Corporate Social Responsibility

Corporate Social Responsibility

Task 1

Corporate social responsibility (CSR) is a valuable part of business management today. CSR is a self-regulating business practice that enables businesses to be socially accountable to their stakeholders and society (Carroll & Shabana, 2010). CSR studies have also found that this business practice can be beneficial for business performance. The following report explores the importance of the company adopting CSR policies and practices. The report addresses the regulatory framework for CSR, the environmental issues in CSR, and the social and community issues that can be addressed in CSR.

Do you need an original copy of “Corporate Social Responsibility” ? Contact us.

The History of CSR

Businesses have not always had CSR policies and practices integrated into their business strategies. CSR practice only started in the 1970s and gained popularity in the 1990s (Babiak & Trendafilova, 2011). Today, a majority of businesses engage in CSR practices, both because of regulatory requirements and their desire to develop sustainable businesses (Babiak & Trendafilova, 2011). Several factors have caused the changes in the attitudes towards CSR practices. Public and media pressure is one of the factors that has influenced businesses’ perceptions of CSR practices. Unsustainable businesses face a lot of pressure from the public and media. This pressure creates reputational risk and eventually affects the businesses’ bottom line. Therefore, they are forced to embrace CSR as part of their business strategy. An example of a company that has been through this is Nike, Inc. Nike first adopted CSR practices in the late 1990s after facing a lot of backlash related to its labor practices. The company’s production units in Asian countries had very poor labor practices, such as low pay and poor working conditions (Paine et al., 2013). The media’s focus on these practices started to affect Nike’s reputation and, thus, its performance. The company was forced to integrate CSR into its strategy by creating a social responsibility business unit that is connected to other business units. Aside from the labor issues, the CSR unit at Nike has since addressed other issues, such as environmental sustainability.

Other than public pressure, many businesses are changing their attitudes towards CSR because of the benefits they stand to gain from being sustainable. Corporate social responsibility is beneficial for businesses as it can improve financial performance (Carroll & Shabana, 2010). CSR enhances a business’s reputation, thus creating greater customer relationships and increasing customer loyalty. These benefits enhance the business’s strategic effectiveness and improve its financial performance (Carroll & Shabana, 2010). Nike is an example of a company that has been successful in its management of CSR activities and is benefiting from it. Since the company was motivated to start CSR practices in reaction to media backlash, it decided to embrace a proactive approach to social responsibility. The company first created a committee from its board of directors to manage the social responsibility practices. They later created a CSR unit that managed all of its social responsibility practices. As a result, Nike has some of the best CSR practices among global companies. The company was one of the first to start reporting its CSR practices in its annual reports, hence creating public awareness of the business’s sustainability practices. Nike provides a great example of successful social responsibility that other companies can learn from.

The Regulatory Framework for CSR

If this company is to adopt a CSR strategy, it will be critical for its leaders to understand the CSR regulatory framework in the United States. CSR regulatory frameworks vary depending on the business region and its industry. In the United States, CSR is a form of soft law. This means that CSR practices are not regulated by any federal regulations or statutes. However, businesses still see these practices as obligatory because of the consumers’ and community’s expectations (Babiak & Trendafilova, 2011). Most businesses engage in CSR activities, not because they are a legal requirement but because these practices play an important role in their bottom line.

However, U.S. law provides some legislative protections to govern CSR practices and encourage businesses to be sustainable in their practices. For instance, there are government regulations that prohibit business practices that might cause harm to society (Babiak & Trendafilova, 2011). An example of such regulation is the law on environmental protection. Businesses can be forced to invest in sustainable and socially responsible practices in line with the requirements of environmental laws such as the Environmental Protection Act, the Toxic Substances Control Act, and the Clean Air Act. Other laws that control CSR in businesses include accounting regulations such as the Sarbanes-Oxley Act and the Securities and Exchange Act. These policies regulate CSR practices in businesses to prevent CSR misconduct. The Consumer Protection Act regulates businesses against “faux CSR”. Some businesses may use CSR activities as marketing tools masquerading as social responsibility. For instance, this regulation protects against the use of CSR to propagate unfair marketing practices. Therefore, as much as CSR is not regulated by law in itself, many policies have been created to regulate how businesses approach social responsibility. These laws are in place to protect stakeholders.

