Corporate Social Responsibility CSR Research Task Discuss the
Corporate Social Responsibility CSR
Research Task � Discuss the actions a business of your choosing might take to demonstrate CSR. Evaluate whether these reflect genuine values or are just a form of public relations. � 40 mark essay + � Brief presentation to share with group
CSR in practice � Using sustainable sources of raw materials � Ensuring suppliers operate responsibly (e. g. no use of child labour) � Operating an extensive health & safety policy above legal requirements, protecting employees’ wellbeing � Engaging in a continuous process of environmental management � Trading ethically
Benefits for Society � Reduced pollution & increased employment � Improved quality of life � Society’s long-term needs considered � Firms have a moral duty to be concerned with the wider impact of their activities � Everyone working together for the common good
Benefits for firms � Improved financial performance � Reduced operating costs � Enhanced brand image & reputation � Increased sales & customer loyalty � Increased ability to attract and retain employees � Access to capital (socially responsible or ethical investments)
Arguments against CSR � Reduction in efficiency � Socially responsible policies may be costly to introduce � Stakeholder groups have differing objectives – what is socially responsible behaviour? � Equally viable in a recession? � Cynical view – just an extension of firms being market oriented to maximise profits
Social auditing (or CSR reporting) � The process by which a business attempts to assess the impact of the entire range of its activities on stakeholders and society in general � Move towards more scrutiny of business practices & increased availability of information for stakeholders � Environmental audits for a sub-section of a social audit
Social auditing process � Identify social objectives & ethical values � Define stakeholders � Establish social performance indicators � Measure performance, keeping records & preparing social accounts � Submit accounts to independent audit & publish results
Non-financial measures of efficiency � Social audit produces set of social accounts that evaluate performance against a set of non-financial criteria � BIC (Business in the Community) suggests an audit should be divided into 4 different sections: ◦ ◦ The The workplace marketplace environment community
The Workplace � How well a business treats & values employees � How well it monitors health & safety-related accidents & strategies it has in place to reduce accidents � Range of salaries in the organisation � Whether it is respecting human rights � Extent to which it is employing individuals from minority ethnic groups
The Marketplace � The extent to which a business is responding to customers’ needs � The extent to which it trades with ethically sound suppliers
The Environment � Extent to which a business is using renewable raw materials & recycling inputs � How effectively it is monitoring pollution, emissions & waste � Whether it is setting environmental targets & reaching them � Whether it is talking to pressure groups
The Community � To what extent is a business communicating with, helping & giving something back to the community?
Social Audits � How useful are they?
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