CHAPTER 1: GOOD GOVERNANCE AND SOCIAL RESPONSIBILITY

• CORPORATION is legal entity created by an individual or group of shareholders who have ownership of the corporation (through

  shares of stocks issued by the corporation) to engaged In business

  activities.
• MONKS AND MINOW (2011) defines a corporation as structure established by law to allow different parties to contribute capital, expertise, and labor or the maximum benefit of all of them.
• Corporation are legal entities and are sometimes defined as “ legal persons”.
• THE PHILIPPINE CORPORATION

  • a recognized organization and legal entity with rights and obligations that must be fulfilled.
• According to the 2019 revised

  corporation code (rcc) there is no

  minimum number of incorporators

  (directors) but shall not have more than

  20, and each of the incorporators

  (directors) must own at least one share

  of stock.
• CORPORATE SOCIAL RESPONSIBILTY - A manifestation of good corporate

  governance, a complementary concept

  that will be discussing more in-depth in

  chapter 3.
• Csr is the responsibility of companies to

  act and behave ethically to satisfy their

  various stakeholders’ needs.
• FOUR DIFFERENT CSR PERSPECTIVE BY CARROLL:

  • Philanthropical - above and beyond compliance
  • Ethical - do what is right
  • Legal - follow rules
  • Economic - make a profit
• CSR was officially introduced in the

  early 1950s through American

  economist and educator Howard Bowens

  (1953) seminal work on social

  responsibility.
• Ancient Greek - well off people are expected to

  contribute to the lives of less unfortunate

  people.
• Mid to late 1800’s - Industrial period to the early
• 1900s - concern about new ventures about how

  they can boost employee productivity.
• 1950s - where csr began to take its form
• 1960s - Growing csr awareness
• 1970s - emergence of social movements and legislations
• 1980s - csr continue to evolve as more

  organization began incorporating social interest

  in their business practice while becoming more

  responsive to stake holder.
• 1990s - acceptance of corporate social responsibility
• 2000s to the present time- today the recognition and expansion of csr

  implementation is highly noticeable.
• Drivers - factors of motivation that lead

  companies to engage in CSR initiatives.
• Regulation - Regulation and law provide a

  framework that companies must comply with.

  This is in relation to the legal dimension of

  Carroll's CSR framework discussed previously.

  For instance, in China, CSR is no longer a

  voluntary act but is mandated by the central

  government (Hudtohan & Zhang, 2018).
• Market behavior - Benchmarks have been

  established because of companies' best

  practices that use CSR as a builder of

  reputation; how the market behaves and

  influences; and how companies engage in their

  respective CSR initiatives and have become a

  source of competitive advantage.
• Social activism - How stakeholders in society

  react and voice out their concerns to

  corporations publicly through various means

  (such as social media, demonstrations,

  lawsuits, and the like) have impacted how

  organizations behave.
• Culture - Culture is a mixture of beliefs, norms,

  symbols, and the heritage that particular

  country or geographic area shares and

  practices. This is built over time.
• Strategy - Integrating CSR in its planning from

  the different functional areas of a company

  fortifies the relationship and becomes a creator

  of value that benefits the corporation in the long

  term.
• Limited financial resources - As with

  Carroll's economic perspective of CSR,

  a company needs to be profitable and

  take care of its own needs before it has

  the ability and resources to engage

  effectively in social responsibility. CSR

  requires a long-term stance in its

  commitment of resources to truly see

  the benefits of its initiatives.
• Profit maximization - A company that

  single-mindedly focuses on operational

  efficiency is usually driven by profit

  maximization. According to Kolstad

  (2007), most executives support the

  Fried manian view of maximizing returns

  to shareholders despite the growing

  literature on CSR's positive effects on

  corporate financial performance,

  persistence, and acceptance of

  maximizing profits act as barriers to

  CSR.
• Availability of human resources - No

  matter how good the intentions are in

  promoting CSR in organizations, it will

  need efficient mobilization through

  employee involvement and engagement

  in its programs. Without the support of

  human resources in its implementation,

  CSR activities will be lackluster.
• Leadership -the ability to inspire and

  guide others towards a shared goal Il

  involves effective communication

  decision-making problem solving and

  the capacity to influence others

  positively.
• CSR Leadership is a specific kind of

  leadership focused on driving positive

  social and environmental impact

  alongside business success. It inspire

  and guide others towards a better world

  while considering the company's role in

  society and the environment.
• Leadership in good governance refers

  to the qualities and actions of leaders

  who are committed to promoting

  transparency accountability efficiency

  and fairness in the governance of an

  organization or a country
• Key aspects of good governance:

  • integrity
  • vision
  • participatory approach
  • responsiveness
  • efficiency
  • effectiveness
  • accountability
  • collaboration
  • partnership
• companies that prioritize sustainability and social responsibility will

  benefit the local community and enhance their

  reputation and brand image leading to

  increased sales and customer loyalty.