Environmental Issues in CSR

Environmental sustainability is one of the biggest segments of social responsibility practices in many businesses. Many companies with CSR strategies include plans on how they can create more environmentally sustainable business practices (Babiak & Trendafilova, 2011). Environmental CSR aims to reduce the extent to which businesses cause damaging effects on the environment. Approximately 70% of the global emissions are caused by business corporations. Therefore, businesses have been trying to engage in practices to reduce their environmental impact.

Environmental CSR can include a wide array of activities that improve businesses’ environmental impact. Some of the common practices used by businesses to enhance their sustainability include the use of green energy in a segment of their entire operations, engaging in responsible waste management, recycling raw materials, using eco-friendly office supplies, and minimizing emissions.

Environmental CSR is not just beneficial to society but also to the businesses that invest in it. Environmental CSR can provide potential opportunities for reducing business costs. For instance, investing in the installation of solar power-generating assets can help a business significantly reduce its energy costs. Recycling raw materials not only improves environmental sustainability but also improves businesses’ cost savings on the purchase of these materials. Environmental CSR can also improve business efficiency (Babiak & Trendafilova, 2011). Even the smallest changes in a business’s sustainability practices can increase its operational efficiency and enhance overall business performance. Lastly, environmental CSR can improve business revenue. Engaging in business practices that protect the environment helps businesses gain the support of customers who are environmentally conscious and prefer to buy from responsible companies. Therefore, as part of the CSR strategy, this company should increase its investments in the development of more sustainable business practices.

Social and Community Issues in CSR

Integrating CSR into business practices may mean being more aware and involved in issues relating to social and community development. Part of giving back to the community through CSR is creating better communities for the people living in it. This means investing in activities that optimize the living conditions and development of communities. An example of a social issue that has commonly been addressed through CSR is human rights. Companies demonstrate their support to their communities by investing in the advancement of human rights issues. Racial and ethnic inequality is an example of a social issue that has often been supported by businesses. Businesses can do this by creating more diverse business practices and making their internal and external business practices more accessible to marginalized communities. Nike provides a great example of social and community involvement when it comes to the issue of inequality. The company has been openly vocal on matters relating to racial discrimination and police brutality (Paine et al., 2013). Additionally, this company makes an effort to make their businesses more inclusive. They were the first sports apparel company to create modest swimming sports attire to include Muslim women, who prefer less revealing apparel, in their brand. Social and community development can also mean proactive investment in the development of communities (Paine et al., 2013). Practices such as sponsoring education and providing internship opportunities can be a great way for the business to show its support for the development of the community that it serves.

Investing in social and community development is also beneficial to the business. These practices help the business to develop better relationships with the community, which is made up of its key stakeholders. Many consumers want to be associated with a business that cares about their development. Therefore, the business enhances its brand and gains more trust from the community members. This can lead to greater financial performance (Carroll & Shabana, 2010). If this business is to invest in CSR development, part of the investment needs to go into addressing the social and community issues.

Task 2

Developing a CSR policy benefits different business stakeholders. In the past decade, CSR practices by businesses have become important, not just as an expectation, but also for the effects that they have on businesses’ stakeholders. Customers, employees, suppliers, investors, and community members are some of the stakeholders who are largely affected by CSR policy. As the company adopts such a policy, it needs to focus on the potential benefits that it could have for its stakeholders. The following is an assessment of the benefits that CSR could have on employees, the supply chain, and team and business performance.

Benefits of CSR to Employees

The way a company treats communities is directly connected to the way the company treats its employees. A company that cares about the community most likely cares about its employees as well. Good CSR policies have often been associated with greater employee satisfaction (Lee, Lee & Li, 2012). Part of demonstrating social responsibility is demonstrating support and respect for the company’s employees. Additionally, CSR encourages the development of a safe work environment for employees. When businesses develop CSR policies, they include strategies to make the workplace safer for the employees and other people who may be in that environment (Lee, Lee & Li, 2012). For instance, CSR promotes the investment in the provision of appropriate work gear for employees because the company cares about their safety. Most importantly, CSR can help to encourage good labor relations. Companies that care about their employees will likely pay them well and provide them with flexible working hours.

