Define corporate social responsibility?
Achieving commercial success in ways that honour ethical values and respect people, communities and the natural environment (McWilliams and Siegel, 2000)
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What is CSR according to the EIU, 2002? (Economist integration unit)
The integration of stakeholder's social, environmental and other concerns into a company's business operation
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What is the viewpoint of the World Business council 2002 on what CSR is?
The commitment of business to contribute to sustainable development by working wit their employees, families, local communities and society at large to improve their lives in ways which are good for business and development
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What should a conscientious business do according to Carroll 1994?
Embrace economic, legal, ethical and philanthropic responsibilities
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What are some of the motivational factors behind organisations adopting CSR practices?
Increased profitability- enhanced brand image/reputation= increased sales and customer loyalty=increased profit= can improve quality/productivity= increased ability to attract/retain employees. Keep up/ahead of competitiors
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Do different industries face the same CSR issues?
Some e.g. worker's rights and working conditions, workplace health and safety. However others- different relevance. Automotive- climate change/energy efficiency. Mining- biodiversity. Food-sustainable production,consumer nutrition,,product labelling
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Which CSR challenges are faced along the different stages of the food industry supply chain?
Sustainable agriculture(production); Ethical trade (production + sale); Food safety (all stages); Nutrition, information, lifestyle + marketing (manufacturing&packaging+ marketing, retail and consumption)
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How has CSR become more sophisticated over time?
Before 1995- basic ethical concepts e.g. No ozone depletion, no animal testing. 1995-2005: more complex e.g. organic, fairtrade, recycling/composting. Since 2005- Sophisticated concepts e.g. carbon and water footprint, buying local, waste prevention.
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What is a migrant worker?
Someone who arrives in a host country with the intention of finding a job
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Why does the food industry have such a need for migrant labour?
Very seasonal nature on farms e.g. for harvesting. Also supermarkets (which dominate 80% of the fresh food UK market) may change their orders on a next day notice- need for free-flowing supply of migrant labour
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Why is migrant labour such a CSR issue in the food industry?
1) Local unemployed? 2) Treatment of workers
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What is the situation in Murcia, S. Spain?
British supermarkets source fresh salads. Hot spot for migrant labourers. But claims- treated very poorly. Paid by number of boxes not number of hours- have to work excessive hours or not paid for hours worked. Exposed to pesticides
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What are people saying about the 40 employment agencies?
Breaching human rights- payed overtime- not payed or if workers refused- blacklisted
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Who does integra empleo supply with workers?
Agroherni- salad for top 5 supermarkets: M&S, Tesco, Waitrose, Sainsburys, ASDA
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What does the ethical trading initiative state about worker overtime?
All overtime should be voluntary- paid at a premium rate
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What addition has M&S made to this?
No work should come under threat of penalty or sanction
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What did the supermarkets say about these claims?
Unaware but now investigating
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Aside from payment what other issues are migrant workers facing?
Exposure to pesticides-farmers spraying in same field as migrants working- breathing in of dangerous fumes- can cause bronchitis - if unable to work- fired
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What was the 2004 Morecambe bay cockling disaster?
23 migrant workers from China were picking cockles- were not aware of tidal times, didn't speak English, supplied by employment agency to a father & son business. One worker tried to alert emergency services but couldn't communicate. All died.
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What is the gangmasters licensing act?
Set in 2004 by the UK Gov- to regulate the agencies which place vulnerable workers in the agricultural work shellfish collecting and industries packing- they must all get a licence and adhere to proper labour practice standards
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What % of cocoa is produced in W. Africa?
73% of the 4 million tons world supply-( produced 2 million farms)
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What CSR issue is involved?
> 1.8 million children work without pay in hazardous conditions- exposure to harmful pesticides and utilisation of dangerous tools such as machetes. Worked long hours- dawn until dusk.
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Why do the children go to then stay on the cocoa farms?
False pretense- impression will be payed. Then over 300 miles from home- don't know where they are. Threatened by the farmers, Sometimes kept confined at night- e.g. locked in small sheds.. Or beaten if escape attempts are made.
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How many bars of chocolate on average do UK consumers consume?
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Words of a worker from channel 4 film clip?
"Enjoying something I worked hard to produce and saw no benefit. They are eating my flesh"
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Why is it taking so long for chocolate companies to admit to the problem of child labour in the supply chain?
Damage to reputation and brand if proven; difficult to tackle in short-time period, changes required to cultures and social norms= difficult
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How much is the chocolate industry worth each year?
US$110 billion
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What actions has Nestle recently taken to contribute towards reducing the problem?
Asked the Fair Labour association to map out the supply chains and has pledged $120 million for a sustainable cocoa plan: Stop child labour, ensure supply of sustainable cocoa and improve lives of farmers
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How much does the average cocoa farmer earn?
10% of the absolute poverty line- you can increase the average wage by tenfold and the producers would still be incredibly poor (Antonie Fountain, Voice Network)
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How has the price of cocoa changed over time?
Peak in 1970s- more than double current value. Value of cocoa as a proportion of the bar has decreased from 12% in 1980 to 8% in 2012
