sac 3b

Question 1

Corporate Social Responsibility

Answer 1

• a commitment by organisations to run their businesses in an ethical manner
• includes taking responsibility for economic, social and environmental consequences of their activities

Question 2

How ethics and social responsibility fit into operations

Answer 2

• Social and ethically responsible behaviours include doing what is ‘morally right’ and considers the impact of operations on the economic, social and environmental issues.
• A socially responsible organisation generally has goodwill in the community, has good employees and is often able to have a cost advantage

Question 3

5 areas of CSR

Answer 3

1. Corporate governance and accountability
2. Sustainability and environments
3. Ethical treatment of employees
4. Human rights
5. Community involvement

Question 4

5 areas of CSR

Corporate governance and accountability

Answer 4

a businesses actions and impact on its shareholder, employees, customers and community

Question 5

5 areas of CSR

Sustainability and environments

Answer 5

A business is accountable for its impact on the environment

Question 6

5 areas of CSR

Ethical treatment of employees

Answer 6

Fair pay and conditions, equal employment opportunities, provision of safe workplace, work life balance

Question 7

5 areas of CSR

Human rights

Answer 7

The use of ethical suppliers and fair trade issues

Question 8

5 areas of CSR

Community involvement

Answer 8

Volunteering programs and philanthropy, sponsoring

Question 9

Socially responsible operations system

Include processes that:

Answer 9

don’t cause any damage to the society that the business operates in

Question 10

Socially responsible operations system

they ways they don’t cause any damage

Answer 10

1. Waste minimisation schemes (reduce, reuse, recycle, recover)
2. safe working conditions
3. responsible for the environment and social activities that it undertakes

Question 11

United Nations global compact (UN)

Answer 11

• Are a set of benchmarks that a business can follow to be ethically responsible

Question 12

United Nations global compact (UN)

Those that sign up to the compact adopt 10 principles covering (4)

Answer 12

1. Human rights
2. Labor
3. Environment
4. Anti-corruption

Question 13

Why is it important for companies to be socially responsible

5

Answer 13

1. Appeals to customers
2. To gain a competitive advantage
3. May reduce costs - maximise operations
4. To establish longevity for our business
5. Increase market share

Question 14

Triple bottom line reporting is

Answer 14

When a business reports on its economic results (profits) as well as an assessment on its environmental and social performance

Question 15

The three pillars of triples bottom line reporting

Answer 15

1. Profit
2. Planet
3. People

Question 16

Strategies to maximise social responsibility

Environmental management system and waste minimisation

Answer 16

• A tool to help manage the environmental impact of the business and it’s activities
• includes a series of policies and practices that focus on environmental issues

Question 17

EMS sets out

environmental management system) (3

Answer 17

1. a plan that included strategies and tactics to meet environmental goals
2. How environmental performance will be monitored
3. Integrates environmental management practices in everyday operations

Question 18

To develop an EMS an organisation must …

Answer 18

asses its environmental impacts, sets targets to reduce those impacts and plan how to achieve those targets

Is a formally written document

Question 19

Social and economic strategies for sustainable operations

Answer 19

When businesses have an operations system that incorporates social and ethical responsibility they need to include CSR in all three stages of the operations system

Question 20

Inputs

Answer 20

• Companies may include a purchasing policy which includes environmental sustainability and a social responsibility criteria which is applied when choosing supplies
• purchase of sustainable inputs will minimize the effect the business has on the natural environment and community

Question 21

Examples of environmentally sustainable input practices (3)

Answer 21

1. Renewable or green energy
2. Recycled materials
3. Local suppliers which decreases carbon footprint and reduced transport costs

Question 22

Sustainable Procurement advantages - inputs (3)

Answer 22

1. Reduce impact on the natural environment, landfill and less waste costs
2. Increased productivity via new technology choices
3. Improved business reputation

Question 23

Transformation Process

Answer 23

• Businesses that use sustainable operations processes use fewer resources, reduce business costs and increase productivity therefore competitiveness improves
• Ethical treatment of employees

Question 24

Examples of environmentally sustainable/social responsibility responsible transformation process (3)

