• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

What factors determine the extent to which a business is socially responsible?

Extracts from this document...


What factors determine the extent to which a business is socially responsible? Introduction Social responsibility is the responsibility which companies and businesses are perceived to have towards their stakeholders. This social responsibility can include the environment, shareholders, suppliers, employees, creditors, customers, and the community. These groups are collectively known as stakeholders. The community covers the area around which a business operates, in some case this can lead to global responsibility. My investigation will look to discover to whom business is socially responsible, and why they are so. Many companies however are socially irresponsible, and I will also seek to discover why they are so, and which motives drive them to do it. Research Findings I have researched both responsible and irresponsible companies through media reports, internet websites and through Business Studies textbooks. Every company behaves in a certain manner, this is their ethos, and it determines their actions. Corporate Social Responsibility (CSR) is a priority for some companies, less so for others. There are varying attitudes to CSR are that it either is a waste of money, or that it improves a reputation and therefore improve business. There are many examples of CSR. This can range form the production of free range, or organic foods, and sustainable products. There are a variety of ways and areas in which a company can be socially irresponsible or responsible, and simply because a company is responsible in one area it does not necessitate that it would be responsible in another. These can include environmental issues, women's issues, health, and social issues, diversity issues and educational issues. Discussion We have seen from the above that there are many responsible and irresponsible companies, ranging from small businesses to large sized multinationals. ...read more.


The punishments include wage deductions, having their ears pulled, being pinched or slapped on the b*****k, being forced to run around the factory yards or having to stand for hours in factory yards (being "dried in the sun"). The survey was conducted between September 10 and October 18 this year (1999) and involved surveying workers from 11 different factories producing for Nike. More than 2,000 workers (57% of respondents) indicated that they had seen workers being subject to this sort of extreme verbal abuse or excessive punishment. Workers also reported that they are forced to work extensive overtime, that it is often extremely hot in work rooms, that access to drinking water is inadequate and that they receive very low wages (77% indicated that their basic wage without overtime was less than $US2 per day). (2) 'Sweatshops make McDonald's toys' Hong Kong: Toys given away with McDonald's meals are being produced with the help of child labourers in a sweatshop factory in China, a newspaper reported yesterday. Children as young as 14 work up to 16 hours a day in the factory packaging Winnie the Pooh, Snoopy, Hello Kitty and other toys, the South China Morning Post said. They are paid �1.90 a day, work seven days a week and live 15 to a room in spartan quarters where they sleep on wooden bunk beds with no mattresses, a Post reporter who infiltrated the factory found. A trade union that has visited the factory, City Toys in Shenzhen, southern China, several times, estimates 20 per cent of the 2,000 workers are under China's legal working age of 16. The company's Hong Kong-based director, Mr Jack Lau Kim-hung, said he knew nothing about underage workers. ...read more.


Beyond tightening up its monitoring of suppliers, it has conducted a root-and branch examination of its business to see where it can lessen its environmental and social impact - and has disarmed critics by enlisting their support. Ikea has given money to UNICEF to set up schools in Indian villages, and to Greenpeace, which Dahlvig describes as its 'roving conscience'. Ikea gave $2.5 million to Greenpeace's campaign to save ancient forests and sources wood only from forests certified by the Forest Stewardship Council. Its catalogue - the longest print-run in the world - is printed on chlorine-free paper. Ikea has increased its purchasing from developing countries from 32 to 48 per cent over the past five years in its relentless drive to keep prices low. The further it goes into such countries, the more important the issue becomes. Dahlvig, age 44, has been CEO only since 1999, but his first big project was to complete a code of conduct for Ikea's suppliers - a three-page document called the Ikea way on the environment, a tortuous process that took a year to complete. I-way, an independent auditor, defines a single set of standards for its 1,400 suppliers - the same rules apply in Sweden (still its main source of supply) as in China. (12) British Airways In an interview with a manager of British Airways I asked: In what ways are British Airways responsible to their local community? BA is committed to developing the community not only within their employees and their families but also within the wider area. We sponsor schools, and organise family events, day trips, and special excursions for disabled children and promote self-awareness within our employees. We have a dedicated education section where our employees can learn new skills or gain qualifications during their spare time." ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Structures, Objectives & External Influences section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Structures, Objectives & External Influences essays

  1. Unit 1 Investigating Business of Coca-Cola and Nike

    Any business that doesn't follow or try to achieve their aims is not successful because it hasn't succeeded with its plans. The two businesses have different aims and objectives because of location. Coca-cola enterprise is only located in place where they have their factory.

  2. The Business Environment Coursework. Describe the type of business, purpose and ownership of ...

    I have chosen to look at Tesco's and the differences in how these environments affect the stores in China and England Political factors Politics plays a part in how a business is run. Politics affects everyone in life as it is involves running the country and works in different levels.

  1. Critically evaluate the arguments for and against globalisation, and discuss if such claims are ...

    This in turn reduces the poverty within these countries. Statistics show poverty declined from 28% in 1978 to 9% in 2000 in China. Whereas Indian statistics shows poverty decreasing from 51% in 1978 to 26% in 2000 (Bhagwati 2004). Bhagwati also set a framework maintaining 'trade increases growth, and growth reduces poverty.'

  2. McDonalds ethical issues

    Animals are kept and grown in appalling conditions; just to keep costs down. This shows clearly that McDonald's does not abide by the animal rights and recently PETA launched a protest in 250 McDonald's restaurants around the globe to make customers aware of the McDonald's cruelty towards animals.

  1. Btec National Business Level 3 Year 1 - Exploring Business Activity

    Local and national communities: They might generally concern or worries of business activity. E.g. a local social cost could be pollution from a local factory, when a national social cost might be carbon emissions fro air traffic. ( Microsoft actions of business can have a dramatic effect on communities.

  2. Free essay

    Business Ethics

    t-shirts, hats, backpacks and other consumer items popular with children and among adults? I believe that this kind of activity is legal to young people, but it is profitable to the company. However its cost the industry little but it enables them to make new customers addictives to their products.


    (More information on the PIMS manager can be found in task C2) There is a close relationship between market share and profits. Usually organisations with large market share are more likely to be profitable due to thin profit margins. A group called "The Boston Consultancy Group" have showed this through a experience curve.

  2. Explain the implications for the business and stakeholders of a business operating ethically.

    H&M are under the European Union law therefore they will have to accept all the conditions which are put forward to them. H&M should give priorities to their employees such as they can work up to 48 hours if they would like to do so but H&M cannot force employees to do this.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work