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ETHICS AND CORPORATE SOCIAL RESPONSIBILITY

CORPORATE SOCIAL RESPONSIBILITY IN VARIOUS BUSINESS AREAS

Corporate Social Responsibility (CSR) can mean different things to different

businesses due to their unique financial needs and stakeholder relationships.

Manufacturing and Service Industries.

One of the most important directions of CSR, in general, is building relations

with local communities, this pertains especially to production companies as they
require the extensive and highly developed infrastructure, and at the same time
compliance with 6R principle – reduce, reuse, recycle, recover, redesign, and
remanufacture – pertaining to operation type, price, quality, time, quantity, and cost.

CSR in Retailing. 

              Although, in general, all the categories and characteristics of the CSR are
applicable to the sphere of retailing, there are some idiosyncratic features
to be mentioned. Thus, J. Anselmasson and U. Johansson distinguish three main
attitude-based dimensions – human responsibility (fair-trade), product responsibility
(user-friendly information), and environmental (eco-conscious actions, e.g.,
disposable packaging, etc.) responsibility.

CSR in Human Resource Management. 

The focus of HRM is the ‘people’ side of organization- interpersonal relations,

internal (with employees of a different level) and external (with stakeholders)
communication.

CSR in Finance and Banking.

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It is of no surprise, that a great majority of people are affected by the activities

of financial organizations, be they employers, employees, investors, everyday
people paying their bills, taking out loans, etc. Characteristically, these are long-
term multivalent relations that are of a high social significance.

CORPORATE SOCIAL RESPONSIILITY REPORTING

Corporate Social Responsibility Reporting

Internal and external facing document companies use to communicate CSR
efforts and their impacts on the environment and community.

Advantages:
1. Transparency – awareness of CSR activities
2. Supervision of CSR activities – allows to follow implementation of CSR
strategies and pinpoint weaknesses
3. Involvement of Stakeholders – creates trust and loyalty
4. Cross-Sector Cooperation – partnerships between businesses, government
agencies, and non-profit organizations

Six Possible Applications of CSR Reports (Ojaasoo, 2016)

1. Reading for Investment – reports are regarded as valuable source of

information for the financial community.
2. Reading for Engagement – CSR reports can help identify key practices
regarding company’s environmental and social practices and willingness to
construct a dialogue with the community.
3. Reading for Employment – employees working at the company or seeking
employment can get information from the reports.
4. Reading for Management – CSR reports can help identify spheres that need an
improvement, as well as to measure progress, to carry out an internal and
external ethics audit.
5. Reading for Purchasing – communication concerning the customer should
present how a company manages to integrate corporate responsibility into
everyday practice.
6. Reading for Research – for researchers – academic or empirical – CSR reports
can provide a unique source of data that allows identifying company progress,
social and environmental activities, community involvement, etc.
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1. CSR report enhances the brand image 

2. CSR report reinforces employee loyalty to the company. 
3. CSR report is an internal dialogue mechanism since it involves various
departments 
4. CSR report is a new external communication means 
5. CSR report fulfills a proactive function; through the report corporate executives
detect possible problems, thus preventing such events. 
6. CSR report as an evaluation tool

CONCEPTUAL FRAMEWORK OF BUSINESS ETHICS

- The conceptual framework is continuous as it contains a series of consecutive
organizations that are seen as mutually interdependent.

• Business Ethics is a concise but in many ways misleading, label for an

interdisciplinary field covering a vast range of normative issues in the world of
commerce.

The most efficient way to describe the subject is through the lens of three C’s.

• Compliance- refers to a company’s or a business person’s conformity with

relevant laws and regulation - that is following the rules set out by the
government.

• Contribution- Enhances the law by outlining acceptable behaviors beyond

government control.

• Consequences- Weighing the consequences of choice and selecting actions likely

to result in a good or the best effect.

Level of Business Ethics

• Individual (a ‘micro-level’) - may seem to involve only the individual, but it is a

holistic process.

• Organizational (a ‘mid-level’) the principles and standards by which business

operate.

• Societal (a ‘macro-level’) one’s personal networks, including family, friends, and

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community would affect the extent to which practices are considered ethical or
unethical.

Approaches to Business Ethics

There exist several perspectives of business ethics due to the lack of clear
definitions of the subject itself, nevertheless it is possible to delineate two main
approaches:

1. Instrumental Perspective- corporate responsibility suggests that responsible

business pays off.

2. Philosophical Perspective- one aim is to determine the fundamental purposes of a

company. Contrary to the instrumental approach.

BUSINESS ETHICS COMPONENTS

Leadership Ethics
Due to the great variation of theoretical approaches to the matter of ethical
leadership, as well as the varying depth of empirical analyses the authors of the
present book to apply the three-level leadership model: ethics of the leader, the means
of ethical leadership, and the heart of leadership.
Followership Ethics
Most publications on corporate ethics emphasize the role leaders’ play in
creating and promoting the ethical work culture, reinforcing ethical behavior in the
workplace. Nevertheless, some broadly publicized scandals show that it is often the
leaders who act unethically and demand the same behavior from the followers.
Communication Ethics
Organizational communication (both internal and external) can be described as
the use of available resources to convey information, to move, to inspire, to persuade,
to enlighten, to connect.
Ethics of Conflict Management
The culture of organization, especially its ethical component, has a strong
impact upon success of conflict resolution policies and practices. While corporate
ethics and dispute resolution programmes are often viewed as separate organizational
strategies. It is important to address them in a holistic manner.

ETHICAL DECISION MAKING PROCESS

Ethical decision-making refers to the process of evaluating and choosing

among alternatives in a manner consistent with ethical principles.
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What are the 5 steps of ethical decision making?