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What do chocolate companies spend the majority of their expenditure on?
Market research
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How important is the cocoa industry to the Ivory Coast?
20% of the economy. 1 million cocoa farmers
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What has recently been put into place by the Ivorian government to attempt to help cocoa farmers and the economy? What limitations are there to this?
Farmers are now guaranteed a minimum price- US $1.86 in 2016 per kilo beans. But producers need to produce enough to make suitable income.
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Why is Nestle running a research development programme into cocoa crops?
Cocoa farms= aging/in decline- farmers giving up- not economic- changing to rubber or migrating to urban areas for work.. Make plantations more economic or lose future farmers-"super saplings""=disease resistant. plan: give away 12 million trees.
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Why do farmers get such a low price for coffee beans?
Value is added when beans are processed e.g. liquor, butter etc. Farmers don't receive this
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How widespread is certification for beans produced with stated: no child labour?
20% beans sold = certified
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What commitments has Hershey made in the context of bean certification?
Will source 100% beans from certified sources by 2020
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How effective is fairtrade in reducing child labour from the cocoa supply industry?
Farms in cooperatives must be inspected-if child labour found-may be banned for a short period. However- many farms= not fairtrade or unaware of fairtrade policy
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What is one of the biggest difficulties faced to reduce child labour?
Symptom of poverty- no electric, sanitation, running water often. Farmers= unable to afford to pay workers so use
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How large is the contribution by the cocoa industry to supporting villages producing cocoa?
US$75 million over 10 years. Compared to US$180 million in one year
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How many people get ill from drinking piped water in the US?
Estimates 500-000 to 7 million (no accurate records kept)
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What is the problem with the US tap water?
Waterborne bugs, viruses, bacteria etc - 40% stomach bugs from drinking water supply, rocket fuel, pesticides, industrial chemicals. A lot of bottled water= tap. Also exposed to chemicals by showering. Pharmaceuticals, drugs etc.
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What problems have been created in India by the green revolution?
Crops used= not efficient for the climate- 5-10x more water used to produce the same amount of food. (Vandana Shiva)
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Which sectors use the most water?
70% water worldwide= used by agriculture; 20% for industry; 10% for domestic use
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How does agriculture affect water?
Intensive use of water for crops unsuited to the natural climate. Heavy use of chemical pesticides, fertilizers etc- washed into water bodies.
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What are some of the effects believed to be associated with agricultural affect on water?
Birth defects, mexico; Fertility decline, Europe in areas of heavy pesticide use; cancer rates increase of 200% possibly due to heavy pesticide use
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What is happening to aquatic organisms?
Seine River- fish changing sex into females. Texas- high levels of Prozac in fish tissue. Industrial toxins found in seals, whales, polar bears and fish (chemicals disperse widely).
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What is the biggest contaminant of water in the US? What effects does it have?
Atrazine- produced by syngenta. Demasculinised -chemically castrated frogs. Also feminised. Could lead to low sperm counts, prostate cancers, ovarian cancers
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What is the only way to limit the effects of Altrazine?
Ban- can travel up to 600 miles /1000 km in rainwater
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Which countries have banned Altrazine?
Entire European Union
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How much Altrazine reaches the US water supply?
80 million pounds used- 1/2 million pounds makes its way into the water system
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What was the american governments response to dealing with Altrazine?
EPA had private negotiations with Syngenta -50 times - made a deal- no crackdown or ban. EPA statement:"No harm will result from exposure to Altrazine" (2006)
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Why was a river leading to Lake Titicaca in El Alto, La Paz, Bolivia covered over?
Cemented it because it smelled so bad- blood and waste dumped in from slaughter houses, and ra w sewage
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What did Suez promise to do in El Alto?
Promised US$8 million sewage facility. Just diverted sewage into river
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What is happening to the management of water?
Traditionally- public service but recently- three water companies from Europe- Suez, Vivendi, Thames water (fortune 500 companies)- taking control of water systems
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What was the idea of privatising the water supplies of La Paz and El Alto? What happened instead?
To provide better potable water supply and sewage treatment. 208,000 people excluded from potable water in La Paz alone
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How big is the issue of poor water and sanitation in Boliva according to the Democracy Centre, Bolivia?
1/10 children die before the age of 5- the majority of this is attributable to waterborne diseases etc.
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When did the Bolivian government privatise the water systems of Cochabamba?
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Why did the Bolivian government privatise?
World bank 1997- said if they did not privatise the water systems of El Alto and Cochabamba- would be cut off from all water supply developments from the world bank
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What happened in 2007?
The Bolovian government ended the Suez contract and returned the water systems to the people of La Paz
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What is the problem of supplying houses with taps in S.Africa sometimes?
Still may have to pay for actual supply
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How many hours do people sometimes wait for water in S.Africa?
5 hours
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What are some communities doing in Chatsworth indian community in S.Africa?
Reconnecting people's water and electricity
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What does Vivendi have to say about the idea of water for the people?
