CHAPTER 5

The key components of CSR would therefore include

the following:

CORPORATE 1. Corporate governance Accountability, transparency and

conformance with the laws are the major issues under
corporate governance. With good corporate governance
SOCIAL policy, a company is able to accomplish its objectives,
protect the rights of its shareholders, abide by the legal
requirements and offer transparency for all stakeholders.
RESPONSIBILITY 2. Business ethics-Business ethics is the inclusion of the
core values such as honesty, trust, respect, and fairness
into the policies, practices, and decision making of a
AND ETHICS company. It also consists of obedience to legal standards
and submission to in-house rales and regulations
3. Workplace and labor relations-Human resources are the
"Corporate social responsibility is measured in terms of assets of a company and thus play the most important and
businesses improving conditions for their employees, critical roles Workplace and labor relations are good CSR
shareholders, communities, and environment. But moral practices. These CSR practices include but not limited to
responsibility goes further, reflecting the need for health and safety, employee relations, and work-life
corporations to address fundamental ethical issues such as balance. Having these practices around the workplace
inclusion, dignity, and equality." assures easier recruitment and higher retention thus
resulting in cost reduction caused by non stop recruitment
Klaus Schwab and restraining.
4. Positive action- Some of the good practices which reflect
Corporate social responsibility (CSR) is the most recent CSR practices of the company are inclusion of people with
practice of companies in taking active participation in social disability and people from the local community in the
concerns and community matters. The customers or the diversity of workforce.
buying public besides other stakeholders are the target of It also includes gender policy, guidelines on prevention of
responsibility. Providing respect and satisfaction to sexual harassment, preverntion of HIV/AIDS and employee
customers and other stakeholders is not new to businesses. volunteering.
5. Supply Chain - The business process of any company is
Corporate Social Responsibility and Good Governance in not limited to the internal operations but includes the whole
the Millennial Age companies to behave as good corporate supply chain involved in producing goods and providing
citizens. For instance, in the environment Basically, CSR is a services. And disregards or carelessness on social,
business philosophy that recques conduct of their environmental, human rights and other responsibility
operations, they must avoid causing pollution or exhausting aspects may seriously and greatly after business eventually.
limited natural resources. Therefore, a company must use its strategy position to
impact the supply chain totally to positively influence the
THE CONCEPT OF CORPORATE SOCIAL stakeholders
RESPONSIBILITY 6. Customers - The cost and quality of products and
services an possibly the greatest but definitely not the only
The increasing role the civil society has placed much aspects of concern postle customers. Through improved
pressure on companies to tum into economically, socially awareness and ways Communication, the satisfaction and
and environmentally friendly. Employees customers, loyalty of customers would be contingent on the way the
shareholders, media and civil society put burden on company has produced the goods and services with
companies to be transparent and accountable. Today, consideration on the social, environmental, supply-chain
businesses no longer operate in isolation, because they are and other such concerns.
in a distinctive position to affect society at large and make 7. Environment-CSR is beyond legal requirements including
progressive influence. the issue on the environment. It is the role of the company
to further deliver environmental benefits besides mandatory
The ideas of Milton Friedman and Edward Freeman gave requirements Part of these mandatory requirements towards
rise to the concept of Corporate Social Responsibility (CSR). the environment is looking for sustainable replacement for
As written in the New York Times Magazine in 1970, the depleting natural resources, lessening the adverse
Friedman said that "the social responsibility of business is to impacts on environment , reducing environment-risky
increase its profits" and "the business of business is pollutants/emissions as well as producing environment-
business". This concept of Friedman represents the friendly goods.
viewpoint of maximizing profits for the shareholders. 8. Community The community where the company does its
considered as the only stakeholders for the company is the business is another important stakeholder. The connection
lone social responsibility of the company. However, for of a company with the community depends on its direct
Freeman the stakeholders are those individuals or groups communication with it. In addition, the evaluation of the risks
who can affect or are affected by any activities of the confronted by those people living in the community within
company. Therefore, stakeholders consist of shareholders the vicinity of the business is a consideration in CSR. CSR
as well as but not limited to, customers, employees needs to help the community through providing positive
suppliers, community, environment and society in general. changes to the Irves of these people while cultivating the
brand image of the company.
