POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

College of Accountancy and Finance

A.Y. 2020-2021

WRITTEN REPORT
SOCIAL RESPONSIBILITY FRAMEWORK
1.1 Social Responsibility Defined
1.2 Development of Social Responsibility
1.3 Global Nature of Social Responsibility

Topic #1
GUCILATAR, GELMANE ZAIRA S.
BSBA-FM, 2-3

May 10, 2021

SOCIAL RESPONSIBILITY DEFINED

Social responsibility as the adoption by a business of a strategic focus for fulfilling the
economic, legal, ethical, and philanthropic responsibilities expected of it by its
stakeholders. Business ethics, corporate volunteerism, philanthropic activities, going
green, sustainability, corporate governance, reputation management and these are
terms you may have heard used, or even used yourself, to describe the various rights
and responsibilities of business organizations. You may have thought about what these
terms actually mean for business practice. You may also have wondered how
businesses engage in these behaviors or contribute to these outcomes.

(Archie Carroll’s Pyramid of Corporate Social Responsibility)

Archie Carrols Pyramid of CSR help to explain how and why organizations should meet
their social responsibilities with these 4 levels of social responsibility

Economic Responsibilities

Historically business organizations were created as economic entities designed to

provide goods and services to societal members. The profit motive was established as
the primary incentive for entrepreneurship. Before it was anything else, business
organization was the basic economic unit in our as such, its principal role was to
produce goods and services that consumers needed and wanted and to make an
acceptable profit in the process. At some point the idea of the profit motive got
transformed into a notion of maximum profits, and this has been an enduring value ever
since. All other business responsibilities are predicated upon the economic
responsibility of the firm, because without it the others become moot considerations.

Legal Responsibilities

Society has not only sanctioned business to operate according to the profit motive; at
the
same time business is expected to comply with the laws and regulations promulgated
by
federal, state, and local governments as the ground rules under which business must
operate. As a partial fulfillment of the "social contract" between business and society
firms are expected to pursue their economic missions within the framework of the law.
Legal responsibilities reflect a view of "codified ethics" in the sense that they embody
basic notions of fair operations as established by our lawmakers. They are depicted as
the next layer on the pyramid to portray their historical development, but they are
appropriately seen as coexisting with economic responsibilities as fundamental precepts
of the free enterprise system.
Ethical Responsibilities

Although economic and legal responsibilities embody ethical norms about fairness and
justice, ethical responsibilities embrace those activities and practices that are expected
or prohibited by societal members even though they are not codified into law. Ethical
responsibilities embody those standards, norms, or expectations that reflect a concern
for what consumers, employees, shareholders, and the community regard as fair, just,
or in keeping with the respect or protection of stakeholders' moral rights. In one sense,
changing ethics or values precede the establishment of law because they become the
driving force behind the very creation of laws or regulations. For example, the
environmental, civil rights, and consumer movements reflected basic
alterations in societal values and thus may be seen as ethical bellwethers
foreshadowing and resulting in the later legislation. In another sense, ethical
responsibilities may be seen as embracing newly emerging values and norms society
expects business to meet, even though such values and norms may reflect a higher
standard of performance than that currently required by law. Ethical responsibilities in
this sense are often ill-defined or continually under public debate as to their legitimacy,
and thus are frequently difficult for business to deal with. Superimposed on these ethical
expectations emanating from societal groups are the implied levels of ethical
performance suggested by a consideration of the great ethical principles of moral
philosophy. This would include such principles as justice, rights, and utilitarianism.

Philanthropic Responsibilities

Philanthropy encompasses those corporate actions that are in response to society’s

expectation that businesses be good corporate citizens. This includes actively engaging
in acts or programs to promote human welfare or goodwill. Examples of philanthropy
include business contributions to financial resources or executive time, such as
contributions to the arts, education, or the community. A loaned-executive program that
provides leadership for a community’s United Way campaign is one illustration of
philanthropy. The distinguishing feature between philanthropy and ethical
responsibilities is that the former are not expected in an ethical or moral sense.
Communities desire firms to contribute their money, facilities, and employee time to
humanitarian programs or purposes, but they do not regard the firms as unethical if they
do not provide the desired level. Therefore, philanthropy is more discretionary or
voluntary on the part of businesses even though there is always the societal expectation
that businesses provide it. In summary, the total corporate social responsibility of
business entails the simultaneous fulfillment of the firm's economic, legal, ethical, and
philanthropic responsibilities. Stated in more pragmatic and managerial terms, the CSR
firm should strive to make a profit, obey the law, be ethical, and be a good corporate
citizen.

