ETHICS

• Corporate Social Responsibility (CSR)


  Practices and activities that business organizations adopt in the course of their operations which have social and environmental impacts and relevance
• Social Responsibilities of business organization according to their levels

  • Duty Not To Cause Harm
  • Responsibility To Prevent Harm
  • Responsibility to Do Good
• Duty to Not Cause Harm


  • A business organization has a duty to not cause harm, even if an action that may result in avoidable harm is not explicitly prohibited by law
  • If a company caused harm to a property or a person, and if the harm could have been avoided by exercising due care or proper planning then both the law and ethics would deem that the company should be held liable for violating its responsibilities
• Responsibility to Prevent Harm


  • There are instances when a company does not cause harm but has the potential or the capability to prevent harm from occurring
  • This is often referred to as the duty of care of an organization
• Responsibility to Do Good


  • Business organizations have the social responsibility to do good things by making the society a better place
  • Providing solutions to social issues (e.g., lack of access to education, poor hygiene) and giving support to education, arts, and culture are some examples of activities or programs that business organization can do in line with this responsibility
• Models of Corporate Social Responsibility

  • Economic Model
  • Philanthropic Model
  • Social Web Model of CSR
  • Integrative Model of CSR
• Economic Model


  Based on the traditional view that a business's raison d' etre (reason of existence) is to respond to the demands of the market by providing products or services and to earn profits for its stakeholders
• Economic Model


  • The society benefits from the success of business organizations which are indirectly fulfilling their social responsibility by contributing to the growth of the economy and by providing jobs to more people as they grow and expand
• Philanthropy


  • An act or gift done or made for humanitarian purposes
  • The practice of doing or giving something (e.g., money, time) to help make life better for other people
• Philanthropic Model


  • Philanthropy, as defined in Merriam-Webster Dictionary, is "an act or gift done or made for humanitarian purposes"
  • It is the practice of doing or giving something (e.g., money, time) to help make life better for other people
• Social Web Model of CSR


  • Views business organizations as citizens of the society in which they operate
  • Every citizen has a moral obligation to respect human rights - this is the "moral minimum" that is expected of everyone, whether acting as an individual or making decisions for a business organization
• Integrative Model of CSR


  • While nonprofit organizations focus on fulfilling their mission to provide solutions to social issues, there are also for profit organizations that do the same
  • These organizations include social entrepreneurship and sustainability at the core of their business model
• Social Enterprise


  • A for-profit business organization that seeks solutions to pressing social issues
  • This type of business organization brings social goals into the core of its business model and fully integrates economic and social goals
• CSR is good business sense
• One of the benefits of CSR is building a good reputation for the company, which will create a positive attitude among the employees and will positively influence customer loyalty and satisfaction
• Contractualization of employees


  Employees under "endo" arrangement hired for five months and rehired for another five months, sometimes under a different agency or with a gap period
• ENDO (end of contract)


  Employees received the social welfare benefits required by law, such as SSS, PAG-IBIG Fund or Home Development Mutual Fund (HDMF), and PhilHealth
• Employment relationship


  Companies have a responsibility to take care of their employees and to provide for their needs in the workplace
• Termination of employment due to authorized and just causes


  Under the Labor Code of the Philippines, an employer can only terminate its relationship with an employee if there is a just or an authorized caused. In both cases, employers need to practice due process prior to termination or separation
• Just causes for termination


  • Serious misconduct
  • Willful disobedience
  • Gross and habitual neglect of duty
  • Fraud or breach of trust
  • Commission of a crime of offense against the employer, his or her family, or representative; and other similar causes
• Authorized causes for termination


  • Installation of labor-saving devices
  • Redundancy
  • Retrenchment to prevent losses
  • Closure and cessation of business
  • Disease/illness
• Due process


  Includes effective mechanisms and procedures to ensure that there is justice and fairness among employees when disciplinary action is taken by employer. Gives an employee the right to appeal the disciplinary action, present his or her position, and be treated impartially
• Due process requirement for termination of employment


  The termination process must meet the substantial and procedural requirements. The right to due process gives the employee the chance to defend himself or herself before a final judgement or decision id rendered
• Due process requirement for termination of employment

  • A notice apprising the employee of the act for which his or her dismissal is sought
• Health, safety, and security


  Intangible assets that employees have and are valued both as a means for attaining other valuable ends and as ends in themselves. They both instrumental and intrinsic values
• Discrimination


  Being favor of or against a person based on a group, age, social class, gender orientation, race, religion, or any category to which that person belongs rather than on individual merit
• Diversity


  Refers to the presence of differing culture, race, religion, language, ethnicity, gender, ability, experience, age, social class, and other categories in workplace