Activity 1)
What is social responsibility?
Corporate Social Responsibility (CSR) is the idea that companies become actively involved in the welfare of the workforce, the well being of customers and in society as a whole. CSR has had an enormous impact on the way companies do business and the way they present themselves to consumers. Recent studies have shown that a company with a high-profile CSR policy can significantly increase business and attract higher-calibre recruits.
CSR is often undertaken voluntarily and the lack of legal obligation has led to some criticism that CSR is often nothing more than a highly effective public relations campaign.
Why is the term in the news?
A new IBM survey of 250 executives around the world found that, for 68% of firms, corporate social responsibility (CSR) is viewed as a potential source of revenue growth rather than a regulatory or philanthropic issue.54% of the executives surveyed said CSR initiatives are giving their companies a competitive advantage, because of the favourable response such initiatives attract from customers.
How can I use it in class?
Write the term ‘Corporate Social Responsibility’ on the board and ask students to brainstorm the meaning. Lead students into discussions in the following areas:- Would you buy a product from a company that is known to be unethical?
- How much influence do consumers have in changing the way companies do business?
- Does it surprise you that CSR has had such an impact on companies’ competitive advantage?
- Should there be a legal obligation for companies to be socially responsible? Why or why not?
This activity is suitable for students at B2 and above (Upper Intermediate and above).
In this activity students will practice language and techniques for negotiations.
http://peo.cambridge.org/images/improveyournegotiationskills.pdf
Activity 3)
What is a deposit guarantee?
A deposit guarantee is a promise, typically from a government, that depositors will not lose their money if the bank where their money is saved collapses. The purpose of such a guarantee is to prevent a run on the bank, where all depositors rush to withdraw their money, causing the bank to collapse. Under EU law, foreign banks are only allowed to operate in other countries if they agree to take part in their home countries’ system of guaranteeing deposits. In the UK, the government guarantees deposits of up to £50,000. In Iceland, in contrast, the Depositors’ and Investors’ Guarantee Fund offered insurance equal to 1 per cent of deposits.Why is it in the news?
When an Icelandic bank, Landsbankii, collapsed in 2008, the UK and Dutch governments paid savers in their countries in full, and then demanded repayment from Iceland. In January 2010, the President of Iceland refused to sign legislation providing for the repayment of £3.6 billion to the UK and Dutch governments. The President had little choice after around a quarter of the country’s voters signed a petition demanding a referendum on the issue.How can I use it in class?
Discussion:
- What are the benefits of deposit guarantees? What are the dangers?
- Who should be responsible for deposit guarantees, private banks or government / taxpayers?
- Which system of guarantee is best, the British system (up to £50,000), the Icelandic system (1% of deposits) or the system used after the collapse of Landsbanki (100% of deposits)?
- Is it fair for the UK and the Netherlands to demand the repayment of 100% of deposits? Was it right for the UK and the Netherlands to pay so much to depositors in 2008?
- What would be the benefits to Iceland if it refused to make the repayments? What harm would be done?
How would you vote in the referendum?
Reading/infoquest:
Students read one of the first four articles listed below to find answers to the questions above. Note that the first three articles are sympathetic towards Iceland’s case, while the fourth article is much more critical. The texts could prompt a class debate on the rights and wrongs of this conflict.Where can I read about it?
- Iceland says ‘Can’t pay, won’t pay’ — and it is right, Times, 9th January 2010.
- Icesave dispute, Wikipedia.
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