3.7.6 social and technological environment

• What is CSR?

  • The extent to which a business addresses the concerns and obligations to its wider stakeholders
  • The actions a business takes over and above the minimum required by law in addressing societal needs and wants
• Arguments for CSR

  • The ethical thing to do
  • Improves a business’ image and reputation
  • Socially responsible actions can be profitable
  • Improved social environment benefits business
  • Helps attract investors
  • Helps to corrects the social problems caused by business
• Case Against CSR

  • The only social responsibility of business is to create shareholder wealth
  • The efficient use of resources will be reduced if businesses are restricted in how they act
  • Businesses cannot decide what is in society’s interest
• What is the Stakeholder Concept?

  • Businesses do not have an unquestioned right to operate in society
  • Those managing business should recognise that they depend on society
  • Business relies on inputs from society and on socially created institutions

  There is a social contract between business and society involving mutual obligations that society and business recognise that they have to each other
• What is migration?

  Movement of people between countries or regions
• What is urbanisation?

  • Movement of people from rural areas to urban areas (towns and cities)
  • Degree of urbanisation: the percentage of the population living in urban areas