Corporate Social Responsibility Overview

What are the four broad areas corporations have responsibilities in?

Which of the following is a required national or international standard for corporate responsibility?

Which of the following would NOT be considered a mandatory responsibility corporations face from society?

What term is used to describe the acceptance companies need from society to be considered legitimate?

What term is increasingly preferred in place of ‘Corporate social responsibility (CSR)?

What is the primary reason a company must be financially sustainable?

Which of the following best describes mandatory responsibilities for a business?

Why do companies need to respond to societal expectations?

Which of the following is NOT a reason for discretionary contributions by corporations?

What does the broad sense of corporate citizenship encompass?

Which is a potential criticism of corporations' involvement in areas where government fails?

What is one reason companies engage in corporate social investment?

Which of the following best describes societal expectations of corporations?

Corporations have responsibilities across four key areas: the economy, the workplace, the social environment, and the natural environment.
A financially sustainable company contributes to societal well-being by creating value for stakeholders (employees, suppliers, customers).

Dimensions of Corporate Responsibility

Economic responsibility: Financial sustainability is crucial for a company's contribution to society.
Mandatory responsibilities: Compliance with laws (e.g., anti-competition, labor, environmental) and standards set by regulatory bodies is essential.
Societal expectations: Companies must respond to both formalized (voluntary codes) and informal societal norms. Reasons for this include gaining legitimacy, enhancing strategic interests, and fulfilling ethical duties.
Discretionary contributions: These are philanthropic or social investments driven by factors such as sympathy, community support, reputational benefit, and brand exposure.

Corporate Citizenship

Encompasses all corporate responsibilities in society, including sometimes filling gaps in government provision. However, this can lead to accusations of corporate overreach and influence.

Key Standards and Responsibilities

Examples of national/international standards emphasizing corporate responsibility include the UN Global Compact, the Global Reporting Initiative’s guidelines, ISO 26000, King IV, and the Companies Act 2008.
Mandatory responsibilities include adhering to legislation (e.g., anti-competition laws), regulations (e.g., against insider trading), stock exchange requirements, and professional association standards.
A company's "licence to operate" refers to the societal approval needed for legitimacy.
"Corporate citizenship" is increasingly used instead of "Corporate Social Responsibility (CSR)".

Explore the key dimensions of Corporate Social Responsibility (CSR) including economic, mandatory, societal expectations, and discretionary contributions. Understand how corporations balance their responsibilities towards various stakeholders while ensuring financial sustainability. This quiz will test your knowledge of CSR principles and practices.