Sustainability (UF)

Question 1

Corporate Social Responsibility (CSR)

Definition

Answer 1

• ‘the obligation of business…. to pursue those policies, to make those decisions or to follow those lines of action which are desirable in terms of the objectives and values of our society.’

Howard R. Bowen (1953)

Question 2

Corporate Social Responsibility (CSR)

What is social accounting?

What does it involve?

Answer 2

• Social accounting is ‘the process of communicating the social and environmental effects of organisations’ economic activities to particular interest groups within society at large.
• As such, it involves extending the accountability of organisations, beyond the traditional role of providing a financial account to the owners of capital, in particular, the shareholders. Such an extension is predicated upon the assumptions that companies do have wider responsibilities than simply to make money for their shareholders.’

Grey et al (1996)

Question 3

CSR: Economic

What is the aim?
4 examples?
What is the principle here?

Answer 3

Basics:

• economic CSR aims to strike a balance between maximisation of profits and sustainable practices.

Specifics:

• Using new machinery to minimise waste
• Change to no- or low-emissions vehicles (Amazon)
• Recycling materials
• Employee welfare.

The principle here is that by investing in moral and sustainable activities, profits will increase.

Question 4

CSR – environmental

Answer 4

Environmental CSR aims to reduce damaging effects on the environment from business activities.

Examples to reduce

• Energy use
• Water use
• Waste management
• Recycling
• Emissions
• Travel policies
  The principle here is that in safeguarding the environment, the company is safeguarded too.