Corporate Social Responsibility (Chapter 6)

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Questions and Answers

Which aspect is NOT a part of the Triple Bottom Line in Corporate Social Responsibility?

Social (people)

Economic (profit)

Cultural (tradition) (correct)

Environmental (planet)

Which of the following stakeholders is primarily responsible for creating infrastructure to stimulate economic growth?

Employees

Competitors

Consumers

Government (correct)

What is a positive impact of businesses contributing to sustainability?

Greater profits for stakeholders alone

Increased competition among businesses

Enhanced community socio-economic situations (correct)

Improved social clearing from taxation

Which of the following is NOT considered a primary social responsibility of businesses?

Government officials Signup and view all the answers

What does the King II Report primarily focus on regarding corporate governance?

Assessing transparency and accountability Signup and view all the answers

Which of these is an example of broader community responsibility a business can engage in?

Pollution control measures Signup and view all the answers

How can businesses contribute to sustainability in the context of AIDS prevention?

By running awareness and prevention programs Signup and view all the answers

Which principle is NOT part of how social responsibility is scored for businesses?

Innovativeness Signup and view all the answers

What is one of the main benefits of businesses promoting sustainability?

Competitive advantage Signup and view all the answers

Which of the following is NOT an indicator of performance according to the JSE Social Responsibility Index?

Market share growth Signup and view all the answers

What role does the GRI (Global Reporting Initiative) play in corporate responsibility?

Promote reporting on sustainability issues Signup and view all the answers

How does effective skills development in adult training relate to business outcomes?

Enhances productivity among workers Signup and view all the answers

Which of the following statements best describes corporate social responsibility (CSR)?

CSR involves a commitment to ethical behavior and societal welfare. Signup and view all the answers

What can happen if businesses neglect their social responsibilities?

Loss of goodwill and reputation Signup and view all the answers

Which of the following would be considered a negative outcome of relying solely on government legislation for corporate responsibility?

Lack of motivation for voluntary corporate ethics Signup and view all the answers

What is a potential risk associated with businesses only focusing on their productivity metrics?

Ignoring community development needs Signup and view all the answers

What is the main purpose of a code of ethics in business?

To guide employees in ethical decision-making Signup and view all the answers

How does Corporate Social Responsibility (CSR) benefit businesses?

By improving public perception and trust Signup and view all the answers

Which of the following statements best describes an implication of CSR?

There should be mutual benefits for businesses and the community. Signup and view all the answers

What is a significant challenge faced by businesses that adopt a code of ethics?

Ensuring enforcement of ethical standards Signup and view all the answers

What is a common misconception about Corporate Social Responsibility?

CSR only involves charitable donations. Signup and view all the answers

Which of the following is a key element of ethical behavior in business?

Maintaining transparency in operations Signup and view all the answers

How does management ethics relate to social responsibility?

Good management ethics can lead to increased social responsibility. Signup and view all the answers

What can be a consequence of ignoring ethical standards in business?

Damage to reputation and loss of trust Signup and view all the answers

Which of the following best illustrates a business acting ethically?

Engaging in transparent communication with stakeholders about business practices Signup and view all the answers

What is one of the primary reasons businesses implement Corporate Social Responsibility programs?

To differentiate themselves from competitors Signup and view all the answers

Study Notes

Businesses have a responsibility to contribute to sustainable economic, environmental, and social growth.
The concept of CSR encompasses economic, environmental, and social factors.
The "Triple Bottom Line" views businesses as responsible for profit, planet, and people.
Primary Social Responsibility: This includes obligations to owners/shareholders, employees, suppliers, consumers, and competitors.
Broader Social Responsibility: Includes government and the broader community. Examples include:
- Nature conservation
- Sponsorships of sport
- Creation of infrastructure
- Upliftment of the poor through training and development
- AIDS prevention
- Pollution
- CSR can improve the socioeconomic situation of a community.

King II Report

The King II report provides a framework for businesses to promote social responsibility.
It emphasizes transparency, fairness, and accountability.
It aims to achieve economic, environmental, and social sustainability.

Ethics in Business

Ethics are essential for long-term prosperity in business.
Business ethics encompass concepts like philosophy, ethics, and ethical behavior.

Ethics in Government

South Africa needs a code of ethics for long-term prosperity.
Ethics are particularly crucial in the public sector.

Ethics in the International Market

Ethics in international business are complex, with issues such as sweatshops.
Business practices should adhere to ethical standards in all markets.

CSR is an ongoing commitment to ethical business practices that positively impact employees and the community.
It contributes to economic and social development.

Implications of CSR for Businesses

There should be positive results for both the business and the community.
Businesses should engage in skills development and adult training.
CSR can lead to more productive workers.
CSR can also create expectations or reliance on businesses.
CSR initiatives can be used to promote image, gain goodwill, and create jobs.

The JSE SRI is a benchmark for social responsibility performance.
Indicators include environment, society, and governance.
The index considers a company's commitment to sustainable practices.
Benefits include competitive advantage and positive financial performance.

Global Reporting Initiative (GRI)

The GRI is a non-profit organization that promotes sustainability reporting.
The GRI provides a Sustainability Reporting Framework for businesses to report on economic, environmental, and social issues.
The framework promotes transparency in business reporting.

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