KK9: CSR

csr

• csr = obligations, duties, and responsibilities a business has to stakeholders beyond their legal obligations

• involves how a business can address csr to have a positive impact on stakeholders through change

stakeholders for csr

• environment

• employees and managers

• customers

• suppliers

• general community

environment

• climate change and business impact on the environment has become an extremely important issue recently

• businesses should ensure that changes they implement do not have a damaging impact on the environment

employees and managers

• ideally, a business should look to implement changes which do not have a negative impact on staff, if they are going to be impacted minimise it

a business change provide:

• providing a flexible work atmosphere for its employees

• lessening noise pollution from a factory

• allowing employees to volunteer their time for other non-profit organisations

• employing local workers

• offering support such as counselling services, time off during events, social events, ect.

customers

• customers nearly always determine the degree to which a business is profitable, so ensuring that harm to them is minimized and impact is positive is fundamental to business success

• changes to products and services should be communicated clearly to avoid customer disgruntlement

• businesses should be transparent about their CSR practices to ensure that customers have an accurate picture of the business (i.e., don’t lie or distort the truth).

suppliers

• source resources and materials from local suppliers

• ensure suppliers uphold the same csr standards as the business

• supplier establish or improve their own code of ethics or sustainability policy

• if a business is sourcing inputs from overseas, ensure employees in other countries are not exploited, are paid fairly and have decent working considers

general community

due to geographical proximity, the local community of a business is often affected by changes the business make

evaluate