DCE5635

Ethics Ethics in Human Resource Development

in
Corporate
Social
Responsibility
Azril Wan Chik (GS57510)
Li Jingyu (GS58097)
Mohd Ashrof Husin (GS56997)
Shariana Abd Rahman (GS56987)
Sharmila a/p Sinnasamy (GS56986)
Yingsha Kong (GS59522)
 outline
 Overview
 Terms & Definition + History
 Ethics & CSR
 Importance of Ethics in CSR
 Theory/ Model of Ethics
 Impact and Implications of Ethics in CSR
 Case Study - Example of Ethics in CSR of company or organization
 Conclusion & Recommendations
 Do we
need
ethics
in CSR ?
 Why is CSR an ethical issues?
CSR is an argument based on two forms of ethical reasoning:

consequentialist (utilitarian) categorical (kantian)

action in terms of the
outcomes generated
(the greatest good for the greatest
number of people)
action in terms of the principles
by which that action is carried out
(the application of core ethical
principles, regardless of the outcomes
they generate)

The violation of a society's ethical principles regarding issues of

social justice, human rights, and environmental stewardship is
deemed to be ethically wrong and socially irresponsible.
What are the problems of corporate social
responsibility?

• CSR is more than just giving money

• CSR therefore covers a broad spectrum of issues that must be

taken into account in business conduct. This includes working
conditions, human rights, the environment, preventing
corruption, corporate governance, gender equality,
occupational integration, consumer interests and taxes.
 Is CSR Unethical?
 There is a mistaken belief that being ‘ethical’ means being ‘good’ or ‘nice’. So if a
corporation spends money on good causes, is it ethical?

 The unfortunate reality is that most companies see CSR as just as PR and marketing

 As a result, social issues are used as advertising campaigns

 A few years ago, it became public that some companies were doing CSR out of their
marketing budget. Some were spending more advertising their CSR, than on the actual good
causes

 Some people said, “CSR is corporate brand management, the new form of advertising”

 Some using CSR as a tool to avoid paying taxes to the government, they donates to their own
Foundation, and they refund it back as part of the organizational’s interest
 Is CSR Unethical?

• When committed individuals and

foundations try to solve the problems of
the world, it is noble and commendable.
When corporations use these problems as
advertising campaigns, it proves CSR
unethical.

• Maybe a few companies actually care

about the issues in their advertisements.
But with so many businesses partaking in
Corporate Social Responsibility, the
majority do not.
 Terms and Definitions
01 Ethics 02 Corporate Social Responsibility
 Greek word ‘ethos’ which means a person’s fundamental
orientation toward life.
 The branch of philosophy that deals with distinctions
between right and wrong – with the moral consequences of
human actions. (A Dictionary of Epidemiology)
 The discipline of dealing with what is good and bad, with
moral duty and obligation. A set of moral principles or values.
The principle of conduct governing an individual or group
(Webster’s Ninth New Collegiate Dictionary)
 The science of the ideal human character or the science of
moral duty (Rushworth M. Kidder, 1995)
 Philosophical study of morality, where morality is the
system that governs behaviour that affects others, and has the
lessening of harm as its goal
(Cambridge Dictionary of Philosophy, 2015)
 The obligations of business to pursue those policies, to make those
decisions or to follow those lines of action which are desirable in terms
of the objectives and values of our society (Bowen, 1953)
 Business’ obligation: to conduct the affairs of the enterprise to
maintain an equitable and workable balance among the claims of the
various directly interested groups, a harmonious balance among
stockholders, employees, customers, and the public at large
(Frederick, 2006)
 An organization's responsibility for the impacts of its decisions and
activities on society and the environment, through transparent and
ethical behavior that:
i. contributes to Sustainable Development, including health and the
welfare of society;
ii.takes into account the expectations of stakeholders;
iii.compliance with applicable law and consistent with international
norms of behavior;
iv.integrated throughout the organization and implemented in its
relations (ISO 26000 standard)
 Terms and Definitions
03 Business Ethics

 Morality in business environment; a reflection of ethics on the behavior of business

organizations. Ethical business values are mostly assessed in relative terms, taking history,
culture and other contextual factors into consideration, rather than a set of absolute norms that
are valid at anytime and anywhere (Ozge Can,2015).

 Study of the ethical dimensions of productive organizations and commercial activities. This
includes ethical analyses of the production, distribution, marketing, sale, and consumption of
goods and services (Donaldson & Walsh, 2015).