The Leader's Choice: Five Steps to Ethical Decision Making.

1. Assessment
2. Alternatives
3. Analysis
4. Application
5. Action
CONTEXT OF ETHICAL DECISION MAKING
Ethical context is comprised of the principles, social norms, and actions that
support ethical decision making and behavior in the workplace.
 How does ethics play in the context of decision making?
 Are ethical decisions based on context?
 Any ethical decision-making process requires an individual or group work
in choosing among various possible actions that eventually would be
regarded as right or wrong by the stakeholders within and outside the
company.

The ethical issue intensity involves six Main components:

1. Total harm/benefit caused by the respective

2. Social consensus
3. Probability of effect
4. Time
5. Proximity of closeness
6. The number of people to be affected by the action Individual factors of ethical
decision-making among the individual factors of the ethical decision-making we can
mention the following ones:

- Gender
- Education
- Nationality
- Age
- Locus of Control

CSR IN HUMAN RESOURCE MANAGEMENT (HRM)

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CSR has become one of the top topics in recent years when environmental and
climate situations began to be believed at stake. The explosive popularity of social
media and the internet also contributes to the propagation of news, leading to the
corporate obligation for companies to provide transparency of their policies and
activities towards their own employees and related stakeholders.
Corporate Social Responsibility is a strategy.

Benefits of CSR in Human Resource Management (HRM)

1. Improvement of Employee Satisfaction the ISO 26000 Social Responsibility
standard states that ‘the objective of social responsibility is to contribute to
sustainable development and internal development is one of the main axes.
CSR should not be understood as organizational objectives towards the
communities but also their own human resources. This includes their efforts to
provide the best working environment: well-being at work, training and
teamwork activities to enhance the sense of belonging. The encouragement of
diversity or equality among workers will give employees more motivation and
pride to be a part of their companies.
2. Improvement of Company Image and Corporate Culture Maintaining external
and internal communication regarding CSR can greatly assist in publicizing a
company’s involvement and provide a positive image for employees and
customers alike. A company’s image is part of its culture, it is in the DNA of
its activities.

IMPORTANCE OF ETHICS AND CORPORATE SOCIAL RESPONSIBILITY

 Corporate Social Responsibility (CSR) is an essential aspect of any business. Not
only does it enable businesses and organizations to connect with customers, but it
also creates a space for corporations to engage with the world around them in a
positive way.
 The importance of ethical and social responsibility to business and organization is
vital to a lot of areas in the organization and also to policy formulation and
organizational objectives.

TYPES OF CORPORATE SOCIAL RESPONSIBILITY

Ethical Responsibility
Ethical responsibility is concerned with ensuring an organization is operating
in a fair and ethical manner. Organizations that embrace ethical responsibility aim to
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achieve fair treatment of all stakeholders, including leadership, investors, employees,

suppliers, and customers.
Economic Responsibility
Economic responsibility is the practice of a firm backing all of its financial
decisions in its commitment to do good in the areas listed above. The end goal is not
to simply maximize profits, but positively impact the environment, people, and
society.

Major Benefits of CSR

 Paying wages
 Increased brand awareness and recognition
 An advantage over competitors
 More benefits for employees

Environmental Responsibility
Refers to the belief that organizations should behave in as environmentally
friendly a way as possible.

Philanthropic Responsibility
Means serving humanity. It refers to a business’s aim to actively make the
world and society a better place.

BUSINESS ETHICS AND STRATEGIC MANAGEMENT

Business Ethics
Business ethics involves the ethical dilemmas or controversial issues that
businesses face. Business ethics often includes a system of practices and procedures
that help build consumer confidence. At some level, some business ethics are
stipulated by law, such as minimum wages, insider trading restrictions, and
environmental regulations. Business ethics, on the other hand, can be influenced by
management behavior and has widespread impact on the entire organization.
Strategic Management
Strategic management is the process of setting goals, procedures, and
objectives to make a company or organization more competitive. Strategic
management usually involves the effective use of people and resources to achieve
these goals. Strategic management often involves strategic evaluation, internal
organizational analysis, and company-wide strategic implementation.
Examples of Business Ethics:
1. Data protection Customers' data is frequently collected by businesses. Depending
on the nature of the business, this may merely be an email address, but it could also be
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their physical address, health or financial information. Customers expect companies

that collect their data to keep it secure and not to distribute it without their permission.
2. Customer Prioritization a business shows respect for its customers is by
prioritizing the customer's needs, even at the expense of the company.
3. Corporate Transparency A business that practices transparency will be clear in its
communications both with employees and to clients or customers.
4. Employee Compensation Companies that follow fairness and respect principles
will give their employees a fair wage for the work they accomplish, based on their
experience, education, and the nature of the job.
5. Workplace Diversity business can show fairness is by placing a high importance
on having a diverse workplace. Achieving a diverse workplace means using recruiting
practices that give equal opportunity to people from different ethnic, gender and
social groups.

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https://www.redlands.edu/study/schools-and-centers/business/sbblog/2019/
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GOOD GOVERNANCE AND SOCIAL REPONSIBILITY

BAC 103

ETHICS AND CORPORATE SOCIAL RESPONSIBILITY

Prepared by:
LEARNING TEAM 4

Catrice V. Olmillo
Sheila Grace Banaag
Christian Trinidad
Roniza May L. Gomez
Patricia Alpajando
Francesca Bea Parongca
Carl James Abante,
Daisyrie Lanuang
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Reymark Nunez
Pauline Joi Liporada
Kersey Lipardo

Submitted to:
Sir. Jonathan Bernabe