CSR Flashcards
corporate social responsibility
steps taken to improve quality of life + welfare = stakeholders
corporate social investment
the resources a business spends to improve a community
sustainability
maintaining a certain level
sustainable projects = projects continue without the help of a business
benefits for business
helps recruit best employers
gives a favourable image
builds employee loyalty
creates customer loyalty
attracts investors
problems for business
not have skills to solve societal issues
costs money = small business not afford
times consuming + distracts employees = meeting targets
bad publicity when business not meet expectations
untrained managers lack experiences to handle the social programmes
benefits for the community
improve the quality of life through economic and social development
generates employment = introducing new skills (training)
provides bursaries
improvement = infrastructure
problems for community
does not solve own problems, believe the CSR initiative will take care of them making them dependant
CSR are not sustainable = will leave at one point, leaving the community to use skills learnt
using CSR initiative distracts public from businesses unethical behaviour
higher prices in goods and services = support CSR initiatives
Poverty
extreme poverty - ppl constantly struggle = survive
lack of adequate nutrition and medical care = unhealthy
little to no education
moderate poverty- little income + face constant financial hardship
lack basic necessities
bottom line / integrated reporting
integral part of business
reporting on the three P’s
profit (economic)
ppl (social)
planet (environmental)
the king codes recommend public = support JSE listed companies w/ good ethical trading
creates a competitive advantage
create sustainable projects (community take care of themselves)
increased awareness of sourcing materials
improved legislation on labelling (customers know = ethically sourced)
king code + corporate governance
currently king code 4
- requires business apply + explain recommended practice the business = obtained and how its adopted + ones = will be implemented
must ensure: ethical culture, good performance, effective control, good reputation
governance framework
code principles + practices
JSE = compulsory all listed companies = comply w/ king code = introducing the SRI (social responsibility index)
linked = good governance + law
directors = conducts w/ bounds = law
act in the best interest of others
checkpoints = enable stakeholders act w/ legal responsibility
characteristics of good governance
transparency- allowing stakeholders = understand mechanisms + processes involved
independence - avoidance of other influences (stakeholders) contaminate decisions
accountability - answerable to actions made
fairness- avoiding bias
integrity - measure how accountable companies are in understanding their affects of their decisions
discipline - self = person’s level of integrity + business judgement ; market = good government regime; regulatory = reinforce self discipline
characteristics of good governance
promoting ethical and responsible decision making
clarifying standards of ethical behaviour
comply with law
social equity + sustainable development (understand social issues of its community)
sustainability (king code)
focus on future needs
sustainable development measures relationship between elements = triple bottom line = when company engaged in business society and the planet must not be harmed
environmental sustainability pillar: concerns of degradation of planet
understand the 4 P’s in marketing: product, processes, practices, premises
responsibility investment index
purpose = continue work = identified companies that have good governance + used triple bottom line = reporting
procedures + practices = globally accepted
platform to show = stakeholders = acting responsibly
promote responsible business practices
global reporting initiative
promotes reporting on sustainability issues , framework used worldwide = promote = transparency on issues (ESG)
guidelines = business impact
ensures like business compared = one another
