MGNT 2 SM

TEST AND EXAMINATION PREPARATION: TUTORIAL

03/05/23
ADO: Neliswa Zungu
STUDENT ASSISTANTS: Bayabonga Zulu & Mqhelewenkosi
Zikhali
 AGENDA:
PART 1: ADO:
• Creating a mind map for chapter 4
• Elaborating on areas identified in the mind map
❑ Purpose of the above: for students to gain an idea of how to read
and identify important areas in each chapter of the textbook to
adequately prepare for the test and exam conditions
❑ We are not re-lecturing material – this is to aid in studying for your
test and exam.
PART 2: STUDENT ASSISTANTS:
• Practice MCQs
 TEST COVERAGE
SECTIONS COVERED IN YOUR TEST:
1. Understanding what we mean by “sustainability”
2. The intolerability of unsustainable and irresponsible economic development
3. Sustainable development in the context of deprivation and compromised
citizenship in South Africa
4. The importance and value of responsible strategic management practices.
5. Management responsibility and ethical business management 1 & 2
6. Strategic management as the conduit for executing intention
7. Responsible Human Resource Management
REFER TO TEXTBOOK, LECTURE NOTES AND LECTURE RECORDINGS ON THE
ABOVE SECTIONS TO ADEQUATELY PREPARE FOR YOUR TEST
BREAKDOWN OF AREAS IN CHAPTER 4
ORIGINS OF
BUSINESS
BACKGROUND RESPONSIBILITY
FRAMEWORKS OF
RESPONSIBLE BUSINESS
*Business philanthropy
RESPONSIBILITY
*Corporate citizenship
IMPERATIVE AND
*Corporate social REVOLUTION
responsibility

Refer to last week’s slide:

