Page 174 - F1 - AB Integrated Workbook STUDENT 2018-19

Chapter 11

Corporate social responsibility

3.1 Corporate social responsibility

Corporate social responsibility (CSR) refers to the idea that a
company should be sensitive to the needs and wants of all its
stakeholders rather than just the shareholders.

It refers to an organisation’s obligation to maximise its positive impacts upon
stakeholders while minimising the negative impacts.

3.2 Stakeholder needs analysis

This involves an organisation undertaking research to determine:

 Who its key stakeholders are, and:

 What their needs are.

A typical list is not what should be created here. Each company must sit down with a
blank sheet of paper and identify the stakeholders of their business.

There is no better way of understanding stakeholder needs than asking them directly.
Possible methods include questionnaires, focus groups and direct interviews.

3.3 The importance of CSR

Advantages include:

 attractive to customers – it enhances the company’s reputation and
can act as positive advertising

 attractive to potential employees – ethical businesses can attract
higher calibre staff

 it can save the business money – many governments will fine or
increase the taxes of businesses that cause pollution

 it reduces the risk of the organisation – there will be less chance of
adverse environmental reactions against the company.

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