 Business ethics and corporate social responsibility (CSR) are often used to refer the same
business activity. If we look carefully, the term “business ethics” comprises two words:
“business” and “ethics”, which cover the areas of moral principles, beliefs, values, culture,
governance issues and a code of conduct for business (Dimitriades, 2007).

 the systematic study of moral issues (beliefs, norms, values, etc.) occurring in business and
the related behaviors of people, organizations, and institutions (Rok, 2004)
 World War II Ethics in CSR
CSR is a product of the post-World Ethics and philanthropy help to round out the socially
War II period. Changes in social responsible expectations placed on modern organizations
consciousness in civil rights, striving to be sustainable in a competitive, dynamic, global
women, consumers and marketplace
environmental movements.
Why Ethics in CSR?
Confidence and trustworthiness – In global
financial and economic crisis, the
responsibility of business towards society
Concepts of CSR has come under question, as the crisis was

Ethics
Business ethics, Corporate primarily caused by the distribution of faulty
citizenship, Stakeholder financial instruments, dubious lending
practices, and business decisions driven
&
management, and sustainability -
Benchmark of the socially solely by short-term profit maximization.
conscious business movement
CSR •
Seven CSR Principles based on ISO 26000
Accountability.
Objective of CSR • Transparency.
To make positive impacts on the environment, • Ethical behavior.
consumers, employees, communities, and all • Respect for stakeholder interests (stakeholders
Stakeholders. A way for a corporate to self-regulate, are individuals or groups who are affected by, or
monitoring its activities to control where they have the ability to impact, the organization's
respect the spirit of the law, the ethical standards, actions)
and the international norms • Respect for the rule of law.
• Respect for international norms of behavior.
• Respect for human rights
 The importance of Ethics in CSR

Sustainability Branding
 Continues business existence Promotion of corporate image
 More customers (Increase in patronage)
 Increase Profitability
 Better environment to operate and do business

Power Relationship
 Government support  Better relationship between
 Social power in the society organization and customers
 Availability of labour force  Dedicated staff and employees
 Theories of CSR

Theories on social costs

Utilitarian Functionalism
RELATIONAL

MANAGERIAL Corporate social performance

Social accountability, auditing & reporting
Managerial
Social responsibility of multinationals

UTILITARIAN
Business & society
Relational Stakeholder approach
Corporate global citizenship
Social contract theory

13
 The Carroll’s CSR Pyramid Theory

• The pyramid was developed by Archie

Carroll in 1979.

• Carroll’s CSR pyramid is a framework

that explains how and why organisations
should take social responsibility.

• The idea of this theory is companies

should apply CSR projects in order form:

Economic responsibility
Legal responsibility
Ethical responsibility
Philanthropic responsibility

Carrol, A.B. (1991). The pyramid of corporate social responsibilty

 3 Basic Models of CSR
(Relationships between Domains of Responsibility)

Pyramid Model of CSR Intersecting Circles Model of CSR Concentric Circles Model of CSR
The Triple Bottom Line Theory

 The pyramid was founded by John

Elkington in 1994.

 The TBL concept recognizes that

external stakeholders consider it a
corporation’s responsibility to go beyond
making money.

 This theory focuses on sustainability,

and requires that any company weigh its
actions on three independent scales:
1) Economic Sustainability,
2) Social Sustainability, and
3) Environmental Sustainability.
 The Stakeholder Theory

 This theory is the groups or individuals that have

an interest in the well being of the company and
they are affected by the goals, operations or
activities of the organization or the behaviour of
its members.

 The risk in The Stakeholder Theory is that

corporate directors would share the interest of
stakeholders who are only interested in
maximizing profits, across the spectrum of
other stakeholders as people in the surrounding
area, those whose lives are touched by the
business operations.

 2 categories of stakeholders:
1) Internal stakeholders
2) External stakeholders
 Process of Developing Ethical CSR Framework

Identify the key Generate

Recognize the
stakeholders alternative choices Choose the best or
ethical dimensions
involved and and distinguish plausible ethical
involved in the
determine how the between ethical response and
dilemma or
decision will affect and unethical implement it.
decision.
them. responses.
Implementation Process of CSR Theory

Endogenous level (inside the firm)

• Respect all human rights within the establishment and fulfil the demands of
employees.
• Comply with the conditions and laws of the ecology and apply them in the
production line and rely on renewable energy sources such as solar panels.
• Ensure quality standards within the facility.

