ACCA Strategic Professional · Strategic Business Leader · Stakeholder analysis and organisational social responsibility
Zentra Foods, a listed manufacturer, publishes a sustainability report only after consumer groups criticised its packaging waste. The board describes the report as a way to avoid regulation and protect its image, and makes no change to production methods. Using Gray, Owen and Adams' positions on corporate social responsibility, which position does this approach most closely reflect?
The approach reflects the expedient position. Zentra produces a sustainability report to protect its reputation and avoid regulation, not because it accepts wider responsibilities. Operations are unchanged, so it is not a social contract or social ecologist stance, and it does report, so it is not a pristine capitalist.
- APristine capitalist, because the company only seeks to maximise shareholder wealth and does no reporting
- BExpedients, because the company engages in CSR only to the extent that it protects its economic interests and reputationCorrect
- CSocial contract, because the company accepts duties to society as a whole
- DSocial ecologist, because the company has changed its operations to protect the environment
Explanation
Expedients treat social responsibility as a means to protect economic interests. Zentra reports to deflect criticism and avoid regulation without changing operations, which matches this. Pristine capitalists would not report at all, and social contract and social ecologist positions require real acceptance of wider duties.
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