• HOW TO GO THROUGH THE
CORPORATE SOCIAL CHAPTER 4: UNDERSTANDING
PRESCRIBED TEXTBOOK –
RESPONSIBILITY RESPONSIBILITY THE DIFFERENCES
BETWEEN:
before, during & after
*CSR Pyramid The importance
*Corporate social and value of
*Responsible
business and reading a chapter
responsiveness
(CSR2)
responsible
strategic
management and;
* Sustainable
• Creating a mind map
*Corporate social
performance (CSP)
management
practices
business and
development • We are combining the
techniques and tips from
CORPORATE
last week
CITIZENSHIP
*Limited view
EXAMPLES OF
*Equivalent view
IRRESPONSIBLE
*Extended view BUSINESS
- strengthening the
three basic rights of WHY SMALL
citizens BUSINESS SHOULD
ENGAGE IN
RESPONSIBLE
BEHAVIOUR
 ORIGINS OF BUSINESS RESPONSIBILITY
• Here you need to understand what gave rise to responsible business
• ISO 26000 – what is this?
• ISO 26000: the future standard for responsible business.
• ISO 26000 defines the achievement of sustainable development as the ultimate responsibility of a
responsible business
• The seven fundamental areas of social responsibility covered by ISO 26000 – corporate governance,
human rights, labour practices, the environment, fair operating practices, consumer issues and
community involvement and development
*Refer to your textbook – page 73 and slides to make more detailed notes to study from
 RESPONSIBILITY IMPERATIVE AND REVOLUTION
• Here you need to understand what the Responsibility Imperative and Responsibility Revolution is
• The Responsibility Imperative: what is it?
✓ individuals, groups, and entire societies have an ethical duty to maximise benefits and minimise costs
✓ It acknowledges the importance of putting one's influence to good use for the benefit of society as a
whole.
• The Responsibility Revolution: what is it?
✓ The rise of CSR and sustainability as key business priorities
✓ This concept acknowledges that corporations should care about more than just their bottom lines
when making decisions.
• What is the consequence of these changes brought on this revolution?
✓ more and more businesses are adopting eco-friendly and socially responsible methods of doing
business.
• What does this imperative and revolution serve?
✓ The Imperative and Revolution together serve as a rallying cry for people and businesses to stop
blaming others for their problems and start solving them themselves.
*Refer to your textbook – page 74 & 75 and slides to make more detailed notes to study from
UNDERSTANDING THE DIFFERENCES BETWEEN RESPONSIBLE BUSINESS
AND MANAGEMENT TO SUSTAINABLE BUSINESS AND DEVELOPMENT
UNDERSTANDING THE DIFFERENCES BETWEEN RESPONSIBLE BUSINESS
AND MANAGEMENT TO SUSTAINABLE BUSINESS AND DEVELOPMENT
• Responsible business (RB):
✓ Refers to business commitment
✓ RB describes businesses that have made a commitment and implemented activities to reach the goal of sustainable
business
✓ Responsibility here means a commitment to achieving the status of a sustainable business and the ultimate
responsibility of (collaboratively with the contributions of the governmental and civil society sectors) achieving
sustainable development
✓ RB applies responsible management activities.
✓ EXAMPLE: Unilever: has made a commitment to sustainability through its Sustainable Living Plan. They aim to
reduce their environmental impact, improve the well-being of their employees and communities, and promote
sustainable business practices across their supply chain.
✓ EXAMPLE: Tesla: A company that is dedicated to the development and production of electric cars and renewable
energy solutions. They are working towards a sustainable transportation system and reducing carbon emissions.
• Responsible Management (RM):
✓ Refers to a management process
✓ RM is a process involving tools for managing social, environmental, and economic capital and impact throughout
activities and functions.
✓ RM aims at the achievement of sustainable business.
*Refer to your textbook – page 74 & 75 and slides to make more detailed notes to study from
UNDERSTANDING THE DIFFERENCES BETWEEN RESPONSIBLE BUSINESS
AND MANAGEMENT TO SUSTAINABLE BUSINESS AND DEVELOPMENT
• Sustainable business (SB):
✓ Refers to business or sector achievement
✓ SB has the intended goal of shaping a business that strongly contributes to sustainable development, a
business with an at least neutral socio-environmental impact or, even better, a positive one
✓ SB refers to a single business, industry, or a whole economy that has reached a harmonization of its
overall social, environmental, and economic capital and which has achieved sustained neutral to
positive impact in all three dimensions.
✓ SB is the business sector contribution to sustainable development.
• Sustainable Development (SD):
✓ Refers to global process and achievement
✓ SD is a development that achieves a harmonization of economic, social, and environmental capital
throughout all sectoral contributions of business, civil society, and governmental sector.
✓ SD assures long-term quality of life and survival of the human race on Earth.
✓ SD refers to both the process and the achievement of SD.
*Refer to your textbook – page 74 & 75 and slides to make more detailed notes to study from
 BACKGROUND FRAMEWORKS OF RESPONSIBLE BUSINESS

• A wide variety of theoretical and practice-oriented management frameworks have been developed to
describe the management of responsible business.

• These frameworks lay the groundwork for businesses to take responsibility for their actions

• Frameworks discussed in your textbook include:

✓ Business philanthropy

✓ Corporate citizenship

✓ Corporate social responsibility

*Refer to your textbook – page 76 and slides to make more detailed notes to study from
 BUSINESS PHILANTHROPY
• Business philanthropy was one of the first and, for a long time, the prevailing framework for responsible business.

• The word “philanthropy” has Greek roots, meaning “love for mankind.”

• This basic altruism, or selfless giving for the good of mankind, is philanthropy’s distinct feature.

• Ever since the term was coined in ancient Greece around 2500 BC, affluent individuals and institutions have been
involved in charitable giving.

• EXAMPLE: Industrial philanthropists, such as Microsoft’s Bill Gates and CNN’s Ted Turner, have made the headlines
by donating billions of dollars of their private property to good causes

• EXAMPLE: Individual philanthropic giving is one form of philanthropic activity in the business field.

