SOCIAL RESPONSIBILITY BUSINESS

Q: What is Corporate Social Responsibility (CSR)?

A: CSR is a firm’s consideration of issues beyond economic, technical, and legal requirements to achieve social benefits along with profits.

Q: What does the Triple Bottom Line refer to?

A: It measures business performance in three areas: economic, social, and environmental.

Q: Define Sustainability.

A: Meeting present needs without compromising the ability of future generations to meet theirs.

Q: Who are stakeholders in a business context?

A: Individuals or groups who can affect or are affected by an organization’s objectives—such as employees, customers, communities, and investors.

Q: Why is stakeholder engagement vital in modern business?

A: It helps balance diverse interests, ensuring long-term success and social accountability.

Q: What is meant by a complex web in the stakeholder landscape?

A: It describes the interconnected relationships between a firm and various stakeholders, each with unique interests.

Q: What is a strategic ecosystem?

A: The network of stakeholders whose interactions influence sustainable business performance.

Q: Who are primary stakeholders?

A: Groups essential to an organization’s survival, such as customers, employees, suppliers, and investors.

Q: Who are secondary stakeholders?

 A: Those who affect or are affected by the firm but are not essential for its immediate survival, like media or NGOs.

Q: What are Non-Governmental Organizations (NGOs)?

A: Independent groups such as environmental or human rights organizations that hold businesses accountable.

Q: What is the Stakeholder Power and Influence Matrix?

 A: A framework for prioritizing stakeholders based on their power and level of interest in organizational activities

Q: Describe the Instrumental View of stakeholder management.

A: Treating stakeholders well indirectly improves financial performance.

Q: Describe the Normative View.

A: Firms should act ethically out of moral obligation, not just for profit.

Q: What is Shared Value Creation

A: CSR activities that benefit both the business and its stakeholders simultaneously.

Q: Why do stakeholder conflicts occur?

A: Because groups often have differing priorities, such as profit vs. sustainability or growth vs. community welfare.

Q: What conflict may arise between shareholders and employees?

A: Shareholders seek cost cuts, while employees seek job security and fair pay.

Q: How can customer and environmental interests conflict?

A: Customers want low prices, but sustainable production often increases costs.

Q: What is a common tension between local communities and business growth?

A: Communities resist expansion that may cause pollution or congestion.

Q: What is the “Race to the Bottom” phenomenon?

 A: Developing countries lowering environmental or labor standards to attract foreign investment.

Q: What are labor standards?

A: Rules governing working conditions, wages, hours, and child labor protections.

Q: What are footloose plants?

 A: Factories easily relocated to countries with cheaper labor or weaker regulations.

Q: Who are the working poor?

 A: Laborers enduring poor conditions and low pay due to weak enforcement of labor laws.

Q: What are Standards of Engagement?

A: Ethical guidelines MNEs require suppliers to follow on wages, safety, and working hours.

Q: Why is Monitoring and Enforcement essential in global supply chains?

A: To ensure compliance through audits, inspections, and third-party v

Q: What does From Compliance to Commitment mean?

A: Moving from punitive enforcement to collaboration and shared ethical improvement.

Q: What distinguishes Liberal Market Economies (LMEs)?

A: They focus on shareholder value, competition, and voluntary CSR (e.g., U.S., U.K.).

Q: What characterizes Coordinated Market Economies (CMEs)?

A: Collaboration, stakeholder governance, and institutionalized CSR (e.g., Germany, Japan).

Q: What are hypernorms?

A: Universal ethical principles, like prohibitions on child labor and discrimination.

Q: What is the main tension between local norms and hypernorms?

 A: Balancing cultural practices with universal ethical standards in global operations.

Q: What is the key takeaway from the lesson on CSR?

A: True CSR requires authenticity, consistency, and integration of ethics into business strategy and culture.