Saiful Mahdi Samirun

QUESTIONS FOR DISCUSSION

2-23. How would you describe Divine Chocolate’s approach to social responsibility? How do
they balance their responsibilities to their stakeholders?

2-24. Do you pay attention to fair-trade products in your own purchasing behavior? For
what kinds of products might you be willing to pay a premium price to help those who
produce the ingredients?

2-26. Why might it be the case that corporations are perhaps better suited to provide direct
aid in the event of natural disasters? Why might it be counter-productive to work via
charities?

2-27. Do you think that social responsibility is good for business? What would motivate a
profit-seeking company to incur the expense running initiatives like Shwopping?

Answer
2-23 Divine chocolate from the beginning adopted a highly social conscious approach in
their business and created a best sustainable cooperative model for all the stakeholder in
the supply chain. Divine chocolate's approach is the right action to reduce the exploitation
of cocoa workers, as well as the potential for slavery that occurs in Africa. Although it poses
a dilemma, namely the increase in cocoa and chocolate prices, so that cocoa commodities
can become more exclusive, but humanitarian issues remain the main priority. It is
necessary to apply strict regulations from upstream to downstream to be able to create a
chocolate production ecosystem that upholds human principles.
To be responsible with stake holder, firms must help protect the environment and provide a
good place to work. Companies also engage in corporate philanthropy, which includes
contributing cash, donating goods and services, and supporting volunteer efforts of
employees. Finally, companies are responsible to investors.
2-24 Fair trade is an arrangement designed to help producers in growing countries achieve
sustainable and equitable trade relationships. The fair trade movement combines the
payment of higher prices to exporters with improved social and environmental standards. I
personally almost always investigate the daily products that I usually use to find out
whether the companies involved in the production of these products implement a humanist
work system. Especially products of basic needs, such as cooking oil, rice, and flour. It is
important to be aware of humanitarian issues, especially labor exploitation in the factory
environment. Fair trade is important to implement because the primary commodities I
mentioned earlier are the needs of everyone, so it would be sad if there were a lot of abuses
in the production of labor. If the price after fair trade increases, the government needs to
provide subsidies to make it affordable for all elements of society.
Saiful Mahdi Samirun

2-26 The main task of the function of a corporate institution is clear, one of which is to seek
profit. So it is not the main task of a corporation to provide assistance to natural disasters.
However, if the corporation generates large profits and tends to be excessive, normatively
the corporation has the responsibility to provide direct assistance to victims of natural
disasters. Especially if the corporation is owned by the state. Indeed, it would be counter-
productive if the case was that the corporation was experiencing a huge loss, so the priority
of the corporation is to save the existence of the company and the fate of its employees.
To analyze the business impact of donations, the researchers looked at how a firm’s
reported revenue in an affected region differed from what could have been expected
without the disaster. They found that the impact varied according to firm reputation, as
measured by media coverage a year before and a year after the disaster and the initial
donor exerted a strong effect on subsequent givers.
2-27 Social responsibility means that businesses, in addition to maximizing shareholder
value, should act in a manner that benefits society. Socially responsible companies should
adopt policies that promote the well-being of society and the environment while lessening
negative impacts on them. Embracing socially responsible policies goes a long way toward
attracting and retaining customers, which is essential to a company’s long-term success.
Furthermore, many individuals who know that part of a company's profits will be channeled
toward social causes near and dear to them will gladly pay a premium for goods. Socially
responsibility is an effective tool to increase employee engagement. These companies tend
to attract employees who are eager to make a difference in the world, in addition to simply
collecting a paycheck. With large companies, there is strength in numbers, and collective
employee efforts can achieve substantial results, which increases workplace morale and
boosts productivity.