These ideas led to the concept of CSR that extends beyond
philanthropy and includes legal obligations social, DRIVERS OF CSR
environmental and ethical concerns into the business The idea of CSR is to encourage and support accountability
process. From the widely quoted definition by the World to all stakeholders not just the shareholders and investors.
Business Council for Sustainable Development corporate These days and possibly may continue in the future, the
social responsibility is "the continuing commitment by issues on environmental protection as well as the wellbeing
business to behave ethically and contribute to developmentof employees, the community and the society are the main
concern. The business model of CSK considers that
while improving tally and life the workforce and their families
as well as of the local community. companies are not isolated economic entities and must
operate in connection with the society beside
The emerging concept of CSR is the triple bottom line competitiveness survival and profitability which are the
emphasizes a company's guarantee often called the 3Ps traditional views
(people, planet and to operate its business in profit) an
economically, socially and environmentally sustainable Some of the drivers pushing business towards CSR
manner include
1. The shrinking role of government - The government had 4. Business is expected to contribute to the improvement of
usually depended on legislation on the provision of social the quality of which involves cultural, Social, educational,
and environmental services in businesses. However, the political factors and economic security.
distrust in the implementation of various regulations and the 5. Society is unstable if the quality of life of the people is
insufficiency of government resources directed businesses poor. Businesses contribute to a good quality of life and
to explore "soft intervention" instead that it is voluntary and society.
not directly structured and regulated. 6. A prosperous society is the best environment for a
2. Demands for greater disclosure - There is an increasing business to thrive in. Businesses will benefit from its self-
demand for disclosure coming from all stakeholders who investment in society.
consist of customers, suppliers, employees, local
communities, investors media and pressure groups Unorganized CSR (1960s to 1970s)
3. Increased customer interest How a company conducts In this dates the effects of LS colonization were still being
itsell ethically may influence the buying decisions of felt by the Philippines. Businesses were purely involved in
customers. Most consumers either prize or penalize charity and durations. The declaration of the Martial Law in
companies depending on how they perceived the 1972 under placed the country into severe this Political
performance of the company. disorder, societal chaos and the continued existence the
4. Growing investor pressure - These days investors often business itself were threatened during this period.
decide on the evaluation of companies performance based Consequently the buyer to combat there threats numerous
on criteria that embrace ethical concerns. Investors also look businesses and other organizations coordinated and shared
into account ethical considerations when buying and selling their labors and struggles through CSR programs
stocks.
5. Competitive labor markets - Gone are the days that This period was characterized by restrictions and lack of
employees are only looking at paychecks and benefits. know-how but with PBSP, the CSR managed to evolve.
Today, employees are also after how to match their own Projects under PBSP have given assistance to powerless
principles with that of the employers philosophies and farmers, fishermen coutryside workers, underprivileged
operating practices. urban people and ethnic cultural communities in the
6. Supplier relations - Nowadays, most stakeholders are Philippines.
more interested in the affairs of businesses. With this
situation more and companies are making certain that even Organized Philanthropy (1980s to1990s)
their partners are aluc conduct themselves ethically and The Philippine government implemented new and many
socially responsible. The trend now is to present codes of policies about deregulation, decentralization and
conduct for their suppliers, which would guarantee a good liberalization during this period of organized philanthropy. In
image once these policies or practices would be followed. effect, with those policies foreign investment increased and
the existing private sector was influenced. The intention of
HISTORICAL PHASES OF CSR ARM Investment in the private sector for of ARM budding.
