Question 3 – Week 11 (7 marks)
The following quote appeared in an article entitled ‘Business and society in the coming decades’, which was available on the website of McKinsey & Company (accessed in October 2015).
“There are compelling reasons companies should seize the initiative to drive social and business benefits. First, in an interconnected world facing unprecedented environmental and social challenges, society will demand it. Increasingly, a basic expectation among customers, governments, and communities will be that the companies they do business with provide a significant net positive return for society at large, not just for investors. This will be part of the implicit contract or license to operate”.
a) Explain the above statement in the context of corporate social responsibility. [Word limit 150-200 words] (3 marks)
b) Further, do you think such a statement would impact the perceived ‘legitimacy’ of companies? Explain. [Word limit 200 — 250] (4 marks)
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