3.9 - CSR and operations management Flashcards
(12 cards)
what is corporate social responsibility
the obligation of businesses to act beyond the minimum legal requirements and consider the interests of society by acting ethically and taking responsibility for the economic, social and environmental consequences of their activities on all stakeholders
what is environmental sustainability
the ability of an eco system to sustain itself into the future by using its resources at a rate they can be replenished.
what are csr considerations for inputs in an operations system
Suppliers should be chosen based on their environmental management practices (rather than just choosing the cheapest supplier). The business is responsible for checking that suppliers have appropriate environmental and SR policies in place, recycling, purchasing green energy options. And should choose Fairtrade accredited suppliers who certify that their materials are farmed using sustainable practices
what are csr considerations for processes in an operations system
Businesses should minimise their wastage by recycling, reducing errors in production or reusing waste, minimise power usage as business is a large consumer of electricity which contributes to carbon emissions and greenhouse gases. Introducing policies to encourage employees to switch off lights, equipment or computers, separating waste.
what are csr considerations for outputs in an operations system
Businesses should minimise the wrapping of goods at the point of sale by avoiding plastic bags or source recyclable options to reduce wastage. Businesses can even reclaim waste as an after sales option to ensure that it gets recycled correctly.
advantages of csr
- A business who incorporates corporate social responsibility will build its reputation with the community which will develop greater customer loyalty leading to long term relationships and increased sales.
- A business can attract the best employees and will retain loyal employees if it supports the community and promotes sustainable practices.
- Sustainable practices such as reducing fuel consumption or reducing power usage can reduce operating costs and therefore improve net profit of the business in the long term.
disadvantages of csr
- A cost is that often low energy consumption technology can cost a lot more than high consumption equipment which increases a businesses costs and could reduce their net profit.
- Writing policies and guidelines to ensure that a business complies with its stated corporate and social responsibility claims is time consuming and distracts from core activities, therefore lowering productivity
- Not all employees want to be involved due to lack of confidence, poor language or fear of management, or ‘just want to get on with their job’ or see it as interfering with their achievement of performance bonuses
what is the communities interest in CSR
are those who live near a business or are generally affected by its activities. The community rely on businesses to provide employment, support local community activities, an demand that a business does not harm the environment.
what is the customers interest in CSR
are the purchasers of a good or service and a business relies on customers in order to achieve increased sales and net profit. Customers want a business to supply them with a quality product that is available when needed and is safe and doesn’t harm the environment.
what is the employees interest in CSR
perform the core function of a business and receive a wage for their efforts.
Employees rely on a business to provide them with long term employment and a wage to support their lifestyle. Employees can be negatively impacted if a business downsizes or decides to manufacture overseas.
what is the shareholders interest in CSR
invest in a business and want improved performance from a business (net
profit) in order to improve their net wealth from dividends. Shareholders want costs to be reduced so that profit increases, however, shareholders also want the business to behave ethically and to not damage the environment.
what is the suppliers interest in CSR
Suppliers want to be paid fairly for the materials they supply and want long term contracts so that they can expand their business and improve their own performance. Suppliers need businesses to behave ethically or their own reputation
