BEGovSoc 323: GOOD GOVERNANCE

AND SOCIAL RESPONSIBILITY

UNIT II. Corporate Social Responsibility
RECAP
Corporate Social Responsibility
• one of the most significant festures in establishing a firm's public
image and reputation
• something “extra” that companies do to improve their local and
global communities
• is “the continuing commitment by business to contribute to economic
development while improving the quality of life of the workforce and
their families, as well as of the community and society at large” -
World Business Council for Sustainable Development
• A company's reputation is based on the public's feeling about what
your business is doing that affects the community at large.
CSR in the 1970s
• feel of hostilities and war based on CSR changed
• the attention and emphasis in the war budged from corporate
responsibility to the corporate responsiveness concept
• the contemporary focus on responsiveness transformed the
importance from what corporations could do to survive to what they
could actually offer and could contribute to enhance the world by
way of sustainability

Corporate Corporate
Responsibility Responsiveness
CSR in the 1990s
• the model of CSR materialized as the UPSHOT of
innovative forms of stakeholder engagement and
social regulation, increased demands of stakeholder
and governmental regulation for reporting and CSR.
CSR -Business Responsibilities in the 21st Century

• Establish and validate a pledge and obligation to

commit to society's values and be part of the cause by
becoming a factor in promoting society's social,
environmental and economic goals through worthy
engagements.
• Protect society from the undesirable and damaging
effects of business operations, products and / or
services.
CSR -Business Responsibilities in the 21st Century

• Share benefits of business pursuits both with key

stakeholders and shareholders.
• Validate that a business can actually make more by
doing the right thing.
 CSR and Business Ethics
• Social responsibility is a principled charter and advocates that an
individual or an organization, has a duty to perform for the benefit of
the society.
• It is therefore the commitment to contribute something towards the
welfare and interests of the society in which it operates.

According to the International Organization for Standardization

(IOS), this relationship to the society and environment in which
businesses operate is “a critical factor in their ability to continue
to operate effectively. It is also increasingly being used as a
measure of their over all performance.”
 CSR and Business Ethics
• Social responsibility takes on a distinctive connotation for each
industry and each business within that industry. However, the
fundamental classification stays constant:

To positively impact society while also improving the

company's management.

