GGSR CHAPT 1

• Corporation


  A legal entity created by an individual or group of shareholders who have ownership of the corporation (through shares of stocks issued by the corporation) and engage in business activities
• Monk and Minow (2011): 'A corporation is a structure established by law to allow different parties to contribute to capital, expertise and labor for the maximum benefit of all of them'
• Shares of stocks


  Generally represent the ownership of a corporation (1 share = 1 vote)
• All corporations are formed with the objective of making profit
• Not all corporations are formed purely for profit, like charitable institutions, non-profit, or non governmental organizations
• Corporations


  • Limited liability
  • Transferability of ownership
  • Legal personhood
  • Centralized management
• Under the Revised Corporation Code (RCC) in the Philippines, there is no minimum number of incorporators (directors) but shall have not have more than 20, and each of the incorporators(directors) must own at least one share of stock
• The RCC focuses on four areas of reforms: a) Enhancement of doing business in the Philippines, b) Fortified stockholder protection and institutionalized corporate governance provisions, c) Emphasis on corporate social responsibility, d) Improved policies and regulatory corporate framework
• Corporate Social Responsibility (CSR)


  A manifestation of good corporate governance, it is a responsibility of companies to act and behave ethically to satisfy their various stakeholders's needs
• Four Different Perspectives of Corporate Social Responsibility (Archie Carroll)

  • Economic (make profit)
  • Legal (Follow rules)
  • Ethical (Do what is right)
  • Philanthropical (above and beyond compliance)
• CSR was officially introduced in the early 1950's through American economist and educator, Howard Bowen's (1953) work on social responsibility
• In the Philippines, CSR started as donations from various businesses in the 1960's, activities were unorganized and sporadic
• From the year 2000 onward, CSR has become an essential part of a company's identity, and has started to be accepted as a norm of good corporate governance
• Drivers of CSR


  • Regulation
  • Market Behavior
  • Social Activism
  • Culture
  • Strategy
• Barriers of CSR


  • Limited Financial Resources
  • Profit Maximization
  • Availability of human resources
• Corporate Social Responsibility (CSR)


  How companies engage in their CSR initiatives and how it has become a source of competitive advantage
• Social Activism


  • Stakeholders in society react and voice out their concerns to corporations publicly through social media, demonstration, lawsuits, etc. and have impacted how organizations behave
• Social activism


  Can be internally or externally driven, companies do not necessarily have to respond to public clamor but can internally drive change from within the organization
• Culture


  A mixture of beliefs, norms, symbols, and the heritage that a particular country or geographic area shares and practices. It is built over time and it becomes part of its normative values.
• Culture of benevolence and philanthropy


  Must be ingrained or deeply embedded in an organization for CSR and good governance to thrive
• Barriers to CSR


  • Limited financial resources
  • Profit maximization
  • Availability of human resources
• Measuring CSR


  The purpose is to understand what is being measured better and to lay the groundwork for improvement. CSR is a management concept that is not easy to measure.
• Kaplan and Norton's Balanced Scorecard

  • An integrated strategic measurement system that can include both tangible and intangible measurements to identify if goals are met in each of the four dimensions (financial, customer, processes, and learning and growth)
• Triple Bottom Line (Three P's)

  People (Social), Planet (Environmental) and Profit (Financial) - An accounting framework that describes three evaluation perspectives that contribute to creating greater value for the organization
• Leadership


  • Has a key role in influencing CSR. Both CSR and leadership are founded on concepts of service, integrity, and inspiration to others. The relationship between them is mutually empowering and transforming.
• Kapwa (Filipino concept)


  Shared identity with others, ibang tao (outsider) and one of us(hindi ibang tao) - Sparks genuine concern and is considered an essential component of effective leadership
• Corporate Social Responsibility has become an integral part for most companies as it becomes an opportunity to wholly and directly engage stakeholders, creating a shared value for both the organization and the community it serves
• CSR in the Philippines is promising and continually evolving, coming from the awareness of the individual that his/her contribution to society is ever-increasingly important
• Volunteerism and activism will be one of the key drivers in furthering the progress of CSR
• Full disclosure and transparency will be the norm, synergy among the socio-political-economic is crucial if CSR is to be effectively carried out
• The Philippines is abiding by international regulatory frameworks so that CSR will be universal in its approach, as we all live on the same planet, and breathe the same air
• The survival and sustainability of the human race is the common goal, regardless of gender and race
• Mrs Caroline Caballes-Suntay, CEO of Storage Solutions Philippines

  Started a business a decade ago, steadily grew, and now wants to give back to society
• Mrs Suntay's CSR plans

  1. Improving further the lives of her employees with emphasis on empowering women

  2. Providing more support and commitment to local manufacturers that she uses in producing her merchandise

  3. Contributing to the case of the environment given the nature of her business