BS-ETHICS-L4

• Corporate Social Responsibility (CSR)


  To contribute to the sustainable development that are economically, socially and environmentally that is beneficial to stakeholders
• Business sound practices may also result not only for financial returns to the owners but also social and environmental benefits for the greater society
• Good business sense is evident to business organization that earns good reputation from doing their social responsibilities
• Business Organization Social Responsibilities

  • Duty not to cause harm
  • Responsibility to prevent harm
  • Responsibility to do good
• Duty not to cause harm


  Every business organization has a duty not to cause harm; even if an actions may result to avoidable harm it is not explicitly prohibited by law. If it will cause harm to property or person and if it can be avoided by doing due case or proper planning then both law and ethics will determine if the company will be liable or not for violating it's 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
• Responsibility to prevent harm


  • Providing adequate training on equipment and processes
  • Providing personal protective equipment (PPE)
• Responsibility to do good


  To do good things and make society a better place encourages the companies to provide solutions to social issues or to give back to the society
• Responsibility to do good


  • Donating books and educational materials to schools in underserved communities
  • Funding scholarships for disadvantaged students to access higher education
• Total Corporate Social Responsibility Framework

  • Economic responsibilities
  • Legal responsibilities
  • Ethical responsibilities
  • Discretionary responsibilities
• Economic responsibilities


  The primary responsibility of the company that needs to consider since company's main goal is to help the economy's development, generate employment and provide goods or services for public use and consumption
• Economic responsibilities


  • Investing in local communities by contributing to economic development initiatives
  • Supporting small and local businesses by sourcing products and services locally
  • Donating to charitable organizations
  • Investing in alternative energy sources
  • Putting more money into education programs
  • Funding local charities as a way of bolstering their mission
• Legal responsibilities


  Every entity is to reminded that all their operations should be within the bounds of law. They make sure that their entire corporate social responsibility programs follow the rules and regulation by the law
• Legal responsibilities


  • Ensuring compliance with all relevant laws and regulations in the jurisdictions where the company operates
• Ethical responsibilities


  The ability to recognize, interpret and act upon multiple principles and values according to the standards within a given field and/or context
• Ethical responsibilities


  • Setting a higher minimum wage, guaranteeing all materials are ethically sourced
  • Ensuring that all employees receive competitive pay and comprehensive benefits as well as being treated with respect
• Discretionary responsibilities


  Purely voluntary obligations that an enterprise assumes. It is the responsibility of the company management to safeguard the capital investment by undertaking only healthy business ventures which gives good returns on investment. It includes charitable contributions, helping people during floods and earthquakes and many such activities
• A framework of responsibility that reflects the practice of sound business typically includes elements such as ethical decision making, transparency, accountability, sustainability, and stakeholders engagement
• This framework guides companies in operating in a manner that balances profitability with social and environmental considerations
• Ethical decision making


  Process of evaluating and making decisions that engender trust, and thus indicate responsibility, fairness and caring to an individual. To be ethical, one has to demonstrate respect and responsibility
• Ethical decision making


  • Ensuring products are safe for consumers, even if it increases production cost
  • Investing in employee training and development to promote professional growth and well being
• Transparency


  Process of being open, honest, and straightforward about various company operations. Transparent companies share information relating to performance, small business revenue, internal processes , sourcing, pricing,and business values
• Transparency


  • Financial Reporting Providing detailed and accurate financial reports to shareholders, investors and regulatory authorities, including all relevant information about the company's financial performance,risk, and liabilities
  • Product Information providing clear and comprehensive information about products or services including ingredients, manufacturing processes and potential risks to consumers
• Accountability


  Used synonymously with such concept as responsibility, answerability, enforcement, blame worthiness, liability and other terms associated with the expectation of account- giving
• Accountability


  • Accountable people have to work for their success
  • You keep a record of what you have done
• Sustainability


  Company's strategy and actions to reduce adverse environmental and social impacts resulting from business operations in a particular market. An organization's sustainability practices are typically analyzed against environmental, social and governance (ESG) metrics
• Sustainability


  • Biodiversity Protection – Implementing measures to protect and preserve biodiversity in areas where the business operates, such as restoring natural habitats, supporting conservation initiatives, and minimizing habitat destruction
• Stakeholder engagement


  Systematic identification, analysis, planning and implementation of actions designed to influence stakeholders. A stakeholder engagement strategy identifies the needs of key groups and the sponsor plays a vital role in ensuring those business needs are met
• Stakeholder engagement


  • Shareholder Meetings – Holding annual general meetings or special shareholder meetings where shareholders can vote on important company matters, ask questions to the board of directors, and provide feedback on corporate governance issues
• Framework of Responsibility Elements

  1.     Ethical Decision Making

  2.     Transparency

  3.     Accountability

  4.     Sustainability

  5.     Stakeholders Engagement