Summary Grade 12 Business studies Corporate social responsibility notes

Corporate Social Responsibility


What is corporate social responsibility?
▪ It is management’s obligation to protect and promote the welfare of all stakeholders.



Primary stakeholders
▪ Owners
▪ Employees
▪ Suppliers
▪ Customers
▪ Competitors



Secondary stakeholders
▪ Government
▪ Broad community



Arguments in favour of CSR
▪ Socio-economic problems will increase.
▪ Expertise and resources are already available in companies.
▪ Voluntary CSR commitment will restrict legal enforcement.
▪ Businesses gain goodwill.
▪ Improve general standard of living of community.



Arguments against CSR
▪ Businesses do CSR through satisfying needs with goods and services.
▪ Shareholders lose money.
▪ Distract employees from core responsibilities.
▪ Create expectations from community
▪ CSR programs are not always sustainable which results in a waste of money.



Factors that contribute to the need of CSR in SA
▪ Unequal distribution of wealth.
▪ Poverty.
▪ Crime and violence.
▪ Lack of education and skills.
▪ Technological advancement.




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