Summary Business Studies: Corporate social responsibility
14 views 1 purchase
Course
Business Studies
Institution
11
These notes are based of the Business Studies Grade 11 Learner’s Book written by Estie Meyer and Zain Strydom.
They include information on:
-What is CSR.
-CSR in a business context.
-Stakeholders (interest groups) in a business.
-Blowfield and Murray.
-Arguments for and against CSR.
...
Definition:
→ Relationship between the business (corporate) and society (social) and the degree to which
the business impacts on society.
→ Businesses shouldn’t just focus on profits but also for fill responsibility towards the people
ad the environment.
1. CSR in a business context-
→ A business should be adding value to society over and above selling goods and services.
The king code:
→ About a business being a good corporate citizen and its actions shows that it cares about
society and the environment.
o An ethical citizen will engage with relevant stakeholders to ensure the sustainability
of society and the environment. Stakeholders include, but not limited to, employees,
shareholders, customers, the government, and lobby groups – they place pressure
on the business and demand things to happen in a specific way.
o Some businesses may pretend to act like this to gain popularity in turn increasing
profits.
Blowfield and Murray: (regards to their book: corporate responsibility)
→ It suggests that CSR is viewed as an umbrella concept helping the business to understand its
stakeholders + react to neutralise any negative effects on the stakeholders with sound,
proactive solutions.
→ A business thinks of its stakeholders however certain factors can make it difficult.
Crime
Poor housing Poverty
Inequaility
CSR Lack of
education
issue-
Poor health
Unemployment
services
Enviromental
concerns
→ A business needs to answer certain question:
o Business’ level of responsibility?
o To whom is the business responsible?
o How long are they responsible?
o Effect on business and day to day running?
, Corporate Social Responsibility (CSR)
o Responsibility of each stakeholder?
Two levels- Primary and secondary responsibility:
Primary:
→ Business’ obligation to look after interest of stakeholders which are directly affected by the
success of the business – includes employees and shareholders.
Secondary/broader:
→ Towards stakeholders who are indirectly affected by the business’s activities – community,
government, and the environment.
A different method to measure level of responsibility by Blowfield and Murray by using the pyrmid
method.
→ Higher level of → Make ethical → Respect laws → Most basic
responsibility decisions with of country the level.
than not a positive operate in. → Ensure they
harming impact on → The become a are
others. stakeholders, responsible economically
→ Business must citizen in active
consider what broader E.g. produces
and to whom society. goods/services that
they will give can be sold at a profit
back. & from which
→ Building a employees and
brand with shareholders will
values and benefit.
that these
values are
practised by
all.
2. Arguments for and against CSR-
For Against
→ Businesses that are assisting the → Many businesses have argued that CSR
community in which they operate detracts from the core business
through CSR programmes, receive activities.
greater support. People see these them → Businesses and often shareholders, see
as having a reputation for caring, the the money spent on CSR as less profits
community in turn supports and in their pockets
becomes brand loyal. → It is difficult to measure the benefits of
→ Businesses need to act on social issues CSR because it is difficult to measure if
in their communities or else customers the business gains for anything from
will move away. CSR.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller JordanBresler. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $3.41. You're not tied to anything after your purchase.
