CSR and Ethical Objectives

Question 1

Corporate Social Responsibility

Answer 1

CSR is the view that businesses, rather than focusing solely on increasing shareholder value, should contribute to the economic, social and environmental well-being of society.

Question 2

Why organizations set ethical objectives

Answer 2

• Building Customer Loyalty
• Creating a Positive Image
• Developing a positive Work Enviorment
• Reducing the risk of Legal Redress
• Satisfying Expectations

Question 3

Tripple Bottom Line

Answer 3

The Triple Bottom Line (TBL) is a sustainability framework that expands the traditional reporting framework to include ecological and social performance in addition to financial performance. This is often referred to as the three Ps: People, Planet, and Profit.

Benefits for businesses adopting TBL include:

Enhanced Reputation: Demonstrating commitment to social and environmental responsibilities can improve a company’s image and brand value, making it more attractive to consumers who prefer ethical and sustainable practices​

Improved Stakeholder Relations: By showing dedication to the well-being of employees, customers, and communities, businesses can increase employee loyalty, customer satisfaction, and community support​

Long-Term Profitability: Sustainable practices can lower operating costs and foster customer loyalty, potentially leading to long-term growth and profitability. It also opens up new markets and investment opportunities​ (Finance Strategists)​.

Question 4

Cradle-to-Cradle Design and Manufacturing

Answer 4

Cradle to cradle is a sustainable business strategy that proposes products should be designed with their life cycle in mind. Unlike traditional manufacturing processes that follow a linear ‘cradle to grave’ model (where products are disposed of after use), cradle to cradle focuses on creating products that can either biodegrade naturally and safely or be fully recycled into new products at the end of their useful life. Here are some key points about cradle to cradle:

• Eco-Effectiveness: The concept encourages products to be designed for effectiveness in terms of their environmental impact, promoting eco-friendly materials and processes.
• Waste Equals Food: Every material used in products should be seen as nutrients. Once a product has reached the end of its life, its materials are used as nutrients for something new, either as biological nutrients that safely re-enter the environment or as technical nutrients that circulate within closed-loop industrial cycles without being downcycled into lower quality materials.
• Use of Renewable Energy: Cradle to cradle design principles advocate the use of renewable energy in the manufacturing processes, reducing reliance on fossil fuels and minimizing the carbon footprint.
• Water Stewardship: Efficient use of water, ensuring that clean water is returned to the water cycle after the manufacturing process is completed.
• Social Fairness: A commitment to social responsibility, ensuring fair labor practices and contributing positively to the community.

For BON, adopting a cradle to cradle approach might involve using materials for stages, tents, and other festival infrastructures that can either be composted after use or reused for future festivals, thereby minimizing waste and environmental impact.

Question 5

Impact of Implementing Ethical Objectives

Answer 5

• The business itself: Long run beneficial but in the short term costs are likely to rise.
• Customers trust more the business + loyaty
• Better relationships with the local community
• Suppliers: Might include policy of only purchasing from ethical suppliers.

Question 6

Environmental Sustainability

Answer 6

Environmental sustainability is the responsibility to conserve natural resources and protect global ecosystems to support health and wellbeing, now and in the future.

Question 7

How can BON improve its CSR

Answer 7

1. Stakeholder Engagement: Engage with stakeholders, including employees, customers, local communities, and environmental groups, to gather feedback.
2. Transparent Reporting: Implement transparent reporting practices for CSR activities, including environmental impact and social initiatives.
3. Partnership with an Environmental For Profit Social Enterprise
4. Waste Management Improvements: Improve waste management strategies, aiming for higher recycling rates and reduced landfill use. – Lean Production!!!
5. Energy Management: Use renewable energy sources for festival power needs, such as solar or wind energy. – Coldplay Concert
6. Sustainable Sourcing: Ensure all materials and products used (e.g., food, merchandise) are sustainably sourced.
7. Carbon Offsetting: Implement a carbon offset program to address the carbon footprint of festivals.
8. Continuous Improvement: Establish a regular review process for CSR policies to foster continuous improvement.
9. Educational Initiatives: Organize educational initiatives to raise awareness about environmental sustainability and social issues among attendees and artists.

Question 8

Circular Business Model

Answer 8

A circular business model is an approach that aims to eliminate waste and the continual use of resources by closing energy and material loops. This model contrasts with the traditional linear economy, which follows a ‘take-make-dispose’ plan by creating products that can be fully reused, repaired, refurbished, or recycled. This helps reduce environmental impacts, encourages sustainable practices across the supply chain, and often involves innovative ways to deliver products and services that decouple growth from resource consumption. It aims for economic growth while minimizing ecological footprints.