The practice of corporate social responsibility (CSR) has had Truly, any investment in CSR is now becoming strategies
an extensive and widespread history. A sizable body of that toughens the relations amongst the participants
literature about CSR could be found mostly from the
twentieth century particularly in developed countries, the Organized Movement (2000 and continues until present)
majority of which from the United States (US). Europe later Globalization was the great influence in the spread of CSR
was also captivated with CSR manifested by a lot of formal worldwide. The interdependence of business competition
writings, research, conferences, and consultancies usually and community health became popular in shared value" in
from the works of scholars and practitioners. Countries in the field of CSR. This kind of drive was endorsed by the
Asia also joined the bandwagon and started to become League of Corporate Foundation (LCF) in the Philippines.
interested to CSR policies and practices. The league was founded in 1991 with the purpose of
promoting and enhancing CSR among its network of over
Phase 1 : Profit Maximizing Management 80 of the largest operating and grant- making corporate
1. Management must maximize profit, foundations and corporations in the Philippines. Members of
2. Individual drive for profit maximization would ultimately LCF collaborate in educational projects and initiatives ever
create wealth for the nation. since its foundation until these days through their
3. Business systems as a profit maximizer are used as a tool committees on Arts and Culture, Education.
for the elimination of economic scarcity.
4. Businesses ignored unsafe working conditions, pald DIFFERENT VIEWS OF CSR
starvation wages and used child labor in order to maximize The two approaches that form and guide managers on how
profit. to line up their priorities and actions are the socioeconomic
5. Problems of cultural minorities, view and the classical view. They are discussed here below:
unsafe products, unfair advertising and urban poor problems
were given little if no attention at all. Socioeconomic View
6. Abuses of capitalism are extremely rampant and the The socioeconomic view says that a business is a portion of
government tolerates these deplorable business practices. the larger society and thus has social responsibility that
goes beyond making and maximizing profits. In addition, in
Phase 2 : Trusteeship Management this view maximizing Profit is the second priority and the first
1. Management was considered both as an instrument of priority is defending and refining society's welfare Being
stockholders and as a trustee for all groups who contribute socially responsible is not only the correct thing to do it also
to the business enterprise. helps corporations that are socially responsible to form a
2. Aside from the profit maximization, the positive public image, increase share pro the long run, and
Management's concern is also to maintain a fair balance in have more protected long-run profits.
the interests of employees, customers, creditors,
stockholders and the community. Society encourages businesses to become involved in t
social, political and legal environment Now-a-days modern
Phase 3 : Quality of Life Management business organizations engage themselves into such
1. Security of basic goods and services Was no longer a activities to influence political process for their benefits.
principal problem. Social responsibility also includes the balance of
2. Social and economic problems brought about by responsibility and power.
economic growth expanded the concept of social Businesses which are socially responsible have some
responsibility of management. recognizable common points which are
3.Society demanded management's active participation in
helping solve social and environmental problems in view of 1. Public image - In order to increase their sales, access to
the vast resources (funds, manpower, materials, financing better employees and the rest of the stakeholders,
management, skills and technology) of businesses. businesses are taking their efforts to enhance their public
reputation. The public is always concerned and give
importance to social goals; hence businesses can form a would lead to the long-term growth of the business. In the
positive public image by pursuing these goals. first place businesses are created to be the livelihood of
2. Better environment - As part of the society, businesses their owners.
can help in providing solutions to problematic social However, a company should not also disregard its overall
problems. This way, the business sector can offer comfort of effects on society through balancing economic decisions. A
a better quality of life which may also attract and retain company needs to meet also the standards established for
skilled employees. ethical, environmental and philanthropic practices while
3. Public expectation - The public supposes that businesses providing earnings for its investors as rewards. Businesses
are not only after attaining economic goals but also social also must be profitable to be able to pay their employees,
ones. suppliers and distributors for supplies, utilities and other
4. Long-run profit - Those businesses that are socially bills. None of this would be possible without profits.
responsible have the highest likelihood to earn more secure
long-term profits. This is the consequence of harmonious Legal Responsibility
community relationships and enhanced business reputation The second level of the pyramid is the business legal
through CSR. responsibility to obey all laws set forth by society all the
5. Balance responsibility and power - Businesses are said to time. Comparable to individual members of the citizenry, a
be the most influential organizations in society. However, business also has an obligation to follow all written and
having this kind of power, it is expected that they must also codified laws that concern its existence. The government
be responsible. In other words, it requires that they should acts as regulators of businesses so that the integrity of
balance their power and responsibility at same time business practices is maintained and the interest of the
6. Stockholders interest - In the long-run when a business is public is protected.
socially responsible it would result in its stock price increase. In the early 1930s, most businesses are completely free to
The stock market shall observe the actions of this socially act the way they pleased without thinking of any restrictions.
