(A).

(i) Ethics and behaving in an ethical manner in business (and in some cases, bribery and corruption)

(ii) Concern for employees

(iii) Concern for the community

(iv) Concern for human rights

(v) Concern for the environment: protecting the environment, creating sustainable business.

(B)

(i) companies that enjoy some form of monopoly, such as energy companies

(ii) companies that deal directly with consumers, such as banks and retail organisations

(iii) companies manufacturing food, drink and medicines

(iv) companies that extract resources from the environment: manufacturing companies whose products or manufacturing systems pollute the environment

(v) companies with a supply chain in developing countries (such as clothing manufacturers and oil exploration and extraction companies)

(C)

(i) The company might suffer a loss of reputation (reputation risk). This could lead to a loss of customers who switch to the products of rival companies. A poor reputation could also lead to the threat of legislation.

(ii) The company might be exposed to the risk of legal action by customers and others (litigation risk). A notable example has been the litigation faced by tobacco companies, particularly in the US.

(iii) Another aspect of litigation risk is the possibility that a government will introduce legislation against a company’s products (e.g. tobacco products, food products, medicines and drugs) or its production methods (e.g. anti-pollution laws).

(iv) Some investors choose to invest only in ‘ethical companies’. A company with a poor CSR record might therefore attract fewer investors.

(v) Research appears to show that companies with positive CSR policies benefit financially, in terms of profits and share price.