GOOD GOVERNENCE AND SOCIAL REPONSIBILITY

• Ancient Mesopotamia

  King Hammurabi’s Code of Conduct
• Ancient Greek

  The Well-off People are expected to help and contribute to the lesser fortunate social well-being.
• Ancient Roman

  Businessmen were expected to contribute to the military campaigns (A criteria for being a good corporate citizen)
• Mid to late 1800s (industrial period) to the early 1900s)

  Emerging businesses' concerns on how to make their employees productive

  • Emerging Factory System was criticized for Social Problems like Women and Children Labor, Poverty
• Welfare Schemes seeks to make performance better in both social and

  business movements on a paternalistic approach

  • Protection and Retention of Employees
  • Improving Quality of Life
  • Hospital Clinics, Bath Houses, Lunchrooms, and other Recreational facilities
• Profit maximizing movement (1800s to early 1900s)

  • management must maximize Profit.
• Trusteeship Management (Early 1900s)

  • Managers take Responsibility for Maximizing Shareholders Wealth
  • Creating and Maintaining Equitable balance from customers, employees and the
• Quality of Life (1930s)

  • Businesses were expected to help improve the quality of life
• Howard R. Bowen

  • Considered as the Father of Corporate Social Responsibility
• 1950s: Where CSR Began to Take its Form

  
  

  Howard R. Bowen

  • Wrote the book “Social Responsibility of the Businessman" “Social Responsibility refers to the obligation of businessmen to pursue those policies, to make those decisions, or to follow those lines of action which are desirable in terms of the objectives of values of our society” (Bowen, 1953, pg.6)
• 1950s: Where CSR Began to Take its Form

  
  

  Other authors followed suit expressing concerns on what businesses could contribute even more to live up to their Responsibility

  • Eels (1956) Responsibility of Large Corporations on Inflation
  • Selekman (1959) Evolution of Moral Responsibility of Corporations on Labor Expectations
• 1960s: Growing CSR Awareness

  • CSR started to become more popular amongst scholars due to growing awareness influenced by the society
  • Authors were writing more about concerns on economic growth and the societal impact that corporations have on the environment as rapid population growth, pollution, scarcity or resources,
• THREE PHASES OF CORPORATE SOCIAL RESPONSIBILITY

  • profit maximizing must maximize profit (1800s to early 1900s)
  • Trusteeship Management (Early 1900s)
  • Quality of Life (1930s)
• profit maximizing must maximize profit (1800s to early 1900s)

  • management must maximize Profit.
• Trusteeship Management (Early 1900s)

  • Managers take Responsibility for Maximizing Shareholders Wealth
  • Creating and Maintaining Equitable balance from customers, employees and the Community
• Quality of Life (1930s)

  • Businesses were expected to help improve the quality of life
• Keith Davis expounded on the vital changes on social, economic, and political changes represents a relevant obligation for businesspeople in terms of economic and human values and further argued that a firm’s economic returns could be linked to social responsibility (Davis, 1960)
• William C. Frederick,

  contributed to the early definition “Social responsibility in the final analysis implies a public posture toward society’s economic and human resources and a willingness to see that those resources are utilized for broad social ends and not simply for the narrowly circumscribed interests of private persons and firms.” (Frederick, 1960)
• 1970s: Emergence of Social Movements and Legislation

  ● Social movements and new legislation influenced by CSR
• ● Committee for Economic Development (CED)’s “Social Responsibilities of Business Corporation” highlights that the businesses functions by the public’s consent and to constructively serve the needs of society according to their satisfaction is the basic purpose of businesses
• 1980s: Continuous Evolving

  • By the 1980s, early CSR continued to evolve as more organizations began incorporating social interests in their business practices while becoming more responsive to stakeholders. 333
• Jones claims that CSR must be acknowledged as a decision-making process influencing corporate behavior
• 1990s: Acceptance of Corporate Social Responsibility

  • Multi-national Companies believes that being responsible is a safe path to balance the opportunities and challenges of globalization, strengthening the institutionalization of CSR
• The pyramid was developed by Archie Carroll and highlights on the four main responsibilities of the organization, namely Economic, Legal, Ethical, and Philanthropic.
• 2000s to the Present Times

  • Recognition and Expansion of CSR implementation
• 2000s to the Present Times

  Strategic Approach to CSR

  • Environmental Protection
  • Human Rights
  • Human Resource Management Practices
  • Consumer Rights and Protection
  • Labor Protection and Security
  • Stakeholder Rights
  • Supplier Relations
  • Corporate Governance
  • Community Development
  • Health and Safety
• CSR Timeline Gist

  • 1950s – CSR Began to take form
  • 1960s – Growing Awareness
  • 1970s – Emergence of Social Movements and Legislations
  • 1980s – Continuous Evolution
  • 1990s – Acceptance of CSR
  • Present – Recognition and Expansion to a Strategic CSR
• Social Contract Theories Thomas Hobbes (1588- 1679)

  • Born prematurely because her mother panicked when informed that a Spanish armada was approaching
• Social Contract Theories Thomas Hobbes (1588- 1679)

  • “ Fear and I were born twins”
• Social Contract Theories Thomas Hobbes (1588- 1679)

  • Grew up in England during the reign of Queen Elizabeth, and Educated at Oxford
• Social Contract Theories Thomas Hobbes (1588- 1679)

  • Become tutor to the son of the Earl of Devonshire
  • Favorable effects: Access to first class libraries, Foreign travels, Opportunity to meet prominent people , e.g., Francis Bacon, Galileo
• Hobbes Ethical / Political / Social philosophy

  • Societies are formed because human beings fear death. “Homo Homini Lupus” (life is a war of every man against every man/a man is a wolf to another man)
• Hobbes Ethical / Political / Social philosophy

  • Individuals should try to avoid this by entering into agreement or alliances with one another.
• Hobbes Ethical / Political / Social philosophy

  • The way to do this is for everyone to agree to hand over power to a central authority whose job is to impose law and to punish any law-breakers.
• Hobbes Ethical / Political / Social philosophy

  • This authority is a Monarch.
• John Locke (1632 – 1704)

  • Son of a lawyer
  • When to Westminster School , England and
  • Oxford University
  • Went to France 1675 then Holland in 1683
  • Remained a bachelor
• Locke's Social / Political Philosophy


  Beliefs about man, government, and society
• Locke believes that man is a creature made by God and God gave man reason and conscience, contrary to Hobbes's view of "Homo Homini Lupus"
• Absence of government or civil order


  Detrimental to man / human beings
• Creation of society

  Individuals come together