Corporate Social Responsibility
- The difference between legal compliance and ethical responsibility
- Environmental sustainability and social responsibility
Corporate Social Responsibility: The commitment of business’ to contribute to sustainable economic development, working with employees, their families, the local community and society at large to improve the quality of their life.
Legal compliance: involves making sure that the laws and regulations relating to the operation of a business are strictly observed.
- Penalties for breach of business laws act as a deterrent and assist businesses to understand their obligations
Ethical responsibility: Open and accountable business actions based on respect for people, the community and the broader environment. Ethical responsibility is more than simply complying with laws and regulations. There is growing pressure on business to act in a moral and ethical way and take responsibility for the impact of their actions.
Environmental sustainability: Businesses are taking increasing responsibility for the protection of the environment
This can be achieved through efficient operation that do not waste resources, minimises environmental damage and produces products which add value to the lives of customers and other stakeholders.
Social responsibility: business operations that are not harmful to society or the environment.
Extract from Business Studies Stage 6 Syllabus. © 2010 Board of Studies NSW.