• EXAMPLE: Another type is institutional giving, which is usually done by corporate foundations

• *Refer to your textbook – page 76 & 77 and slides to make more detailed notes to study from
 CORPORATE CITIZENSHIP
• Your textbook highlights three different ways of understanding corporate citizenship:
✓ Limited view: corporate citizenship = corporate philanthropy
✓ Equivalent view: corporate citizenship= corporate social responsibility
✓ Extended view: corporate citizenship recognizes the extended political role of the corporation in society
❑ An extended view of corporate citizenship reveals its distinct features.
❑ A company is considered another civic actor in a specific community, i.e., it is a citizen.
❑ How community is defined in a specific case constitutes the scale of the respective citizenship activities.
❑ A company could be defined as a citizen of the local community in which its facilities are located, the national community, or even
the global community.
❑ Citizenship brings about rights and responsibilities.
❑ Governments often are not able to completely fulfil all the responsibilities toward their citizens, so companies in many areas may
support governmental functions if they accept and assume their political role in society by strengthening the three basic rights of
citizens
1. Social rights: create social welfare for other citizens of the community. A company could establish community centres to
provide education, invest in physical infrastructure, and provide volunteering opportunities.
2. Civil rights: assure the protection of unalienable entitlements. Companies can make a commitment to respect human rights
throughout all their interactions with any kind of stakeholder.
3. Political rights: support political activism. Companies can support the political activity of their stakeholders by, for instance,
giving employees leave time for political engagement
*Refer to your textbook – page 77 & 78 and slides to make more detailed notes to study from
 CORPORATE SOCIAL RESPONSIBILITY
• Corporate social responsibility (CSR) is a concept whereby companies integrate social and environmental concerns in their
business operations and in their interaction with their stakeholders on a voluntary basis.
• It is about enterprises deciding to go beyond minimum legal requirements and obligations stemming from collective
agreements in order to address societal needs.
• Through CSR, enterprises of all sizes, in cooperation with their stakeholders, can help to reconcile economic, social and
environmental ambitions.
• CSR is used to refer to responsible business practices.
• Terms such as responsible business, corporate responsibility, corporate citizenship or business sustainability are used
interchangeably in day-to-day business
*Refer to your textbook – page 78 and slides to make more detailed notes to study from
 CORPORATE SOCIAL RESPONSIBILITY (CSR) PYRAMID
• Carroll (1991) organized different CSR as a four-layered pyramid model and called it the pyramid of responsibilities.
• This pyramid provides a sequence of levels of responsibility and should be seen as a whole and the different parts should
not be separated
• The four different responsibilities - economical, legal, ethical and philanthropic are the layers of the pyramid
1. Philanthropic/discretionary responsibilities:
❑ Top of the pyramid
❑ It involves the company exceeding basic expectations and chooses freely to engage with additional responsibilities
❑ The aim of philanthropic/discretionary responsibilities is to be a good corporate citizen and improve the quality of life for
the society.
❑ Philanthropic/discretionary responsibilities are desired and expected by society
❑ EXAMPLE: Corporate contributions, to support the community by providing programs or engagement in volunteerism.
2. Ethical responsibilities:
❑ It involves the company doing what is considered moral behavior by stakeholders and broader society
❑ Ethical responsibilities are not required but expected by society.
❑ EXAMPLES: To assert ethical leadership, avoid questionable practices or operate above the minimum standard of the law.
*Refer to your textbook – page 78 and slides to make more detailed notes to study from
 CORPORATE SOCIAL RESPONSIBILITY (CSR) PYRAMID (CONTD)
3. Legal responsibilities:
❑ It involves the company doing what is required by the law required by society
❑ In these responsibilities companies are expected to obey the law, because the law mirrors show the society regards as
accepted or unaccepted.
❑ Legal responsibilities are required by society
4. Economic responsibilities:
❑ Base of the pyramid
❑ it involves the company doing what is necessary to survive economically
❑ EXAMPLE: To be profitable as a company, minimize cost and maximize sales or make sensible strategic decisions
❑ Economic responsibilities required by society
*Refer to your textbook – page 79 and slides to make more detailed notes to study from
 CORPORATE SOCIAL RESPONSIVENESS (CSR2)
