Short Ch4 Flashcards
Can you define what is meant by CSR?
Corporate Social Responsibility
- the concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis
Do you know the benefits of improving CSR?
-more and loyal customers
-better and more committed employees
-less intervention from government or regulators
-a better environment for all including the company itself
Can you give examples of internal, connected and external stakeholders?
Internal: Management, employees
Connected: Shareholders, lenders, customers, suppliers
External: Interest groups, government, community, press/media, public authorities
Can you list the four parts of Carroll’s CSR pyramid
Philanthropy: - be a good corporate citizen
Ethical: behave ethically
Legal: obey the law
Economic: be profitable
Can you explain the four different CSR strategies
1) Proactive
2) Reactive
3) Defensive
4) Accommodation
Can you remember the key principles of the EU’s Integrated Product Policy?
-Life Cycle Thinking
-Work with the market
-Stakeholder involvement
-Continuous improvement
-Policy instruments
Can you list the 15 general policies contained in the OECD Guidelines
1) Contribute to economic, environmental and social progress with a view to achieving sustainable
development.
(2) Respect the internationally recognised human rights of those affected by their activities.
(3) Encourage local capacity building through close co-operation with the local community,
including business interests, as well as developing the company’s activities in domestic and
foreign markets, consistent with the need for sound commercial practice.
(4) Encourage human capital formation, in particular by creating employment opportunities and
facilitating training opportunities for employees.
(5) Refrain from seeking or accepting exemptions not contemplated in the statutory or regulatory
framework related to human rights, environmental, health, safety, labour, taxation, financial
incentives, or other issues.
(6) Support and uphold good corporate governance principles and develop and apply good
corporate governance practices, including throughout enterprise groups.
(7) Develop and apply effective self-regulatory practices and management systems that foster a
relationship of confidence and mutual trust between companies and the societies in which they
operate
(8) Promote awareness of and compliance by workers employed by multinational companies with
respect to company policies through appropriate dissemination of these policies, including
through training programmes.
(9) Refrain from discriminatory or disciplinary action against workers who make bona fide reports
to management or, as appropriate, to the competent public authorities, on practices that
contravene the law, the Guidelines or the company’s policies.
(10) Carry out risk-based due diligence, for example by incorporating it into their enterprise risk
management systems, to identify, prevent and mitigate actual and potential adverse impacts as
described in policies 11 and 12, and account for how these impacts are addressed. The nature
and extent of due diligence depend on the circumstances of a particular situation.
(11) Avoid causing or contributing to adverse impacts on matters covered by the Guidelines, through
their own activities, and address such impacts when they occur.
(12) Seek to prevent or mitigate an adverse impact where they have not contributed to that impact,
when the impact is nevertheless directly linked to their operations, products or services by a
business relationship. This is not intended to shift responsibility from the company causing an
adverse impact to the enterprise with which it has a business relationship.
(13) In addition to addressing adverse impacts in relation to matters covered by the Guidelines,
encourage, where practicable, business partners, including suppliers and sub-contractors, to
apply principles of responsible business conduct compatible with the Guidelines.
(14) Engage with relevant stakeholders in order to provide meaningful opportunities for their views
to be taken into account in relation to planning and decision making for projects or other
activities that may significantly impact local communities.
(15) Abstain from any improper involvement in local political activities.
What are the benefits of reporting on environmental and social issues?
Accountability and Transparency
-Increase transparency, reduce agency problem
-allow the company to address how concerns have been dealt with
-disclosures may be in response to an environmentalv accident, helps companys image to be seen taking responsibility
Business case
-environmental risk identification - mitigate/managed
-Encourages internal efficiency of operations - collecting data
-reduces reputational risk
