CORPORATE SOCIAL

RESPONSIBILITY

Prof. Brenda V. Corcino,MBA

Good Governance & Social Responsibility
 INTRODUCTION

Organization
seen as key drivers in the process of constructing
a better world (Friedman, 2002), therefore,
pressured to demonstrate good and accountable
corporate responsibility (Pinkston & Carroll,
1994).
prime requirement is to deliver profits to
shareholders, but is also often subject to wider
stakeholder interests and the need to demonstrate
a balanced perspective
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 INTRODUCTION

Organization
as a result, they develop and update programs and
policies, and they try to measure their social and
environmental performance as well as engage in
consultations with stakeholders thereby
communicate their values to employees,
environmental groups, local communities and
governments

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 INTRODUCTION

Organization
For failure to maintain quality, ethical and other
socially responsible standards, some industry
leaders like Exxon, Nestle, Nike and Pfizer
encountered severe setbacks to their reputation.

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 INTRODUCTION

Organization
Johnson & Johnson, HP and Shell have publicly
acknowledged their social and environmental
responsibilities, and developed processes to
inform stakeholders using tools including
sustainability reports, responsible products, active
engagement with NGOs and positive participation
in networks to share best practice in the field of
CSR.

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 INTRODUCTION

CSR
has moved from ideology to reality and is now
acknowledged as an important dimension of
contemporary business practices.
Is now recognized as an important component of
business survival and success in the 21st century

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 CSR HISTORY

1. Adam Smith— “free for all” interaction of

individuals and organizations
2. Industrial Revolution (Europe and United States)
3. Late 19th century— “Social Darwinism”
4. Beginning of 12th century—Sherman Antitrust Act
5. 1960s and 1970s—civil rights movement,
consumerism and environmentalism affected
society’s expectation

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 CSR HISTORY

Today, CSR is the long-term vow by business to perform

within the bounds of ethics and to contribute to
economic advancement at the same time improving the
quality of life of the workforce and their families as well
as of the local community and society at large;
It is a company’s positive involvement on society and
the environment through its operations, products/
services and through its relations with key stakeholders
(e-c-i-c-s)

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 CSR HISTORY

A concept that has evolved over time—a paradigm—

whereby companies integrate social and environmental
concerns in their business operations and in their
interactions with stakeholders on a voluntary basis as
they are increasingly aware that responsible behavior
leads to sustainable business success
An alignment of business values and behavior with the
expectations & needs of stakeholders—a commitment
to be answerable to its stakeholders.

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 CSR DESCRIPTION

It refers to a company linking itself with ethical values,

transparency, employee relations, compliance with legal
requirements and overall respect for the communities in
which they operate.
It upholds a vision of business accountability to a broad range
of stakeholders not just to shareholders or huge investors of
the enterprise—areas of concerns specifically are
environmental protection, employees’ welfare, the community
and civil society in general, not just for the present but more
importantly for the future.

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ARGUMENTS against CSR

Economic argument

Competitive argument

Capability argument

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ARGUMENTS for CSR
Since large corporations create many social
problems, they should attempt to address
and solve them.
“Self-interest Argument- corporations
should conduct themselves in such a way
in the present as to assure of a favorable
operating environment in the future
Businesses should assume social
responsibilities because they are among
the few private entities that have the
resources to do so
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 BASIC PREMISES OF CSR

Business Leaders
Consumers
Employees
Investors
Local Companies
Media expose
NGOs (non-governmental organizations)
Regulators

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 SPECIFIC RELEVANCE OF CSR:
IDENTIFIABLE TRENDS

Changing social expectations

Competitive Labor markets
Disclosure demands by stakeholders
Dwindling government role
Globalization
Pressure from investors
Supplier relations
Wealth and vulnerabilities

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 ETHICAL LEADERSHIP

a leadership concerned with leading in a manner that respects

the rights, dignity and stake of others
It focuses on how leaders employ their business and political
power in the decisions they make and actions they engage
into– demonstrate levels of integrity essential for stimulating
a culture of honesty and accountability

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 Ethical Decision making process
in Organizations

Withdraw
be an archivist
the option of doing nothing
be conscious of long-term effects
consider legalities and ethics
ask around
be comprehensively sensitive
do not be a dangerous “alpha male”
find a win-win solution
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 Myths about Organizational Ethics

Being ethical is easy

Being ethical is not part of doing business

Being ethical brings no benefit

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 What Ethics Is Not

Ethics is not the same as feelings

Ethics is not Religion

Ethics is not just following the Laws

Ethics is not following Culturally accepted norms

Ethics is not science

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 CORPORATE CITIZENSHIP

KEY ELEMENTS:
Commitment to Quality
Ethical and legal compliance
stewardship and governance
superior employee relations
social advocacy
environmental advocacy
community involvement

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SOCIAL SCREENING OF INVESTMENTS

the filtering process

used to either identify
certain securities to
exclude or to find
those that should be
included in investors'
portfolios based on
social and/or
environmental criteria.

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 SOCIAL SCREENING OF INVESTMENTS

  
Investment Screening is most
screening is the applicable
practice of to investments in
excluding investments  individual securities, but
from portfolios based less so to
on social, pooled investments such
environmental and as mutual funds and
governance criteria. private co-mingled
funds.

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SOCIAL SCREENING OF INVESTMENTS

What is impact investing?

There's not a lot of literature out there that

suggests that impact investing works.
Research has found that socially
responsible assets do underperform, though
economists disagree on how much.
They believe impact investing can do a lot
of good. But certain criteria need to be in
place which often aren't. (Dec 19, 2018)

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SOCIAL SCREENING OF INVESTMENTS

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SOCIAL SCREENING OF INVESTMENTS

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SOCIAL SCREENING OF INVESTMENTS

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CORPORATE GREENWASHING SINS

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CORPORATE GREENWASHING SINS

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CORPORATE GREENWASHING SINS

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 CORPORATE GREENWASHING SINS
Homework: Find any promotional clips,
videos, brochure, pamphlet,
product label, or
advertisement then identify
any greenwashing sins
committed

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