CSR

Question 1

What is corporate social responsibility?

Answer 1

The commitment of a business to behave ethically and contribute to economic development while improving quality of life in the workplace, as well as of the local community and society

Question 2

Example of Sanitarium using CSR

Answer 2

One example of CSR for Sanitarium is its Kickstart Breakfast Program. This initiative partners with the New Zealand government and local communities to provide free breakfasts to schoolchildren across the country. The program donates over 2.4 million breakfasts annually to schools, ensuring that students start their day with a nutritious meal. By doing this, Sanitarium aims to improve children’s health and educational outcomes, addressing issues of child hunger and nutrition in New Zealand. The program not only supports the well-being of children but also builds strong community relationships and enhances the company’s image as a socially responsible entity.

Question 3

Fully explain why your named business engages in CSR

Answer 3

Sanitarium engages in CSR for several reasons. Firstly, the company is owned by the Seventh-day Adventist Church, which places a strong emphasis on health, well-being, and ethical business practices. This religious and ethical background drives Sanitarium to contribute positively to society. Additionally, CSR helps Sanitarium align its brand with values that resonate with its customers, such as health, sustainability, and community support. By engaging in CSR, Sanitarium can strengthen its brand loyalty, differentiate itself from competitors, and fulfil its mission of promoting a healthier, more sustainable lifestyle.

Question 4

Justify, with examples, why your named business needs to balance corporate social responsibility with their own profit-making requirements.

Answer 4

While CSR is important for Sanitarium, the company also needs to ensure that these initiatives dont compromise its financial stability. For instance, while donating 2.4 million breakfasts is a significant contribution, it must be balanced against the costs involved in producing and distributing these meals. Sanitarium’s investment in sustainable packaging, such as beverage carton recycling, must also be managed so that it does not lead to increased product prices that could drive away cost-conscious consumers. By carefully balancing CSR with profit-making, Sanitarium can maintain its social responsibilities while continuing to grow and sustain its business. This balance ensures that the company can keep contributing to society in the long term without jeopardising its financial health.