Why do businesses take on CSR? (12/12/23)

• Why do businesses take on CSR?

  • fear employees will go somewhere else
  • if they don't the government could place tighter restricitons on them
  • improves image with customers
• Stakeholder Responsibilities are more likely to be obligations a business cannot reject without serious reputational damage
• Case Study: UK Steel

  • globalistaion meant UK steel was unprofitable to shareholders
  • steel was produced more cheaply in China
  • Shareholders agreed to close it
  • loss of jobs
• Case study: Milk in Supermarkets

  • cheap basic bring customers into stores
  • purchasing power is used to sell other products
  • Supermarkets buy milk for less than it costs, farmers stop selling it
  • customers are happy, suppliers unhappy
  • milk spoils so suppliers begin selling again at reduced price
• Case study: Trafigura

  • set up in 1996 to trade oil and petroleum products
  • 2006 added caustic soda to waste despite this disposal method being banned in Europe
  • dumped waste in sea off Abidjan, creating hydrogen sulfide
  • affected 31,000 Africans