INFLEUNCES - CORPORATE SOCIAL RESPONSIBILTY AND ENVIROMENTAL SUSTAINABILITY Flashcards
CORPORATE SOCIAL RESPONSIBILTY AND ENVRIOMENTAL SUSTAINABILITY (CSR)
o Refers to the open and acceptable business practices that respect people, society and the environment.
o It involves being a ‘good corporate citizen’ meeting all obligations and addressing social, community and environmental concerns as well as financial concerns
LEGAL COMPLIANCE VS ETHICAL RESPONSIBILITY
o Businesses both in Australia and around the world must follow the legal regulations set by local, state and federal governments. This is legal compliance
o Ethical responsibility represents a commitment to going ‘above and beyond’ these minimum requirements to empower individuals and communities to promote and protect social and environmental conditions
Legal compliance
Paying the minimum wage
Adhering to existing environmental regulations
Employing and selling to people in the local community
CSR
Paying a ‘living wage’
Committing to an act on climate change
Integrating within the local community through programs, initiatives and sponsorship
THE TRIPLE BOTTOM LINE
o CSR involves defining success through achieving the TRIPLE BOTTOM LINE
i.e. making gains and positive contributions in the areas of finance, environmental sustainability and social goals
o The triple bottom line is often described as “people, planet and profit”
ENVIROMENTAL SUSTAINABILITY
o Refers to the requirement that current business activities use resources in a way that do not compromise the access to those resources by future generations
o It is an influence because the increased political and social desire to protect and conserve the environment shapes business behaviours.
will impact the operations functions by the need to: ( ENVIRO)
Source renewable or sustainable inputs
Lower levels of water, air and noise pollution resulting from the transformation process
Investigate options to recycle and reuse waste materials, by-products etc
SOCIAL RESPONSIBILITY
o Refers to the degree to which businesses are mindful of the social impact of their operations on individuals and broader society
o It is being accountable for how their decision making may:
Infringe on human rights
Proliferate economic inequality, social disadvantage or anti-social behaviour
Discourage opportunity and disempower their local communities
o Social responsibility will impact operations processes by:
Changing the ‘value’ placed on certain people
Reduce social impacts in transformation process
Promote certain outputs or halt the production/provision of others
WHY IS CSR A KEY CONCERN?
o CSR, environmental sustainability and social responsibility are all influences because this growing environmental and social consciousness is driving purchasing decisions.
o In 2017, global business Unilever conducted a study of 20,000 people in UK, US, Brazil, Turkey and India.
33% of consumers are now choosing to buy from brands they believe are doing social or environmental good.
21% of people surveyed said they would actively choose brands if they made their sustainability credentials clearer on their packaging and in their marketing.