Exogenous level (outside the firm)

• Maintain transparency with all stakeholders through publicizing income

statements and Project Milestones on media and internet networks.
• Sponser social activities outside the establishment which directly affect the
community welfare such as: schools, sport institutions, hospitals and
nursery homes.
• Ensure that products and services delivered to consumers does not pollute Decision Making About Implementing of CSR
the environment Source: Pavlo & Mohamad Nassif, 2019
 1. The basis for the survival and
development of enterprises (the core
content of corporate social responsibility)

3. To maintain a sound market

economic order and the rights and
interests of consumers

2. It is the key for enterprises to

cultivate core competitiveness
1. Ethics have a normative effect on enterprises to fulfill their
social responsibilities
1. Ethics have a normative effect on enterprises to fulfill their
social responsibilities (cont…)
2. The regulating effect of ethics on the fulfillment of
corporate social responsibility
3. The motivated effect of ethics on the fulfillment of
corporate social responsibility

Improving the comprehensive

quality of employees improve operation scale

Optimizing personnel structure develop productive forces

and resource allocation
set lofty goals
Arousing the enthusiasm and
creativity of enterprise employees
Top 10 Companies with the best CSR
reputation in 2020
1. Lego
2. The Walt Disney Company
3. Rolex
4. Ferrari
5. Microsoft
6. Levi’s
7. Netflix
8. Adidas
9. Bosch case
10. Intel study
1. The Lego Group – Best Reputation
Case Studies in CSR: Lego to
Invest $150 Million in
Sustainability Projects

The Lego Group communicates a great dedication to

environmental and social causes. The company says it lives up
by 12 responsible business principles that set what’s expected
from its production sites, suppliers and partners and on topics
such as ethics, people, children, and the environment. They also
say they run audits to assess suppliers’ performance on these
principles.

The Lego Group also has goals towards eliminating waste as it

reviews the materials used in its products. The company also
says it has circular economy initiatives to provide consumers the
chance to pass on their LEGO bricks to children in need.
 2.

• Commonly named only as “Disney”, the company has a “social responsibility”

signature right at the top menu of the website. The company talks about its impact
program under which – $338.2 million in cash and in-kind donations were donated to
nonprofit organizations that bring comfort, inspiration, and opportunity to kids,
families, and communities around the world. Besides, there is also news around
money shared to help protect the environment and wildlife.
• Last year Disney installed a large area with solar panels expected to power 2 of their 4
theme parks in Orlando. They also share how they are eliminating waste and reducing
straws and stirrers and how they are working on recycling programs and encouraging
workers to commute.
 3.

 The Swiss manufacturer whose CSR communication is somewhat hard to find is

available not at its main website but at .org: another website that tells the history and
philanthropic projects of the company.
 There, Rolex shares it has been supporting missions from National Geography under
the Perpetual Planet signature. While some are focused on assessing the melting of
glaciers, others focused on evaluating the disappearance of rivers such as the
Okavango Delta in Botswana.
 Since 1976 Rolex has been playing a role of social responsibility through the
"Rolex Awards". A program that finances projects focused on improving lives and
protecting the world's natural and cultural heritages. These projects touch all aspects
of humanity by expanding knowledge or improving life on the planet.
10 Malaysian companies that give back to the community
during Covid-19
Extending help to the communities battered by coronavirus

1.
Sunway Group has offered
up to RM12mil will be
allocated to cover the cost
of subsidized treatments
as the patients will be
received at existing
governmental rates
10 Malaysian companies that give back to the community
during Covid-19
Extending help to the communities battered by coronavirus

Contribution: financial and medical support

Sunway Group has rolled out more than RM34mil to help
Malaysians cope with the pandemic, and RM300,000
went into helping the B40 communities around Sunway
townships nationwide through various NGOs, including
Yayasan Kebajikan Negara, to offload the burden of
those who are affected.

