CSR
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
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
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
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)
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
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
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
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 workplace ◦ The marketplace ◦ The environment ◦ The community
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 extent to which a business is responding to customers’ needs The extent to which it trades with ethically sound suppliers
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
To what extent is a business communicating with, helping & giving something back to the community?
How useful are they?