• Secondary stakeholders have an impact on the company, but do not directly influence its success or contribute to profitability.

Question 6

Ethical Dilemma

Answer 6

Arises when there is difficulty choosing between two or more courses of action, in which either choice is wrong or it disobeys a moral or ethical principle