• Corporate social responsiveness (CSR2) refers to the characteristic posture and reaction toward social issues.
• CSR2 consists of different stages representing an increasingly sophisticated approach to CSR on the part of the
organisation.
• Changing from a reactive to a proactive stance on CSR requires a mental shift in which CSR is viewed less as a burden and
more as an opportunity to generate value and make an impact.
• The level of a company’s responsiveness can be categorized in one of the following four stages:
1. Defensive:
❑ Deny responsibility—doing less than required
❑ At this stage, businesses see CSR as an inconvenience and focus primarily on meeting legal requirements.
❑ They may participate in CSR activities to avoid criticism or unfavorable publicity, but they do not value it highly.
2. Reactive:
❑ Admit responsibility, but fight it—doing the least that is required
❑ Businesses are making efforts to both comply with applicable laws and regulations and reduce their negative effects on
the community and the environment.
❑ Even if they do have CSR policies and programmes in place, they are likely only concerned with doing the bare minimum to
comply with regulations.
*Refer to your textbook – page 79 and slides to make more detailed notes to study from
 CORPORATE SOCIAL RESPONSIVENESS (CSR2) (CONTD)
3. Accommodative:
❑ accept responsibility—doing all that is required
❑ Businesses may be measuring and reporting on their CSR performance if they have CSR programmes and initiatives in
place and those programmes and initiatives are integrated with business operations.
4. Proactive:
❑ anticipates responsibility—doing more than is required
❑ Organizations at this tier make CSR central to their business strategies and aim to benefit both their own bottom line and
the greater good.
❑ It's possible that they're working with stakeholders to make positive social and environmental impacts through
collaborative CSR initiatives that are in line with their core business goals.
*Refer to your textbook – page 79 and slides to make more detailed notes to study from
 CORPORATE SOCIAL PERFORMANCE (CSP)
• CSP refers to a company’s performance in the direct relationship with one, several, or all of its stakeholder groups
• This is why CSP has also been described as stakeholder performance
• CSP can be described as a cube bringing together the four types of responsibility covered in Carroll’s pyramid, the four
different levels of responsiveness, and several different stakeholder types
*Refer to your textbook – page 80 and slides to make more detailed notes to study from
 EXAMPLES OF IRRESPONSIBLE BUSINESS
• Volkswagen: In 2015, Volkswagen admitted to installing software in its diesel vehicles that manipulated emissions test
results. Because of this, the company's reputation took a major hit. Volkswagen was accused of abandoning its pledge to
act responsibly towards the environment.
• Historically, Nike has been criticised for how it treats its employees. It took the company several years to address concerns
about factory working conditions after they were accused of using sweatshop labour in the 1990s
• One of the worst environmental disasters in history occurred in the Gulf of Mexico in 2010 when a massive oil spill
occurred at BP. The business was criticised for its inadequate measures to prevent future spills and its slow response time.
• Amazon: The online retailer has come under fire for how it treats its employees, particularly those in its warehouses. The
company has been accused of anti-union practises, low pay for workers, and unsafe working conditions.
 WHY SMALL BUSINESS SHOULD ENGAGE IN RESPONSIBLE BEHAVIOUR
Being responsible is not a preserve for large corporations only.
Responsible behaviour should be practised by all businesses, regardless of their size.
Responsible behaviour is often more important for small businesses because they may have a greater impact on their local
communities and environment than larger corporations.
Small businesses can develop closer relationships with their customers, suppliers, and local communities.
By acting responsibly, they can build trust, enhance their reputation, and create a loyal customer base.
For example, a small business that sources its products locally and uses sustainable practices can demonstrate its
commitment to the environment and support the local economy.
Furthermore, being responsible is not just about environmental sustainability.
It also includes ethical behaviour, such as treating employees fairly, providing safe working conditions, and adhering to ethical
business practices.
Small businesses have an opportunity to create a positive workplace culture and set an example for others in their industry.
In summary, responsibility is vital for all businesses, regardless of size.
Small businesses can benefit from responsible behaviour by building trust and loyalty with their customers and communities
and creating a positive workplace culture for their employees.
 ANY QUESTIONS??

