Topic 13: CSR&CSI

Question 1

Meaning of CSR?

Answer 1

Ongoing commitment of a business to:
- Act ethical,
- Contribute to economic development
- Positively influencing their stakeholders.

Question 2

Purpose of CSR?

Answer 2

• Is expected by society.
• Is expected by the government.
• Obtain economic benefits.

Question 3

Components of CSR?

Answer 3

• Environment
• Health and safety
• Business ethics
• Employment equity
• Customers

Question 4

Positives of CSR/CSI on business?

Answer 4

• Can attract experienced employees and increase the
  productivity of the business.
• The business can have a competitive advantage, resulting in good publicity in the media.

Question 5

Negatives of CSR/CSI on business?

Answer 5

• Programs can be taken for granted by the community and customers may not buy the business’s products.
• Activities divert business focus from its core business
  functions

Question 6

Positives of CSR/CSI on the community?

Answer 6

• Skill development can take place, which in turn will
  increase the possibility of appointments of members of the community.
• The provision of bursaries increases the level of
  education and enables the community to apply for work.

Question 7

Negatives of CSR/CSI on the community?

Answer 7

• Businesses are not always equipped to address social
  problems.
• Businesses can be accused of discrimination if they do not manage the distribution of scarce resources well.

Question 8

Meaning of CSI?

Answer 8

Are the funds and/or other assets of the business allocated to a project aimed at improving the living standards of members of the community.

Question 9

Purpose of CSI?

Answer 9

• It aims to contribute to the sustainable development of their immediate communities.
• The law and the government require a business to make CSI contributions.
• The CSI projects are long-term investments and must be sustainable.

Question 10

Focus areas of CSI?

Answer 10

• Environment
• Education and training
• Rural development
• Employees
• HIV/Aids

Question 11

CSI vs CSR?

Answer 11

CSR
- The intention is to change business practices.
- The focus is on improving the business image and increasing profits
- Often intended as a marketing initiative

CSI
- Active commitment of money and resources to uplift the community.
- The focus is on uplifting the community without a profit on the investment.
- Intended to benefit and uplift communities through social development.