CSR *G11 Flashcards
Corporate social responsibility *2
The relationship between the business and the society*
And the degree the business impacts society*
The idea of CSR
The business has the responsibility to focus on its profits, people and the environment
CSR in a business context:
Business is managed in a way…. *3
That ensures profitability* while acting in a manner that will meet society’s expectations* by contributing to society and the environment*
King code
Business being a good corporate citizen + actions that shows it cares
Profitability aka
Commercial sustainability
CSR issues *8
Crime
Poverty
Lack of education
Unemployment
Environmental concerns
Poor health services
Inequality
Poor housing
Questions when discussing CSR issues *5
*bs level of responsibility to address
*to whom will be responsible
*how long will business be responsible
*how it will impact day to day operations
*responsibility of each stakeholder
Crime *3
*consumers stray away
*hinders productivity
*repairing/replacing is costly
Poverty *3
*not supporting community worsens poverty
*poverty leads to crime
*less money spent on bs
Lack of education
Less skilled people = less qualified workers
Unemployment *2
*a result of not employing people from community
*people can revolt
Poor health *2
*takes longer to recover
*bs can partner with initiatives, fund blood drives, etc
Inequality *2
*not hiring certain people creates unfair gaps
*looks bad on bs end
Poor housing *3
*people and employees at risk of harm
*less efficiency
*bs could join initiatives
Primary responsibility *3
*bs obligations to look after interest of stakeholders
*who are directly affected by bs activities/success
*employees, shareholders
Secondary/broader responsibility *3
*bs obligations to look after the interest
*of stakeholders indirectly affected by bs activities
*community, government, environment
Responsibility pyramid from the bottom up *4
*economic
*legal
*ethical
*discretionary
Economic responsibility *3
*Ensure bs is economically active
*Produce g/s sold @ profit *where internal stakeholders will benefit
Legal *2
*ensures it respects the laws of the country
*obeying laws makes bs a responsible citizen in the broader society
Ethical responsibility *2
*ensuring it’s making ethically sound business decisions
*that don’t have negative impacts on stakeholders and the environment
Discretionary responsibility *3
*ensuring values are practiced (both internal/external activities)
*consider how, who, what to give back to
*higher level of responsibility»_space;> simply not harming others
Arguments for CSR *5
*bs assisting community creates greater support and loyalty
*consumers move away if social issues aren’t acted on - crime/poverty
*increased standard of living > more people are able to spend
*giving back to environment ensures future can prosper
*promotes ethical bs practice
Arguments against CSR *5
*detracts bs from core activities
*money spent on it reduces profit
*state shifts responsibility
*misleads stakeholders regarding sustainability
*difficult to measure benefits
CSR and sustainable business practice *4
*environmentally sustainable
*socially sustainable
*society sustainable
*influence suppliers