CSR can also benefit employees by creating greater engagement. When organizations implement best practices, they encourage employees to be more committed to the organization (Lee, Lee & Li, 2012). Employees want to be part of organizations that care about them and the communities that they come from. Therefore, employees in companies that have invested in CSR are likely to be more engaged with other employees and their organizational leaders (Lee, Lee & Li, 2012). The employees will be engaged with the rest of the organization to demonstrate their commitment to the organization’s success.

A good CSR policy can also reduce employee turnover. Employee turnover refers to the degree to which employees leave a company (Lee, Lee & Li, 2012). With good CSR, a business has better capabilities to keep its employees for longer. High turnover rates are caused by poor motivation from employees. Employees who are poorly motivated may leave to look for better employers. However, with a good CSR policy, a company can implement practices that make the workplace environment more motivating for their employees (Lee, Lee & Li, 2012). Employees will, therefore, be willing to stay at the organization for longer periods.

Impact of CSR on the Supply Chain

CSR practices can help to improve supply chain management. A CSR policy helps businesses to adopt new business models that improve their supply chain management performance. One of the ways that CSR can benefit the supply chain is by eliminating some of the supply chain risks (Valdez-Juárez et al., 2018). CSR practices, specifically in the environmental arena, can eliminate environmental risks that affect the smooth functioning of the supply chain. Environmental risks are issues related to the environment that may affect a business’s supply chain efficiency. For instance, penalties, legal action, and the negative reputation of the company can affect its supply chain performance efficiency. Investing in environmental research and innovation, in line with the CSR strategy, helps to minimize the risks of these supply chain disruptions.

CSR policy can also improve the supply chain by improving supply chain relationships. An effective supply chain requires the effective integration of important roles. To create this integration, many businesses depend on the development of good supply chain relationships (Valdez-Juárez et al., 2018). For example, a business must have good relationships with the suppliers of important raw materials needed for their business. CSR helps to strengthen such relationships. This policy encourages businesses to develop supply chain practices that attract good partnerships (Valdez-Juárez et al., 2018). For instance, environmentally sustainable practices by a business will encourage businesses with similar goals to partner with them. The opposite of such behavior might repel good supply chain partners. Therefore, CSR policies can help to create efficiency in the movement of goods through the supply chain by encouraging better supply chain relationships and integration.

CSR can also encourage supply chain innovation, hence increasing overall efficiency and performance. The achievement of some of the key goals of a CSR strategy requires a lot of innovation (Valdez-Juárez et al., 2018). For example, a business may have the goal of eliminating unnecessary waste from its business processes. Such a process would require investment in more energy-efficient equipment. As a result, the company gets to improve overall business efficiency while meeting its CSR goals. Therefore, developing a CSR strategy is an effective way of driving business innovation to improve supply chain management effectiveness.

How a CSR Policy Will Impact the Senior Management Team and Business Performance

A CSR policy can also improve leadership and management performance in an organization. First, a CSR policy influences senior management performance by encouraging ethical business practices (Kim & Thapa, 2018). CSR policies guide businesses towards socially responsible practices. Such practices require ethical leadership to be successful. CSR practices involve the demonstration of integrity and high ethical standards towards the internal and external stakeholders. The business leaders will be making decisions in line with the responsible principles set out in the CSR policy (Kim & Thapa, 2018). Additionally, CSR policies also help organizational leaders to hold their employees accountable for unethical practices. The policy sets out the standards of practice in the organization, which all its members must follow. Therefore, senior managers can be better at monitoring and changing employees’ behaviors.