responsible company. This practice gave rise to unacceptable practices of
7. Possession of resources - Almost all companies that are exploitation that made workers and consumers defenseless.
socially responsible have ample if not more financial Disobeying business laws would mean paying for fines as a
resources, technical experts and managerial talents. These penalty.Every stakeholder would be affected due to financial
resources make them able to support and sustain their impediments that may happen.
public and charitable projects Some of the required laws in business consist of the basic
business permits and requirements, business tas, the rights
Classical View of the workers, intellectual property rights, consumer
It was Milton Friedman, a Nobel Prize winning economist protection, obligations and contracts and antitrust law
who endorsed this classical view. Friedman wrote this insight among others. Business laws would depend on the industry
in a New York Times article entitled "The social responsibility and form of business that the company may have
of business is to increase its profits". The classical view says organized.
that the primary role of business is to provide goods and
services to maximize profits for the benefits and satisfaction Ethical Responsibility
of the shareholders interest in an open and free competition The third, which is directly connected to the legal
with obedience to laws responsibility, is the ethical responsibility. That is to do what
Here are the common characteristics of the classical is right even when business is not obligated to do so by law.
view of CSR: Fair labor is an ethical responsibility. That is, business is not
obligated to do responsibility. Di employees in the form of
1. Profit maximization - Businesses are focus only on equal pay for equal work and living will compensation
activities that would produce profits for shareholders. As a initiatives is an example of this labor policy ought to be
consequence shareholders are expected to eam a good applied to all employees, even those who are at the highest
return on capital invested. levels of the company. Despite diversity in the workplace,
2. Government concern - Businesses which have the this is beneficial so that everyone would be encouraged to
classical view believe that social welfare should be left for work as a team.
the government to take care of. It is the role of the
government to provide assistarice to its constituents in the Basically, this responsibility is too tough and challenging
form of health, education and financial aids. Being profitable at the same time ethical is conflicting. In all
3. Aggressive competitive strategies - In order to ensure cases and at all times ethical responsibility must be adopted
survival of the business, the primary objective of business to all stakeholders including but not limited to investors,
organizations. is to maximize profits using aggressive employees, customers as well as to competitors
competitive strategies Hence, businesses should avoid
commitment because there is only derived from it, a small Environmental Responsibility
nature of direct to CSR initiatives economic remedy. These days environmental responsibility is a must for
4. Utilization of resources would be committed to CSR businesses, though this is not actually included among the
activities, it denotes additional costs and competition responsibilities by Archie Carroll in the pyramid of CSR.
disadvantage on the part of businesses. Therefore, the Generally, among the initiatives in sustaining the
financial performance of the company will also be negatively environment endorsed by businesses are limiting pollution
affected. and reducing greenhouse gases As businesses become
5. Unachieved business objective Commitment to aware of environmental issues, they try to contribute as
philanthropic responsibility would mean averting good corporate citizens in lessening air, land and water
shareholders wealth into non-economic activities. The main pollution that would harm the society.
objective of maximum profits then would not be attained. In the Philippines, there is already a policy of eliminating the
use of plastics, Styrofoam, stirrers and disposable utensils
PYRAMID OF CORPORATE SOCIAL RESPONSIBILITIES In business establishments to prevent the negative impacts
The basis of the modern definition of corporate social of plastics baste Senate Bill (SB) 1866 otherwise known as
responsibility (CSR) came from Archie Carroll's Pyramid Philippine Ban ot Plastic Straws and Stirrers is an initiative
Corporate Social Responsibility. In this pyramid it is of the government on plastic reduction nationwide to stop
considered for types of responsibilities which are actually an the notorious discarding of plastics Possibly this is a way of
assortment of specific responsibilities that follow a the government to transforms companies into socially
successive fashion but are interdependent to one another. responsible organizations
However, due to necessity another responsibility was added
to the list. These five social responsibilities of a business an Philanthropic Responsibility
discussed below: Philanthropic responsibility known also as discretionary
responsibility is best described by the resources donated by
Economic Responsibility companies toward social, educational, recreational and/or
The first and most apparent is the economic responsibility to cultural intentions. These donated resources could be in the
be profitable. The focus here is on the different practices that form of time. money or other types of resources to
charitable organizations and other institutions at the local, 6. Consumer's safety - It is always expected by consumers
countrywide or worldwide levels. The donations are intended that any product they buy shall not harm their health and,
for several well-intentioned causes such as human rights, importantly, their lives. Consumers trust more those
national disaster relief, clean water and education programs companies that offer and sell safe products.
