Lesson 21 - CSR

Question 1

Define ‘corporate social responsibility’

Answer 1

Corporate Social Responsibility (CSR) refers to the actions taken by a business which go above and beyond legal obligations to benefit the community, the environment or employees.

Question 2

True or False

Businesses following the law are demonstrating CSR.

Answer 2

False.
Businesses following the law are complying with legislation. This is a legal requirement. It is NOT going above and beyond what is required by law.

Question 3

Suggest two advantages for businesses that incorporate CSR into their business practices.

Answer 3

1.The organisation’s reputation can be enhanced
2.Free publicity can be gained
3.Enhanced perceived quality of products
4.More customers willing to purchase from the business = more sales/profit

Question 4

Suggest two disadvantages for businesses that incorporate CSR into their business practices.

Answer 4

1. Can be expensive in terms of costs and expenses not directly related to the change.
2. Time and resources are spent managing the change that isn’t required by law.
3. The function of the product could become compromised.

Question 5

True or False - The following are examples of CSR

1. Nestle construct a new childcare centre on the same site as their manufacturing facility so that staff can have convenient access to childcare services.
2. Nike pay their staff according to the Award for their industry
3. Aldi install solar panels on all of their supermarkets in Australia.
4. Google provide all employees with a day off on their birthday.
5. A local accountant sponsors their son’s football team by providing the jumpers with the logo of the accounting business on them.
6. A concrete manufacturing plant disposes of waste according to regulations.

Answer 5

1. True
2. False - this is a legal requirement. Not going above and beyond.
3. True
4. True
5. True
6. False - this is a legal requirement. Not going above and beyond.

Question 6

Provide one example of how each area of management responsibility could incorporate CSR into their business activities.

1. Operations
2. HR
3. Sales and Marketing

Answer 6

1. Operations
   Sourcing renewable or recycled materials.

Selecting responsible and ethical suppliers

Producing quality and long-lasting products to reduce landfill.

Reducing impact on the environment through the manufacturing process.

2. HR
   Offering staff benefits
   (e.g. counselling, gym membership, discounts, company car, etc.)

Paying above the legal minimum wage.

Offering employees opportunity to skill up and grow in the business.

Allowing flexible working

3. Sales and Marketing
   Ensuring marketing is transparent, informative and honest.

Not selling excess product which will increase landfill – e.g. BOGOF – free one ends up in the bin.

Sustainable packaging