The culture of ethics and responsibility in the business drives organizational performance. Consistently ethical business practices help to develop good relationships with the key business stakeholders that drive performance (Kim & Thapa, 2018). For example, good business practices can drive sales by developing better relationships with customers. Ethical business practices encourage the development of sustainable products that customers want to have; therefore, they encourage higher sales.

Potential Conflicts When Trying to Address the Needs of Different Stakeholders

However, businesses cannot always please all stakeholders. Potential conflicts may arise as a business tries to develop CSR strategies that meet the needs of different stakeholders. These conflicts arise from conflicting expectations from key stakeholders (Tara & Betts, 2015). For example, the primary goal of a business is to make profits for its shareholders. To meet the needs of the shareholders, the business must adopt all approaches possible to minimize operational costs and increase revenue. The increased revenue means that the shareholders get to earn more from the company. However, meeting these needs may sometimes mean engaging in less sustainable business practices. For example, using petroleum machines with greater levels of emissions might be more cost-effective than developing efficient renewable energy sources. A business in such a situation faces the dilemma of choosing between fulfilling the needs of its shareholders or those of the communities that care about its sustainability (Tara & Betts, 2015). Another example of such a conflict may occur in a case where a business needs to minimize costs or enhance the welfare of its workers. Some companies choose to manufacture their products in overseas plants, usually in Asia, where they can access cheap labor. However, cheap labor is usually at the expense of the workers’ welfare.

To have an effective CSR policy, the business needs to learn how to manage such conflicts. If possible, a company must first try to implement strategies for aligning stakeholder interests (Tara & Betts, 2015). For example, if a company is trying to attain environmental sustainability, but it is costly, they can present the business case for the plan to get shareholders on board. The lack of environmental sustainability can be costly in the long run. If the business can successfully explain this to shareholders, they can get on board to adopt the more sustainable processes. However, in some cases, it is difficult to achieve homogeneity in the stakeholders’ interests. In such cases, the business leaders may have to choose the CSR strategies that are most aligned with the business’s objectives (Tara & Betts, 2015). If the business’s objectives lie towards pleasing shareholders, then the decisions that are made should be designed to meet their needs.

Task 3

One of the ways to start developing a new CSR policy is to evaluate the CSR practices of businesses that have excelled in this area. Nike is a sports apparel manufacturer that excels in this area. The fact that the company has only adopted a CSR strategy in the past three decades makes it a great example for other sports clothing manufacturers. The following is an assessment of Nike’s CSR policy and some recommendations on where the company can improve it.

A Review of Nike CSR Policy

In the area of CSR and sustainability, Nike is one of the companies that have achieved major milestones during the past three decades. The company’s new CSR strategy has helped it to move from being the villain to the hero in the area of social responsibility and sustainability. The following are the key elements of the company’s CSR policy.

Employee Relations

One of the key focus of Nike’s CSR strategy is employee relations. Employee relations was the main factor that motivated Nike to start investing in its CSR strategy and has remained the main focus of its CSR practices. Nike first started investing in CSR after facing backlash relating to its employee practices (Paine et al., 2013). Today, the company expresses an open commitment to make its workplaces safe for its employees. In the 2013 annual report, Nike reported that it has over a million employees working in over 850 contract factories. There are over 2.5 million across the Nike value chain that the company is committed to protecting. The company has implemented several policies to support its workers (Paine et al., 2013). They demand that all their third-party contractors follow these policies and regularly audit their practices.

In spite of Nike’s efforts to reduce unfavorable working conditions in its factories, Nike has found violations in a large percentage of third-party contractors. At least 16% of the factories have been found in violation of labor practices such as excess overtime for their employees. The Bangladesh Rana Factory collapse that occurred in 2013 also brought attention to the worker exploitation that is still going on in the garment manufacturing industry. This incident caused Nike to explore the possibility of stopping production in Bangladesh.

Environmental Sustainability

Another major focus of Nike’s CSR policy is environmental sustainability. The main focus of the company is to improve sustainability in its supply chain. One of the main areas that the company has focused on is water conservation. The company’s CSR policy mentions its dedication to understanding its overall water footprint and identifying areas in which it can make sustainability improvements in its value chain (Paine et al., 2013). Maintaining water sustainability does not just help the company attain its environmental management goals but also protects the well-being of its workers and communities. One of the ways that Nike is achieving the goal of reducing water use in its value chain is by reducing the amount of water used in the textile dyeing process.

