Corporate Social Responsibility

This is the concept of companies giving back, sharing their resources to society or contributing to the welfare of
the society. The goal of CSR is to shape a better community.
Three Social Responsibilities of Business Organization
1. Duty not to cause harm to others.
Car manufacturers ordered a recall of their cars for a free “special service campaign” to fix the defective
air bag system.
2. Responsibility to prevent harm at all cost.
Pharmaceutical companies offer generic medicines that are sold at cheaper prices to cater to the poor.
3. Responsibility to do good.
Giving support to education, arts, and culture.

Four Models of CSR

1. Economic Model of CSR
Companies produce goods and services that correspond to the demands of the market. In doing so, they
contribute to the growth of the economy and provide jobs as they grow and expand.
2. Philanthropic Model
The practice of giving money and time to help make life better for other people. Example “Project Aral” of
National Bookstore – provide school supplies for children in public schools
3. Social Web Model of CSR
Business organizations must conform to the normal ethical duties and obligations that are expected from a
citizen; the “moral minimum” is to respect human rights. It focuses on the responsibility of a business
organization to respect the rights of its stakeholders.
Stakeholder – any group of individuals that can affect or be affected by the organization.
Opportunity cost – where every decision also involves opportunities or choices that are given up.
In stakeholder theory, business owners make decisions that may affect a wide variety of people resulting in
benefits for some and costs for others; one group will benefit at the expense of another.
4. Integrative Model of CSR
The integrative model of CSR brings social goals into the core of an organization’s business model and fully
integrates economic and social goals. An example is a social enterprise (is a for-profit business organization
that seeks solutions to pressing social issues. It must practice sustainability – must ensure the availability of
resources for the generations to come. It focuses on the integration of economic and social goals in the
business model of an organization.
Reputation management – the practice of managing the image of a company. A company with a good image is
good business sense.

LABOR ISSUES
Contractualization of employees (“endo”)
Due process – the rule that a legal case must be done in a way that protects the rights of all the people
involves; it is the process that an employee facing disciplinary action undergoes to ensure fair treatment and
trial; it gives the employee the right to appeal the disciplinary action, present his or her position, and be treated
impartially.
Downsizing – means to terminate employees due to financial difficulties, closure of offices or branches,
automation and use of technology that replace human resource, and redundancy due to merger. A termination
pay is provided to the terminated employee to help the employee cope with expenses while looking for a new
job
Health and Safety – these have both instrumental and intrinsic values.
Instrumental value – this is defined as a means to and end; you value things because of their function
Intrinsic value – pertains to the value of something in itself
Occupational Safety and Health Standards – the government agency mandated to safeguard the workers’s
social and economic well-being, as well as their physical safety and health

Discrimination - being in favor of or against a person based on group, age, social class, gender orientation,
race, religion, or any category to which that person belongs rather than on individual merit

Diversity – refers to the presence of differing culture, race, religion, language, ethnicity, gender, ability,
experience, age, social class, and other categories in the workplace.
Benefits of Diversity
a) Enhance competitiveness
b) Expand organizational capabilities
c) Encourage sharing of expertise and skills
d) Enhance access to markets

Six Pervasive Factors That Contribute to the Depletion of Resources

1. Consumer Affluence
• Wealth leads to indiscriminate spending and consumption
• Promotion of consumerism leads to resource scarcity
• Buying more than you need
2. Materialistic Cultural Values
• Promotes consumption of disposable items
• Contributes to pollution and the problem of waste disposal
• Shopaholic mentality – buying even when it is not needed
3. Urbanization
• Concentration of people in cities which leads to pollution
• Conversion of forest land into housing complex
4. Population explosion
• Increase in product consumption, waste and pollution
• Current pop. of the Philippines in 2018
5. New and uncontrolled technologies
• Use of GMO which may lead to new strain of pests/insects resistant to pesticide
6. Industrialization
• Destructive use of the environment for economic reasons
• Improper waste management and improper disposal of toxic chemicals