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F1 BPP ST(August 2020) [Unlocked by www.freemypdf.com] (1)

responsible business 
that enhances long-
term shareholder value by addressing the needs of its 
stakeholders – 
employees, customers, suppliers, 
the community and the environment.
 
10.5 Corporate social responsibility and risk management
Corporate social responsibility (CSR) can be described as an organisation monitoring its activities to 
ensure its active compliance with the spirit of the law, ethical standards and international norms. The 
goal of CSR is to get the organisation to take responsibility for its actions and to encourage a positive 
impact on the environment, consumers and stakeholders generally.
CSR can provide value to an organisation through risk management by encouraging the organisation to 
'do the right thing'. CSR can also help a business to think about sustainability; for example in its use of 
resources. Raw materials may be purchased from renewable sources, or the business may decide to 
switch to 'green' energy, such as wind or solar power.
In order to publicise its CSR policies, the organisation may include a customised report on CSR with its 
financial statements eg as part of the directors’ report or as a separate statement. 
 EXAM FOCUS POINT 
You may be asked about the main impacts on the environment that a particular organisation's activities 
are likely to have. You will need to use a little imagination, but hopefully the ideas we suggest in this 
chapter will help you come up with suggestions.
BPP Tutor Toolkit Copy


CHAPTER 2
//
THE BUSINESS ENVIRONMENT 
 
47 
 
11
Competitive forces
11.1 SWOT analysis
A method of environmental analysis which looks at an organisation's internal strengths and weaknesses 
as well as external opportunities and threats is known as SWOT analysis.
11.1.1 Internal appraisal: strengths and weaknesses 
An internal appraisal will identify: 
(a) 
The areas of the organisation that have 

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