Transparency

Nike’s CSR strategy also encourages transparency. Since CSR became one of the main focuses of the company’s strategy, it has been committed to being transparent about its CSR practices to its stakeholders. Nike was one of the first companies to start reporting its CSR practices in its annual report. CSR reporting is a way of promoting accountability (Paine et al., 2013). The company will be committed to engaging in CSR practices throughout the year if it is to report on them in its annual report. The transparency of the company’s CSR practices is connected to the company’s commitment to consistent CSR.

Recommended Changes to the CSR Policy

While Nike has made some significant commitments to its social responsibility, there is always room for improvement. The company needs to increase its focus on some areas to increase social responsibility towards all stakeholders. The following are some of the changes that the company can make to improve its CSR policy.

Suppliers

Although Nike has made an effort to develop social responsibility requirements for its suppliers, almost 20% of suppliers still violate the CSR requirements. Additionally, the Bangladesh accident shows that the company still has suppliers who are breaking the worker relations requirements set by the company. One of the changes that the company can make to improve this issue is to follow up on the idea of moving its production practices from the Bangladesh third-party manufacturers. The implementation of good worker relations is dependent on Nike’s policy as well as the employment law in the countries within which they produce. If the employment law of the country cannot align with the sustainability goals of the company, it will be hard for the company to monitor all the hundreds of plants. Therefore, the best solution may be moving the company’s practices to a country with better employment laws.

Customers

Nike can also improve its CSR policy by developing practices that focus on its clients. One of the ways that the company can achieve this is by providing better accessibility to its products. Nike’s CSR strategy concerning its clients has been about diversity and inclusion. However, its products are not easily accessible to a lot of people, especially those in developing countries. Therefore, the company can engage in community projects to ensure that more people in developing economies can have easier access to Nike products.

Employees

While Nike has made some efforts to create safe working environments for employees, the company has still been criticized for its refusal to allow worker unions for its employees (Zick, 2013). One of the changes that Nike can make to its CSR strategy relating to employees is to respect its employees’ freedom of union. Nike employees need the freedom to form unions and associations that will negotiate their needs on their behalf. Allowing the formation of workers’ unions is one area that Nike can use to demonstrate its commitment to helping employees achieve the best working conditions.

Environment

Nike has made some significant efforts to be more environmentally sustainable at all levels of the supply chain. However, one area in which the company still faces significant limitations is the control of emissions (Zick, 2013). The company has faced several violations over emissions’ violations. Therefore, the company can improve its CSR policy by creating a plan to move towards more sustainable energy use. The company can slowly invest in the integration of renewable energy into its production processes. In doing this, the company will significantly reduce its emissions to promote environmental sustainability.

Community

Nike needs to increase its contribution to community development instead of responding only to issues affecting the community. The company should be more proactive in addressing social issues. For example, the company’s community impact fund provides great resources that can be used to develop its local communities (Soares, 2016). Additionally, the company should extend these investments beyond the United States communities. These funds should be invested more into the communities in Asian countries where a majority of the company’s production occurs. This investment will help to develop the communities that help the company maintain its value chain.

Potential Impact of the Recommended Changes on Business Performance

The changes that have been suggested above can help improve Nike’s business performance positively. The changes in employee and supplier social responsibility policies aim to improve the company’s protection of employee safety. By targeting suppliers who can protect employee welfare and allowing employees bargaining power; this company will be showing its commitment to completely eliminating poor employee practices. As a result, the company will increase employee morale and, subsequently, their performance. Improved labor relations help to increase employee satisfaction by creating safer workplaces for the workers.

