Glossary

B Understand how Corporate Social Responsibility is Applied in a Business Context

https://quizlet.com/555254368/unit-20b-business-ethics-flash-cards/

CSR - corporate social responsibility

Key stakeholder groups - Customers, suppliers, employees, owners, competitors

Customers - people who buy goods and services

Suppliers - Firms that provide goods and services to other firms

Governments - The organisation that has the authority to govern a country

Local communities - The people that live in the surrounding area of a firm

CSR reports - Published documents by companies to communicate their effort towards their societal goals

Social audits - An investigation into a firms efforts and impact on society

Internal stakeholders - employees, owners, board of directors

External stakeholders - customers, competitors, government, local community

Sustainability - The use of Earth's renewable and nonrenewable natural resources in ways that do not constrain resource use in the future.

Triple bottom line - profit, people, the planet

Financial - The part of the triple bottom line that focuses on the money issued to shareholders

Social - The part of the triple bottom line that focuses on the impact of a business on their stakeholder groups

Environmental - The part of the triple bottom line that focuses on the impact of a business on its natural surroundings

Environmental issues - Waste reduction, recycling, sustainability, carbon and pollution reducing initiatives

Waste reduction - Efforts of a firm to reduce superfluous materials and packaging in production

Recycling - Converting waste into reusable material.

Sustainability of resources - the efficient use of materials and energy in a way that ensures there will be resources available for future generations

Carbon reduction initiatives - Plans by a firm to reduce the amount of carbon waste they produce

Pollution reduction initiatives - Plans by a firm to reduce damage to air, water, noise levels etc

Consumer protection statutory and legal requirements - Laws on misleading advertising and the safety of products

Misleading advertising - Promotion of goods and services that gives consumers a false idea of their quality

Inappropriate advertising - Promotion of goods and services that is not in line with generally accepted values, e.g. sexist content, swearing, nudity

False descriptions - Untrue statements about goods and services in their promotion

Product safety - The degree to which a product is safe from undergoing or causing hurt, injury, or loss

Food labelling - Communication about the contents of food found on its packaging

Supply chain - All of the firms involved in getting a product from the producer to consumer

Working conditions - The environment in which a person completes their job

Minimum wage - lowest legal wage that can be paid to most workers

Living wage - a wage that is high enough to maintain a normal standard of living

Restrictive trading practices - Activities that make it difficult for firms to compete in a market

Sole traders - a business that is owned and operated by one person

Plcs - Companies with limited liability owned by shareholders who can trade shares on the stock market

Multinational corporations - An organization that manufactures and markets products in more than one country

Financial benefits - increased profits, access to loans and grants, ability to charge higher prices and risk reduction

Financial performance - A measure of how well a business uses their inputs to generate revenues

Increased sales - A business objective which aims to increase the number of goods and services sold to customers

Profitability - The ability of a firm to earn income in comparison to sales and investments

Liquidity - the ease with which a firms assets can be converted into cash efficiency

Share price -

Company value - How much money a business is worth on a particular date

Loans - amounts of money borrowed which will accumulate interest and be paid back in installments

Grants - Money given to a business by a government organisation or charity

Premium prices - Higher prices, usually attached to a product or brand of high quality or in high demand

Risk reduction - financial benefit of promoting ethics where there is less chance of making a loss due to strong customer relationships

Non-financial benefits - improved customer loyalty, positive brand image, enhanced HR practices and quality kite mark recognition

Customer loyalty - when customers buy a product from the same supplier again and again

Positive brand image - When perception of a brand or product is positive

Social media profile - The information and presence of a firm on platforms such as Facebook and Instagram

Enhanced HR practices - When recruitment, motivation and staff retention are improved due to the positive impact of a firms ethical activity

Recruitment - The process of hiring suitable workers.

Motivation - The willingness to work towards something

Staff retention - the ability of a company to keep its employees and stop them from going to work somewhere else

Quality kite mark - A symbol that can be added to a product to demonstrate that it is of good quality. Awarded by the British Standards institution

Assured standards -

Best practice promoting organisational change - The impact that CSR can have on corporate culture where all staff get on board with the values

Distraction from core business objectives - The impact of CSR where the original business functions such as manufacturing may become neglected

Cost benefit analysis - a decision-making process in which you compare what you will sacrifice and gain by a specific action

Membership costs - The financial implications on being part of organisations that support business ethics such as BSI

Professional bodies in CSR - An organisation which has members from different organisations practicing

CSR monitoring costs - The financial implications of auditing the CSR practices within an organisation, e.g. specialist staff

Administration costs - The financial implications of staff and resources used to support CSR within the organisation

Additional direct staffing costs - Payments to workers assigned to corporate social responsibility activity

Additional indirect staffing costs - Payments to staff not directly assigned to CSR but part of their role may support CSR activity

Training costs - The financial implications of paying for training courses, facilities, cover staff etc when staff are attending training

Green washing - Misleading customers into thinking the brand and its products are more environmentally sound than they are

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B3 Promoting business ethics and CSR policies