Answer 24

1. Reduce, Reuse, Recycle, Recover
2. Ethical treatment of employees (fair wages)
3. Retain all production in Australia to ensure Australians are employed

Question 25

Outputs - Social Responsibility and environmental considerations (4)

Answer 25

1. Quality outputs offer value to consumers 2. Non harmful 3. Minimal packaging and limited environmental impact 4. Recyclable/biodegradable options used in package

Question 26

Identify an operations strategy and how this operations strategy will impact CSR? Waste minimisation (3)

Answer 26

Reduction of operating costs through: 1. Reduced landfill 2. Reduced use of materials/inputs 3. Need for special equipment and procedures to handle toxic wastes

Question 27

Identify an operations strategy and how this operations strategy will impact CSR? Recycling of materials (2)

Answer 27

Reduced costs through lower use of materials means: 1. Improved reputation 2. Lower landfill costs

Question 28

Identify an operations strategy and how this operations strategy will impact CSR? Lean manufacturing (4)

Answer 28

Improvements in: 1. Productivity 2. Quality 3. Employee motivation through empowerment 4. competitiveness

Question 29

Identify an operations strategy and how this operations strategy will impact CSR? Inventory management system (2)

Answer 29

Greater efficiency and productivity through: 1. Reduced waste 2. Productivity improvements

Question 30

Global issue in the operations management

Answer 30

- global economy has required management to look for resources around the world not just their own country - because they can generally buy inputs at a lower price

Question 31

Manufacturing overseas

Answer 31

As labour costs in Australia are very high many companies have moved their manufacturing overseas

Question 32

Supply Chain

Answer 32

1. A system of operations, people, activities, information and resources involved in moving a product or service from suppliers to manufacturers and then onto customers 2. takes natural material and parts and transforms them into finished products 3. must make sure that it incorporates quality and safety standards

Question 33

Supply chain management

Answer 33

meeting consumer demands of goods and services whilst making efficient use of inputs, the production process and the distribution of the finished good

Question 34

Logistics

Answer 34

The distribution of products or movements/delivery of materials from one place to another

Question 35

Participants in the global supply chain | (4)

Answer 35

organisations must consider the interests and expectations of each party including 1. Consumers 2. Producers 3. Employees 4. Governments

Question 36

Consumers role | 4

Answer 36

1. Purchase our products 2. Determine the level of demand for our products 3. Be aware of changing consumer trends 4. Place extra demand on companies to have good CSR

Question 37

Producers role | 3

Answer 37

1. Signed contracts to consolidate relationships 2. Reliable production and suppliers of materials 3. Great logistics

Question 38

Employees role | 4

Answer 38

Management of employees may be difficult due to: 1. language barriers 2. Fair wages 3. Working conditions 4. Cultural aspects

Question 39

Government's role | 2

Answer 39

1. The legal and government involvement in industries before considering them as part of the global supply chain 2. Can intervene on how a business is run if it does not adhere to the country's laws

Question 40

Global supply chain (global sourcing) | Global supply chain is also known as global sourcing which can include one or all of the following.

Answer 40

1. Global sourcing of inputs 2. Overseas manufacturing/processing 3. Global outsourcing

Question 41

1. Global sourcing of inputs

Answer 41

- selecting suppliers from overseas

Question 42

2. Overseas manufacturing/processing

Answer 42

- when the transformation stage happens overseas

Question 43

3. Global outsourcing

Answer 43

- when a business/organisation contracts another business (3rd party) to perform some of its role/function eg. Telstra call centre in the Philippines

Question 44

Advantages of Global sourcing

Answer 44

- Opportunity to tap into global efficiencies - this may reduce the cost of production, inputs or outputs which improves profit meaning business objectives can be achieved - Skills and resources not found in the home nation may be tapped into - Job opportunities and economic growth will be provided in disadvantaged areas

Question 45

Disadvatages of Global sourcing

Answer 45

- Hidden costs: time zone and language issues - Financial and political risk - if the country you manufacturer in breaks out in civil war it will affect your business - Loss of jobs in Australia