Flashcards in Understanding Business- Corporate Social Responsibilty Deck (7)
What is corporate social responsibility?
CSR refers to business practices involving initiatives that benefit society.
It is the idea that businesses should attempt to address the needs of all its stakeholders, internal and external
What are the benefits brought by ethical behaviour and CSR?
Attract more customers to the firms products, increasing sales and profits
Make employees want to stay with the business, reducing staff turnover and increasing productivity
Attract more employees wanting to work for the business, reduce recruitment costs and enable the company to get the best employees
Attract investors and keep the company's share price high, protecting the business from takeover
Have a good public image and gain customer trust
How can bad CSR impact a business?
Unethical behaviour or a lack of CSR can damage a firms reputation and make it less appealing to stakeholders. Profits could fall as a result
How can companies show good CSR with regards to waste disposal?
There are a number of legal obligations in terms of waste that the organisation has to meet.
They have a duty of care, to reduce the amount of waste created and to deal with this waste in an environmentally sensitive way
What does an organisation need to do to be able to display the fair trade mark on its products?
It must meet international fair trade standards. The process itself will take time and money to secure the fair trade mark and also to maintain it.
What benefits does the fair trade mark have for a business?
All businesses should aim to trade fairly with suppliers
By putting the logo on their products the business can demonstrate its ethic commitment to customers