Sustainable Development and Corporate Responsibility

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Questions and Answers

What is one key focus of sustainable development frameworks?

  • Reducing competition among businesses
  • Maximizing short-term profits
  • Promoting monopolies in the market
  • Balancing economic growth with environmental protection (correct)

Corporate responsibility only focuses on a company's legal obligations and does not involve ethical considerations.

False (B)

What term describes the idea that businesses have a responsibility to consider the interests of all stakeholders?

Stakeholder Theory

The concept of ______ refers to the ways in which a business engages with its community and society at large.

<p>Corporate Citizenship</p> Signup and view all the answers

Match the following concepts with their descriptions:

<p>Corporate Responsibility = The obligation of businesses to operate ethically and consider societal impacts Sustainable Development = Development that meets current needs without compromising future generations Business Ethics = Moral principles that guide decision-making in business Corporate Citizenship = Active participation of a business in its community's social and economic development</p> Signup and view all the answers

What is the main focus of corporate responsibility (CR)?

<p>Balancing business interests with societal needs (D)</p> Signup and view all the answers

Stakeholder theory suggests that only shareholders should have interests considered in business decisions.

<p>False (B)</p> Signup and view all the answers

What does sustainable development (SD) refer to?

<p>Development that meets the needs of the present without compromising the ability of future generations to meet their own needs.</p> Signup and view all the answers

Corporate __________ focuses on a company's responsibility towards society and the environment.

<p>responsibility</p> Signup and view all the answers

Which of the following is a principle of business ethics?

<p>Fair treatment of employees and customers (D)</p> Signup and view all the answers

Name one motivation for pursuing a corporate responsibility policy.

<p>Self-interest, mutual interest, or shared responsibility.</p> Signup and view all the answers

Which of the following approaches is part of the conventional frameworks for dealing with environmental issues?

<p>Market-driven frameworks (A)</p> Signup and view all the answers

Business ethics is concerned with the __________ of business practices.

<p>morality</p> Signup and view all the answers

Corporate citizenship involves a company's participation in public debates and civil society.

<p>True (A)</p> Signup and view all the answers

What is one significant reason for the emergence of the corporate responsibility agenda?

<p>Increased consumer awareness of social and environmental issues.</p> Signup and view all the answers

What is a key factor in defining sustainability in relation to business?

<p>Long-term viability and minimal environmental impact (A)</p> Signup and view all the answers

The significance of sustainable development for business is primarily focused on short-term financial benefits.

<p>False (B)</p> Signup and view all the answers

The framework for business practices that prioritize environmental concerns is referred to as __________ development.

<p>sustainable</p> Signup and view all the answers

What role does data gathering play in the process of corporate responsibility?

<p>It helps in assessing the impact of business operations on society and the environment.</p> Signup and view all the answers

What is the main idea behind sustainable development in business?

<p>Balancing economic growth, environmental protection, and social equity (B)</p> Signup and view all the answers

Corporate social responsibility (CSR) is primarily concerned with maximizing shareholder value.

<p>False (B)</p> Signup and view all the answers

What does stakeholder theory emphasize in business?

<p>Balancing the interests of all stakeholders involved in or affected by a company's actions.</p> Signup and view all the answers

The practice of ensuring that a company's operations reflect ethical considerations is known as __________.

<p>business ethics</p> Signup and view all the answers

Match the following concepts to their definitions:

<p>Sustainable Development = Meeting present needs without compromising future generations Corporate Responsibility = A commitment by companies to behave ethically and contribute to economic development Stakeholder Theory = A framework that posits that a company should consider the interests of all parties affected by its activities Business Ethics = The principles that guide behavior in the world of business</p> Signup and view all the answers

Which of the following is NOT a principle of corporate citizenship?

<p>Profit Maximization (B)</p> Signup and view all the answers

Global warming is considered a business problem only for industries like oil and gas.

<p>False (B)</p> Signup and view all the answers

Why is the concept of corporate citizenship important for businesses?

<p>It enhances a company's reputation, fosters customer loyalty, and encourages sustainable practices.</p> Signup and view all the answers

__________ refers to the ethical responsibility of businesses to ensure their operations are not harmful to society or the environment.

