BE

• Corporate Social Responsibility (CSR)


  An ethical framework that says an individual has an obligation to work and cooperate with other individuals and organizations for the benefit of the community that will inherit the world said individual leaves behind
• Good citizen


  Socially responsible
• How to manage a business

  By obeying rules and regulations
• Corporate Social Responsibility (CSR)


  A company's commitment to manage the social, environmental, and economic effects of its operations responsibly and in line with public expectations
• Benefits of CSR


  • Establish brand image
  • Good reputation
  • Enhance goodwill
• Evolution of CSR (broad perspective)


  • Profit focus
  • Philanthropy
  • Community affairs
  • Corporate community investment
  • Sustainable business
• Evolution of CSR in the Philippines


  • The decade of donations (1960)
  • The decade of organizations (1970)
  • The decade of involvement (1980)
  • The decade of institutionalizations (1990s)
  • The decade of continuous improvement (2000)
• Traditional conflict model


  Social values and benefits are seen as in conflict with shareholder profits
• Added value model


  Social and environmental commitments are a means to increase profit
• Multiple goals model


  Corporations have goals beyond shareholder value, including the enhancement of their community without respect to monetary gain
• Friedman doctrine


  The objective of the company should be to maximize the returns for the shareholders
• Ackerman's CSR model stages


  • Awareness
  • Planning
  • Implementation
  • Evaluation
• Identifying and expressing willingness to take a project to solve a social problem


  1. Aware of the problem in the surrounding area

  2. First step to integrate CSR

  3. Express willingness to help solve the problem
• Planning


  1. Intensive study of the problem by hiring experts and getting their suggestions to make it operational

  2. Planning

  3. Intensive study of the problem

  4. By hiring experts and getting their suggestions to make it operational

  5. Long process

  6. Seek advice from the experts

  7. Coordination with the appropriate government agencies

  8. Partnership to formulate statistics

  9. Some companies have the government as a partner

  10. Example: company has a feeding program, partners with the government
• Implementation


  1. Managers take up the project actively and work hard

  2. Execution of the plan

  3. Need to be implemented

  4. Plan

  5. How to do it?

  6. Have a blueprint on how it should be done
• Evaluation


  1. Evaluating the project by addressing the issues

  2. Is it effective?

  3. Controlling function of management

  4. Is the solution effective in addressing the problems?

  5. Evaluating the solutions

  6. Contingency plan if the previous solution is not effective
• Carroll's Pyramid of Corporate Social Responsibility


  Helps to explain the social, ethical, legal and economic responsibilities by which a business should operate
• A Master of Business Administration program, like the one offered by Victoria University Online, can help professionals understand the framework that helps a business function ethically and sustainably through courses like Business Ethics and Sustainability
• Carroll's Pyramid of Corporate Social Responsibility is part of Sustainable Business
• Carroll's Pyramid of Corporate Social Responsibility


  Shows the portion and priority of responsibilities that an organization should focus on to carry out its other responsibilities
• Carroll's Pyramid of Corporate Social Responsibility


  Provides a simple view on how organizations should make their responsibilities
• 4 stages of Carroll's Pyramid of Corporate Social Responsibility

  • Economic responsibilities
  • Legal responsibilities
  • Ethical responsibilities
  • Philanthropic responsibilities
• Economic responsibilities


  • Start with economic responsibilities
  • Foundation
  • Need to earn first
  • More on wealth maximization
  • Need to invest first
  • The primary responsibility of a company is to its shareholders
  • Once wealth is maximized, legal, ethical and philanthropic responsibilities can be fulfilled
  • Must do responsibilities
  • A mandate
  • Must do that affects shareholders, creditors and customers
  • Maximize the money invested in the company
  • Have a responsibility to pay suppliers
  • Responsibility to produce quality products for consumers
  • Responsibility to maximize wealth for shareholders
  • Responsibility to pay debts to creditors
  • Responsibility to produce quality products for customers
• Legal responsibilities


  • Have to do responsibilities
  • Complying to regulations and rules
  • Laws
  • Mandate
  • Need to comply
  • Organizations are expected to cooperate and function according to these rules and laws
  • Determine how the organization can conduct business practices in a fair manner
• Legal responsibilities


  • Anti-Trust Law (managing business needs to be fair - cannot take advantage of customers or competitors)
  • Paying taxes
  • Securing business permits
  • Complying with employment laws
  • Complying with the Labor Code of the Philippines
  • Complying with environmental awareness laws
  • Complying with compensation laws
• Ethical responsibilities


