LO B1 CSR

What are the two arguments you need to consider in the coursework section regarding CSR policies?

• Legal compliance and ethical responsibility

• Financial performance and market share

• Employee satisfaction and customer loyalty

• Innovation and technological advancement

Answer explanation

The two key arguments in CSR policies are legal compliance, which ensures adherence to laws, and ethical responsibility, which reflects a company's commitment to moral principles. Both are essential for effective CSR.

Which of the following best explains the benefits and drawbacks of CSR, the costs and benefits of recognition from key external bodies, and the competitive advantage gained by a selected business as a result of its CSR activities?

• CSR enhances brand reputation but can be costly; recognition from external bodies can increase credibility but may require compliance with strict standards; competitive advantage is gained through improved customer loyalty and operational efficiency.

• CSR has no significant impact on brand reputation; recognition from external bodies is purely symbolic and offers no real benefits; competitive advantage is not influenced by CSR activities.

• CSR only benefits large corporations; recognition from external bodies is irrelevant; competitive advantage is solely based on pricing strategies.

• CSR activities are detrimental to business success; recognition from external bodies leads to unnecessary scrutiny; competitive advantage is unrelated to CSR efforts.

Answer explanation

The correct choice highlights that CSR enhances brand reputation and can be costly, while recognition boosts credibility but may involve strict standards. It also notes that CSR leads to customer loyalty and operational efficiency, providing competitive advantage.

The title of your presentation on CSR is:

• Corporate Social Responsibility: A Path to Sustainable Business

• The Role of CSR in Modern Business

• CSR Strategies for the Future

• Understanding Corporate Social Responsibility

Answer explanation

The title 'Corporate Social Responsibility: A Path to Sustainable Business' emphasizes the connection between CSR and sustainability, making it the most relevant choice for a presentation focused on CSR's impact on business practices.

Provide an overview of CSR.

• Corporate Social Responsibility (CSR) is a business model that helps a company be socially accountable.

• CSR stands for Corporate Social Responsibility, which is a type of international private business self-regulation.

• CSR involves initiatives that benefit society.

• All of the above.

Answer explanation

The correct choice is 'All of the above' because CSR encompasses being socially accountable, involves self-regulation, and includes initiatives that benefit society.

What are the benefits of CSR?

• Improved public image and reputation

• Increased operational costs

• Decreased employee satisfaction

• Reduced customer loyalty

Answer explanation

Corporate Social Responsibility (CSR) enhances a company's public image and reputation by demonstrating commitment to ethical practices and community engagement, which can attract customers and improve brand loyalty.

What are the drawbacks of CSR?

• CSR can be costly for companies

• CSR improves company reputation

• CSR has no impact on employee satisfaction

• CSR leads to increased profits

Answer explanation

The correct choice highlights a drawback of CSR, as it can incur significant costs for companies, impacting their financial resources. The other options incorrectly suggest benefits or no impact.

What financial advantage can a business gain by acting responsibly?

• Increased costs

• Improved reputation leading to higher profits

• Decreased employee morale

• Reduced customer base

Answer explanation

Acting responsibly enhances a business's reputation, which can attract more customers and lead to increased profits. This positive perception can differentiate the business in a competitive market.

Acting responsibly influences recruitment, motivation, and staff retention by:

• Improving company reputation and attracting talent

• Decreasing employee satisfaction

• Increasing operational costs

• Reducing employee engagement

Answer explanation

Acting responsibly enhances a company's reputation, making it more attractive to potential talent. This positive perception leads to better recruitment, higher motivation, and improved staff retention.

What pressure is reduced by acting responsibly in a business?

• Financial pressure

• Social pressure

• Environmental pressure

• Regulatory pressure

Answer explanation

Acting responsibly in business helps to comply with laws and regulations, thereby reducing regulatory pressure. This proactive approach minimizes the risk of legal issues and enhances the company's reputation.

Adopting a corporate socially responsible approach can distract from core business objectives and lower operating profits because:

• It requires significant resources and time that could be spent on core activities.

• It enhances brand reputation and customer loyalty.

• It leads to increased employee satisfaction and retention.

• It opens up new market opportunities and revenue streams.

Answer explanation

The correct choice highlights that adopting a corporate socially responsible approach demands significant resources and time, which could detract from focusing on core business activities, potentially lowering operating profits.