Q.8. Is CSR
(corporate social responsibility) the same as business ethics?
Ans. There is clearly an overlap
between CSR and business ethics given as:
(a) Both concepts concern values, objectives and decisions based on something other than the pursuit of profits.
(b) And socially responsible firms must act ethically.
The difference is that ethics concern individual actions which can be assessed as right or wrong by referring to moral principles.
Q.9. What do you understand by “Arguments for Socially-responsible Behaviour”?
Ans. Following points are relevant to arguments for socially responsible behaviour:
(a) It is the ethical thing to do.
(b) It improves the firm’s public image.
(c) It is necessary in order to avoid excessive regulation.
(d) Socially responsible actions can be profitable.
(e) Improved social environment will be beneficial to the firm.(fJ It will be attractive to some investors.
(g) It can increase employee motivation.
(h) It helps to correct social problems caused by business.
Enlightened self-interest This is the practice of acting in a way that is costly and/or inconvenient at present but which is believed to be in one’s best long term interest.
There is a long history of philanthropy based on enlightened self interests e.g. New Lanark Mills, Titus Salt’s Saltajre as well as the work of the Quaker chocolate makers such as Cadbury at Bournville and Rowntree in New York.
Enlightened self-interest is summed up in this quotation from Anita Roddick (founder of the Body Shop):”Being good is good for business.”
Q.1o. Write a short note on “Advantages of corporate social responsjbjlj,”
Ans. CSR behaviour can benefit the firm in several ways as follows:
(a) It aid.s the attraction and retention of staff.
(b) it attract-s green and ethical investment.
(c) it attracts ethically conscious customers
(d) It can lead to reduction in Costs through recycling.
(e) it differentiates the firm from its competitor and can be a source of competitive advantage.
(0 It can lead to increased profitabilj, in the long run.
Q.11. How does companies benefit from the CSR concept?
Ans. No mater what the size of an organisaj0 or the level of its involvement with CSR is, eveiy contriburion is important and provides a number of benefits to both the communi and business. Contribung to and supporting CSR does not have to be costly or time consuming all the time and more and more business organisatjo5 active in their local communities are seeing significant benefits from their involvement as:
(a) Reduced costs.
(l) Increased business leads.
(c) Increased reputation.
(d) Increased staff morale and skill development.
(e) Improved relationships with the local communj, partners and clients.
(f Innovation in processes, products and services
(g) Managing the risks a company faces.
Q.12. Write short notes on “Corporate social responsibjjft, policy”.
Or
Explain the concept of corporate social responsibility, (2011)
Ans. Corporate social responsibiii, is a concept whereby
companie integrate social and
environmental concerns into their business operations and in their interaction
with their stakeholders (employees, customers shareholders, investors, local
communities government) on a voluntary basis.
Sustainability,. CSR is closely linked with the principle of sustainabili, which argues that enterprises Should make decisions based not only Ofl financial factors such as profits or dividends, but also on the immediate and long-term social and environmental consequences of their activities.
A Global Issue; CSR has become prominent in the language and strategy of business and by the growth of dedicated CSR organisatio5 globally. Governments and international governmeJ
organisatio5 are increasingly encouraging CSR and forming CSR partnerships CSR is rapidly
becoming a major part of all business management courses and a key global issue.