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Social responsibility and corporate citizenship - Coggle Diagram
Social responsibility and corporate citizenship
Social responsibility refers to the need that businesses and individuals feel to better their society through various contributions.
Meaningful social responsibility involves sincere and transparent actions of a business or individual to improve their society.
Unsustainable social responsibility occurs when participating in bettering society results in short-term changes and not long-term sufficiency.
The triple bottom line is a framework that encourages businesses not to solely focus on profit, but the environment and community that they partake in.
Socio-economic issues negatively affect the people and economy of a country.
Unemployment occurs when people who are willing and able to work, cannot seek available job opportunities. Unemployment not only affects people but also businesses because their profits are being reduced.
-Provide skills development and training to employees.
-Employ people from underprivileged areas or communities.
Poverty is a state where people lack the basic necessary resources to live a dignified life.
-Provide employment opportunities to the underprivileged.
-Volunteer
-Participate in food schemes
HIV attacks a body's immune system and renders it weak to fight any infections. Antiretrovirals are taken to prevent the duplication of the virus.
-Provide free treatment.
-Programs should be held to educate and support HIV-positive individuals.
Corporate social responsibility refers specifically to the participation of businesses in prioritizing the sustainability of communities and the environment.
Components
Community
Health and safety
Customers:
-Price
-Quality
The environment
Employment equity
Business ethics
Ethical corporate social investment
Corporate governance:
-Transparency
-Accountability
-Responsibility
Supply chain
Corporate social investment involves monetary donations by businesses to provide long-term support to the community and environment they participate in.
Focus areas
Businesses can volunteer their time, resources, or money to the improvement of communities.
Rural development develops the infrastructure of rural areas, as well as brings them closer to to established urban areas.
Businesses train their employees, provide them with a supportive environment, and aim to improve their well-being.
Businesses participate in green technologies and practices to preserve and conserve the environment they operate in.
Impact of CSR & CSI
On businesses:
-Improves business's image
-Attracts skilled employees, leading to higher productivity and staff retention.
-Attracts investors.
-Provides a competitive advantage
-Without proper financial planning, may run into cash-flow problems.
-Employees may be inexperienced.
On communities:
-Provides employment opportunities.
-Infrastructure is developed.
-Skills development and training are made available.
-Communities may not be sustainable in the long run without assistance from businesses.
-Distribution of resources may be unequal.
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Legal requirements
The Skills Development Act includes the development of community members' and employees' skills.
The Employment Equity Act is adhered to regarding the development of previously disadvantaged individuals' skills.
The Broad-Based Black Economic Empowerment Act comprises 5 pillars, including a business's contribution to CSI initiatives.
The National Skills Development Strategy aims to improve the skills of the previously disadvantaged and correct the inequalities of the past.
Responsible business practices refer to ethical and sustainable choices made by businesses, taking various stakeholders into account.
Areas of responsibility
Legal responsibility
Responsibility towards employees
Responsibility towards the marketplace
Responsibility towards the public
Responsibility towards the enironment
How businesses contribute to the well-being of:
Employees:
-Ensure workers are paid fairly.
-Offer incentives for good work.
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