You should spend about 20 minutes on
Questions 14-26, which are based on Reading Passage 2 below.
Question 14 – 20
Reading passage 2 has seven
paragraphs, A – G Choose the correct heading for each paragraph
from the list of heading below. Write the correct number, i-viii, in
boxes 14-20 on your answer sheet.
List of headings
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i How CSR may help one business to expand
ii CSR in many aspects of a company’s
business
iii A CSR initiative without a financial gain
iv Lack of action by the state of social
issues
v Drives or pressures motivate companies to
address CSR
vi The past illustrates business are
responsible for future outcomes
vii Companies applying CSR should be
selective
viii Reasons that business and society
benefit each other
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14
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Paragraph A
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15
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Paragraph B
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16
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Paragraph
C
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17
|
Paragraph D
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18
|
Paragraph
E
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19
|
Paragraph F
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20
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Paragraph
G
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THE
SOCIAL RESPONSIBILITY OF THE CORPORATE SECTOR
Broadly
speaking, proponents of CSR have used four arguments to make their case:
moral obligation, sustainability, license to operate, and reputation. The
moral appeal – arguing that companies have a duty to be good citizens and
to “do the right thing” – is prominent in the goal of Business for Social
Responsibility, the leading nonprofit CSR business association in the
United States. It asks that its members “achieve commercial success in ways
that honour ethical values and respect people, communities, and the natural
environment. “Sustainability emphasises environmental and community
stewardship.
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A
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An excellent
definition was developed in the 1980s by Norwegian Prime Minister Gro
Harlen Brundtland and used by the World Business Council for Sustainable
Development: “Meeting the needs of the present without compromising the
ability of future generations to meet their own needs.” Nowadays,
governments and companies need to account for the social consequences of
their actions. As a result, corporate social responsibility (CSR) has
become a priority for business leaders around the world. When a well-run
business applies its vast resources and expertise to social problems that
it understands and in which it has a stake, it can have a greater impact
than any other organization. The notion of license to operate derives from
the fact that every company needs tacit or explicit permission from
governments, communities, and numerous other stakeholders to justify CSR
initiatives to improve a company’s image, strengthen its brand, enliven
morale and even raise the value of its stock.
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B
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To advance
CSR. we must root it in a broad understanding of the interrelationship
between a corporation and society. Successful corporations need a healthy
society. Education, health care, and equal opportunity are essential lo a
productive workforce. Safe products and working conditions not only attract
customers but lower the internal costs of accidents. Efficient utilization
of land, water, energy, and other natural resources makes business more
productive. Good government, the rule of law, and property rights are
essential for efficiency and innovation. Strong regulatory standards
protect both consumers and competitive companies from exploitation.
Ultimately, a healthy society creates expanding demand for business, as
more human needs are met and aspirations grow. Any business that pursues
its ends at the expense of the society in which it operates will find its
success to be illusory and ultimately temporary. At the same time, a
healthy society needs successful companies. No social program can rival the
business sector when it comes lo creating the jobs, wealth, and innovation
that improve standards of living and social conditions over time.
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C
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A company’s
impact on society also changes over time, as social standards evolve and
science progresses. Asbestos, now understood as a serious health risk was
thought to be safe in the early 1900s, given the scientific knowledge then
available. Evidence of its risks gradually mounted for more than 50 years
before any company was held liable for the harms it can cause. Many firms
that failed to anticipated the consequences of this evolving body of
research have been bankrupted by the results. No longer can companies be
content to monitor only the obvious social impacts of today. Without a
careful process for identifying evolving social effects of tomorrow, firms
may risk their very survival.
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D
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No business
can solve all of society’s problems or bear the cost of doing so. Instead,
each company must select issues that intersect with its particular
business. Other social agendas are best left to those companies in other
industries, NGOs, or government institutions that are better positioned to
address them. The essential test that should guide CSR is not whether a
cause is worthy but whether it presents an opportunity to create shared
value – that is, a meaningful benefit for society that is also valuable to
the business. Each company can identify the particular set of societal
problems that it is best equipped to help resolve and from which it can
gain the greatest competitive benefit.
