Business Studies Grade 11 IEB June 2019 Memo

Downloaded from hlayiso.com TEACHERS WITHOUT BORDERS PROGRAMME BROUGHT TO YOU BY With grateful thanks to our associate partners, The National Department of Basic Education, The Independent Examinations Board, Siyavula Education, Smarticks, Noteshare, Lemonlicious, datacentrix, and most of all, to the schools and teachers from both the public and private education sectors who as founder contributors, have lent content to the Teachers without Borders programme, for the benefit of all South Africa's learners. In Bill Gates words, at the Mandela Day ‘Living Together’ address: “Maintaining the quality of this country’s higher education system while expanding access to more students will not be easy. But it’s critical to South Africa’s future” – working together, we can help achieve this." Contributing schools to date: Clifton School Milnerton High Rustenburg Girls’ High St Peter's Durban Girls' Northwood High St Anne's DC St Stithians Fairmont High Roedean St John's DSG Wynberg Boys' High Herzlia High Rondebosch Boys’ St Mary's DSG Kloof Wynberg Secondary

Downloaded from hlayiso.com GRADE 11 EXAMINATION JUNE 2019 BUSINESS STUDIES NAME: MEMO Time: 2 hours 175 marks PLEASE READ THE FOLLOWING INSTRUCTIONS CAREFULLY: 1. This question paper consists of 17 pages. Please check that your question paper is complete. 2. Read the questions carefully. 3. There are three sections (A, B and C) and all questions are COMPULSORY. 4. Answer ALL the questions on the question paper for Section A and B. Section C must be written on lined paper. Remember to write your name in the space provided on the question paper as well as on the lined paper. 5. Demonstrate insight, where applicable, when answering the questions. You may refer to any business in the fuel and gas industry that you have studied this year, as well as related food outlets where applicable. 6. You are advised to pay particular attention to the use of language and the allocation of marks. 7. It is in your own interest to write legibly and to present your work neatly. FOR MARKERS ONLY: Allocation of marks Q1 Q2 Q3 Q4 Q5 Q6 Q7 Total 20 10 20 25 25 25 50 175 %

Downloaded from hlayiso.com Grade 11 Business Studies Examination June 2019 Page 2 of 20 SECTION A 50 Marks QUESTION 1 20 Marks Indicate the most correct answer by writing the letter next to the corresponding number in the space provided. 1.1 Triple bottom line reporting refers to…? (2) A. People, profit, planet B. Environmental, sustainability, economy C. Profit, purpose, people D. None of the above 1.2 Which of the following is not a business function? (2) A. Financial B. Human Resources C. Marketing D. General Relations 1.3 The micro environment of Shell SA is influenced by the … (2) A. Managing Director B. Quality of products C. Employees D. All of the above 1.4 The Caltex brand that houses the logo represents a: (2) A. The Common Trademark B. The Dealer’s Trademark C.The Individual Trademark D. No Trademark 1.5 If Mugg & Bean on the Go sold a take away salad bowl together with salad servers; (2) this packaging would be known as … A. Kaleidoscope B. Combination C. Specialty D. Unit (2)

Downloaded from hlayiso.com Grade 11 Business Studies Examination June 2019 Page 3 of 20 1.6 Sasol sponsors the Sharks rugby team; this form of promotion would be considered as? A. Sales Promotion B. Publicity C. Personal sales D. All of the above. 1.7 When BP conducts business in an ethical manner, it is known as: (2) A. Corporate Citizenship B. Social Investment C. Social Responsibility D. Corporate involvement 1.8 Total operates as a sustainable business practice, this means: (2) A. Assessing how present business practice affects the future B. Involving employees in business decisions C. Considering the benefits of stakeholder over shareholder practices D. Developing Employment Equity policies 1.9 The potential audience of Public Relations is: (2) A. Local Authorities B. Financial groups C. Suppliers D. All of the above 1.10 Inflation is an element found in which environment: (2) A. Micro B. Primary C. Market D. Macro 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10 A D D A B B A A D D

