Topic 4 - Social Responsiblity Of Businesses

Question 1

What is social responsibility in relation to business ?

Answer 1

Social responsibility in relation to business is where a business is socially aware and examines decisions taking into consideration the environment in which it operates in both on a local and global scale. It’s the expectation that businesses should try to benefit society as a whole.

Question 2

Why should a business be socially responsible ?

Answer 2

A business should be socially responsible as nowadays we are much more aware of the impact of our actions on the environment and so this knowledge influences us when we buy goods, as we tend to buy goods that are environmentally friendly.
We’re also aware of the importance that businesses have for local communities so businesses must be aware of the effects of their actions on the environment and the society and strive to be socially aware in order to keep and attract customers. A positive approach to social responsibility can enhance a businesses reputation and increase employees self esteem

Question 3

How can a business be socially responsible ?

Answer 3

• By employing ethical strategies in the workpplace
• By being involved in local projects, fundrasiers and charity work

Question 4

What is a Corporate Social Responsibility Policy ?

Answer 4

It covers areas such as the impact a business has on the
- local and global environment
- consumers
- employees
- other stakeholders (people who have an interest in the business)

Many large businesses put social responsibility in their mission statements and commit resources to their CSR policy

Question 5

What 2 areas do CSR policies usually operate in ?

Answer 5

• Environmental sustainability
• Supporting local communities

Question 6

How can businesses address environmental issues/sustainability ?

Answer 6

• REDUCING - by using email instead of postal mail, printing on both sides of the paper, creating less packaging
• REUSING - purchasing reusable materials for the workplace e.g refurbished furniture, refillable ink cartiridges, not using plastic drinking cups
  -RECYCLING - recycling tins, paper, plastic, making their products recyclable, rewarding employees for recycling
• LOWERING GREEN HOUSE GAS EMISSIONS - Using renewable energy sources such as solar panels or wind turbines, using trains and buses instead of cars whe possible, using energy efficient fuels and machinery to reduce emission of the main greenhouse gases

Question 7

What are the 3 main greenhouses gases and where do they come from ?

Answer 7

CARBON DIOXIDE - comes from burning fossil fuels such as oil and coal
METHANE - comes from rotting vegetation and landfills
NITROUS OXIDE - comes from fertilisers, burning fuels and industrial production

Question 8

How can climate change impact negatively on a business ?

Answer 8

• EXTREME WEATHER CONDITIONS - like floods and hurricanes can damage property and disrupt the business and be costly to rebuild/fix
• DROUGHT - Lack of water will affect the businesses that rely on water for manufacturing like farms. Lack of water also has an impact on health and safety in businesses
• POORER AIR QUALITY - Can lead to air pollution which will have an impact on animals and employees
• COLDER WINTERS/HOTTER SUMMERS - Leads to higher energy cot because of heating and air conditioning requirements

Question 9

How can a business support local communities ?

Answer 9

• Sponsoring local teams or school teams with sports kit or equipment
• Providing work placement programmes for pupils and university students
• Donating or raising money for charity
• Financially assisting local projects such as building playgrounds or sports facilities
• Supporting local producers by buying and distributing local products for example large supermarkets buying and selling locally grown food thereby benefiting the Northern Ireland food sector

Question 10

What are the benefits of social responsibility to a business ?

Answer 10

• GOOD PUBLICITY - being socially responsible will help a business improve its reputation and build a caring and socially aware corporate image. A business will publicise its social responsibility to customers, suppliers and employees and potential employees
• IMPROVED SALES/ PROFIT - The business will attract more customers and make more profit. If it targets those who especially appreciate social responsibility, these customers are likely to continue with the bsuiness for the long term an leave positive feedback on social media and reccomend it to family and friends therefore building customer loyalty
• SAVING MONEY - The bsuiness will save only by reusingm reducing and recycling and therefore increase profit
• BETTER COMMUNITY RELATIONS - Local communities may feel that a socially responsible business have an interest in their well-being and so will bee more likely to spend money using their businesses
• ATTRACTS POTENTIAL EMPLOYEES - A CSR policy will encourage potential employees to apply for jobs as they are also interested in the environment, the business will also be able to compete for well-skilled employees because of its reputation. There should be more harmonious working relationships if the views and attitudes of the employer and employees towards social responsibility are similar