chapter 3 sustainability

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Questions and Answers

What decade is identified as the beginning of the modern era of social responsibility?

1970s

1960s

1940s

1950s (correct)

According to Frederick in 1960, what aspect should businessmen focus on regarding social responsibility?

Maximizing shareholder profits

Meeting public expectations (correct)

Supporting government policies

Ensuring the economic performance of their firms

In the 1970s, what principle does CSR highlight according to Davis?

Ethics are secondary to economic interests

CSR begins where the law ends (correct)

Firms are only responsible for legal compliance

Business practices must be profitable above all

What did Carroll contribute to the field of CSR in 1977?

Corporate social performance and corporate social responsibility are related concepts Signup and view all the answers

Which of the following is NOT included in the definitions of social responsibility provided in the content?

Environmental sustainability Signup and view all the answers

What characterized CSR literature in the 1980s?

Focus on research and alternative themes Signup and view all the answers

According to the discussion on CSR, what is an essential requirement for being socially responsible?

Being compliant with laws Signup and view all the answers

What is implied about businessmen's decisions according to Davis and Blomstorm in 1966?

They must consider broader social implications Signup and view all the answers

What are the four parts of CSR as outlined by Carroll in 1983?

Economic, legal, ethical, and voluntary Signup and view all the answers

How does the Asian view of CSR define a company's commitment?

To operate sustainably while balancing diverse stakeholder interests Signup and view all the answers

According to ISO, what is one of the responsibilities of an organization regarding social responsibility?

To consider the expectations of stakeholders Signup and view all the answers

What is the primary focus of the UN Global Compact?

To align business operations with ten principles in various areas Signup and view all the answers

Which of the following is NOT one of the objectives of the UN Global Compact?

Encourage governments to create more regulations Signup and view all the answers

Which of the following is a key characteristic of corporate social responsibility?

Transparent and ethical behavior Signup and view all the answers

What defines the approach of CSR according to the European Commission?

Integration of social and environmental concerns in business operations on a voluntary basis Signup and view all the answers

What aspect of CSR is highlighted by the ISO definition?

The impact of corporate decisions on society and the environment Signup and view all the answers

What is one of the key environmental requirements for accommodation establishments?

Preparation and response to environmental emergencies Signup and view all the answers

Which social requirement focuses on the financial well-being of individuals within local communities?

Work and income opportunities Signup and view all the answers

What is an important economic requirement related to guest experience at accommodation establishments?

Quality and guest satisfaction Signup and view all the answers

Which of the following is considered an environmental concern in sustainability management?

Solid waste, effluents, and emissions management Signup and view all the answers

What role do CSR standards play in industries related to accommodation establishments?

Promoting ethical practices Signup and view all the answers

In terms of environmental management, why is energy efficiency important for accommodation establishments?

It minimizes operating costs and environmental impact Signup and view all the answers

What aspect of local communities is highlighted as a social requirement for accommodation establishments?

Health and education initiatives Signup and view all the answers

Which of the following encompasses the management of hazardous substances in sustainability practices?

Identifying and safely handling hazardous materials Signup and view all the answers

What is considered hard disclosure in an organisation?

Measurable data about funding sources Signup and view all the answers

Which of the following is NOT a characteristic of ethical behaviour in an organisation?

Encouraging stakeholder influence Signup and view all the answers

Why should an organisation promote ethical behaviour?

To improve stakeholder relationships Signup and view all the answers

What is expected from an organisation in terms of stakeholder respect?

To recognize and respect their interests and legal rights Signup and view all the answers

Which of the following actions supports transparency in an organisation?

Disclosing the purpose and nature of activities Signup and view all the answers

What does respect for the rule of law entail for an organisation?

Adhering to local laws unconditionally Signup and view all the answers

Which action can an organisation take to encourage ethical behaviour?

Providing training on ethical standards Signup and view all the answers

How should an organisation handle conflicts of interest?

By identifying and preventing them Signup and view all the answers

What is the primary focus of Stakeholder Relationship Management (SRM) theory?

Identifying and managing relationships with stakeholders. Signup and view all the answers

Which of the following is NOT considered a typical stakeholder?

Competitors Signup and view all the answers

What mechanism can companies use to engage with stakeholders?

Advisory committees Signup and view all the answers

Which statement about CSR labels is accurate?

