Modern businesses do not work in isolation. They operate within society and use resources (employees, customers, environment, public infrastructure). Therefore, society expects businesses to behave responsibly. This is where CSR (Corporate Social Responsibility), business ethics, and values become important.
This topic helps you write strong exam answers on:
After studying this topic, you should be able to:
CSR means that a business should:
CSR is not only charity. It includes responsible business practices like safe products, fair wages, pollution control, and honest marketing.
Stakeholders are the groups that have a stake in the business. Common stakeholders:
Stakeholder approach means management should take decisions by considering effects on all stakeholders, not only shareholders.
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CSR is important because:
Thus, CSR helps both society and business in the long run.
The stakeholder approach means a firm should consider the impact of decisions on all stakeholders, not only shareholders.
By balancing these expectations, the company achieves responsible and sustainable performance.
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Modern businesses do not work in isolation. They operate within society and use resources (employees, customers, environment, public infrastructure). Therefore, society expects businesses to behave responsibly. This is where CSR (Corporate Social Responsibility), business ethics, and values become important.
This topic helps you write strong exam answers on:
After studying this topic, you should be able to:
CSR means that a business should:
CSR is not only charity. It includes responsible business practices like safe products, fair wages, pollution control, and honest marketing.
Stakeholders are the groups that have a stake in the business. Common stakeholders:
Stakeholder approach means management should take decisions by considering effects on all stakeholders, not only shareholders.
The Triple Bottom Line says a business should measure success using three dimensions:
This encourages sustainable and responsible business practices.
CSR benefits both society and business:
Solution is to integrate CSR into strategy and measure outcomes transparently.
Business ethics refers to moral principles and standards that guide business behaviour.
Common ethical principles/values include:
Managers should reflect these values in decisions, leadership style and policies.
Ethical dilemmas occur when two values conflict. Common business dilemmas:
In exams, write: identify stakeholders, identify options, apply ethical principles, choose justified action.
Organisations maintain ethics through:
Simple flow: Policy (code) → Training → Monitoring/Audit → Reporting (whistleblowing) → Corrective action
Corporate governance ensures ethical and transparent control of the company through:
Good governance supports CSR and reduces unethical behaviour.
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CSR (Corporate Social Responsibility) means a business should operate with legal compliance, ethical behaviour, and responsibility towards society and environment. It goes beyond profit-making to include sustainable practices.
CSR builds long-term sustainability by balancing People–Planet–Profit and strengthening stakeholder relationships.