ARDHI UNIVERSITY

SCHOOL OF EARTH SCIENCES, REAL ESTATE, BUSINESS

AND INFORMATICS (SERBI)

RE 448: BUSSINESS ETHICS

GROUP ASSIGNMENT
COURSE INSTRUCTOR: DR MASELLE

Group Members:

Name Reg. No.

1. LUZIGA, BALDWIN L 24563/T.2020
2. MARCO, BARAKA J 24565/T.2020
3. CHALI, EDNA S 24584/T.2020
4. LAITON, JANETH F 24614/T.2020
5. SAMIRA, SAID K 24673/T.2020
6. SELEMANI, SALUMU O 24671/T.2020
7. MAKUFWE, EMMANUEL A 24587/T.2020
8. MAHIMBO, DOTTO 21788/T.2018
9. KAGUO, JOSEPH C 24620/T.2020
10. JOHN, JOSEPH K 24621/T.2020
Questions.

Discuss in your groups how Business corporations address and undertake Corporate Social
Responsibilities (CSR) with respect to their particular business organization.

a) How the company took into consideration the issues of CSR.

b) Which aspect of CSR have been taken into consideration and why?
c) Which strategies have been implemented on carrying out CSR? What are the advantages
and disadvantages on such strategies? If any.
d) What are the outcomes of their activities regarding CSR (impacts to the Society).
e) Assume you are employed as CSR manager, what kind of improvement you will suggest
to the top management particularly on the aspect of CSR on implementing effective CSR
projects to the society. Use CRDB as your Case study.

Answers.

Each cooperation has primary responsibilities to its key stakeholders but also to the society,
environment and the people it serves. Corporate social responsibility entails the continuing
commitment by business entities to behave ethically and contribute to economic development
while improving the quality of life of the work force and their families as well as the local
communities and society at large . It also refers to the integration of company with social and
environment concerned in their business operation and their interaction with their stakeholders
on voluntary basis (European Commission, 2001). From our case study which is Cooperative and
Rural Development Bank (CRDB) established under cooperative and rural development bank
Act No. 07 of 1971 in Tanzania and incorporated under company’s act in 2012 to operate in
Burundi as CRDB Bank Burundi S.A. It is a multinational financial institution that was
established primarily to promote development in rural communities currently serving Tanzania,
Burundi and DR Congo . It has subsidiary companies which are CRDB Microfinance services
Limited and CRDB insurance Company.

a) CRDB took into consideration the issues of CSR by ensuring Sustainability in manner of
being responsible and enhancing satisfaction to the community. It works actively with the
primary role of development in rural communities as well as promoting sustainability and
social awareness to society. CRDB has implemented environmental and social
 sustainability international practices which are its fundamental aspects of achieving
desired outcomes that are consistent with long-term growth strategy to society. It aims
clearly and strategically at managing social and economic resources responsibly for the
welfare of the society. This includes international best practices such as International
Finance Corporations (IFC) Performance Standards which offers investment, advisory
and asset management services to encourage both private and public sector development
in rural areas. It provides both financial and non-financial support to the public in
enduring causes for maximum impact to the society thus promoting development.

b) The following explanations show which aspects of CSR have been taken into
consideration by CRDB in its operation.
 Economic Aspect.
CRDB is the Public Limited Company thus it serves both the shareholders and
the public who are customers. CRDB has implemented Economic aspect of CSR
because customers are the one who have power to change the profit or loss
figures in annual report of the company. CRDB has ensured great returns to its all
14 shareholders including the general public with 41% of the total shares. It has
ensured good working conditions and benefits to its employees by establishing a
partnership with Tanzania Union of Industrial and Commercial Workers to
improve employee’s conditions of service to make a solid, lasting and profitable
change in business they are employed and to themselves. This is ensured
strategically by issuing loans to its employees at relatively low interests. The
company has also promoted development and growth by helping eradicating
poverty, enhancing community development including financial inclusion and
increasing access to education. It has also endured sustainability by promoting
the environment in which the society lives by committing itself in environmental
preservation and climate change action thus creating enablers of social
transformation by touching the lives of vulnerable communities.
  Legal Aspect.
Since the profit is derived from the public who are its customers, CRDB has
ensured Social structured of the community is well maintained. This entails
compliance with state legal conditions as well as compliance. CRDB has ensured
that acquiring TIN number and being one of the top taxpayers in Tanzania. It has
also provided initiatives for gender consideration and empowering women and
formulating various policies and legislations serving as introvert and extrovert
legal framework for its operation.

 Philanthropic Aspect
This entails promoting the welfare of others by donating to charitable causes and
endeavors. CRDB has provided collective strength to support the community
mainly on education and health which forms its main objective for participation I
community development. Through education and health facilitation, it ensures
the sustainability of the society for the perpetuation of the company as well. This
is the corporate moral aspect that includes all activities within the corporation
discrete to improve the welfare of the community and society at large from which
its profits are generated.

c) On implementing the Corporate Social Responsibility the CRDB Company adopted

among of the following strategies.
 Formulation of policies and legislations as part of legal framework
CRDB has formulated various policies and legislations to enhance and enforce
CSR’s to its top management and employees. It has credit policy that gives
priority to projects that fosters environmental and social sustainability. Also it
has CRDB Bank resettlement policy framework for Agriculture climate
Adaptation.
 Implementation of Green Climate Fund (GCF) accreditation.
It is financial intermediary and executing entities for green projects in Tanzania
this includes provision of concessional loans, guarantees and equity to projects
that fosters environmental conservation.

