KMITL BTEC Center

Corporate Social Responsibility and Sustainability
Unit aim
This unit gives learners an understanding of corporate social responsibility and sustainability and the impact on organisations. This unit also provides an introduction to the concept of business ethics and the conduct of the organisation.
Unit introduction
Corporate social responsibility and sustainability issues are a growing concern for several organisations. Many organisations are aware and concerned about the impact their activities have on the environment and also the impact of their operation on their reputation and image. Many customers do not evaluate an organisation on just the features of their products and services, but also on what business practices they are engaged in, how their products are produced, and what effect on society the organisation activities has. Consequently, issues such as animal testing, environmental damage, irresponsible marketing, fair working conditions have become highly important for organisations to consider. Stakeholders and especially customer demands have played a central role in getting organisations to consider the impact their operations have on society and the environment. Over the past decade, organisations have been implementing sustainability programmes to manage their environmental impacts, reduce resource use and improve their social responsibility. Media coverage has made consumers and other stakeholders more aware of the ethical behaviour of organisations. The increase in consumer awareness has resulted in many organisations promoting their social values to gain competitive advantage. Corporate social responsibility and sustainability are no longer viewed as just a regulatory requirement that satisfies stakeholders’ interest but also as an investment that could bring financial returns. However, there are mixed views and theories on whether corporate social responsibility and sustainability adds to or takes away from an organisations profits and value. There are also mixed views on whether it is possible to measure the impact of corporate social responsibility and sustainability on non-financial activities.
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