External business environment - ethics and CSR

Question 1

4 key areas of CSR

Answer 1

• community involvement, treating local community with respect and investing
• employee relations, treat staff fairly and equally
• environmental practices, respecting environment
• stakeholder responsibilities, best serve interests of stakeholders

Question 2

Benefits of pursuing a CSR policy

Answer 2

• improve image and strengthen brand
• attract good quality staff, improve employee retention and productivity
• increase of ethical investors gives capital for expansion
• less likely to face litigation and fines

Question 3

Costs of pursuing a CSR policy

Answer 3

• turn down lucrative contract due to clients ethics
• raw materials more expensive - e.g. using organic product in food
• increased business costs leads to reduction in dividends for shareholders

Question 4

Explanation of business ethics

Answer 4

• set of values and principles which influence how organisations behave
• not a listed set of commitments like CSR

Question 5

Business ethics - benefits

Answer 5

• increased sales, ethical customers
• increased employee satisfaction and retention
• improved employee productivity

Question 6

Business ethics - disadvantages

Answer 6

• requires staff training
• reduced sales, forced to decline business with bad morals
• increased costs of ethically sourced materials

Question 7

CSR expansion - community involvement

Answer 7

• giving cash donations
• offering staff expertise
• loaning equipment

Question 8

CSR expansion - employee relations

Answer 8

• work/life balance
• fair recruitment and selection

Question 9

CSR expansion - environmental practices

Answer 9

• reducing energy consumption and minimising waste
• preventing or minimising pollution
• recycling and using recycled materials