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E
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The best
corporate citizenship initiatives involve far more than writing a check:
They specify clear, measurable goals and track results over time. A good
example is General Electronics’s program to adopt underperforming public
high schools near several of its major U.S. facilities. The company
contributes between $250,000 and $1 million over a five-year period to each
school and makes in-kind donations as well. GE managers and employees take
an active role by working with school administrators to assess needs and
mentor or tutor students. In an independent study of Ion schools in the
program between 1989 and 1999, nearly all showed significant improvement,
while the graduation rate in four of the five worst performing schools
doubled from an average of 30% to 60%. Effective corporate citizenship
initiatives such as this one create goodwill and improve relations with
local governments and other important constituencies. What’s more, GE’s
employees feel great pride in their participation. Their effect is
inherently limited, however. No matter how beneficial (he program is, it
remains incidental to the company’s business, and the direct effect on GE’s
recruiting and retention is modest.
|
F
|
Microsoft s
Working Connections partnership with the American Association of Community
Colleges (AACC) is a good example of a shared-value opportunity arising
from investments in context. The shortage of information technology workers
is a significant constraint on Microsoft’s growth; currently, there are
more than 450,000 unfilled IT positions in the United States alone.
Community colleges, with an enrollment of 11.6 million students,
representing 45% of all U.S. undergraduates, could be a major solution.
Microsoft recognizes, however, that community colleges face special
challenges: IT curricula are not standardized, technology used in
classrooms is often outdated, and there are no systematic professional development
programs to keep faculty up to date. Microsoft’s $50 million five-year
initiative was aimed at all three problems. In addition to contributing
money and products, Microsoft sent employee volunteers to colleges to
assess needs, contribute to curriculum development, and create faculty
development institutes. Microsoft has achieved results that have benefited
many communities while having a direct-and potentially significant-impact
on the company.
|
G
|
At the heart
of any strategy is a unique value proposition: a set of needs a company can
meet for its chosen customers that others cannot. The most strategic CSR
occurs when a company adds a social dimension to its value proposition,
making social impact integral to the overall strategy. Consider Whole Foods
Market, whose value proposition is to sell organic, natural, and healthy
food products to customers who are passionate about food and the
environment. The company’s sourcing emphasises purchases from local farmers
through each store’s procurement process. Buyers screen out foods
containing any of nearly 100 common ingredients that the company considers
unhealthy or environmentally damaging. The same standards apply to products
made internally. Whole Foods’ commitment to natural and environmentally
friendly operating practices extends well beyond sourcing. Stores are
constructed using a minimum of virgin raw materials. Recently, the company
purchased renewable wind energy credits equal to 100% of its electricity
use in all of its stores and facilities, the only Fortune 500 company to
offset its electricity consumption entirely. Spoiled produce and
biodegradable waste are trucked to regional centers for composting. Whole
Foods’ vehicles are being converted to run on biofuels. Even the cleaning
products used in its stores are environmentally friendly. And through its
philanthropy, the company has created the Animal Compassion Foundation to
develop more natural and humane ways of raising farm animals. In short,
nearly every aspect of the company’s value chain reinforces the social
dimensions of its value proposition, distinguishing Whole Foods from its
competitors.
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Question 21-22
Complete the summary below.
Choose NO MORE THAN TWO
WORDS from the passage of each answer.
Write your answers in boxes
21-22 on your answer sheet.
The implement of CSR, HOW?
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Promotion of CSR requires the understanding of interdependence
between business and society. Corporations workers’ productivity generally
needs health care, education, and given 21________ . Restrictions imposed by
government and companies both protect consumers from being treated
unfairly. Improvement of the safety standard can reduce the 22________ of
accidents in the workplace. Similarly society becomes a pool of more human
needs and aspirations.
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Question 23-26
Look at the following opinions
or deeds (Questions 23-26) and the list of companies below.
Match each opinion or deed with
the correct company, A, B or C.
Write the correct letter, A,
B or C in boxes 23-26 on your answer sheet.
NB You may use any
letter more than once
23
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The disposable waste
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24
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The way company purchases as goods
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25
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Helping
the undeveloped
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26
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Ensuring the people have the latest information
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List of companies
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A
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General
Electronics
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B
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Microsoft
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C
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Whole Foods
Market
|
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