particularly in underdeveloped countries. 7. Regular Supply Goods and services must be provided to
Obviously, philanthropy does not only mean giving cash customers on a regular basis. It is a business sin to create
donations are numerous means a company may become false scarcity of goods. Good and services should be
philanthropic with less spending involved. Some huge accessible to consumers whenever they need and want
businesses offer capacity building seminars for promising them
and emerging entrepreneurs an philanthropic activity 8. Attend complaints Businesses should always attend to
education and bring any queries and complaints of customers the soonest
Even small companies could have numerous benefits out of possible Customers certainly would retaliate when their
doing philanthropy. These companies may host fundraising queries and complaints are not given response instantly by
efforts e proceeds could be used to support sports teams, a telling negation feedbacks.
local school or charity, tree-planting at the park or any other9. Avoid monopolistic competition - It is always healthy for
noteworthy cases Providing support to causes may also be any industry to have a competitive business environment.
used as good marketing in a positive light. Sometimes, when For the sake of customers, businesses of any industry
businesses have lots of criticisms, philanthropy can be used should not allow that monopoly to exist.
to counterbalance these negatives by giving back to the 10. Training-Sometimes, businesses need to train their
community where they operate. customers on the use of the products bought. This training
is given either for free for a fee. It is freely given if the
SOCIAL RESPONSIBILITY TO STAKEHOLDERS customers would be able to use the product without the
Today, both large and small companies are also faced with training, or usually it is already part of the package. This is
numerous issues that best them to answer to the concerns true in the case of computers and software products.
of their stakeholders to operate and perform in a socially
responsible fashion Here are some of the major Towards Employees
stakeholders that companies need to focus on CSR programs should reflect that a business is more
socially focused instead of just merely profit-oriented CSR
Towards Consumers intentions met be contained in the values of the
The consumers are without doubt, the important organization. The Millennial generation would like to work
stakeholders of any business whether big or small. Putting- for a company that takes care of its employees besides a
up a profit-motivated company would not work without good compensation package. This group of workforce
consumers or the buying public. Hence, a company's
obligation to the consumers is much comprehensive would like to be on-board a company that shows its core
compared to other stakeholders. Besides delivering the right values by participation in CSR activities. Millennial wants to
product or service with desirable quality, consumers exp that work in a compan that it is truly a corporate citizen
they be provided at the right time, right place, and
reasonable. Besides the obligation to society and the environment, the
Consumers always consider good value for the money they practice of CSR also means an obligation towards the
spend. It is the responsibility of every company to take care employees of a company. The purpose is to enhance the
of wit Customers hard earned money. motivation and the interest of the employees in their jobs.
Ethical business practices are added-value points that could The good practice of CSR by the top management shall
increase a good respectable and reliable image Fulfilling serve as an example to these employees to be also socially
social responsibilities could gain a lot of customers. Better responsible to the society
customer service approach is a good and ethical practice
that may draw comers info repetitive buy. Since the employees are very significant, a company must
This is feasible by having a positive attitude towards
customers and achieving the following social responsibilities Fulfill its obligations to them to increase its productivity.
towards them: Here ate the responsibilities of a company to its employees,
as follows:
1. Quality - It is a must for a company in the manufacturing
industry to create quality goods and provide quality service 1. Meaningful work and job satisfaction - In a country like
le service-oriented kind of businesses. Although, it is the Philippines with a very high rate of unemployment, the
impossible to have a 100% percent quality, companies job opportunities are restricted: Thus, employees must be
should always make improvement to make it near perfection ethically treated by giving them challenging but meaningful
in terms of gally Improvement must always be part of any tasks, good working conditions and job security. Certainly,
business operation and process top management should make employees' jobs enjoyable.