LET’S TEST YOUR KNOWLEDGE WITH

SOME PRACTICE MCQs
CHAPTER 4: PRACTICE MCQs
 .
1. Which of the following options form part of the fundamental areas of social responsibility
covered by ISO 26000:
A. Corporate governance
B. Human rights
C. Labour disputes
D. A & B
E. B & C

2. Which of the following statements hold true regarding The Responsibility Imperative:
A. Individuals, groups, and entire societies have an ethical duty to maximise benefits and minimise
costs.
B. This concept acknowledges that corporations should care about more than just their bottom lines
when making decisions
C. This concept acknowledges the importance of putting one's influence to good use for the benefit
of society as a whole.
D. A & C
E. B & C
 .
3. This concept acknowledges that corporations should care about more than just their bottom
lines when making decisions:
A. The Responsibility Revolution
B. The Sustainability Revolution
C. Sustainable development
D. The Responsibility Imperative
E. All of the above

4. Unilever has made a commitment to sustainability through its Sustainable Living Plan. They aim
to reduce their environmental impact, improve the well-being of their employees and
communities, and promote sustainable business practices across their supply chain. This is an
example of:
A. Responsible management
B. Sustainable business
C. Responsible business
D. Sustainable development
E. None of the above
 .
5. Which of the following statements do not hold true for responsible management (RM):
A. RM refers to a management process
B. RM refers to process involving tools for managing social, environmental, and economic capital
and impact throughout activities and functions.
C. RM aims at the achievement of sustainable business.
D. RM is the business sector contribution to sustainable development.
E. All of the above

6. _ has the intended goal of shaping a business that strongly contributes to

sustainable development, a business with an at least neutral socio-environmental impact or, even
better, a positive one.
A. Responsible management
B. Sustainable business
C. Responsible business
D. Sustainable development
E. None of the above
 .

7. Tesla is dedicated to the development and production of electric cars and renewable energy
solutions. They are working towards a sustainable transportation system and reducing carbon
emissions. This is an example of:
A. Responsible management
B. Sustainable business
C. Responsible business
D. Sustainable development
E. None of the above

8. Sustainable development (SD):

A. refers to global process and achievement
B. is a development that achieves a harmonization of economic, social, and
environmental capital throughout all sectoral contributions of business, civil society, and
governmental sector.
C. assures long-term quality of life and survival of the human race on Earth.
D. refers to both the process and the achievement of SD
E. All of the above
 .
9. can be described as a cube bringing together the four types of
responsibility covered in the CSR pyramid, the four different levels of responsiveness, and several
different stakeholder types:
A. Corporate social responsiveness
B. Responsible management
C. Sustainable business
D. Corporate social performance
E. Responsible business

10. This type of responsibility involves the company exceeding basic expectations and
chooses freely to engage with additional responsibilities:
A. Economical
B. Philanthropic
C. Legal
D. Ethical
E. None of the above
 .
11.Which of the following is not included in the CSR pyramid?
A. Legal responsibility
B. Consumer responsibility
C. Ethical responsibility
D. Legal responsibly
E. Philanthropic/discretionary responsibility
12. refers to the characteristic posture and reaction towards social issues.
A. Corporate social responsibility (CSR1)
B. Responsible management
C. Corporate social responsiveness (CSR2)
D. Ethical responsibility
E. Corporate social performance (CSP)
13. An organisation/company that may admit to certain responsibilities, but fights so it may not
fulfil those responsibilities while doing the very least that is required is said to be
A. Accommodative
B. Responsible
C. Proactive
D. Defensive
E. A Reactive response

14. Imagine a company that may install wheelchair ramps and elevators to make their office or
store accessible to employees or customers with physical disabilities and also provide assistive
technology or flexible work arrangements, such as remote work options, to cater for employees
with disabilities. This is an example of…
A. Accommodative response
B. Reactive response
C. Responsible response
D. Proactive response
E. Philanthropic responsibility
15. Which of the following is false concerning Corporate social
performance (CSP)?
A. CSP can be described as a cube bringing together the four types of responsibility covered in
Carroll’s pyramid, the four different levels of responsiveness, and several different stakeholder
types.
B. It is less well defined than corporate social responsiveness (CSR2)
C. CSP refers to a company’s performance in the direct relationshipwith one, several, or all of
its stakeholder groups
D. Aims at the company promoting and supporting the three mainrights of citizens.
E. May also been described as stakeholder performance
SOLUTIONS
‘
1. Which of the following options form part of the fundamental areas of social responsibility
covered by ISO 26000:
A. Corporate governance
B. Human rights
C. Labour disputes
D. A & B
E. B & C

