Page 99 - Bisiness Studies_Form_3

Business Studies for Secondary Schools

Increases customer engagement: profit for the business. Their employees
Businesses engaged in CSR usually show are happy to be associated with these
their efforts to local media outlets, hoping to institutions, which go beyond lending
get some coverage. This is a simple means money only, but go over and beyond
of advertising to attract more customers. to empower borrowers with financial
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Ensures greater employee engagement: literacy.
Similar to customer engagement, most Ways to improve ethical behaviours in
businesses engaging in CSR ensure businesses
that their employees know about the The following are the ways to improve
CSR strategies. Employees tend to ethical behaviours in a business:
enjoy working for a company with a (a) Top management must openly
better public image than one without. accept and maintain a business code
Furthermore, showing that the business is of ethics and conduct;
committed to human rights would likely (b) Employers must understand that
attract and retain the top employees. ethical behaviours are modelled at
Increases employees retention: Promoting the top and senior management and
things like volunteering in the community must inform all employees to respect
would encourage the personal and and comply with the business ethics;
professional growth of employees, thus (c) Management and other stakeholders
creating a more productive and positive must be educated to respect all
workplace. Employees are happy to stay in the ethical issues in all business
workplaces that go beyond their business undertakings;
operations to create an impact in the (d) An office responsible for overseeing
community through CSR initiatives. An ethical behaviours within the
example of employee retention through business must be located in an area
CSR initiatives in Tanzania is financial where employees can talk in privacy.
borrowing institutions that suffered from For example, whistle-blowers in the
increased non-performing loans. These business must be protected from any
financial institutions observed that many form of hostile confrontation with
borrowers from these communities had the accused;
little or no financial literacy. As such, the (e) Stakeholders such as suppliers,
financial institutions introduced financial contractors, distributors, and
literacy training and seminars to their customers who are outside the
prospective customers before lending organisation must be informed about
them money. The institutions then the business’s code of ethics as most
managed to avoid the challenge exerted pressures on compliance to this code
by non-performing loans. Through this of conduct come from those outside
CSR initiative, the business contributed to the organisation; and
the community’s welfare and not just the

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