Labels must represent specific principles or results. Signup and view all the answers

What is a key requirement for a valid standard according to the content?

The presence of a penalization system. Signup and view all the answers

What is one potential disadvantage of codes or standards mentioned in the content?

Some organizations may not take them seriously due to lack of penalties. Signup and view all the answers

What is the role of the Global Reporting Initiative (GRI)?

To promote economic and social sustainability. Signup and view all the answers

What is a characteristic of codes developed by organizations?

They are specific to a company or organization. Signup and view all the answers

What is the primary purpose of the Marine Stewardship Council (MSC)?

To promote sustainable fishing practices and contribute to ocean health. Signup and view all the answers

Which of the following best describes EU Organic Farming?

A system ensuring best environmental practices and high animal welfare standards. Signup and view all the answers

What does the EU Eco-Management and Audit Scheme (EMAS) primarily focus on?

Improving environmental performance of organizations. Signup and view all the answers

How does BREEAM contribute to sustainability in the built environment?

By assessing sustainability performance across various project phases. Signup and view all the answers

What are the main themes of the GSTC hotel criteria?

Sustainability planning, community benefits, cultural heritage, and reducing environmental impacts. Signup and view all the answers

Which of the following best describes ISO 21401?

A standard setting requirements for any sustainable accommodation. Signup and view all the answers

What is a key result expected from implementing the GSTC standards in tourism?

Improvement in local community welfare and cultural heritage. Signup and view all the answers

Which certification focuses on a whole-building approach to sustainability?

LEED. Signup and view all the answers

Study Notes

CSR began in the 1950s, with the notion of the obligations of businessmen to act in ways desirable for society.
By the 1960s, CSR expanded to include decisions and actions taken by businesses for reasons beyond the firm's economic interests.
Social responsibilities encompassed ensuring an economic system fulfilling public expectations (Frederick, 1960).
McGuire (1963) identified additional societal responsibilities beyond economic and legal obligations.
Davis and Blomstorm (1966) highlighted the obligation for businessmen to consider the needs of others affected by business decisions.
In the 1970s, social responsibility was seen as going beyond legal requirements, where the law ends, responsibility begins (Davis, 1973).
Carroll (1977) introduced Corporate Social Performance (CSP) and Corporate Social Responsibility (CSR) concepts.
The 1980s saw a focus on the conduct of business, the ethical aspect, and the extent of support to society by the firm (Carroll, 1983).
The 1990s saw the evolution of CSR as a concept that included economic, legal, ethical, and voluntary components.

The 1990s and Beyond

Carroll's CSR pyramid illustrates the progression from economic to ethical to legal to philanthropic responsibilities.
The European Commission (2010) defined CSR as companies integrating social and environmental concerns in operations and interactions with stakeholders voluntarily.
Asian perspectives of CSR emphasise economic, social, and environmental sustainability, balancing stakeholder interests (Fukukawa, 2010).
The ISO (2010) defines social responsibility as an organization's actions affecting society. This includes contributing to sustainability and ethical behavior.

The UN Global Compact

Introduced in 2000, the UN Global Compact is a strategic initiative to align business operations with ten principles related to human rights, labor, environment, and anti-corruption.
The Global Compact involves various stakeholders, including governments, civil society organizations, and the United Nations.
The ten principles cover principles related to human rights, labour, the environment, and anti-corruption.

Stakeholder Engagement

Stakeholder management (SRM) is a way for companies to manage relationships with stakeholders such as employees, customers, shareholders, suppliers, and governments.
Companies with strong SRM improve their reputation and reduce risk premiums. (Cornell and Shapiro, 1987)
Stakeholders are any group or individual with an interest in the organization's decisions or activities, including those indirectly affected.
Clarkson (1995) proposed stakeholder management that companies should focus on their primary stakeholders instead of addressing society at large.

CSR in Specific Industries (e.g., Hotels)

International standards and guidelines (e.g., GSTC, ISO 21401, LEED) exist specifying environmental, social, and economic requirements for sustainable businesses.
Examples of certification efforts include, but are not limited to, Fair Labor Association, GRI, SA8000, MSC

Conclusion

CSR is a multifaceted concept that has continued to evolve over time to encompass the interplay between the organization's internal and external stakeholders.

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