2. Which of the following statements hold true regarding The Responsibility Imperative:
A. Individuals, groups, and entire societies have an ethical duty to maximise benefits and minimise
costs.
B. This concept acknowledges that corporations should care about more than just their bottom lines
when making decisions
C. This concept acknowledges the importance of putting one's influence to good use for the benefit
of society as a whole.
D. A & C
E. B & C
‘3. This concept acknowledges that corporations should care about more than just their bottom lines
when making decisions:
A. The Responsibility Revolution
B. The Sustainability Revolution
C. Sustainable development
D. The Responsibility Imperative
E. All of the above

4. Unilever has made a commitment to sustainability through its Sustainable Living Plan. They aim
to reduce their environmental impact, improve the well-being of their employees and communities,
and promote sustainable business practices across their supply chain. This is an example of:
A. Responsible management
B. Sustainable business
C. Responsible business
D. Sustainable development
E. None of the above
‘5. Which of the following statements do not hold true for responsible management (RM):
A. RM refers to a management process
B. RM refers to process involving tools for managing social, environmental, and economic
capital and impact throughout activities and functions.
C. RM aims at the achievement of sustainable business.
D. RM is the business sector contribution to sustainable development.
E. All of the above

6. has the intended goal of shaping a business that strongly contributes

to sustainable development, a business with an at least neutral socio-environmental
impact or, even better, a positive one.
A. Responsible management
B. Sustainable business
C. Responsible business
D. Sustainable development
E. None of the above
‘
7. Tesla is dedicated to the development and production of electric cars and renewable energy
solutions. They are working towards a sustainable transportation system and reducing carbon
emissions. This is an example of:
A. Responsible management
B. Sustainable business
C. Responsible business
D. Sustainable development
E. None of the above

8. Sustainable development (SD):

A. refers to global process and achievement
B. is a development that achieves a harmonization of economic, social, and environmental capital
throughout all sectoral contributions of business, civil society, and governmental sector.
C. assures long-term quality of life and survival of the human race on Earth.
D. refers to both the process and the achievement of SD
E. All of the above
‘
9. can be described as a cube bringing together the four types of
responsibility covered in the CSR pyramid, the four different levels of responsiveness, and
several different stakeholder types:
A. Corporate social responsiveness
B. Responsible management
C. Sustainable business
D. Corporate social performance
E. Responsible Business
10. This type of responsibility involves the company exceeding basic expectations andchooses
freely to engage with additional responsibilities:
A. Economical
B. Philanthropic
C. Legal
D. Ethical
E. None of the above
‘11. Which of the following is not included in the CSR pyramid?
A. Legal responsibility
B. Consumer responsibility
C. Ethical responsibility
D. Legal responsibly
E. Philanthropic/discretionary responsibility

12. refers to the characteristic posture and reaction towardssocial issues.

A. Corporate social responsibility (CSR1)
B. Responsible management
C. Corporate social responsiveness (CSR2)
D. Ethical responsibility
E. Corporate social performance (CSP)
‘13. An organisation/company that may admit to certain responsibilities, but fights so it may not
fulfil those responsibilities while doing the very least that is required is said to be
A. Accommodative
B. Responsible
C. Proactive
D. Defensive
E. A Reactive response

14. Imagine a company that may install wheelchair ramps and elevators to make their office or store
accessible to employees or customers with physical disabilities and also provide assistive technology
or flexible work arrangements, such as remote work options, to cater for employees with
disabilities. This is an example of…
A. Accommodative response
B. Reactive response
C. Responsible response
D. Proactive response
E. Philanthropic responsibility
‘
15. Which of the following is false concerning Corporate socialperformance (CSP)?
A. CSP can be described as a cube bringing together the four types ofresponsibility covered in
Carroll’s pyramid, the four different levels of responsiveness, and several different stakeholder
types.
B. It is less well defined than corporate social responsiveness (CSR2)
C. CSP refers to a company’s performance in the direct relationship
with one, several, or all of its stakeholder groups
D. Aims at the company promoting and supporting the three mainrights of citizens.
E. May also been described as stakeholder performance
 THE END
THANK YOU