The suggested changes also help to improve the company’s reputation. In spite of the efforts that this company has made to improve its social responsibility policy, it has still been the center of certain controversies (Zick, 2013). These suggested changes can improve the reputational risk that the company currently faces. An improved reputation will help the company to improve its stakeholder relationships. Stakeholders usually want to be associated with businesses that demonstrate concern for their social responsibility. Therefore, better policies improve Nike’s relationships with its stakeholders.

The changes that focus on environmental sustainability can improve Nike’s supply chain value. Using more renewable energy sources can significantly reduce the costs that the company spends on energy. Greater energy savings means that the operation costs are reduced. Therefore, Nike can improve the overall value of its operations by investing in better energy sources.

References

Babiak, K., & Trendafilova, S. (2011). CSR and environmental responsibility: motives and pressures to adopt green management practices. Corporate social responsibility and environmental management, 18(1), 11-24.

Carroll, A. B., & Shabana, K. M. (2010). The business case for corporate social responsibility: A review of concepts, research and practice. International journal of management reviews, 12(1), 85-105.

Kim, M. S., & Thapa, B. (2018). Relationship of ethical leadership, corporate social responsibility and organizational performance. Sustainability, 10(2), 447.

Lee, Y. K., Lee, K. H., & Li, D. X. (2012). The impact of CSR on relationship quality and relationship outcomes: A perspective of service employees. International Journal of Hospitality Management, 31(3), 745-756.

Paine, L. S., Hsieh, N. H., & Adamsons, L. (2013). Governance and sustainability at Nike (A). Harvard Business Review

Soares, E. T. P. (2016). Closing the ‘CSR gap’ through a successful CSR strategy: insights from Nike Inc (Doctoral dissertation).

Taran, Z., & Betts, S. (2015). Corporate Social Responsibility and Conflicting Stakeholder Interest: Using Matching and Advocacy Approaches to Align Initiatives with Issues. Journal of Legal, Ethical and Regulatory Issues, 18(2), 55.

Valdez-Juárez, L. E., Gallardo-Vázquez, D., & Ramos-Escobar, E. A. (2018). CSR and the Supply Chain: Effects on the Results of SMEs. Sustainability, 10(7), 2356.

Zick, P. (2013). CSR infrastructure for communication and the Nike controversy. Journal of Management & Sustainability, 3, 63.

ORDER A PLAGIARISM-FREE PAPER HERE

We’ll write everything from scratch

---

Corporate Social Responsibility

Scenario

You are working for a well-known sports clothing manufacturer.  Your company has recently received a lot of bad publicity because of investigations and reports in the press about human rights and conditions for workers in factories used by the company.  Workers have reported abuse, low wages and poor physical working environments.  There is a code of conduct for suppliers but no means of ensuring it is adhered to.  This issue has caused the company to consider other corporate social responsibility (CSR) issues such as carbon neutrality and recycling.  It has become apparent to senior managers that a CSR policy is needed but the Board must be convinced of this. You have been asked to write a report on current corporate social responsibility issues facing the business, which the senior management team will consider at their next meeting before discussing with the Board.

Task 1

Produce an explanatory report for the senior management team which covers the following:

• an analysis of the regulatory framework for CSR (AC1.1)
  

  Corporate Social Responsibility

• an analysis of environmental issues in CSR (AC1.2)
• an analysis of social and community issues in CSR (AC1.3).

Merit task

To achieve a Merit, you must add a section to your report where you assess changing attitudes to CSR (AC1M1).

Distinction task

To achieve a Distinction, you must add a section to your report where you evaluate the success of a chosen organisation in managing CSR issues. This may be an organisation which you have worked for, or one that you can research. (AC1D1).

Task 2

Following submission of your report, the senior management team wish to understand the impact of corporate social responsibility policy on different stakeholders.  They invite you to a meeting to discuss aspects of the impact.  Prepare discussion notes in the form of detailed information on the following aspects so that you are prepared to present any or all of your responses verbally or in writing at the meeting:

1. Assess the benefits of CSR to our employees (AC2.1)
2. Analyse the impact of CSR on our supply chain (AC2.2)
3. Explain how a CSR policy will impact on the Senior Management Team and business performance (AC2.3)

Merit task

To achieve a Merit, you must add a section to your discussion notes where you assess the potential conflicts which may arise when we try to satisfy the needs and expectations of different stakeholders through our CSR policy. (AC2M1).