Social Responsibility Applies to All Types of Businesses

It is important to recognize that all types of businesses, small and large, sole
proprietorships and partnerships, as well as large corporations to implement social
responsibility initiatives to further their relationships with their customers, their
employees, and their community at large. For example, Altered Seasons, a candle
retailer in Buffalo, New York, operates on a one-for-one model, where the company
gives a meal to the hungry for every candle that it sells. The company’s candles are
made from environmentally friendly materials and are manufactured in the United
States. It is vital that all businesses consider the relationships and expectations that our
definition of social responsibility suggests.

Social Responsibility Needs a Strategic Focus

Social responsibility is an important business concept and involves significant planning
and implementation. Our definition of social responsibility requires a formal
commitment, or a way of communicating the company’s social responsibility philosophy.

A smaller firm may give an executive, perhaps in human resources or the business
owner, the ability to make decisions regarding community involvement, ethical
standards, philanthropy, and other areas. Regardless of the formal or informal nature of
the structure, this department or executive should ensure that social responsibility
initiatives are aligned with the company’s corporate culture, integrated with
companywide goals and plans, fully communicated within and outside the company,
and measured to determine their effectiveness and strategic impact. In sum, social
responsibility must be given the same planning time, priority, and management attention
that is given to any other company initiative, such as continuous improvement, cost
management, investor relations, research and development, human resources, or
marketing research.

Social Responsibility Fulfills Society’s Expectations

Another element of our definition of social responsibility involves society’s expectations

of business conduct. Many people believe that businesses should accept and abide by
four types of responsibility: financial, legal, ethical, and philanthropic. To varying
degrees, the four types are required, expected, and/or desired by society.

Just like what I said earlier It is expected from all businesses and social responsibility is
an adoption to fulfill the four responsibilities that is also the society's expectation

Social Responsibility Requires a Stakeholder Orientation

The final element of our definition involves those to whom an organization is

responsible, including customers, employees, investors and shareholders, suppliers,
governments, communities, and many others.
These constituents have a stake in, or claim on, some aspect of a company’s products,
industry, markets, and outcomes and are thus known as stakeholders.

Business should consider the diverse perspectives of these stakeholders in their daily
operation, strategic planning and should focused on their concerns

DEVELOPMENT OF SOCIAL RESPONSIBILITY

The influence of business has led many people to conclude that corporations should
benefit their employees, their customers, their business partners, and their community
as well as their shareholders. However, these responsibilities and expectations have
changed over time. After World War II, many large U.S. firms dominated the global
economy.

Their power was largely mirrored by the autonomy of their top managers. Because of
the relative lack of global competition and stockholder input during the 1950s and
1960s, there were few formal governance procedures to restrain management’s actions.
The stability experienced by midcentury firms dissolved in the economic turmoil of the
1970s and 1980s, leading companies to focus more on their core competencies and
reduce their product diversity. The 1980s and 1990s brought a new focus on efficiency
and productivity, which fostered a wave of downsizing and restructuring. Concern for
corporate responsibilities was renewed in the 1990s. In the 1990s and beyond, the
balance between the global market economy and an interest in social justice and
cohesion best characterizes the intent and need for social responsibility. Despite major
advances in the 1990s, the sheer number of corporate scandals at the beginning of the
twenty-first century prompted a new era of social responsibility.

GLOBAL NATURE OF SOCIAL RESPONSIBILITY

The increasing globalization of business has made social responsibility an international
concern. In most developed countries, social responsibility involves economic, legal,
ethical, and philanthropic responsibilities to a variety of stakeholders. Global social
responsibility also involves responsibilities to a confluence of governments, businesses,
trade associations, and other groups. Progressive global businesses recognize the
“shared bottom line” that results from the partnership among businesses, communities,
governments, and other stakeholders.

REFERENCES:

https://www.pachamama.org/social-justice/social-responsibility-and-
ethics#:~:text=Social%20responsibility%20is%20an%20ethical,of%20society%20and
%20the%20environment.

https://corporatefinanceinstitute.com/resources/knowledge/other/corporate-social-
responsibility-csr/

https://www.investopedia.com/terms/s/socialresponsibility.asp

https://www.coursehero.com/file/74916516/Chapter-1-Social-Responsibility-Framework-
Business-Society-A-Strategic-Approach-to-Social-Responsib/