Management of the company must be responsible in
2. Fair prices - It is not reasonable to charge high prices on making them grow and develop overtime. Job assignments
customers. Customers these days are looking for quality need to be delegated equally and be based on expertise,
goods and services offered at reasonable prices. It is always knowledge and educational qualifications of employees so
fair prices that make a new customer turn into loyal that no one is abused.
customers 2. Fair returns - Well designed compensation packages
include sufficient wages and salaries in addition to other
3. Truthful advertising - Advertisements should offer incentives. Payment to employees must meet their
accurate relevant and updated facts, advantages and even individual financial obligations. Should employees face a
side-effects of the product. Providing information is one of financial crisis for some reasons, they should not be denied
the basic purposes advertising Hence, any company which laced during said situations. Management must treat all
would like to advertise its products or services should not employees as part of one big family that requires to be
misinform and mislead customers by giving our correct and given an and support. The company and employees ought
real information, to stand by each other during both happy and sad times.
4. After sales service - During the period of promised 3. Best physical and mental atmosphere Essentially,
warranty customers always anticipate that the company employees need good facilities to work productively and
would provide them after sale service. It is the after sale comfortably deliver their performance best. These require
service when given efficiently and effectively that creates a management to provide these employees with fresh,
good relationship between the customers and the company. decent, healthy and sa working conditions, proper sanitary
5. Research and development - It is actually a requirement facilities and fresh drinking water among others. In addition,
of consumers for businesses to perform research and (R&D) employees must be given proper workstations or cubicles
Through R&D, quality of offering both goods and services for some amount of privacy. Every employee should be
may be improved and certainly cost of production could be given the same comfort so that they will not feel stressed
reduced development and frustrated with their job. Ensuring frequent inspection of
the facilities and educating employees about safety The main obligation of business according to Friedman as
standards is necessary and a must for a harmless earlier is to make money for its investors. Nevertheless,
workplace. companies are still obligated to follow the laws of the
4. Participation in the management Top management should countries where they operate their
encourage work teams, suggestion system, profit-sharing discussed businesses. Yet, they can make suggestions to
and other ways of participation. These activities both build a the government to revise the rules as if it concerns the
better workplace relationship and reinforce the bond to work interest of the society.
cooperatively in projects and activities that are outside the
office. Together, management and employees are Here are some of the responsibilities of businesses towards
appreciative of each other as they show their talents which their respective governments:
are not exposed during the time of work. 1. Pay taxes - Obviously, businesses owe to the
5. Training, promoting and welfare schemes - Proper training government their taxes and fees as they carry out their
is a requirement for employees to be efficient and proficient operations. The government imposed various taxes and
as these are the demands of contemporary business fees on businesses such as excise duty.
workplace. Part of the good CSR practices is to offer big sales tax and corporate tax. These taxes and fees should
help opportunities for skills development to employees. It is a be paid accurately based on the provisions. In return, these
big help for employees to learn new skills which they can collected taxes and fees are returned to the people through
share and contribute to the company. As they participate in infrastructure
CSR activities, these new skills would make them confident and other welfare facilities.
to assume important roles within the scope and junction of
such activities. 2. Follow environmental regulations - Those businesses in
6. Recognition of unions- A union is an organized group of the industrial and manufacturing sectors have been
workers who unite to make decisions about conditions enforced strict rules concerning the quantity and the variety
affecting their work. A socially responsible company of pollutants that
recognizes the right of employees to form their union. Having they are permissible to produce. Socially responsible
a union inside a company promotes and maintains good companies try to minimize their pollution for the common
labor relations. good even more than the law requires.
