Unit 20 Investigating Corporate Social Responsibility Assessment Brief
| Qualification | Pearson BTEC Level 3 National Extended Diploma in Business (601/7160/1) |
| Unit Number | 20 |
| Unit Title | Investigating Corporate Social Responsibility |
| Unit Level | 3 |
| Unit Type | Internal |
| Guided learning hours | 60 |
Unit in Brief
Learners develop an understanding of how businesses adopt policies to respond to challenges and how they are socially responsible.
Unit Introduction
In this unit, you will learn how corporate social responsibility (CSR) and ethical behaviour are part of business in the modern marketplace. Consumers make informed decisions about who they select to provide the goods and services they use. You will see how demonstrating a strong corporate social image can lead to a competitive advantage. Businesses that respect and care for the environment and the communities in which they operate, and are also concerned with making the right choices, are more likely to be successful in winning or maintaining customers. You will understand how this incurs additional costs to the business.
You will investigate how major businesses demonstrate their CSR to different stakeholder groups. You will consider how some of the current CSR issues impact on selected businesses and how legislation can encourage businesses to act more responsibly.
This unit will enable you to make an informed choice on suitable CSR businesses for employment or training.
Learning aims
In this unit you will:
A Examine the CSR issues facing large private sector businesses
B Investigate the benefits and drawbacks for businesses of adopting a CSR policy
C Review the CSR record of a private sector business.
Summary of unit
| Learning aim | Key content areas | Recommended assessment approach |
| A Examine the CSR issues facing large private sector businesses | A1 CSR issues and the impact on stakeholders A2 Environmental issues A3 Consumer protection issues A4 Supply chain and community issues A5 Methods of strengthening the CSR image of a business |
A report outlining the key CSR issues facing large businesses, and their stakeholders, that uses up-to-date examples from press reports and/or the businesses own CSR reporting. |
| B Investigate the benefits and drawbacks for businesses of adopting a CSR policy | B1 Benefits of acting responsibly B2 Potential drawbacks from adopting a corporate socially responsible approach to business B3 The costs and benefits of seeking recognition from external bodies |
A presentation explaining the benefits and drawbacks of CSR, the costs and benefits of recognition from key external bodies and an analysis of the competitive advantage gained by a selected business as a result of its CSR activities. Also to include an evaluation of how the selected business has responded to a recent environmental, or social issue. |
| C Review the CSR record of a private sector business | C1 CSR/social audits C2 Corporate governance and executive pay C3 Financial responsibilities C4 Employment and diversity policies C5 Help for communities |
A case study which critically reviews the CSR record of a major business and evaluates its corporate governance. The case study will assess whether the business is successful in meeting its corporate aims and presents an acceptable image through its CSR stance. |
Content
Learning aim A: Examine the CSR issues facing large private sector businesses
A1 CSR issues and the impact on stakeholders
Definition of CSR. Key stakeholder groups:
o owners
o employees
o customers
o suppliers
o governments
o local communities.
A2 Environmental issues
Waste reduction and recycling. Sustainability of resources. Carbon and pollution reduction initiatives. Sustainability.
A3 Consumer protection issues
Statutory and legal requirements:
- product safety
- food labelling
- misleading and inappropriate advertising
- false descriptions
- effect of products on consumer health.
A4 Supply chain and community issues
Statutory and legal requirements:
- the fair treatment and working conditions of employees of key suppliers
- minimum/living wage for both own and suppliers’ workforce
- restrictive trading practices.
A5 Methods of strengthening the CSR image of a business
Promoting diversity and inclusion. Transparency with consumers. Transparency in financial matters. Education and support for the local community. Environmental management.
Learning aim B: Investigate the benefits and drawbacks for businesses of adopting a CSR policy
B1 Benefits of acting responsibly
Improved public opinion. Improve customer loyalty/brand image. Ability to charge premium prices. Enhanced recruitment, motivation and staff retention. Reduced pressure from government and other stakeholder groups.
B2 Potential drawbacks from adopting a corporate socially responsible approach to business
Opportunity cost of implementing policies. Distraction from core business objectives and lowering of operating profits. Smaller businesses less able to trade in a CSR way due to costs. Perceived as a ‘green washing’ exercise with little actual substance. Cost versus benefit analysis of CSR.
B3 The costs and benefits of seeking recognition from external bodies
Types of bodies: o Investors in People o Business in the Community o Fairtrade Foundation o FTSE4Good. Advantages to the business of recognition. Role of the external body to monitor business ethics and policies and assist in organisational change.
Learning aim C: Review the CSR record of a private sector business
C1 CSR/social audits
Definition and purpose of CSR reports/social audits. Internal stakeholders. External stakeholders.
C2 Corporate governance and executive pay
Division of responsibilities, divorce of ownership and control. Decision makers have the requisite skills, principal agent problem. Identification of risk. Appropriate internal checks and controls, such as remuneration committees.
C3 Financial responsibilities
Responsibility to pay taxes promptly/tax avoidance. Corrupt practices, including bribery and fraud. Excessive remuneration, severance packages and corporate bonus systems.
C4 Employment and diversity policies
Promotion of diversity in the workplace. Inclusion and equal opportunities in all areas of the business, from recruitment to promotion, and training opportunities. Health and safety responsibilities.
C5 Help for communities
Impact of the business on the local community: o support for local projects o volunteering in the community o provision of education and training opportunities o job creation for local workers.
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