Downloaded from hlayiso.com Grade 11 Business Studies Examination June 2019 Page 4 of 20 QUESTION 2 10 Marks Each statement below is False. Change the highlighted word or phrase to make the statement True. Enter just the corrected word/phrase next to the number in the space provided. 2.1 Speciality packaging is continuously changing depending on the latest trends. (2) 2.2 Making operations socially sustainable is when a business operates with greater (2) global awareness regarding pollution and depletion of natural resources. 2.3 A Value Chain Analysis is used to analyse challenges from the macro (2) environment. 2.4 Conflict of interest is the ability of consumers to put pressure on businesses to (2) act in a certain ethical manner. 2.5 The Financial Function is about the management of communication between the (2) business and stakeholders. 2.1 Kaleidoscope 2.2 Environmentally 2.3 PESTLE 2.4 Consumerism 2.5 Public Relations Function

Downloaded from hlayiso.com Grade 11 Business Studies Examination June 2019 Page 5 of 20 QUESTION 3 20 Marks Write the corresponding letter of the most correct answer from Column B next to the number in Column A in the space provided. Each answer from column B may only be used ONCE. Column A Column B 3.1 Using odd even pricing to make travelling snacks A Intellectual property theft cheaper. (R19-99 instead of R20-00). 3.2 All activities required to get the fuel from the oil B Environmental scanning refineries to the customers. 3.3 Items are set at a very low artificial price to encourage C Strengths market share. 3.4 Stealing another company’s idea or design. D Creativity 3.5 The process of obtaining information about possible E Promotional pricing current and furture events that may have an impact on the performance of the business. 3.6 Factors whithin the business which add value to the F Marketing performance of the business and gives the business the competitive advantage. 3.7 An issue with no specific solution because none of the G Contingency plans available alternatives will work. 3.8 Showing imagination and originality. H Penetration pricing 3.9 When unexpected problems arise, you will need to have I Barrier ________________ in place. 3.10 When high capital is required to enter the market, it is J Psychological pricing referred to as a _____________________. K Copy right L Advertising Price skimming M Dilemma N

Downloaded from hlayiso.com Grade 11 Business Studies Examination June 2019 Page 6 of 20 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 J F H A B C N D G I SECTION B Marks 75 QUESTION 4 25 Marks 4.1.1 Supply the missing information in the diagram by writing a – d in the space (4) provided. A technique used by Caltex to analyse their market environment includes the following: a) Rivalry b) Threat of new entrants c) Buyer or Supplier d) Supplier or Buyer

Downloaded from hlayiso.com Grade 11 Business Studies Examination June 2019 Page 7 of 20 4.1.2 Discuss the impact that any TWO elements of Porter’s Six Forces model that you (6) labelled in 4.1.1 (a, b, c or d) will have on Caltex near the Midlands Mall (opposite side of the N3). THREAT OF NEW ENTRANTS TO THE MARKET  This aspect assesses how easy or difficult it is for a new competitor to enter the current market, based on the number of entry barriers to the market.  A particular market is seen to be profitable if only a few entry barriers exist. However, this may lead to a high level of rivalry arising in the market place when other businesses also see the opportunity for profits. The following are possible barriers that will make it difficult to enter the market: o The capital required to enter the market is high, i.e. expensive research and development, pricy equipment, etc. o Existing businesses have strong trademarks or patents protecting their products/services. o There is strict government legislation that makes it difficult to enter the market. o Customer-switching costs to change to a new type of product are high. o There is a high level of customer loyalty. o Economies of scale are not easily achievable.  It is important to remember that when there are many competitors in the market place and they are all competing for the same market share, profits will decline.  It is thus vital that existing businesses look at ways to create high entry-level barriers to the market to deter possible new entrants to the market. 3.2 RIVALRY AMONGST EXISTING COMPETITORS  The number of current competitors in the market is an important factor to consider when assessing the competitiveness or profitability of a particular market place.  In a competitive market, a business would have to compete aggressively to gain and maintain its market share and this could potentially result in lower profit for the business.  Rivalry amongst competitors is usually high when: o There are many competitors in the market. o Competitors are more or less of equal size. o Exit barriers are high (it is expensive to stop selling a particular product, because a large capital investment was made). o There is limited potential for the market to grow and all competitors have to compete for the same market share. o When the products in the market are not differentiated (homogeneous/similar) o Goods can easily be substituted for another product. o There is low level of customer loyalty. BARGAINING POWER OF SUPPLIERS  When the bargaining power of the supplier is high, it allows the supplier to sell products or raw materials for higher prices or to offer lower quality products/materials to the business.  This would have a negative impact on the business, as the business would be paying more for the goods.  It would also have a negative impact on the quality of the product or service being offered in the market place and therefore maybe the overall image of the business selling to the consumer.  Suppliers have strong bargaining power when: o There are few suppliers in the market place.

