CSR

Question 1

What is CSR?

Answer 1

CSR is basically about an organisation acting as a good citizen and putting something back into society. Such activities could include donations to charity, sponsorship of local events, allowing employees time off work to volunteer in various activities and minimising the environmental impact of their operations;

Question 2

Companies implementing CSR

Answer 2

It is felt that CSR should be voluntary, as organisations are of different sizes and operate in a variety of markets;

Question 3

Friedman on CSR

Answer 3

A company has one objective, to make long term profits by satsifying customers for the benefits of its owners and stay within law

Question 4

Carroll on CSR

Answer 4

pyramid of respsonsibilties
economic, to be profit oriented
legal, to abide by laws and regulations
ethical, honor societies social norms and culture
and philanthropic, to take voluntary activities

Question 5

Companies Act UK CSR

Answer 5

report on CSR annually

A directors must act in good faith, to promote the success of the company for the benefits of its members as a whole

Question 6

CSR strategy driven perspective

Answer 6

recruit more high caliber employees, save money through less energy, avoid fines by being environmentally friendly

Question 7

CSR policies

Answer 7

companies CSR policy determines how it enages with shareholders and stakeholders. Clear policy can attract investors.

Question 8

CSR in corporate strategy

Answer 8

CSR efforts need to be led by directors and embedded in its corporate strategy

Question 9

CSR example

Answer 9

bodyshop, first to introduce recycling, sourced from developing nations without taking advantage

Question 10

link to stakeholder theory and CSR

Answer 10

taking all stakeholders views into account could potentially provide opportunities to better the company

Question 11

arguments for CSR

Answer 11

reputation improves, can save money, avoid fines, lower cost of capital, reported benefits of a CSR report

Question 12

arguments against CSR

Answer 12

not up to a single company to fix problems, balancing diff stakeholders is tough

Question 13

stakeholder theory is

Answer 13

organisations should focus on all stakeholders (wider community, customers etc) and not just shareholders

Question 14

critics of stakeholder theory

Answer 14

directors cant satisfy all stakeholders and if they aim to do so it will lead to sub optimal results

Question 15

agency theory is

Answer 15

states that the agents of a company wont look after the principals money like they would their own

Question 16

critics of agency theory

Answer 16

state that there is an assumption of causality made when analysing a company and its attitude to shareholders, as most researchers use quantitative measures and do not interview key personnel within a company.