7. Proper personnel policies A good practice of CSR is to 3. Abide by labor laws - In the Philippines employers need
have concrete and proper personnel policies in transfer, to follow laws on labor practices. These laws are about
promotions recruitment, training and other related areas. proper treatment of employees. How much an employee
Policies in promotion transfer or any other action for the can be paid, how hours he is allowed to work and the hiring
employees should at all times be unbiased. and firing criteria are some of these laws. The Labor Code
8. Health and safety measures - All companies must always of the Philippines is the general labor law that regulates the
have enough actions for employee protection in terms of relationship between the employee and the employer, and
health. Among others, proper canteen, medical clinic and all employment-related matters in the country. The law
other related facilities must be in place. Management as part applies to all Philippines enterprises and joint ventures, as
of their CSR practice should always maintain a safe working well as to all employment relationships between Filipino
environment to prevent possible accidents that may happen. nationals and foreign enterprises in the country.
9. Grievance procedure - As a socially responsible business, 4. Avoid restrictive trade practices - Competition is basically
a company should have a proper grievance process to an element of any business. Businesses are not permitted
answer tor employee complaints. It is also the concern of to engage in restrictive trade practices even under
management to build a working climate free from competition. Monopoly is an example of a restrictive
harassment and discrimination with respect to all age, race, practice in any industry that limits competition and prohibits
gender, ethnicity, disability or even religion. Any workplace new entrants in becoming a a player of an industry. This
issues confronted correctly and promptly can avoid type of trade practice can lower the quality of products
expensive civil lawsuits. available to consumers yet drives prices up. Article XII,
Section 19 of the Philippine Constitution provides that "the
Towards the Government State shall regulate or prohibit monopolies when interest so
Either directly or indirectly, businesses may be affected by requires. No combinations in restraint of trade or unfair
the communities where they operate. Companies interrelate competition shall be allowed."
with a number of sectors in the bigger community and the 5. Financial disclosure - The financial statements of
government is a part of it. The government is basically companies need to be disclosed to the government for
responsible for controlling the laws and protecting the taxation purposes. While, the company is also responsible
security of the country. Hence, the government actually to disclose its ownership of shares of stock to the public in
plays a vital part also in the standpoint of CSR as an terms of availability. Being financially transparent makes
external stakeholder. certain that the company obey government laws such as
Each country has its own sets of laws and regulations. A withholding and business taxes. Whereas the public is
business must at all times obey the rules imposed on the assisted on its investment decision.
area/s where it operates. In the case of businesses, certainly 6. Avoid corruption - In almost all countries bribing public
the laws would always protect the consumers and the officials by businesses is prohibited. Essentially, bribery is
environment against any form of abuse besides responsible offering to do something for someone for the expressed
investment. purpose of receiving something in return. Bribery makes the
interest of the country's citizens at stake. Those public
One benefit of having government policies in place is for officials that accept bribes lose their ability to be objective
businesses to function without bringing any harm to both the on the performance of their respective jobs. It enumerates
society and the environment. Companies and the certain acts of public officers that constitute graft or corrupt
communities are abie practices, or which may lead thereto.
to establish and maintain good relations. Hence, when a
company breaks fault against consumers and the Towards the Local Community
community, In contrast, a business government rules, it is A local community is a group smaller in size and number
sure to be punished accordingly on its funding. For instance, compared to a society in general. It may consist of places
any requests concerning business operations that are where the company operates and functions as well as
compliant with government rules may be given incentives where it negotiates about common issues of concern. These
and activities could be granted once the government has places are proximate relative to the geographic location of
proven the company's being obedient to existing rules. the business.
Finally, the stakeholders It is through business actívíties that companies build impact
and the investors are protected from unfair business on the community where it operates. Once a company starts
practices and guarded by the corporate governance principle to produce goods or provide services, apparently
respectively, all the time. manpower. Then it will also deal with local suppliers and
customers
apparently it would hire its in its business business company on paper use through setting up electronic collaboration
that are directly related to the buy and sell aspect. tools.
Yet, companies also voluntarily participate and involve 2. Use LED light bulbs - These days offices had switched to
themselves in activities where they try to build relationships LED light bulbs that cut down their utility bills because 95%
with the larger community. of the energy in LEDs is converted into light and only 5% is
This is known as corporate social which provides an avenue wasted as heat. At the same time LED protect the
to fulfill their social obligation towards the community. It is environment since less energy use reduces the demand
through CSR that companies are obliged to extend from power plants and decreases greenhouse gas
themselves beyond just maximizing profits. emissions.