Downloaded from hlayiso.com Grade 11 Business Studies Examination June 2019 Page 8 of 20 o The supplier is large enough to make it difficult to achieve forward integration in the distribution channel. o There are limited options to substitute raw materials. o The cost of switching to a different material is high or it is a complicated process. 3.5 BARGAINING POWER OF BUYERS  The buyer has the power to demand a lower price, a higher level of quality, longer trading hours, delivery of products, a wider variety of goods, etc.  If the buyer demands any of the above or other demands, the business will have to decide if it is worthwhile to meet these demands. Satisfying more consumer demands would mean lower profits for the business. Not meeting the demands however, may mean no profits if consumers switch to competitors.  Remember the buyer does not have to be an individual consumer. Another business may also buy the products to resell or manufacture something.  Buyers have strong bargaining power when: o The buyer is buying in bulk. o There are many suppliers selling the same or similar products/services. o Only a few buyers exist (seller "has to sell" to this buyer). o It is easy and not expensive for the buyer to switch to another supplier. o When a buyer has the ability to integrate backwards in the distribution channel. 4.1.3 Provide a strategy that you would put in place to minimise the threat for ONE of the (4) elements discussed in 4.1.2. Teacher’s discretion 4.1.4 With the aid of an example, explain what is meant by “complementary products” in (3) the technique used above. COMPLEMENTARY PRODUCTS  Porter later included a sixth force called complements or complementary products.  Complements look at the potential within the market place to increase the demand for the original product, by introducing a complementary product.  An example of a complementary product is Apple that created ITunes to complement the IPod. This added great value to both products and has created a customer base which is loyal to Apple products. 4.2 Caltex has decided to launch its own Pizza brand. They have gone to great expense, training chefs on how to make authentic pizzas and installing pizza ovens throughout their Caltex outlets in South Africa. Their marketing function did not do sufficient market research, and the whole launch has been a complete flop. 4.2.1 Discuss the interrelatedness and impact that this poor decision could have on at least (8) FOUR functions within Caltex. Teacher’s discretion

Downloaded from hlayiso.com Grade 11 Business Studies Examination June 2019 Page 9 of 20 QUESTION 5 25 Marks 5.1 NXT HI NKI NG ( AN I NI T I AT I VE BY SH EL L SA) NXthinking offers a way to explore real-world problems and generate potential solutions. It encourages young people to:  be analytical and creative  dig beneath the surface  appreciate complexity and interrelated possible and preferred futures  think about what could be done differently to bring about positive change NXthinking takes many of its ideas from the disciplines of systems thinking, scenario planning and theory of change. Extract adapted from: https://nxplorers.com/en/nxthinking 5.1.1 Evaluate how the above initiative relates to each of the FOUR pillars in the four pillar (8) approach to creativity. 5.2 KwaZulu Natal – There has been strong social media backlash about a post made by BP Cascades regarding one of their employees. The employee who has worked for BP Cascades as a petrol attendant was being honoured for her loyal service to the Company. However, many people are questioning how a woman had remained in the same position, with no advancement, for 25 years. The franchise owner, Justine Magudulela could not be reached for comment on Saturday. Extract adjusted from: www.news24.com/SouthAfrica/News/social-media-backlash-post-20171007