• Example: Power generating plants might resolve to reduce emissions

or make some operational adjustments in some way that could help
the environment and lessen pollution.
• At large, social responsibility is more valuable when a firm takes it
willingly.
• It can boost the morale of everyone involved if they are engaged in
worthy causes.
• Social responsibility maybe required to some degree by certain laws
and by the government but its impact is much different when it is
done voluntarily.
• Corporate Social Responsibility refers to business practices
encompassing schemes that do good to society. It can embrace an
extensive diversity of campaigns, from donating a percentage of a
business's proceeds to charitable organizations, to executing
“greener” commercial set-ups.
 Types of Social Responsibility
that current businesses are practicing involve;
• Environmental efforts:
One major emphasis of CSR is the environment. Industries
irrespective of magnitude have a large carbon footprint. Trimming
down the negative impact caused by such operation is very much
welcomed and appreciated.
• Philanthropy:
Businesses also exercise social responsibility by contributing to local
and national charitable institutions. Sharing of resources whether
in the form of monetary assistance, goods and services of the
business or volunteering time to assists in local community
programs are truly beneficial and commendable.
 Types of Social Responsibility
that current businesses are practicing involve;
• Ethical labor practices:
By way of handling employees fairly and honrably, businesses can
also establish their corporate social responsibility. This is
particularly real of businesses that operate in intercontinental
settings with labor laws that vary from those in the home country.
• Volunteering:
Presence in volunteer events reveal a great deal about a company's
candor and genuineness. It is expected that whenever you are part
of a volunteer project that you are not expecting anything in return
otherwise it defeats the purpose of sincerity.
Business Ethics
means “having
Greek word
ETHICS “ETHIKOS”
to do with
character”
• The Latin word for ethos is “mos” (or “mores”).
• Thats is why we've known Ethics as the Moral Science or Moral
Philosophy.
• ETHICS refers to the theory of morality of right conduct.
Business Ethics
• The study of what is right and wrong in terms of human behavior and
conduct in business.
• The study of perceptions of people about; a. Morality, b. Moral
Norms, c. Moral Rules, and d. Ethical Principles as they apply to
people and institutions in business.
• The study, evaluation, analysis and questioning of ethical standards,
policies, moral norms and ethical theories that managers and decision
makers use in resolving moral issues and ethical dillemmas affecting
business.
 Social Responsibility and Business Ethics
• are every so often being confused to be one and the same in terms of
impressions and concepts.
• Then again, the social responsibility crusade is just but one facet of
the general regulation of business ethics.
• The social responsibility undertaking developed due to intensified
civic awareness about the role of business enterprise in facilitating to
promote and uphold highly ethical routines in society and especially
in the ecological setting.
What it means to be socially responsible and
ethical?
• The theory of social responsibility is fostered on a system of ethics,
wherein assessments, resolutions and measures must be ethically
justified and supported before carrying on the task.
• No business would like to be under fire for instigating actions that
could cause more harm and damage to an individual, the society, or
the environment in general.
• Such actions are considered socially irresponsible and would be
reflected on the company and would eventually backfire on the firm.
• Moral principles that are integral in humanity form an idiosyncrasy
amid right and wrong. Thus, each person or entity has an obligation
to function in mode of conduct that is favorable to many as opposed
to personal gratification.
When do Social Responsibility and Ethics Apply?
• The theory of social responsibility and ethics operates in both
individual and group dimensions.
• Remember that a group is made up of individuals.
• The concept of ethics and social responsibility must start on a
personal note. You simply cannot share anything in a group if you
don't have it in you. It must start from within. You must believe in it
and live with it, so you can spread and be effective by making an
impact. Companies have fostered a structure of social responsibility
that is custom-built to their company setting.
Factors Influencing Business Ethics
1. Leadership
2. Performance and Working Environment
3. Deontology
• 1. Leadership - are those who are managing and directing a group of people or
an organization towards achieving a common goal. A person that holds a
superior stance within its ground and is able to use a hgh degree of control or
authority over others. Leaders must exemplify traits that are expected of role
models and mentors to its subordinates to realize progress and not become
examples of disgrace and mentors of regress in work.
• 2. Performance and Working Environment - Good performance generates
inspiration and enthusiasm to all personnel to work harder. The operational envt
must hold the energy of being industrious in order for all to flow properly. If the
working envt lacks the necessary force, the employees would have a tendency to
be lazy and not focus on their respective tasks resulting in unproductivity.
• 3. Deontology - The philosophy that says people should meet their obligations
and duties when analyzing an ethical dilemma. This means that a person will
follow his / her obligations because upholding one's duty is what is considered
ethically correct.
Benefits of Business Ethics
1. Goodwill of the People
2. Business Ethics have substantially Improved the
Society
3. Ethical Practices Support Employees Growth
4. Strong teamwork and High Productivity
5. High Profit
 Types of CSR
• Simply put, its all about the responsibility to circumvent
Ethical CSR and prevent damage, impairment and / or social
grievances

• It is the participating and promoting to support

Altruistic CSR common good at the viable outlays of the company for
noble, humane or charitable causes

• It is regarding the organization's social welfare

Strategic CSR responsibilities that benefit mutually the business and
its stakeholders
 Characteristics of CSR
Multiple
Managing
Voluntary Externalities
Stakeholder
Orientation
Social and
Beyond Practices
Economic
Philanthropy and Values
Alignment
Quiz
• 1-3. Factors influencing Business Ethics
• 4-6. Types of CSR
• 7-10. Identify a company in the newspaper and
identify the type of social responsibility it is
undertaking. Write the name of the newspaper, date,
page and section (i.e. Manila Bulletin, January 06,
2020, 2b, business section)
End