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Q1: Do you think that CSR could be enforced by legal requirements?

Is
it good for the companies to be forced to adopt some CSR practices or
should they be voluntary?

CSR:
CSR is about how companies manage the business processes to produce an
overall positive impact on society.

CSR should be enforced by legal requirements because you must consider


your legal requirements when starting any company. If you do not follow
legislative requirements and regulations, your business can face serious
penalties. A range of legal requirements may affect your business.

You must keep all registrations for your business structure up to date.

The Corporations Act 2001 (Cwlth) details requirements relating to


companies and financial products and services.

Intellectual property (IP)
Protecting your IP gives you the legal entitlement to that IP. You can
protect your IP using trademarks, patents and designs.

Employment
Legally, when you employ staff you must meet certain employer
obligations.
You must select the right person for your business in line with the job
description and selection criteria you have specified. Read how to recruit
and interview staff

Supplier agreements
Getting your agreements with suppliers in writing will minimise
misunderstandings and disagreements.
Risk management
Manage risks by avoiding them, minimizing their negative effects,
transferring them to another party, or deciding to accept some of the
possible consequences should they arise.
Contracts
Contract law is complex. Your solicitor can develop standard
agreements for your business to reduce confusion and costs.

Health, safety and the environment (HSE)


Your business must have a responsible attitude to HSE issues.
You have a duty of care to the health and safety of your staff, customers
and the general public

It would be beneficial for companies if they adopt some CSR practices


because CSR has many benefits that can be applied in many companies
or businesses. Benefits are listed below:

1. Enhanced brand image & reputation: A company


considered socially responsible can benefit -both by its
enhanced reputation with the public, as well as its reputation
within the business community, increasing a companys ability
to attract capital and trading partners.

2. Increased sales and customer loyalty: A number of studies


have suggested a large and growing market for the products and
services of companies perceived to be socially responsible.
While businesses must first satisfy customers key buying
criteria such as price, quality, appearance, taste.

3. Increased ability to attract and retain employees :


Companies perceived to have strong CSR commitments often
find it easier to recruit employees, particularly in tight labor
markets

4. Easier access to capital: The Social Investment Forum


reports that, in the U.S. in 1999, there is more than $2 trillion in
assets under management in portfolios that use screens linked
to ethics, the environment, and corporate social responsibility.
It is clear that companies addressing ethical, social, and
environmental responsibilities have rapidly growing access to
capital that might not otherwise have been available.

Q2: How significant is the culture and history of a


country in determining the degree to which the business
community exhibits an interest in CSR?

Knowing the culture of the country in which you are going to be doing
business with is really important as it shows a sign of respect and it will be
strongly appreciated; in fact, not doing so will cause uncomfortable situations.
(that could result in the failure of the business.) So it is important to say that
those who effectively respond to the culture and lifestyle of the country where
they plan to expand have more possibilities of developing successful
businesses than those who dont.

The History of a country plays a vital role. it's important to learn about the
country's history because history always repeats itself. also, when history does
repeat itself, we have a better understanding on how to resolve the repeated
problems that will be faced in future by business and we can get ideas on how
to help our economy by looking back at the Great Depression.

When any business is going to be initiated in a country that business must


know about the culture and history of a country to make the business
successful and to know about the beliefs, wants and demands of the people of
a country about what they likes or what they dont. Business community
exhibits an interest in CSR because it will be beneficial for itself.

The Business Benefits of CSR


CSR should not be viewed as a drain on resources, because carefully
implemented CSR policies can help your Business

Win new business


Increase customer retention
Develop and enhance relationships with customers, suppliers and
networks
Attract, retain and maintain a happy workforce and be an Employer
of Choice
Differentiate yourself from your competitors
Generate innovation and learning and enhance your influence
Improve your business reputation and standing
Provide access to investment and funding opportunities
Generate positive publicity and media opportunities due to media
interest in ethical business activities