Unit 6: Business Ethnics and CSR Pages:46-49 (3)

Question 1

What is Business Ethics?

Answer 1

Business Ethnics is defined as written and unwritten codes of principles and values that determine the difference between good and bad decision making and behaviour and also to know the difference between right and wrong and choosing to do what is right.

Question 2

What is Corporate Social Responsibility?

Answer 2

CSR is a concept where organisation consider the interests of society by taking responsibility for the impact of their activities on customers, suppliers, employees, shareholders, communities and other stakeholders, as well as the environment. This obligation is seen to extend beyond the statutory obligation to comply with legislation and sees organizations voluntarily taking further steps to improve the quality of life for employees and their families as well as for the local community and society at large.

Question 3

What are many names of CSR?

Answer 3

Corporate social responsibility (CSR) – also called corporate responsibility, corporate citizenship, responsible business and corporate social opportunity

Question 4

Advantages of CSR
CSR is increasingly being seen as an important and integral part of normal business operations.
The various advantages are as follows:

Answer 4

1. Create Shareholder Value
2. Strategic Branding
3. Better access to capital
4. Operations Efficiency
5. Human & Intellectual Capital

Question 5

Advantages of CSR
CSR is increasingly being seen as an important and integral part of normal business operations.
The various advantages are as follows:
1 Create Shareholder Value

Answer 5

Investors are becoming more concerned to invest in companies that act with good corporate governance and social responsibility.

Question 6

Advantages of CSR
CSR is increasingly being seen as an important and integral part of normal business operations.
The various advantages are as follows:
2 Strategic Branding

Answer 6

Consumers today are more sophisticated, becoming more selective and sensitive to a company’s image and CSR efforts. A distinctive CSR profile serves as a strategic branding tool in differentiating from competitors.

Question 7

Advantages of CSR
CSR is increasingly being seen as an important and integral part of normal business operations.
The various advantages are as follows:
3 Operations Efficiency

Answer 7

The efficiency of a business is about productivity and effective use of resources. CSR can help to increase efficiency through environmental conservation and recycling initiatives, as part of an Eco-efficiency strategy.

Question 8

Advantages of CSR
CSR is increasingly being seen as an important and integral part of normal business operations.
The various advantages are as follows:
4 Better Access to Capital

Answer 8

Companies with good CSR standing are likely able to secure loans with more ease.

Question 9

Advantages of CSR
CSR is increasingly being seen as an important and integral part of normal business operations.
The various advantages are as follows:
5 Human & Intellectual Capital

Answer 9

Good workplace conditions are relations can help a company attract, keep and develop human capital, keeping operations and staff morale high. Community involvement can play a complementary role in developing new skills set, encouraging participation, sharing and team spirit in the workplace as well.

Question 10

CSR of an organisation may include:
3 aspects economic, legal and social responsibility.

Economic Responsibility

Answer 10

 Economic Responsibility
From the economic viewpoint, corporations benefit in multiple ways by operating with perspective broader and longer than their own immediate, short-term profits. Critics argue that CSR distracts from the fundamental economic role of businesses.

Question 11

CSR of an organisation may include:
3 aspects economic, legal and social responsibility.

Legal Responsibility A

Answer 11

There is an increasing role of independent mediators, particularly the Government, in ensuring that corporations are prevented from harming the broader social good, including people and the environment. Some argue that governments should set the agenda for social responsibility by the way of laws and regulation that will allow a business to conduct itself responsibly. Corporate legal responsibility involves adhering to laws, and complying with some standards.

Question 12

CSR of an organisation may include:
3 aspects economic, legal and social responsibility.

Legal Responsibility B

However Government regulation poses several problems:

Answer 12

However Government regulation poses several problems:

• Regulation in itself is unable to cover every aspect in detail of corporation’s operations. This leads to burdensome legal processes bogged down in interpretations of the law and debatable grey areas.
• The financial burden that regulation can place on a nation’s economy may be heavy.

Question 13

CSR of an organisation may include:
3 aspects economic, legal and social responsibility.

Social Responsibility

Answer 13

Shareholders and investors themselves, through socially responsible investing are exerting pressure on corporations to behave responsibly. Non-governmental organizations (NGO) are also taking an increasing role, leveraging the power of the media and the Internet to increase their scrutiny and collective activism around corporate behaviour. Through education and dialogue, the development of community in holding businesses responsible for the actions is growing. This includes responsibility in areas such as environmental management and contamination control.