Untitled

• Corporate Social Responsibility (CSR)


  A concerted initiative to contribute to sustainable development through efforts that are economically, socially, and environmentally beneficial to stakeholders
• Sustainable development


  An effort to strike a balance between maintaining the needs of the present and the ability of future generations to meet their needs through the preservation of the environment
• Aspects of Corporate Social Responsibility


  • Economic responsibility
  • Legal responsibility
  • Ethical responsibility
  • Philanthropic responsibility
• Economic responsibility


  • It is the primary responsibility of a company to help develop the economy and achieve a status of development on a par with other countries; generate employment; and distribute goods and services for public use and consumption
• Examples of economic responsibility

  • Maximizing earnings per share
  • Generating a high & consistent level of profitability
  • Establishing and maintaining a strong competitive position
  • Operating the business at a high efficiency level
• Legal responsibility


  • Company operations should be within the bounds of law. The company should follow rules and restrictions dictated by law and comply with legal requirements
• Examples of legal responsibility

  • Obligation to pay taxes
  • Get necessary permits in the operation of the business
  • Company's duty to pay its employees promptly
• Ethical responsibility


  • Companies are expected to be ethical in their dealings with stakeholders, especially the general public. A company operates ethically when it does not cause harm or threaten the life of anyone in the course of operations. They should avoid emitting/producing toxic wastes or causing pollution in the course of their operations. Companies must have ethical responsibility to their employees
• Examples of ethical responsibility

  • Protective gear should be used when workers are handling harmful chemicals
• Philanthropic responsibility


  • It is an obligation of a company to help the community in worthwhile projects which are beneficial to the people in the community. This is a way of giving back to the community where the company operates. Philanthropy is voluntary in nature.
• 3 Models of Corporate Social Responsibility


  • Pyramid Model
  • Intersecting Circles Model
  • Concentric Circles Model
• Pyramid Model


  • This model emphasizes the levels of expectations of the people comprising the four social responsibilities starting from the economic to the philanthropic. The hierarchy of social responsibility shows the order of decreasing importance starting from the baseline which is economic responsibility. The next layer is legal responsibility while the third is ethical responsibility and the last is philanthropic responsibility.
• Intersecting Circles Model


  • In this model, the four aspects of social responsibility overlap each other, showing their interrelationships. The interrelationships allow for flexibility because managers are free to use the company's resources not solely on one aspect but undertake endeavors that address several aspects.
• Concentric Circles Model


  • This model is similar to the Pyramid model where the economic social responsibility is the core aspects. It is also similar to the Intersecting Circles model in terms of the interrelationships of the four aspects. Although, the economic social responsibility is more pronounced and emphasized (this means that the company should be profitable for the good of the general public). The concentric circles of legal, ethical, and philanthropic social responsibilities embrace economic social responsibility (this means that all economic responsibilities should have legal, ethical, and philanthropic aspects).
• Examples of Concentric Circles Model


  • In achieving profitability, the company should act morally in all its dealings (ethical)
  • While complying with legal requirements, it should cooperate with the government in fighting inflation and adopting measure to prevent pollution (legal)
  • In reaping profits, the company should have programs that will improve the social environment (philanthropic)
• Principles of Environmental Management


  • Light Green
  • Market Green
  • Stakeholder Green
  • Dark Green
• Light Green


  • This environmental principle states that a company becomes successful if it sustains competitive advantage but at the same time complies with the law. Some companies have strict environmental standards to complement their strategies, expertise, and technology. Thus, they issue environmental policies which fit their competitive advantage. Those who advocate light green principles prioritize the protection of the environment as a personal choice. For these individuals, they believe it is a responsibility and a part of their lifestyle.
• Market Green


  • This principle promotes the creation of products and services that cater to the environmental preferences of consumers. Many consumers now prefer to buy environment-friendly goods and services. The internet has been an effective channel for consumers to detect any irregularity or if an aspect of a product poses potential harm to the environment. Customers then decide of they will make a purchase.
• Stakeholder Green


  • This principle focuses on the preference of stakeholders. Stakeholder green has a darker shade than market green because it focuses on a bigger group – the stakeholders the customers, suppliers, community, employees, shareholders, and others. There are many environmental activities that support stakeholders such as: requiring suppliers to meet environmental standards in their processes or orienting employees on environmental issues, policies on the proper disposal of wastes and eco-friendly packaging that will benefit the community.
• Dark Green


  • Not many companies adopt the dark green principle. This propagates leadership in the industry through a high level of commitment to preserve the environment. For many, this is very idealistic because it is difficult to lead in a very competitive world by fully prioritizing the environment. Others may just attempt to adopt dark green principles, but these are mostly superficial by means of creating value for all species in the environment. Nevertheless, companies which used the dark green principle have been successful in reconciling their strategies with the preservation of the environment.
• Companies can develop and create their own shades of green depending on how they interpret the shades to suit their commitment and aspiration to take care of the environment. They can define each shade in their own ways depending on how they interpret the corresponding environmental values for each shade.