Corporate Social

Responsibility
What is Corporate Social
Responsibility (CSR)?
Corporate Social Responsibility is a
process that is concerned with treating
the stakeholders of a company or
institution ethically or in a responsible
manner.
-Hopkins, 2006

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What is Corporate Social
Responsibility (CSR)?
Bottomline:
It prioritizes the company’s social
responsibility to its stakeholders
over its profits.

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 Breakdown of
1 Terms
To help further understand CSR, we will discuss some
terminology.
Breakdown of Terms
CORPORATE
Pertaining to any company or a large
group, either private, public or NGO
(non-government organization)
Breakdown of Terms
STAKEHOLDERS
The groups of people within or outside
the company that are affected by its
actions.
Breakdown of Terms
STAKEHOLDERS
These groups of people support the
corporation in order for it to continue
its operations.
Breakdown of Terms
SOCIAL RESPONSIBILITY
Responsibility towards the economy,
the stakeholders, and the
environment.
Breakdown of Terms
SOCIAL RESPONSIBILITY
Increasing profits while fulfilling one’s
duty to sustain the quality of living of
his/her stakeholders in an ethical
manner.
Breakdown of Terms
BUSINESS ETHICS
Taking actions that are deemed
acceptable based on a certain
standard set (usually an international
standard).
 Breakdown of Terms
BUSINESS ETHICS
Addresses 3 issues:

Values, “Code of Ethics” and

Corporate Governance

▸
 Breakdown of Terms
Values
Principles that the company upholds

(e.g. Integrity, Honesty, Fairness, etc.)

 Breakdown of Terms
“Code of Ethics”

Setting guidelines or rules that are

aligned to the values of the company.
 Breakdown of Terms
Corporate Governance

Framework of the policies imposed to

guide the decision makers or the
board of the company when
deliberating.
 Breakdown of Terms
SUSTAINABILITY
‘Aligning an organisation’s products and
services with stakeholder expectations,
thereby adding economic, environmental and
social value’
-PricewaterhouseCoopers
2 The Continuum
This helps measure where the company stands in
executing their duty to their stakeholders.
 The 2 Extremes

Most companies fall somewhere in the middle

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3 Theories of CRS
When learning about CSR, it is important to know that
there is no one definition for it.
The
Problem
Since there is no single agreed
definition for CRS, it is hard to
develop and measure the efforts of
the companies.

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 Theories to help further
define CRS

▸ Agency Theory
▸ Social Contract Theory

These are often used to theoretically measure CRS.

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Agency Theory

▸ A company only has an obligation to its

stockholders as they allow the continuity
of the operations

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Agency Theory
▸ People take into account their self interests when making decisions.

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 Agency Theory
▸ An agency relationship exists when the
Principal hires an Agent in order to work
tasks that help them get closer to their
common goal; usually a
superior/subordinate relationship.
E.g. Shareholder and director relationship, director and manager
relationship, manager and employee relationship, etc.

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Social Contract Theory

▸ There is an implied contract between

companies and the community it serves
which requires these companies take a
role in helping develop said community.

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 Social Contract Theory
Defining CSR using Social Contract Theory…

“The social responsibility of business

encompasses the economic, legal, ethical, and
discretionary expectations that society has of

organizations at a given point in time”

-Carroll & Buchholtz (2003) in Khan, Khan, Ahmed and Ali, (2012)

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4
Why and How
Engage in CSR?
Why Engage in CSR?
Aside from earning profits, they
As businesses evolved are now focused on providing the
over the years, so has needs of the present generation
its role in society. without compromising the
resources of the next generation.

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 Why Engage in CSR?
Improving or maintaining their
relationships with their stakeholders by
going beyond the minimum requirements
of the law is the key to success.

By doing so, they are able to preserve their

business and attract new clients and
investors in the following years.

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How to Engage in CSR?
This can be done by being...
▸ Employee friendly ▸ Environmentally friendly ▸ Mindful of Ethics

▸ Respectful to the ▸ Taking part in ▸ Etc.

communities where these charitable events
businesses are located

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 CSR in the
5 Philippines
CSR in the Philippines
CSR has four responsibilities:
● Economic
● Legal
● Ethical
● Discretionary/Philanthropic

Usually prioritized in this order by businesses, leaving the

discretionary/philanthropic behind or forgotten

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CSR in the Philippines
One of the biggest problems in the
Philippines that can be addressed by CSR
is POVERTY.

Over the years, more companies have tried

to devote their efforts to help fight this
problem by introducing programs.

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Big Companies and CSR

● In 1998, SPEX partnered with Chevron

Malampaya LLC and the PNOC
Exploration Corporation in developing the
Malampaya field in order to allow the
production of natural gas in the Philippines

Shell Philippines Exploration B.V.

(SPEX)

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Big Companies and CSR
● This paved the way in opening more sites
for natural gas production
● In return, SPEX opened jobs and developed
programs to help the locals near their sites
such as T.A.L.I.M., which helped
strengthen Barangay Development
Councils and train women to participate in Shell Philippines Exploration B.V.
(SPEX)
community service projects.

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Big Companies and CSR

● In order to make efforts to implement CSR,

SM Supermalls created the SM Foundation
which offers various programs to help the
less-privileged.

SM Supermalls

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Big Companies and CSR
Programs:
● Every Christmas SM launches
“Share-A-Toy” which encourages mall goers
to buy and donate toys, which will be
distributed to low-income neighborhoods,
public hospitals, and other charitable
institutions. SM Supermalls

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Big Companies and CSR
Programs:
● Angels Walk for Autism is held every
January by the SM Foundation in order to
celebrate people with autism and spread
awareness.

SM Supermalls

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THANKS!

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Sources:
▸ Crowther, D. and Aras, G., 2008. Corporate Social Responsibility. [Frederiksberg, Denmark]: BookBoon.

▸ D'Amato, A., Henderson, S. and Florence, S., 2009. Corporate Social Responsibility And Sustainable Business. Greensboro: CCL
Press [Imprint].
▸ Habaradas, R., 2013. Corporate Social Initiatives in the Philippines: Experiences of Four Major Corporations. Journal of
Legal, Ethical and Regulatory Issues, 16(2).
▸ Hopkins, M., 2006. What is corporate social responsibility all about?. Journal of Public Affairs, 6(3-4), pp.298-306.

▸ Khan, M., Khan, N., Ahmed, S. and Ali, M., 2012. Corporate Social Responsibility (CSR) – Definition, Concepts and Scope (A
Review). Universal Journal of Management and Social Sciences, 2(7), pp.41-52.

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