Downloaded from hlayiso.com Grade 11 Business Studies Examination June 2019 Page 10 of 20 5.2.1 Complete the acronym RACE. (4) Research Action Communication Evaluation 5.2.2 Using the above acronym, discuss the key elements that Justine Magudulela should (8) follow to ensure a sound public relations process to address the above mentioned issue. Teacher’s discretion R A C E 5.3 Imagine you are the CEO of Shell SA. You have decided that it is time to expand the Shell SA brand and open more Shell Ultra City’s along the N3 between Durban and Johannesburg. Many of your managers are not in favour of this idea. 5.3.1 Complete a Force Field Analysis for this proposed expansion. Give at least TWO (4) forces for and against the idea. Teacher’s discretion Forces for the expansion: Forces against the expansion:  ________________________________  ________________________________ ________________________________ ________________________________ ________________________________ ________________________________ ________________________________ ________________________________  ________________________________  ________________________________ ________________________________ ________________________________ ________________________________ ________________________________ ________________________________ ________________________________ 5.3.2 Provide a strategy of how you suggest you will overcome ONE of the forces (1) against (listed in 5.3.1) this proposed idea. Teacher’s discretion

Downloaded from hlayiso.com Grade 11 Business Studies Examination June 2019 Page 11 of 20 QUESTION 6 25 Marks 6.1 Pick ‘n Pay Express is considering the possibility of introducing a new gourmet chicken burger range called Burger Delish which will be available at all BP petrol stations that have a Pick ’n Pay Express outlet. 6.1.1 Describe any TWO steps that would be involved in the design of the new gourmet (4) chicken burger range. Use examples specific to Pick ‘n Pay Express in your answer. STEP 1 Generate Ideas In order to generate ideas about possible new products/services, input may be obtained from a variety of sources such as employees, the sales department, competitors and customers STEP 2 Research/filter different ideas The business will research resources needed to make the product. This may include capital, skills and raw materials. The ideas not aligned with the business's brand and current operations are eliminated. STEP 3 Perform feasibility and viability studies Assess all the remaining ideas to determine which of these concepts would be both feasible and viable. Feasible: Is it is a workable idea which can be practically implemented? Viable: Can sustainable profits be generated from this idea? In order to perform these studies, the business will assess the potential market share and look at break-even points. STEP 4 Build a prototype When a prototype is built, the business manufactures the product or tests the service in order to identify and deal with any problems identified. Where possible the business will use computer simulations as part of the prototype process to identify and deal with any defects. STEP 5 Test the product in the market 6.1.2 Discuss TWO pricing strategies that you would suggest the marketing (4) manager could implement to ensure that the new burger range makes enough sales at the initial stages of launching it. Penetration pricing When business enters a market and it sets its price lower than that of its competitors, hoping that this would attract customers to try the product/service. Business hopes to gain loyalty based on the low price; when the price eventually is increased, customers

