CSR Considerations: KK9

what is corporate social reposonsibility?

csr is the commitment from a business to go above and beyond their legal obligations to operate in an economically, socially and environmentally sustainable manner

csr considerations for inputs

• utilising local suppliers, instead of overseas suppliers to reduce transport emissions

• sourcing from suppliers that use environmentally sustainable methods

• purchasing energy efficient machinery to be used in production

• installing reusable and clean energy sources

• implementing forecasting and just in time to reduce the risk of over ordering inputs that may later be discarded

csr considerations for processes

can reduce waste by:

• using technology

• developing methods to capture and recycle excess input materials so they can be reused

• just in time and lean management

• removing harmful chemicals from waste products

• disposing of any harmful waste that cannot be treated safely

csr considerations for outputs

• developing an alternative product that is environmentally friendly

• eliminating as much plastic as possible in the packaging and creation of the final product

• offering customers incentives for returning the product at the end of its life cycle so it can be recycled

• creating products that can be recycled

• delivering products in bulk to retailers to reduce the business’s carbon emissions from transportation

advantages of csr

• reduced impacts on the natural environment with less waste and associated costs such as landfill

• increased productivity through new, cleaner technology choices

• improved business reputation – this can (and will be used in their marketing)

• reduced utility bills

• an align with customer (and society) values – driving up sales and could be used as a competitive advantage

• sustainable business practices use fewer resources, have lower emissions, less waste and reduce costs. For example, the use of biofuels in a production process will reduce emissions, fuel consumption and therefore costs.

• could attract like minded employees to the organisation

disadvantages of csr

• more expensive – costs increase if a business wants to source ethical supplier or switch their machinery to something that uses less energy

• are they actually doing enough? Big businesses may ‘Greenwash’ – say that they are doing lots of good stuff but actually they should be doing more.

• time consuming (and expensive) to switch from not being overly socially responsible to being socially responsible.

• will it be effective? switching to being more CSR can possibly drive investors away as it may impact their returns