<p>Corporate responsibility</p> Signup and view all the answers

Match the following terms to their associated practices:

<p>Environmental Stewardship = Reducing emissions and waste Ethical Labor Practices = Ensuring fair wages and safe working conditions Community Engagement = Supporting local initiatives and nonprofits Transparency = Openly communicating business practices and policies</p> Signup and view all the answers

Which of the following is a commonly cited benefit of integrating sustainability into business practices?

<p>Enhanced brand loyalty and competitive advantage (B)</p> Signup and view all the answers

Stakeholder theory suggests that only shareholders should have a say in a company's operations.

<p>False (B)</p> Signup and view all the answers

What role does globalization play in corporate responsibility?

<p>Globalization encourages companies to adopt higher ethical standards due to the interconnectedness of markets and stakeholders.</p> Signup and view all the answers

The __________ is a framework for assessing the environmental impacts of business practices.

<p>triple bottom line</p> Signup and view all the answers

Flashcards

Corporate Responsibility (CR)

A company's commitment to ethical and sustainable practices beyond its legal obligations.

Sustainable Development (SD)

Development that meets the needs of the present without compromising the ability of future generations to meet their own needs.

Corporate Citizenship

The role and responsibilities of a business in society relating to social and environmental aspects.

Business Ethics

Moral principles that guide the actions of businesses and their employees.

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Stakeholder Theory

A theory that considers the interests of all stakeholders (e.g., employees, customers, communities) in decision-making.

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Free Market View of CR

The belief that the primary responsibility of a business is to maximize profits within legal boundaries.

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Shared Responsibility

The understanding that various entities (businesses, governments, individuals) share responsibility for environmental and social issues.

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Self-Interest

The motivation to pursue CR policies due to potential benefits for the company itself.

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Mutual Interest

Motivations to pursue CR from benefiting other relevant parties.

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Value Clarification

Identifying and understanding the values/goals driving a company's CR efforts.

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Responsibility Negotiation

Process of deciding who is responsible for various aspects of a CR action

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Data Gathering

Collecting information about social and environmental issues relevant to CR.

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Audit (in CR context)

Systematic evaluation of a company's social and environmental performance and impact.

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Sustainable Transport

Transportation systems that minimize environmental impact and promote sustainability.

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Power (in business context)

The ability of businesses to influence decisions and outcomes.

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Global Warming

A gradual increase in the overall temperature of the Earth's atmosphere generally attributed to the greenhouse effect caused by increased levels of greenhouse gases.

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Sustainable Development

Meeting the needs of the present without compromising the ability of future generations to meet their own needs.

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Corporate Responsibility

A company's commitment to ethical conduct and contributing to society's well-being.

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Business Power

Influence and effect business has in the world.

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Equal Opportunities in Business

Whether everyone has equal chances at success in business (e.g., employment, advancement).

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Macroeconomic Policy

Government actions intended to manage the overall economy, including growth, employment, and inflation.

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Deregulation

Reducing government control over businesses and industries.

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Regulation

Government control over businesses and industries to protect consumers, the environment or public safety.

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Globalization

The increasing interconnectedness of countries through trade, investment, and technology.

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Employment

The state of having a job or being actively seeking one.

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Inflation

A general increase in prices over time.

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Economic Growth

Increase in the production of goods and services in an economy.

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Unemplyment

The state of not having a job.

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Globalization effects

The consequences of increased global interconnectedness on businesses, cultures, and economies.

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Aging Population

A population with a higher proportion of older people.

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Class Structure

The way society is organized in different social groups of individuals.

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Inequality

Difference in the distribution of economic resources or opportunities among individuals or groups in a society.

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Self-regulation

When an industry polices itself through internal rules.

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Study Notes

Book Title: The Business Environment

  • Second Edition
  • Authors: Paul Wetherly and Dorron Otter
  • Publisher: Oxford University Press

Contents

  • List of cases
  • About the authors
  • About the book
  • How to use this book
  • How to use the Online Resource Centre
  • Acknowledgements
  • Detailed Contents (including specific chapter titles and authors)

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