Chapter 3

Question 1

Corporate power?

Answer 1

Capacity of organisations to influence government/economy/society based on organisational resources

Question 2

Corporate Influence of major corporations??

Answer 2

• They impact tax revenue, financial services, transportation, communication, utilities, and healthcare
• Corporations contribute to political campaigns, influencing government policies
• their power extends beyond business into education, law-enforcement and social services

Question 3

Corporate power advantages?

Answer 3

• Large corporations have more resources, lower production costs and long-term planning capabilities
• Globalisation allows businesses to introduce new products, technology, and economic growth to developing regions
• Eg : UPS use drones to deliver medical supplies in Africa saving lives

Question 4

Corporate power disadvantages?

Answer 4

• large corporations can dominate public discourse and influence politics
• They move production sites , weakening unions and local economies
• Economic power enables them to fix prices, limited competition and manipulate markets
• Carbon major reports found that since 1988 100 companies produced over 70% of global greenhouse gas emissions

Question 5

Iron law of responsibility?

Answer 5

Is the believe that those who do not use their power in ways the society considers responsible will tend to lose their power in the long run

Question 6

Globalisation?

Answer 6

Process by which businesses or other organisations develop international influence or start operating on an international scale

Question 7

Corporate social responsibility (CSR) ?

Answer 7

The idea that businesses should act in a way that enhances society and their stakeholders and be held accountable for any of its actions that affect people ,their communities and their environment

-pledge/commitment to give back to society

Question 8

Corporate citizenship?

Answer 8

Refers to the actions corporations take to put their commitments to corporate social responsibility into practice worldwide

Question 9

Phases of corporate social responsibility?

Answer 9

1950-1960
Corporate social stewardship
- corporate philanthropy (charity acts) , philanthropic funding and public relations (company image/reputation)
1960-1970
Corporate social responsiveness
- Social impact analysis, stakeholder mapping and implementation, strategic priority for social response (public affairs function, political lobbying)
1980-1990
Corporate business ethics
- Faster and ethical corporate culture, common ethical principles (mission/vision/value statements, CEO leader leadership ethics)
1990-present
Corporate/global citizenship
- Stakeholder partnerships , identify globalisation impacts, sustainability of companies/environment (global audit standards, NGO dialogue)

Question 10

Enlightened self interest?

Answer 10

The view that holds :it is in a company self interest in the long run to provide true value to its stakeholders

Question 11

Balancing social, economic and legal responsibilities
CSR?

Answer 11

• Businesses must adapt changing social expectations survive and maintain strong stakeholder relationships
• companies that align with social and legal concerns tend to work better with regulations and legislators

Question 12

Nestles initiative?

Answer 12

• launched a global research project on children’s nutrition in 10 countries
• Collaborative with public health leaders, third-party organisations and paediatricians
• Aim to improve child nutrition while gaining insights for product development

Question 13

Enlightened self interest of nestle?

Answer 13

• naestles initiative cost money short term but led to long-term benefits
• improved reputation, customer loyalty and community impact

Question 14

Balancing multiple responsibilities?

Answer 14

Businesses must manage economic, legal and social responsibilities simultaneously
- The belief that businesses exist only for shareholder profits outdated
- Modern executive strive to balance profitability with border responsibilities

Question 15

In support of CSR? (BBERS) 🐻🧸

Answer 15

1. balance power and responsibility
   - Businesses must act responsibly to maintain public trust and influence
2. reduce regulation
   - CSR helps businesses avoid strict government rules (food labels)
3. boosts long-term profits
   - Ethical actions improve financial performance (recall)
4. strengthen stakeholder relationships
   - CSR improves employee engagement, consumer trust and community ties
5. Enhance reputation
   - A strong reputation attracts loyal customers, top employees and increase profitability

Question 16

Concerns about CSR? (PLS CR) 🙏🏽🐀

Answer 16

1. Reduces efficiency and profits.
- CSR can increase costs and risk business survival (bankruptcy)
2. Create unequal cost.
- Responsible firms face higher costs and competitors with minimal regulations
3. Passes costs to stakeholders.
- CsR expenses lead to higher prices, lower wages or reduced profits
4. Lack business expertise.
- Companies aren’t suited to solve social issues like poverty or violence
5. Shift responsibility.
- Critics argue individuals, not corporations should handle social responsibility

Question 17

Social entrepreneurs?

