Page 42 - APM Integrated Workbook STUDENT S18-J19

Chapter 2

1.5 Social and ethical issues – the ‘S’ in PEST

Ethics

A set of moral principles that guide behaviour, e.g. is it ethical to drill
for oil? In terms of performance management, the adoption of
ethical behaviour should improve performance.

Corporate social responsibility (CSR)

Refers to the idea that a company should be sensitive to the needs
of all of its stakeholders and not just its shareholders. As such,
ethics is just one dimension of CSR.

Benefits of CSR

Can extend a Method of Can reduce risk Strengthens
product’s life differentiation brand

Attract and retain high Can identify new Lower costs, e.g. less
calibre staff market opportunities energy consumption

The organisation should have some clear objectives in mind regarding its CSR
policy and should measure achievement of those objectives.

Illustrations and further practice

Now try TYUs questions 4–6 and read Illustration 5 from Chapter 2 of the Study
Text.

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