Lecture 8 – Social Responsibility (MCQs)

CSR definition

When a company acts responsibly toward society and the environment beyond legal requirements.

Purpose of CSR

To balance profit with ethical, social, and environmental concerns.

Four responsibility levels

Economic, Legal, Ethical, and Philanthropic.

Economic responsibility

To be profitable and produce desired goods and services.

Legal responsibility

To obey laws and follow society’s rules.

Ethical responsibility

To do what is right, fair, and avoid harm.

Philanthropic responsibility

To voluntarily contribute resources to improve communities.

Stakeholders definition

Any person or group affected by or able to affect the organization’s actions.

Goal of CSR in business

Serve stakeholders and society while achieving profitability.

Sustainability definition

Meeting present needs without harming future generations.

Main reasons businesses struggle to be sustainable

Focus on short-term profit, cheap prices, and unaccounted pollution (externalities).

Externalities

Hidden side effects of production such as pollution or waste disposal costs.

Main drivers of sustainability

Cost savings, customer demand, regulation, supply-chain pressure, employee motivation, innovation, and morals.

Net Zero meaning

Reducing emissions to near zero and offsetting the rest.

UK climate target

Cut emissions 78% by 2035 and reach net zero by 2050.

Scope 1 emissions

Direct emissions from operations (e.g., vehicles and equipment).

Scope 2 emissions

Indirect emissions from energy used (electricity, heating).

Scope 3 emissions

Indirect emissions from suppliers and product use – often 85–95% of total.

Lifecycle analysis

Examining each stage of a product’s life to find environmental impact.

Access-based model

Customers lease or rent products instead of owning them.

Sharing economy

Borrowing or renting assets to reduce ownership and waste.

Benefits of leasing/sharing models

Longer product life, less waste, customer savings.

Greenwash definition

When companies falsely market products as eco-friendly.

How to spot greenwashing

Vague claims, no proof, or overpriced “green” versions.

Key idea of CSR today

Businesses should be part of the solution for society and the planet.