Chapter 6 Flashcards
(16 cards)
Who are the stakeholders in a business in terms of CSR
Owners and shareholders Lenders Suppliers of goods and services Customers Employees Governments The general public
What is a stakeholder
Businesses have impacts within the economy, on resources and within society. Stakeholders are those parties that have interests in the various effects businesses may have. The most immediate stakeholders are owners.
What is corporate social responsibility (CSR)?
Corporate social responsibility is the reporting of societal impacts and environmental impacts of business activities-in addition to financial outcomes and linked to ethical values, legal requirements and associated with community expectations
What are the benefits of CSR
Favourable perceptions of the company among employees, customers and the general community.
Compliance with government regulations.
Possible future business opportunities through the improved products or processes.
What are the costs of corporate social responsibility
Costs of CSR include direct costs, such as new processes, additional staff and equipment and the production of CSR reports. Indirect costs include loss of competitiveness.
What is ethical behaviour
Ethical behaviour is concerned with correct behaviour, behaviour is deemed to be moral and displaying the distinction between right and wrong. Business ethics are not different from personal ethical behaviour.
What are the two codes for professional ethics
The corporate Governance Principles and Recommendations
Australian Institute of Company Director’s Code of Conduct
How does ethics affect a businesses reputation
Ethics in business is vital to a business’s continuing good reputation and success. Without it, a business is unlikely to succeed in the long term in today’s global economy as there is too much scrutiny
What are the types of ethical dilemma
Conflict of Interest Confidentiality Making use of financial information for personal gain Using company assets for personal gain Schemes to evade or reduce taxation Manipulation of financial information
What is insolvency
Insolvency occurs when a business’s liabilities are greater than the value of its assets and it is unable to repay its debts as they fall due.
What is legislation governing bankruptcy and insolvency
the main principles of modern insolvency laws are to provide for an orderly repayment to creditors. Bankruptcy is governed by the Bankruptcy Act 1966, Insolvency is governed by the Corporations Act 2001.
What is bankruptcy
Bankruptcy is declared when an individual is unable to pay either private or business debts owing.
What is voluntary administration
Voluntary administration occurs when an administrator is appointed by either a creditor owed money that the company will not or cannot pay or by a majority of the company directors to seek ways of solving a company’s financial problems. This may include the business trading its way out of the liquidity problem.
What is Receivership
Receivership is the position of a company when a secured creditor applies to the court for a receiver to be appointed when it is thought that the company may not be able to repay its debts.
What is Liquidation
Liquidation occurs when a company’s affairs are wound up, its assets are sold and converted to cash, its creditors are repaid and the shareholders receive what remains.
What is the order of repayment to creditors
- Trustee/ liquidator fees and cost of conducting liquidation
- Secured creditors
- Outstanding employee wages and superannuation
- Outstanding employee leave entitlements
- Employee retrenchment pay
- unsecured creditors
- shareholders.
