Sustainability Flashcards
what is sustainable development aims?
a reduction on vehicle excise duties- cars with low emissions
increased standard rate for landfill tax
tax allowance- industry which invests in eco-friendly technology
recycling schemes operated by local government- additional bins- plastic waste
social responsibilities
the duties of an organisation towards its stakeholders, the environment and society in general
corporate social responsibility CSR
where a businesses address social and environmental considerations as part of their normal business activities
is CSR same as business ethics?
similarities
clearly an overlap
both concern values, objectives and decisions based on something other than the pursuit of profit
socially responsible firms must act ethically
differences
ethics concern actions which can be assessed as right or wrong by reference to moral principals
CSR is about the organisation’s obligations to all stakeholders- not just shareholders
advantages of ethical issues
areas which are in need of substantial re-development might benefit from investment by business entites in capital projects e.g. new factories, premises, offices
neighbouring communites might benefit from the location of business within the neighbourhood, might encourage further development of additional business actvity, enviornmental improvements
disadvantages of enviornmental issues
increased levels of pollution may occur e.g. noise, air, water
increasd levels of congestion may occur
destruction of natural habitats may occur due to the redevelopment of land
why do firms engage in CSR?
altruism- being a good citizen
window dressing to appease stakeholders
contracting benefits e.g. helps recruit, motavate and retrain employees
customer related motivation- attract customers, brand positioning
reduction in production costs- packaging
risk managemnet- address potential legal or regulatory action
improve access to capital- ethical investment funds
arguments for CSR
its the ethical thing to do
it improves business image and reputation
its necessary in order to avoid excessive regulation
socially responsible actions can be profitable
an improved social enviornment will be beneficial to a business
it will be attractive to some investors
it can increase employee motivation- work/life balance- valued-empowered-bonus
helps to correct the social problems caused by business
what are the two views of social reponsiability?
free market view- job of business is to create wealth for shraholders
corporate social responsibility view- business should be concerned with social issues over profits
benefits of acting socially for society
unemployment and pollution are likely to reduce
quality of life is improved, decisions are made on what is best for society- carbon footprint
societys long term needs are considered rather than just short term
life and business will be easier if everyone is working together
can be argued that its simply the right thing to do and that firms have a duty
benefits for acting socially for firm
improved finical performance - attract more customers and level of sales- depends on the economic climate CSR may fall in demand
reduced oprating costs- some CSR initiatives can reduce operating costs e.g. many intiatives aimed at improving enviornmental performance e.g. reducing gas emissions- reduce global warming
enhanced brand image and reputaion- customers are often drawn to brand reputations. enhance reputtaion, increasing capital and trading partners
increased sales and customer loyalty
increased ability to attract and retain employees- resulting in reduction in staff turnover and associated recruitment and training costs- depends on managment compass
what is the conflict between stakeholders in the context of ethical behaviour?
conflict can be defined as the contradiction of ideas or objectives, which generally mean that one objective, cannot be achieved.
result:
increased costs of running the business, has the effect of reducing profitability
benefit from a higher positive profile if customers are attracted to the business, however, this would incur addditional staff training and increase costswithin a competitive enviornment
