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