Downloaded from hlayiso.com Grade 11 Business Studies Examination June 2019 Page 12 of 20 nevertheless will continue to use the product/service Compe-titive Pricing This strategy involves looking at what competitors are charging for the products and then setting the price at a similar level. Psychological Pricing Different strategies can be used:  Odd pricing: Create the impression that the product is “better priced”.  Prestige pricing: Charge a very high price for a particular product/service, with the aim of creating a status symbol.  Retailers may also employ bundle pricing where several items are packaged as one unit. Charging R199.99 instead of R200.00 is using odd pricing. 6.2 Pick ‘n Pay Express sells their food in packaging that needs to be suitable for the food being sold. 6.2.1 Briefly discuss the purpose of packaging. (3) The importance of packaging as part of the product: Packaging refers to the way the product is presented to the customer and it is important to pay close attention to the packaging for the following reasons:  It protects the product against breakage or from becoming damaged.  In some cases it makes it easier to handle the product, e.g. a handle on a bag of dog food makes it easier to carry.  In some cases it is designed to use the product more easily: A milk carton spout is angled/round which enables easy pouring of the milk.  It helps with transportation and stacking of products in boxes/containers.  It can be used as part of advertising campaign to promote the product by ensuring the product looks appealing to the customer.  It helps to ensure that the brand image is reinforced. Labels on the packaging contain important information about the product, such as ingredients and warnings. 6.3 Pick ‘n Pay Express is thinking about rebranding themselves. Identify TWO (2) reasons why branding is important  It is important that manufacturers or retailers develop unique features that can be added to the product to make it easy for the customer to recognise the product. The business itself will portray certain values (image). If the unique features of the products and the image of the business are combined, it is known as the brand.  The marketing message will use the brand as the central theme to convince the customer to associate with the product and the (image of) the business.  The Brand is a name, logo and/or slogan added to the product to assist the customer to recognise it.  The brand helps to distinguish individual products/makes. The customer recognises the brand, as the brand represents the qualities the business

Downloaded from hlayiso.com Grade 11 Business Studies Examination June 2019 Page 13 of 20 represents, thus a brand is able to persuade a customer to purchase a product.  Businesses use branded products to gain customer loyalty by creating a particular status associated with the brand.  A branded product is a guarantee from the business that the product represents a particular quality and this makes the customer confident about the product being purchased. Well-known brands are normally sold at higher prices, due to the promise they hold for the customer. 6.4 Suggest TWO Strategies Pick ‘n Pay Express could implement to ensure (4) sales do not diminish. Your answer must be specific to Pick ‘n Pay Express.  How is the Life Cycle of a product/service extended? o Variation: The Business could offer the same product in different sizes, colours, flavours, etc. with the aim of increasing sales. o New markets: Business wants to create a "new demand' for the product to increase sales. This can either be done by entering a new geographical market where the product has not been sold before, or the business could try to appeal to a different market segment. o Development: The business could redesign the product to make it more modern or to improve the functionality of the product. The aim is to ensure that the product is attractive to customers whose needs and wants may have changed. o Distribution channels: are improved or expanded to make the product accessible to customers or to get the product to customers in a faster and more effective manner. o Promotion: The business could use different promotional strategies, such as "buy one get one free", to promote sales. o Price The business could use different pricing strategies such as discounting to generate greater demand. 6.5 Describe the target Market for Pick ‘n Pay Express and justify your answer. (2) Teacher’s discretion 6.6 The traditional 4 P’s are affected by who your target market is. Evaluate the (6) impact on product and price depending on who your target market is. Teacher’s discretion SECTION C Marks 50

Downloaded from hlayiso.com Grade 11 Business Studies Examination June 2019 Page 14 of 20 QUESTION 7 50 Marks PLEASE READ THE FOLLOWING INSTRUCTIONS CAREFULLY: 1. Please note that the case study and scenarios used in this examination paper have been adapted for educational purposes and are not a reflection on the business used. 2. Candidates are advised to pay particular attention to the use of language. 3. It is in your interest to write legibly and present your work neatly. 4. Answers must be completed on lined paper. The following aspects will be considered when marks are allocated in this paper:  Format: - The CORRECT format for each question must be used, i.e. business report. - Where applicable, include an introduction and conclusion. - Use headings and sub-headings where appropriate.  Terminology: Correct business terminology should be used.  Substantiation: Justification for statements made.  Application to case study / context.  Creative problem solving rather than just giving theoretical facts.  Synthesis and sequencing.