"Have no problem. Just the operators of the system because they have a lot of experience. We sell our knowledge"
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What is the UN millennium goal with regards to water?
Halve the number of people without sustainable access to potable water and safe sanitation- met.
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How might consumers contribute to reducing child labour?
Purchasing choice- buying products that are certified e.g. fairtrade, organic, UTZ certified, rainforest alliance. Put pressure onto brands to source more ethically.
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What quantity of chocolate is consumed per year in the UK according to Panorama. Chocolate: The bitter truth aired in 2010?
1/2 million tonnes
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According to the ILO which aspects of child labour are prohibited?
Worst aspects- work likely to harm the health, safety or morals of children e.g. utilisation of hazardous tools or prevention of schooling
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Who are the ILO?
International labour organisation
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What is the Harkin- Engel protocol?
is a voluntary public-private agreement to eliminate the worst forms of child labor (defined according to the International Labor Organization (ILO)'s Convention 182) in the growth and processing of cocoa in Côte d’Ivoire and Ghana.
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What was meant to happen as a result of the Harkin-Engel protocol?
6 point plan- date-specific actions incl. acknowledging problem of forced child labour, forming an advisory group: research labour practices (2001) and forming foundation:oversee efforts to eliminate worst forms; industry wide certification (2005)
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Why do some children voluntarily migrate across the border from Mali to Cote d'Ivoire?
Poverty in Mali = push factor. Want to help parents (culture)/believe they need to. Perception of Ivory coast as a rich nation.
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Why have programmes aimed to combat child trafficking been unsuccessful?
Do not last long enough to change the mindset of rural people and reduce their tolerance of those who organise the trafficking
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Why is the Cote d'Ivoire have an image of being rich to people in adjacent countries? What changed for the country?
Until 1980's-Ivorian miracle. Growth strategy was cocoa- high market prices= considerable state profits. But oversupply. Stock traders hoarded supplies and drove prices down. now regulate markets to their advantage 1999/2000: stocks=50% consumption.
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What strategy has been implemented by the Ivorian government to try and alleviate poverty for cocoa producers?
Introduced a minimum "farm gate price" aiming to support farmers by setting a guaranteed price for the upcoming year. Gov has been slowly increasing since it was introduced in 2011. In 2015-US$1.70 per kilo.
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Was the certification aim for the Harkin-Engel protocol achieved?
No- neither was the 5 year extension given
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Why might it not be a good idea to try and supply water to communities in developing countries using centralised grid systems??
Communities are widely dispersed- expensive
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What piece of technology is allowing the Bomminampadu village community to access potable water? Why is it affordable?
Ultra-violet water purification. Run by the community. Just enough money charged to hire a local person to run the plant. Benefits to 300,000 people. Affordable even to those below the poverty line.
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How many years of water does California have left?
27 years
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What is the biggest commodity behind oil and electricity?
Water- US$400 billion industry
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How serious is the human impact on the planet and ecology?
Brink of 6th great mass extinction- climate change- water shortages etc.
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How much is spent on bottled water globally per year?
US$1 billion
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Why might bottled water not be safer than tap?
No regulations. Can contain anything. Some can contain arsenic, organic chemicals, bacteria etc. Some brands named as "pure mountain water"- just tap.
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How much money would it take to provide safe, clean, drinking water to the entire planet?
US$30 billion (UN)
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Over the 20th century, how many people were displaced by large dams?
40-80 million people (World commission on dams)
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How does a typical dam compare in terms of greenhouse gas contribution to power stations?
Can be 10 x as polluting - release of methane from submerging of vegetation and build up of sediment and algal blooms in the reservoir
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Why does the world bank prefer to lend money for large projects?
Has to lend US$20 billion per year or profits decrease. Large projects e.g. dams- take up a larger proportion of this quota
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Why did the community of Mecosta county, Michigan take Nestle to court?
Nestle established water bottling plant- 450 gallon every day-pay nothing. Stream discharge decreased. Community crowd-funded to take Nestle to court. Nestle continued to pump throughout. Hired private investigator to find out who signed petition
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What happened as a result of the court hearing?
Judge ruled in community's favour- said it was unlawful.said stop. Nestle appealed+ asked permission to pump during appeal process- granted by council. 2005- ruled could at "reasonable rate" - 218 gallons/day. community went supreme court of michigan
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What did Nestle say to the supreme court of michigan which then ruled in their favour?
Said it was unconstitutional for a citizen to sue them unless their own property was affected
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How much does Nestle make in profits from the Mecosta water bottling plant? How much do they contribute to the local community?
US$ 1.8 million / day. Nestle received US$ 10 million in tax abatements
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Other cards in this set

Card 2


What is CSR according to the EIU, 2002? (Economist integration unit)


The integration of stakeholder's social, environmental and other concerns into a company's business operation

Card 3


What is the viewpoint of the World Business council 2002 on what CSR is?


Preview of the front of card 3

Card 4


What should a conscientious business do according to Carroll 1994?


Preview of the front of card 4

Card 5


What are some of the motivational factors behind organisations adopting CSR practices?


Preview of the front of card 5
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