 Establishment of institutional frameworks.

This entails the creation of department, units and delegations in its daily activity.
It has sustainable financial units (SFU) which oversees implementation of
climate action projects based on group’s social and environmental policies and
procedures in adherence to international standards and conversions. It has also
business continuity management (BCMs) department which oversees all bank’s
internal security, occupational health and safety during their day to day activities
and continuity mechanism in disruptions.

 Active participation strategy.

a. Grievance Redress Mechanism (GRMs).
This mechanism ensures smooth handling of all environmental and social
complains that may occur during project implementation it also ensure
transparence and accessibility to PAP’s of any implemented projects.
b. Gender mainstreaming.
It has adopted comprehensive gender mainstreaming action plan and SHE
initiative which support women in achieving their goals in leadership and
carrier growth.
c. Environmental and social impact assessment (ESIA)
CRDB has actively being conducting ESIA to all projects financed by
CRDB
d. Provision of education
CRDB through its SFU department has been providing education,
awareness and capacity building to internal staffs and all parties for
 effective ESMS. Also it provide education to general public, individuals
and SME’s on how to effectively utilize the loans issued

The Following explanations show the Advantages and disadvantages of Strategies used by
CRDB to the public on addressing CSR.

Advantages

 The strategies builds consumer trust with CRDB

 The strategies provides positive customer outreach
 The strategies become positive boost to employee productivity and engagement
 The strategies have builds customer perception and awareness

Dis-advantages

 Rising of cost of operation

 Public image
 Lead to investors resistance
 Results to conflict particularly between business interest and social
responsibility

d. Outcomes of their activities (impact to the society)

 Minimization of gender-related problems in the societies;

CRDB Bank has set out range of frameworks that cut down gender problems that for a
long time has been reported to impact societies into troubles. Gender problems can in
turn lead to imbalance in social structure which leads to further problems and misery such
as poverty, conflicts, theft and prostitution as well as human trafficking. It has also
succeeded to draw off the issue of gender imbalance especially at workplaces. This is
through set standards and rules for customers and employees in provision of its services
 regardless of their differences in sex. Additionally there are fewer reports concerning
issues of sexual harassments in workplaces and avoidance of unethical labor practices
like child labor.

 Social risks mitigation;

CRDB is one of the multi-national company which enforces efficient obligations on
cooperate social responsibility. The company has managed retention of workforces and
loss of potential customers. This has aided satisfactory customer service , decrease of
discrimination against employee group, disregard of natural resources and occurrences of
conflicts. This has further more helped deduction in company costs incurred as costs in
lawsuits and settlements of legal proceedings. This is due to the role of rational and
ethical actions performed by the organization in which those decisions affect the society
at large (Madura, 2007).

 Support society in environmental sustainability;

CRDB bank has undergone several movements on cooperate social responsibility in
environmental preservation on all aspects such as air, water and land. Some of their
efforts regarding environment preservation including Green waste and plastic recycling.
This shows that companies are not profit oriented or driven to maximize profits only but
also have considerations on the environment as well as the society at a large. Additionally
the company has adopted different ways for preserving the environment such as the
offsetting negative impact like planting trees, funding research and general waste
management.

 Rectification of social problems in communities;

There are various problems that faces our societies such as poverty, people with
disabilities and other social needs. According to Kotler & Lee (2005) explains that there
are several merits to be enjoyed once upon performing the activities of the philanthropy
responsibility that are increase company reputation and giving effect to solving of the
ranges of problems that discomfort certain people’s life in local communities. On the
 other hand the company can reduce the problem of unemployment through employment
of local people around its business environment. CRDB takes part in various charitable
events in the society. In doing so, the company serves local communities and give back to
the community in which it operates and donate to the cause that aligns with the
company’s mission.

e. The following are the improvements directed to high executives on aspects of cooperate social
responsibility (CSR) particularly on the aspect of CSR on implementing effective CSR projects
to the society;

CRDB Top Management should be engage further in environmental friendly practices; This
involves Green Finance, this also incorporates issue of environmental sustainability by not only
complying with environmental rules and regulations but also making sure that the funds
discharged by the bank enhance green development and ensure avoidance of any form of harmful
activities to environment. Thus for this case the top management is advised to make sure it takes
measures to prevent harmful impacts on environment. It should also enhance utilization of
alternative energy sources and utilizing sustainable materials may serve the environments.

References

Kotler, P & Lee N. (2005) Cooperate social responsibility, doing the most good for your company and
your cause. New Jersey: John Wiley & Sons publisher.

Madura, J. (2007). Introduction to Business (4e). Florida: Thomson High education.