Answer 17

Like traditional entrepreneurs, individuals who act boldly to pursue opportunities, attract support and build new organisations to create and sustain social rather than economic value

Question 18

Social entrepreneurship?

Answer 18

A personal group of people who identify as social need and use their entrepreneur skills to address this need

Question 19

Social ventures?

Answer 19

Organisations founded by social entrepreneurs

Question 20

B. Corporations?

Answer 20

A business that explicitly sleep seeks to blend its social objectives with its financial goals

• They blend social, environmental and financial goals to drive positive impact
• to qualify businesses must meet strict B lab standards for social and environmental performance
• Certified B corps government recognition
• Companies with modified B laws to commit to social/environmental missions
• B lab assessments take 1-3 hours and evaluate leadership commitment to stakeholder well-being

Question 21

Management systems for corporate social responsibility and citizenship?

Answer 21

• CSR requires action not just values- companies need systems and processes to implement commitments
• bsR surveys found CEOs have the greatest influence on CSR decisions (more than investors/employees)
• Corporate citizenship is growing managerial practice ensuring stakeholders needs are met globally
• CSR is evolving from community focused philanthropy to an integrated business approach
• Samsung Leeds corporate citizenship initiatives in technology

Question 22

Stages of corporate citizenship?

Answer 22

1. Elementary stage.
2. Engaged stage.
3. Innovative stage
4. Integrated stage.
5. Transforming stage.

Question 23

1. Elementary and 2. engaged stage?

Answer 23

1. Elementary stage
   - companies focus only on compliance, are uninvolved in social issues and engage in one way communication with stakeholders
2. Engaged stage.
   - Businesses recognise public expectations, adopted policies and start interacting with stakeholders though mainly through formal departments

Question 24

3. Innovative stage and 4. Integrated stage.

Answer 24

3. Innovative stage
   - companies realise they lack the capacity for deeper commitments, leading to structural changes, stakeholder reporting, and social initiatives
4. Integrated stage.
   - Firms fully incorporate sustainability, established long-term stakeholder partnerships and use external audits to measure impact

Question 25

5. Transforming stage.?

Answer 25

Businesses operate with a higher corporate purpose, collaborating globally to solve **major social issues** beyond industry borders

Question 26

Social audit?

Answer 26

**Is a systematic evaluation of an organisation social, ethical and environmental performance** - Companies performance evaluated relative to assist of externally imposed standards

Question 27

Results of an audit is used for?

Answer 27

To improve the firms performance and communicate with stakeholders and the public

Question 28

6 benefits of social audits?

Answer 28

1. Help businesses know what is happening with the firm. 2. Understand what stakeholder is think about and want from the business. 3. Tell stakeholders what the business has achieved 4. Strengthen the loyalty and commitment of stakeholders. 5. Enhance the organisations decision-making making 6. Improve the businesses overall performance.

Question 29

Social audit standards?

Answer 29

- social audits measure a company’s **citizenship activities and their impact, not just actions** - Audit standards can be **company specific, industrywide or global** - Global organisations **set standards** (ISO, social accountability 8000) - **audits to ensure compliance, accountability** and transparency in corporate social responsibility efforts

Question 30

Corporate social reporting?

Answer 30

Refers to the public reporting of information collected by the organisation or another party during a social audit

Question 31

Transparency?

Answer 31

Is the clear public reporting of an organisations performance to various stakeholders

Question 32

Integrated report?

Answer 32

Is the combining of **legally required financial information** with social and environmental information into a single report