Usually, the participation of companies in CSR programs 3. Allow telecommuting - Millennial prefers flexible work
within the local community provides them with the source of arrangements and sometimes even working from home.
fulfillment and satisfaction. Telecommuting is advantageous for the environment. This
human resource (HR) practice reduces the energy
There are several reasons why a company would involve consumption in the office spaces everyday saving money
itself in the local community. Firstly, most companies, and cutting the businesses carbon footprint. Even with just a
particularly the big corporations, know that they have a lot of few employees, telecommuting can be commuter traffic.
impact on society so they are aware of their obligations. 4. Improve air quality with indoor plants - indoor plants do
Companies also wanted to be professional and respectable not provide aesthetics but also improve the general air
in the eyes of the people residing at the local community. quality. Besides being more eye-pleasing, indoor plants can
Secondly, some companies are interested in filling the help clean the air and remove contaminants.
scarcity or the needs of the local community using their 5. Power off computers - It is a great opportunity to save
products they manufacture or services provide. Lastly, money and conserve energy by unplugging computers.
certain companies Businesses need to make it compulsory for all employees to
are encouraged to create new products and market via power down their computers, printers and copiers before
community involvement. they leave their respective offices.
Suggested Approaches to establish a good relationship with 6. Set-up recycling bins in common areas - businesses
communities that can also help businesses in return: should place recycling beans and common work and
1. In the field of Industry - Some companies provide meeting areas of their offices. In this way, companies would
livelihood programs to help people in the rural areas or the be able to send the message especially to employees and
least privileged citizens in the urban communities. These visitors that they take environmental responsibility seriously.
programs could offer employment opportunities for people 7. Reduce Travel - Travel has a negative impact on the
living in these types of areas. environment. Although it is an important part of doing
2. In the field of agriculture - Any large company can business, it can be substituted by tech tools like video
contribute to agricultural development as its CSR programs. conferencing. Instead of traveling to a conference to get and
In their perspective these csr programs can provide full touch with customers, schedule a webinar and let them join
employment to the large unemployed people in the labor online. These tech tools will not only save money for a
market. company but also reduce carbon emissions.
8. Give filtered water - Basically, water is the beverage of
3. Housing Facilities - There is a big need for this social choice by everyone in the offices. Instead of plastic water
responsibility of businesses. It is a reality that majority of the bottles, employees should be encouraged to bring their own
filipinos live in ill-planned and filthy houses especially those reusable cups. Businesses may add filtration to their water
in the squatters area. This csr approach extends financial aid system to make water available clean to employees
by means of material and manpower support by businesses throughout the day.
to slum urban areas and disaster prone places.
4. Transportation - it is usually the national government
which has the responsibility to create programs for cheap
public transport, for proper and utilization of road capacity,
for setting up improve licensing procedures, and playing out
changes in urban and rural structures among others.
5. Health and Education - Businesses as support of their csr
can help improve the quality of life of the communities which
they wanted to provide assistance to. In the Philippines
some companies conduct dental and medical missions in
remote provinces to treat ailments and supplement the
health of people living in these communities.
6. Industrial Aid to Education to Urban areas - Successful
businesses have CSR programs that support schools,
colleges and technical / professional educational institutions.
In these contemporary times, part of modern csr is to backup
educational programs, specifically technical education
through giving financial help and lending the services of their
specialist.

Towards the Environment

The aim of environmental CSR is to lessen the harm effects
on the environment from any business processes. Today
some companies also initiated green CSR which can
decrease business risk, improve reputation, and offer
opportunities for cost savings. Businesses that believe in this
green advocacy know that even the simplest energy
efficiency measures can generate savings and make a
difference to businesses.
One thing common in successful businesses is that they
possess corporate attitudes about respecting the planet and
using socially responsible resources. Here are some ways
that businesses can help protect and save the environment,
which are:
1. Reduce paper waste - In recent years, businesses have
moved toward going paperless. Staff should be encouraged
to do office stuffs electronically. Companies need to cut back