Downloaded from hlayiso.com Grade 11 Business Studies Examination June 2019 Page 15 of 20 SOURCE A: Extract adapted from: https://www.total.co.za/discover-total/total-south-africa/startupper-challenge SOURCE B: Extract from: https://za.pierest.com/pin

Downloaded from hlayiso.com Grade 11 Business Studies Examination June 2019 Page 16 of 20 The StartUpper Challenge is an initiative by Total South Africa. The board of Directors has approached you as a research analyst and project manager to assist in designing a new CSR project for Total South Africa that will support the StartUpper Challenge. As many of the stakeholders believe that CSR is not necessary and a waste of valuable company resources, you need to convince the stakeholders on the advantages and need for this CSR programme and explain step by step how it can be implemented. The stakeholders have only agreed to follow through with the CSR project if it can be guaranteed to be sustainable in all areas of the company. Required: Write a report to the Total South Africa stakeholders in which you would:  Discuss the reasons for CSR initiatives and the responsibility of Total South Africa as a corporate citizen  Analyse the Macro Environment and highlight areas of need for a CSR programme in South Africa  Design a CSR programme for Total South Africa ensuring that it is sustainable and that it supports the already successful StartUpper Challenge.  Corporate Social Responsibility (CSR) is about the relationship between the o business (corporate) and o society (social) and the degree to which the business impacts on society  The business should not just focus on its own profits, but it has a responsibility towards the people and the environment as well. For the business to create a common understanding of how it plans to meet this responsibility, it has to formulate policies and procedures dealing with the concept of CSR and how their good intentions will translate into practical projects.  CSR can be described as an ongoing commitment by business to behave in an ethical manner by contributing to the economic and social development of employees and the community at large. 1 CORPORATE SOCIAL RESPONSIBILITY IN A BUSINESS CONTEXT  CSR in practice means the business is managed in a way that ensures its commercial sustainability (profitability) while acting in a way that will meet society’s expectations of the business by contributing to society and the environment.  The King Code talks about the business being a good Corporate Citizen and that its actions should show that it cares about society and the environment.

Downloaded from hlayiso.com Grade 11 Business Studies Examination June 2019 Page 17 of 20  Some skeptics argue that the business will only pretend to be a responsible citizen as long as it improves the brand image of the business to gain customers and ultimately profits.  An ethical citizen will engage with all relevant stakeholders to ensure the sustainability of society and the environment. These stakeholders include (but not limited) to: employees; shareholders; customers; the government; etc.  CSR is viewed as an umbrella concept that helps the business to understand its stakeholders, and to react to counteract any negative effects on the stakeholders with proactive solutions.  The following difficult issues would need to be considered when the business thinks about its stakeholders and how to contribute positively to them: crime; poor housing; poverty; lack of education; unemployment; environmental concerns; poor health services; inequality, etc. Some of the questions the business will need to answer include: o What is the business’s level of responsibility to address these issues? o To whom will the business be responsible? o For how long will business be responsible – is it ongoing? o How will this responsibility affect business and its day-to-day running?  The business has two levels of responsibility:  Primary: stakeholders who are directly affected by the success of the business, e.g. employees and shareholders  Secondary: stakeholders who are indirectly affected by the business activities, e.g. community, government and environment. CSR AND SUSTAINABLE BUSINESS PRACTICE