Task 3

At the meeting with senior managers, the Board of Directors agreed that a CSR policy will be developed.   The senior managers want you to draft a brief for them to make recommendations to the Board for responsible business practice.  They want you to do this by initially reviewing the CSR policy of a similar company.

You must choose a sports clothing manufacturer or another organisation that manufactures clothing and review its CSR policy.  Produce a brief for the SMT to finalise and take to the Board. In the brief you must include:

• A review of the CSR policy of your chosen clothing manufacturer (AC3.1)

• Your recommended changes to the CSR policy to benefit the following groups of stakeholders
• suppliers
• customers
• employees
• environment
• community (AC3.2)

• An assessment of the potential impact of changes in CSR on business performance (AC3.3).

Distinction task

To achieve a Distinction, you must add a section to your brief where you assess the extent of voluntarism in CSR policies (AC3D1).

Guidelines for assessors

The assignments submitted by learners must achieve the learning outcomes and meet the standards specified by the assessment criteria for the unit. To achieve a merit or distinction grade, the learners must demonstrate that they have achieved all the criteria set for these grades. Where work for the pass standard is marginal, assessors can take account of any extension work completed by the learners. The suggested evidence listed below is how learners can demonstrate that they have met the required standards.

Task number	Assessment criteria	Suggested evidence PASS	Suggested evidence MERIT	Suggested evidence DISTINCTION
1.	1.1, 1.2 1.3, 1M1 1D1	The report must be in a format suitable for the senior management team. AC1.1: The student must break into parts and examine each part of the regulatory framework for CSR in a named country. The framework is likely to include health and safety, human rights and employment legislation. AC1.2:  The student must identify the main environmental issues in CSR and examine each issue in detail. Reference to current research or theory may support the analysis. AC1.3: The student must examine a range of social and community issues in CSR which may include social enterprise, volunteering, employing socially disadvantaged and disabled people and sponsorship.	AC1M1: The student is likely to assess changing attitudes in terms of opportunities for the organisation, greater commitment by leadership and expectations from the wider community.  The assessment must lead to judgements.	AC1D1: The student may require support in selecting a suitable organisation. The work produced must enable them to find sufficient information to make their own judgements about the organisation’s strengths and weaknesses in terms of its success in managing CSR issues.
2.	2.1, 2.2, 2.3 2M1	The discussion notes must be in a format suitable for the senior management team. AC2.1: The student must use available information to examine strengths and weaknesses and make a judgement about the benefits of CSR to employees. AC2.2: The student must identify and examine in detail each aspect of how CSR affects the supply chain.  This is likely to include production, sourcing, transport and technology. AC2.3: The student must provide detailed, clear information about the impact a CSR policy has on how the SMT leads and manages an organisation including the potential impact on sales, profits, costs and return on investment.	AC2M1: The student must make a judgement about the possible conflicts and disagreements which may arise due to trying to satisfy the needs and expectations of all the different groups of stakeholders, via the CSR policy. This may include the use of profit for shareholder dividends or for reinvestment in the business, and disagreement over the areas which the organisation has chosen to support via the policy.
3.	3.1, 3.2, 3.3 3D1	AC3.1: The student must select an organisation with a CSR policy which the student can access.  The assessor may need to guide the student to select an organisation with a suitable policy.  The student must review the positive and negative aspects of the policy. AC3.2: The student may use the same CSR policy as in 3.1, or a different one.  The policy used for 3.1 will be inappropriate if it is impossible to identify any aspects which require change.  The student must suggest ways to improve the CSR policy for a range of different groups of stakeholders. AC3.3: The student must use information to make a judgement about the possible effects on business performance due to amendments and improvements to CSR.  This is likely to include impacts on finances, risk management, public image and staff.		AC3D1: The student must use information to make a judgement about to extent to which voluntary practice and response to pressure groups impacts on the CSR policy.