  • Act in a morally right manner
  • Includes corporate citizenship
  • Be a good corporate citizen
  • Should do responsibilities
  • Ensuring a business engages in fair business practices in all dealings
  • Practice ethical principles
  • Ethical principles
  • Identity of a company
  • Expects organization to conduct and manage a business in an ethical manner
  • Performing in a way that is consistent with society's expectations
  • Business should identify their target market and respect their values and beliefs
  • Do what is ethically and morally expected
  • Go beyond compliance
  • Respect the moral standards practiced by society
  • Accountability, integrity, transparency
  • Do what is right and fair
  • Avoid hurting anyone
• Philanthropic responsibilities


  • Also called discretionary responsibilities
  • At the discretion of the company
  • Whether they prefer to do it or not
  • More on giving back to society
  • Not all companies give
  • Business aims to actively make the world and society a better place
  • Long term operations
  • Important to integrate philanthropic initiatives
  • Give back through charitable programs
  • Community involvement
  • Providing scholarships
  • Helping and social welfare
  • Non-profit organizations
  • Philanthropic initiatives can support causes including education and health
  • Supports employee sponsoring community
• Philanthropic responsibilities


  • Pocari Sweat - Color Run
  • Creating a foundation and corporate trust
  • Microfinance company - mix of profit and non-profit, earns profit but also lends to small-scale enterprises at low interest
• Triple Bottom Line Theory


  • Makes the organization realize its responsibility to society and ecology
  • Overall effect
  • No environmental responsibilities
  • It means the company should focus on three things: economic responsibility (profit), social responsibilities (people), and environmental responsibilities (planet) and the company shows commitment towards society's sustainability
• 3 things in Triple Bottom Line Theory


  • Economic responsibility (profit)
  • Social responsibility (people)
  • Environmental responsibility (planet)
• Economic responsibility (profit)


  How much money can an organization make and how they can maximize their wealth without compromising people and planet
• Social responsibility (people)


  • More on philanthropic responsibilities
  • Dealing with the bottom line
  • Referring to people
  • Companies are liable to the well-being of society and people
  • What an organization contributes socially
  • Businesses must focus on community, social and internal resources
  • Shareholders, stockholders, employees, customers
• Environmental responsibility (planet)


  • Combines legal and ethical responsibilities
  • Practices that cause the least damage to the environment, especially in manufacturing products
  • Companies hold themselves accountable for their environmental impact
  • Like water, air, energy conservation and land use
  • Triple bottom line encourages businesses to equally weigh financial, social and environmental activities
  • Earning profit but also considering social and environmental activities
• Social responsibility of an entrepreneur towards different sections of society


  • Responsibility towards employees
  • Responsibility towards customers
  • Responsibility towards shareholders
  • Responsibility towards suppliers and creditors
  • Responsibility towards the public in general
  • Responsibility towards the government
• Responsibility towards employees


  • Fair wages and salaries
  • Adequate basic facilities like safe drinking water, electricity, canteen, hygienic toilets
  • Skill development programs
  • Good and safe working environment
  • Retirement benefits and pension schemes
  • Collective bargaining
  • Insurance cover and medical facilities
• Fair wages and salaries


  • Government: DOLE
  • Special non-working holiday
  • Regular compensation
  • Overtime pay
  • Pag-ibig, SSS and Philhealth
  • Minimum wage law
• Adequate basic facilities


  Safe drinking water, electricity, canteen, hygienic toilets
• Skill development programs


  • Need to enhance the skills and knowledge of employees
  • Provides trainings and seminars where they can be promoted
• Good and safe working environment


  • RA 11058 - An Act strengthening Occupational Safety and Health Standards and providing penalties for violations of laws
  • Ensure the rights of workers against hazards resulting in injury and death
  • Company should provide occupational safety and health programs
  • Occupational safety and health (OSH) to ensure the safety and health of employees
• Collective bargaining


  • Agreement (black and white)
  • Process of negotiation between an employer and group of employees
  • Mediator: Trade Union / Labor Union
  • Contract between employer and union (between employees)
  • Right of employees if they feel aggrieved
  • Employee and employer
  • Process where the employee and employer negotiate with a mediator
  • Labor union
  • To reach an agreement
  • Employees complain that their wages are lower than minimum wage - not fair treatment by employer
  • Complaints should be addressed