Downloaded from hlayiso.com Grade 11 Business Studies Examination June 2019 Page 18 of 20  CSR Programmes should be sustainable where the focus and impact should be long- term for positive change to occur in people’s lives.  The criteria to measure whether a business has a focus on sustainability is as follow: 3.1 MAKING OPERATIONS ENVIRONMENTALLY SUSTAINABLE  With greater global awareness and the concern regarding the impact of pollution, depletion of natural resources and destruction of ecosystems increasing, business has to ensure that it acts in a responsible manner.  Look at ways to cut back on wastage as well as ways to ensure non-renewable resources are treated with respect (e.g. find and utilize alternative energy sources)  Businesses are being held accountable for their environmental practices e.g. introduction of CO² tax and the use of harmful materials vs recycled materials for packaging. 3.2 MAKING ITS OWN OPERATIONS SOCIALLY SUSTAINABLE The business takes responsibility for ensuring that important issues in the workplace are addressed, such as: BEE/BBBEE; HIV/AIDS and health issues; Empowerment/skills development; Occupational Health and Safety; Trade Union involvement. 3.3 MAKING SOCIETY SUSTAINABLE  Important for business to focus on the impact that its activities may have on the community because businesses function better in a strong, happy and stable community.  Business should develop capacity by addressing social issues in the community through programmes aimed at quality education and health care. 3.4 INFLUENCING SUPPLIERS  Important for businesses to monitor the supply chain / value chain so that the business will be actively aware of any possible negative effect or consequences that its suppliers may have on the environment and society.  The business has to put pressure on suppliers to ensure their business activities are sustainable, otherwise the business should look for alternative suppliers.  A business that is taking all the necessary precautions to ensure sustainable business practices cannot be seen to be dealing with unethical suppliers who do not care about the consequences of their actions. DESIGNING A CSR PROGRAMME  A business and management can designing and set up a CSR Programme as follow: o Communicate the need for CSR across the business

Downloaded from hlayiso.com Grade 11 Business Studies Examination June 2019 Page 19 of 20 o Create a CSR policy for the business o Communicate the CSR policy throughout the business to ensure buy-in at all levels o Link CSR to business success factors – part of performance appraisals o Employees should brainstorm to come up with initiatives for CSR o Inventory of skills and resources needed to implement the programme is drawn up o Implement the CSR project o Monitor CSR initiative o Make necessary changes or go back to brainstorming 5.2 IMPLEMENTATION OF A CSR STRATEGY The following 7 principles (suggested by Blowfield and Murray) should be considered when implementing a CSR strategy in the business:  Concept of Citizenship: Business should understand its position within the community and its responsibilities towards the different stakeholders.  Strategic intent: Define the purpose of the CSR intiative (aim) to understand how CSR forms part of core values of business.  Leadership: Top management must ensure that their vision of the business as a corporate citizen becomes part of the everyday life of the business. CSR initiatives could either be offensive or defensive or a combination of the two: o Offensive CSR – proactively tackle social and environmental issues o Defensive CSR – looking after the reputation (brand) ensuring all activities are within the law  Structure: All resources should be aligned with the ultimate CSR goals of the business. All CSR activities must be planned, organized, driven and controlled to ensure goals are met.  Management: All levels of management should understand and have buy in of the programme  Stakeholder Relationships: Business should maintain sound relationships with both internal and external stakeholders through open communication channels so that correct info reaches correct stakeholders on time.  Transparency: All relevant info about the CSR initiative has to be communicated to stakeholders – even if negative. Challenge for the business is to have contingency plans in place to overcome negative events or failures. The business must disclose info regarding its performance. 5.3 CSR REPORTING  Traditionally businesses reported to shareholders on financial aspects of the business  More recently businesses have started to report to shareholders and other stakeholders on social and environmental performance, as well as economic performance.  There is thus a more accountable and transparent approach to share information with stakeholders.

Downloaded from hlayiso.com Grade 11 Business Studies Examination June 2019 Page 20 of 20  The Sustainable Business Handbook suggests that a CSR report has to include the following information: o Business Profile: vision and mission; size and operations; markets in which the business operates; overall brand and the areas of impact (internally and externally) o Board commitment: statements from the CEO, key board members and employees at management levels have to commit to CSR and business sustainability. o Environmental and Social Business Policy: statements from the business about its areas of impact and targets the business has set to address certain social issues as well as an indication how performance will be measured. o Management systems: discuss its audit procedures for both internal and external auditing Powered by TCPDF (www.tcpdf.org)