Lecture 10

Question 1

What is corporate social responsibility?

Answer 1

The ethical practices of a company above and beyond what is required by law
The role of the firm in society, involving obligations to stakeholders and local communities

Question 2

What is universalism?

Answer 2

The law applies to everyone no matter the circumstances

Question 3

What is particularism?

Answer 3

The law does not always apply in certain circumstances

Question 4

What are the main reasons that social responsibility is significant?

Answer 4

Markets tend to overlook human, community and environmental values
Many large companies are now larger than national economies and therefore have an obligation to use this power in socially responsible ways

Question 5

What are the two human rights principles as outlined by the World Bank report?

Answer 5

Principle 1: Support and respect the protection of
international human rights within their sphere of
influence.
Principle 2: Make sure their own corporations are not
complicit in human rights abuses.

Question 6

What are the four principles relating to labour?

Answer 6

Principle 3: Freedom of association and the effective
recognition of the right to collective bargaining.
Principle 4: The elimination of all forms of forced and
compulsory labor.
Principle 5: The effective abolition of child labor.
Principle 6: The elimination of discrimination with
respect to employment and occupation.

Question 7

What are the three environmental principles?

Answer 7

Principle 7: Support a precautionary approach to environmental challenges.
Principle 8: Undertake initiatives to promote greater environmental responsibility.
Principle 9: Encourage the development and diffusion of environmentally friendly technologies.

Question 8

What is the anti-corruption principle?

Answer 8

Principle 10: Business should work against all forms of corruption, including extortion and bribery.