Sunway Healthcare Group on the other hand will be

taking in non-Covid-19 cases from public hospitals and
set aside 100 beds across Sunway Medical Centre and
Sunway Medical Centre Velocity to tend to patients. Up
to RM12mil will be allocated to cover the cost of
subsidizing treatment for public patients from
government and UMMC hospitals.
10 Malaysian companies that give back to the community
during Covid-19
Extending help to the communities battered by coronavirus

2.
Contribution: Food aid

KLCC stood with the community

during these difficult times by
feeding people in need, with its
recent contribution over 340kgs of
surplus food and fresh produce to
the Food Aid Foundation during
the Covid-19 outbreak
10 Malaysian companies that give back to the community
during Covid-19
Extending help to the communities battered by coronavirus

3.
Contribution: Financial support for healthcare frontliners

Working together with Ministry of Health (MOH), AIA is

offering hospital staff a one-time RM1,000 Inconvenience
Allowance should they be diagnosed with Covid-19 while
carrying out their duties. A Compassionate Relief of
RM10,000 will be paid to their beneficiaries if the staff
passes away in the line of duty during the pandemic. The
financial support will be effective until June 30 or when the
total fund of RM2 million is fully disbursed.
10 Malaysian companies that give back to the community
during Covid-19
Extending help to the communities battered by coronavirus

4.
Contribution: Hand sanitisers and masks for
GrabFood customers

In line with the company’s vision to promote a

healthy and happy life, Coway will be giving away
10,000 sets of ‘Stay Safe’ kits consisting of hand
sanitisers and masks to GrabFood delivery
customers of selected eatery outlets within greater
Kuala Lumpur.
10 Malaysian companies that give back to the community
during Covid-19
Extending help to the communities battered by coronavirus

5.
Contribution: Medical gloves

To aid staff in government hospitals, police stations and

healthcare’s first responders, Supermax — with
logistical help from National Disaster Management
Agency of Malaysia (Nadma) — is distributing one
million medical gloves.

Because medical gloves should only be used once, a

large quantity of gloves need to be produced to prevent
risk of infection. Previously, Supermax donated three
million gloves to Wuhan — the epicentre of the
pandemic’s outbreak — and helped sponsors delivered
8.9 million more to China.
10 Malaysian companies that give back to the community
during Covid-19
Extending help to the communities battered by coronavirus

6.
Contribution: Monetary aid

Berjaya Corporation Berhad chief executive officer,

Datuk Seri Robin Tan Yeong Ching and I-Berhad
chairman, Tan Sri Lim Kim Hong each contributed
RM1 million to the government’s Covid-19 fund
launched by Prime Minister Tan Sri Muhyiddin Yassin
on March 11. Aimed at easing the burden faced by
the pandemic, the fund will provide RM100 daily to
those who have no fixed income or are not being
paid throughout the duration of the quarantine period
and treatment.
10 Malaysian companies that give back to the community
during Covid-19
Extending help to the communities battered by coronavirus

7.
Contribution: Financial assistance to SMEs

Axiata Group and its subsidiaries have launched a

RM150mil Covid-19 programme to give immediate
assistance to micro-SMEs who are facing financial
difficulties due to the unprecedented coronavirus outbreak.
Through Aspirasi, the group will offer shariah compliant
micro-financing to benefit approximately 150,000 micro-
SMEs within the Boost, Aspirasi and Celcom ecosystem as
well as other e-commerce, e-wallet and FMCG partners.

After online applications are approved, Micro-SMEs can

receive funding from RM1,000 to RM10,000 in 48 hours.
10 Malaysian companies that give back to the community
during Covid-19
Extending help to the communities battered by coronavirus

8.
Contribution: Financial support to Mercy Malaysia

RM4mil in immediate cash has been donated to

Mercy Malaysia’s Covid-19 Pandemic Fund to ensure
medical doctors, nurses, health personnel and
healthcare workers and volunteers have sufficient
supply of protective gear. The contribution will also
be used for the construction of 500 handwashing
stations for marginalised communities, the
production and distribution of 30,000 informative and
educational material packs as well as pandemic risk
reduction training for 10,000 families.
10 Malaysian companies that give back to the community
during Covid-19
Extending help to the communities battered by coronavirus

9.
Contribution: Goods and equipment to hospitals

As part of its CSR initiatives, UDA has contributed

goods, equipment and electronics worth more
than RM100,000 to Sungai Buloh Hospital, which
is currently developing additional wards for Covid-
19 patients and is in the process of upgrading old
wards and hostels. Among the items supplied
include televisions, thermo pots, mobile phones
and sofa sets. UDA is also collaborating with
telecommunications infrastructure services
company edotco Malaysia to address connectivity
issues at the hospital.
10 Malaysian companies that give back to the community
during Covid-19
Extending help to the communities battered by coronavirus

