Corporate Social Responsibility

Introduction

Why do businesses exist? Are there important factors other than profit to

consider? What motivates you in your purchases when

you have to choose between similar products?

What does it mean to be socially responsible in business?

TRUE / FALSE

1. The primary role of a business is to make and maximize profit.

2. A business is responsible only to the shareholders. 3. Companies can positively and negatively affect the local

community where they work.4. Obeying the labour law means that you pay a fair wage and

provide decent working conditions.5. If businesses were not outsourced into developing

countries the products and brands that we buy would be much more expensive.

6. Even with the lowest wages paid to the workers, companies are helping the local economies of the poorest parts of the world.

7. Doing well is good for your public image and very profitable in the long run.

8. Consumers today are only interested in low prices and don’t care about the behaviour of the company.

9. When you are called a green business it means that you produce or sell fruits and vegetables.

Main areas of CSR: put these terms into 4 groups:Legal issues, ethical issues, philanthropy, green business

obeying labour laws, fair trade products, charity, decent wages, global warming, bribery, tax evasion, greenhouse gases

Main areas of CSR

Legal issues obeying labour laws bribery fraud industrial espionage tax evasion

Ethical issues buying fair trade

products paying decent wages providing acceptable

working conditions using legal loopholes to

one’s advantage

Main areas of CSR

Philanthropy giving to charityGreen business stop global warming reduce greenhouse gas emissions using renewable energy proper toxic waste disposalRisk management creating a code of conduct to aviod big problems in

the company’s area of business spreading the risk: risk management

Inside look at Apple’s sweatshops

Watch The film on the Apple’s Chinese supplier Foxconn

where iPads, iPhones, iPods, Kindles, PlayStations, Wii-s, etc are manufactured.

Before the film: Predict 6 words that will be mentioned in the film. What do you expect to see in the film?

Watch and answer these questions http://www.youtube.com/watch?v=GKk1aHeh87o What are the working conditions like at

Foxconn? Is Foxconn unique with its labour practices? Is it better or worse than others? What can consumers in the West do to

change labour practices in Asia? Why did Foxconn institute some reforms? Are US firms strongly behind these reforms?

Why (not)? Why is it difficult to for journalists to find out

about the conditions in these factories?