BESR Finals

• Social Responsibility


  Idea that suggests that organizations behave ethically and with consideration to social, cultural, economic, and environmental issues.
• Responsibility


  Refers to the duty or obligation to satisfactorily perform or complete a task that one must fulfill.
• Responsibility


  Has a consequent penalty for failure.
• Accountability


  Refers to the obligation of an individual or organization to account for its activities, accept responsibility for them, and to disclose the results in transparent manners.
• Accountability


  The responsibility for money and other entrusted properties.
• Responsibilities and Accountabilities for the ff.

  1. Employees
  2. Government
  3. Creditors
  4. Suppliers
  5. Consumers
  6. General Public
  7. Environment
• Corporate Social Responsibility


  Refers to a person's obligations to consider the effects of his decisions and actions on the whole social system.
• Corporate Social Responsibility


  Refers to the general belief held by many that modern businesses have a responsibility to society that extends beyond the stockholders or investors in the firm.
• Corporate Social Responsibility


  A concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis.
• Corporate Social Responsibility


  Describe how companies integrate social, environmental, and ethical concerns into business decision-making process and their stakeholders on a voluntary basis.
• Corporate Social Responsibility


  Refers to the approach that an organization takes in balancing its responsibilities toward different stakeholders when making legal economic, ethical, and social decisions.
• Five Dimensions of Corporate Social Responsibility

  1. Environmental
  2. Social
  3. Economic
  4. Stakeholder
  5. Voluntariness
• Environmental Dimension


  Concern for the natural environment.
• Social Dimension


  Conscious of its impact to the communities.
• Economic Dimension


  Preserving the economic viability/profitability of the business organization.
• Stakeholder Dimension


  Importance of how other stakeholders are fairly and justly treated.
• Voluntariness Dimension


  Going beyond the requirements of the law and a being motivated by ethics and values.
• Types of Corporate Social Responsibility Activity

  1. Course Promotions
  2. Cause-related Marketing
  3. Corporate Social Marketing
  4. Corporate Philanthropy
  5. Community Volunteering
  6. Socially Responsible Business Practices
• Cause Promotions


  To promote a specific cause that benefits society in many levels, such as eliminating poverty or fighting against child abuse.
• Cause-related Marketing


  Highlights positive correlation between the amount of sales for the business and the amount of contribution to support a specific cause.
• Corporate Social Marketing


  Promoting social causes such as healthy eating, caring about parents, and smoking, etc.
• Corporate Philanthropy


  Donating money or products of the company in substantial amounts in order to support specific causes.
• Community Volunteering


  Engaging their employees to work in community sectors for a specified number of hours on a voluntary basis.
• Socially Responsible Business Practices


  Engaging in fair trade when dealing with suppliers and sustaining ethical business norms and practices.
• Ethical Issue


  Problem/situation that requires a person or an organization to choose between alternatives that must be evaluated as right or wrong.
• Models and Framework of Social Responsibility

  1. Stockholder or Shareholder Theory
  2. Invisible Hand
  3. Criticism of the Classical Model
• Stakeholder


  Person, group, or organization that has an interest or concern in the enterprise.
• Stakeholders that a business needs to be answerable

  1. Employees - giving fair wages & benefits
  2. Suppliers - pay on time
  3. Regulators - comply with government regulations
  4. Financiers - repay its creditors and offer fair and attractive returns to its investors
  5. Competitors - employ fair business practices
  6. Customers - provide value
  7. Media - communicate truthfully
  8. Society - show concern for worthwhile causes
• Invisible Hand


  To describe the unintended social benefits of an individual's pursuit of their own interest.
• Total Corporate Social Responsibility Framework

  1. Discretionary Responsibility
  2. Ethical Responsibility
  3. Legal Responsibility
  4. Economic Responsibility
• The Four-Way Test Framework

  1. Is it the truth?
  2. Is it fair to all concerned?
  3. Will it build goodwill and better friendships?
  4. Will it be beneficial to all concerned?
• Criteria for Ethical Decision Making

  1. Utilitarian Approach
  2. Individualism Approach
  3. Moral-Rights Approach
  4. Justice Approach