10.
Contribution: Medical equipment and supplies to
frontliners

Petronas is collaborating with the Ministry of Health and

the National Disaster Management Agency to contribute
RM20mil worth of medical equipment and supplies,
including ventilators, hospital beds and mattresses,
thermal imaging cameras, digital thermometers, virus test
kits and Personal Protective Equipment (PPE), to
healthcare frontliners in Malaysia as well as hand
sanitizers to senior citizens at selected homes. The oil
and gas company will also be distributing cartons of
mineral water to several medical centres.
Vivy Yusof Mobilises Her Influence For Good With The FV
Covid-19 Support Fund

She has since galvanised her

loyal supporters into action. In
just a week, her FV Covid-19
Support Fund raised over
RM1mil from the general
public to support those on the
frontline as they tirelessly
work to contain the spread of
the virus.
 2,546,534 Page Likers
4,8084,733 Page Followers

867,0000 Subscribers

3.8m Followers

Icon of CSR

The name USTAZ EBIT LEW is probably unfamiliar to most non-Muslims in Malaysia before MCO but now he has become a big name
not only among Muslims, but also non muslims in Malaysia. As Malaysians stay home during the movement control order (MCO)
period, with most glued to their computers and mobile phones, one of the most followed personalities nowadays is this young
religious teacher/preacher/motivator/trainer/speaker/social activist.

From A-list local celebrities to politicians, they all want to be a part of his story, as his social media platforms chalk up between
400,000 and 600,000 views, within hours, each time he uploads a video.

The 36-year-old has almost attained celebrity status – but the downside to this is that it has given rise to envy and jealousy within the
religious preaching fraternity. But many Muslims, from ordinary Malays to big names, have come to the defence of this Chinese
Muslim convert and, in one or two cases, those criticising him have had to clarify their comments.
 Helping those in need
Local Celebrity Preacher Sets Up Food Banks At His Mini
Marts To Help Those In Need – the food bank is free for
all those who need it, regardless of race and religion.
Charitable Ustaz Donates Essential Food Items To Elderly Chinese Uncles & Aunties During MCO – Chee Kin
Charitable Ustaz Donates Essential Food Items To Elderly Chinese Uncles & Aunties During MCO – Chee Kin
Lew managed to persuade the family to move out; it seems
that the Kedah Zakat Board had tried but failed to do so for
the past 12 years, even after offering them a flat – the family
had deemed it too small for them. Lew managed to get them
to move into a proper house and the grandparents checked
into a hospital.
Don't politicise NGO aid to prisons - Prisons Dept

Ustaz Ebit Lew Helps The People That Got Quarantined In

Kedah’s Prison By Giving Them 200 Mattresses And Many Other
Necessity Items
Ebit Lew buys water tankers to help those hit by disruption in Batu Caves, Selangor
Ebit Lew hires buses to send stranded students home
following online register move

Ebit Lew Apologizes For Helping

Rent A Bus So Students Can Return
Home
 Ebit Lew has apologised for providing 20 buses to
transport stranded students from Universiti
Pendidikan Sultan Idris (UPSI) back to their
hometowns after the institute said he did not have
permission to do so.

Lew was among many Malaysians who rushed to

help university and college students stranded by a
last-minute government decision to postpone
registrations for the October academic session
because of the rise in Covid-19 cases.

University students on their way to campus. A last-minute Some students had been left with no place to stay,
government decision to postpone university registrations left or transport home.
many students stranded.
Lew brings smiles to taxi drivers at KLIA with his food boxes

“When I see their faces, they are like our father, mother, brother, sister
and they were crying.”
Recommendations
Recommendations
 A company should have a sound ethics policy which requires
to be implemented successfully. To do this, they are:

a) The code of ethics is clearly communicated to employees.

b) Employees are formally trained in it.
c) That they are told how to deal with ethical challenges.
d) The code is implemented strongly.
e) The company leadership adheres to the highest ethical standards.
 1. Organizations and businesses contributed
efforts and resources to cope with the
consequences of the pandemic, following the
notion of their social responsibility within society.

3. An Organization must be more than a

legal and ethical person in order to be
socially responsible corporation

2. Business ethics and social

responsibility is important for corporate
growth and success.
1. Organizations and businesses contributed efforts and
resources to cope with the consequences of the pandemic,
following the notion of their social responsibility within
society.
2. Business ethics and social responsibility is important
for corporate growth and success
thank you