CSR Flashcards
CSR
Morals and principles of a business that go beyond legal requirements
Why is CSR important for businesses?
CSR enhances brand reputation, builds customer loyalty, attracts and retains talent, mitigates risks, and can lead to long-term financial success. It helps businesses align with societal values and expectations.
List the key areas of CSR.
Environmental Responsibility: Sustainable practices, reducing carbon footprint, and responsible resource usage.
Ethical Labor Practices: Fair labor practices, ensuring human rights, and safe working conditions.
Community Involvement: Engaging with and contributing to local communities through philanthropy and volunteer efforts.
Economic Responsibility: Contributing to economic development while ensuring fairness and transparency. Sustainable sourcing: Choosing suppliers who adhere to ethical and environmental standards.
Employee volunteer programs: Encouraging employees to engage in community service.
Carbon footprint reduction: Implementing policies to reduce greenhouse gas emissions.
Fair trade practices: Ensuring fair wages and working conditions for suppliers and producers.
What are the potential benefits of CSR to a business?
Improved brand image and customer loyalty.
Increased employee satisfaction and retention.
Access to new markets and business opportunities.
Reduced regulatory and compliance costs.
Better risk management and crisis mitigation.
How can CSR impact a company’s reputation?
Effective CSR efforts can enhance a company’s reputation by demonstrating its commitment to ethical practices, social welfare, and environmental stewardship, leading to increased trust among consumers and stakeholders.
What are some criticisms of CSR?
Greenwashing: Companies may misrepresent their efforts to appear socially responsible without real commitment.
Costs and Profitability: Critics argue that CSR initiatives can divert resources from profit-generating activities.
Vague Standards: Lack of universally accepted standards for measuring CSR effectiveness can make claims appear insincere.
Decrease bonus culture- paying managers more than workers
How can companies measure the effectiveness of their CSR initiatives?
Companies can use key performance indicators (KPIs) such as employee engagement levels, customer satisfaction surveys, environmental impact assessments, and community feedback to evaluate their CSR initiatives,increase in customer loyalty, retention, and increase in sales and profit
What is the primary trade-off between CSR and profitability?
The primary trade-off is that while implementing CSR initiatives may incur additional costs and reduce short-term profits, these actions can enhance long-term profitability through increased customer loyalty and brand reputation.
In what ways can CSR positively impact long-term profitability?
Customer Loyalty: Consumers are more likely to support businesses that align with their values, leading to increased sales.
Risk Management: Proactive CSR practices can mitigate risks associated with regulatory compliance and negative publicity.
Talent Attraction and Retention: Companies focused on CSR often attract top talent, which can enhance productivity and reduce hiring costs.
