CEBU DOCTORS’ UNIVERSITY

COLLEGE OF ARTS AND SCIENCES

Social Responsibility
and Social Entrepreneurship
 Learning Objectives:
• To understand the definition of Social Responsibility and
Social Entrepreneurship;
• Explain the difference between SR and SE;
• Analyze how SR and SE impact workers, communities,
and society as a whole.
 Key Takeaways:
• Social responsibility refers to an individual or corporate
accountability to fulfill their civic duty and take actions that
will benefit society.
• Socially responsible company managers make decisions
that maximize profits and protect the interests of the
community and society as a whole.
• Providing time for employees to support their own social
initiatives can also build pride, loyalty and motivation
among team members.
 Introduction
From increased productivity to attracting top talent, there
are numerous benefits to adding social responsibility
initiatives within an organization. It also allows you to
improve your organization's overall reputation, which
can open doors for unlimited new opportunities. Choosing
which initiative is most appropriate for your organization
requires careful consideration, as the endeavor can become
costly.
 What is Social Responsibility?

Social responsibility is an ethical framework in which

individuals or corporations are accountable for fulfilling their
civic duty and taking actions that benefit society. If a
company or person considers taking actions that could
harm the environment or society, those actions are
considered socially irresponsible. According to this concept,
managers must make decisions that maximize profits and
protect the interests of the community and society as a
whole.
 History of SR
SR can be traced during the start of the industrial revolution where
there was growing concern for the well-being of workers and its effect
on their productivity.

SR was officially introduced in the 1950’s through American economist

and educator Howard Bowen’s through his academic research on the
matter.

In the Philippines, SR started during the 1960’s and was more

prominent after the regime of late dictator Ferdinand Marcos, Sr.

No laws in the Philippines that mandates SR but it is only

encouraged.
 Advantages of social responsibility

Gives a company a competitive edge

Most customers agree that social responsibility is a top

criterion when choosing a company to shop with or do
business with. Being a socially responsible company is a
message you can use in your brand position and
marketing.
 Advantages of social responsibility

Attracts strong candidates and increases retention

Your company's success is strongly impacted by the

people who work for you. If you consistently provide a
socially responsible culture for your employees and have
a reputation for doing so, you can attract and retain top
talent to your organization.
 Advantages of social responsibility

Makes your business attractive to investors

Investors generally believe that a commitment to social

change is a great way to position a company for long-term
success. While there must be a balancing act between
focusing on the profitability of an organization and social
initiatives, doing so successfully can create endless
opportunities for companies.
 Advantages of social responsibility

Improves business culture

Your employees are likely to be more motivated and have

a greater commitment to the organization if they see the
social initiatives are in place. Providing time for
employees to support their social initiatives can also build
pride, loyalty and motivation among team members. This,
in turn, makes everyone more engaged and productive.
 Advantages of social responsibility

Increases customer loyalty and advocacy

Consumers are drawn to companies with a reputation for

being good corporate citizens. Moreover, customer
advocacy is key to attracting new customers. As your
loyal customers talk to people they know about your
product and share positive reviews, they will drive more
business your way.
 Advantages of social responsibility

Improves company reputation

If your organization is continually participating in social

initiatives, it gives an impression to customers, investors
and the world as a whole that your organization is
financially viable. This, in turn, can attract new investors
and investors alike.
 Advantages of social responsibility

Improves profitability and value

Companies often find that when they introduce more

energy-efficient methods and begin recycling, they cut
operational costs and benefit the environment. Social
responsibility also increases transparency with investment
analysts, shareholders and community members, improving
the company's reputation and increasing the overall value.
 Examples of social responsibility in
corporations
Here are a few examples of corporate social responsibility initiatives that companies have taken:

• Charitable giving and volunteer efforts: Companies give employees time off
for volunteering every year and donate portions of revenue to a charitable
organization.
• Changes to company policies to improve or benefit the
environment: Companies are holding tree-planting events, minimizing paper
waste, switching to energy-saving bulbs, setting up recycling bins and allowing
remote work to reduce the negative impact of commuter traffic.
• Improving labor policies and embracing fair trade: Brands are striving to
improve working conditions and the well-being of employees. They are giving
parents significant periods of paid leave, unlimited vacation time, more natural
lighting, soft seating and plants to boost energy and morale.
 Social Entrepreneurship
Social entrepreneurship is the process by which individuals,
startups and entrepreneurs develop and fund solutions that
directly address social issues. A social entrepreneur, therefore,
is a person who explores business opportunities that have a
positive impact on their community, in society or the world.

While sometimes confused with nonprofit organizations, social

entrepreneurship is a for-profit endeavor, even though a
greater emphasis is placed on creating social or environmental
changes.
 Examples of SE
TOMS
While it wasn’t the first company to explore social issues, TOMS is
arguably the brand that popularized social entrepreneurship over
the past decade. Founded by Blake Mycoskie in 2006 after a trip
to Argentina, TOMS began a one-for-one social entrepreneurship
model, in which a pair of shoes would be given to children in need
for every pair of shoes they sold. Today, TOMS has given over 95
million shoes to people in need, and has expanded their giving
model to include access to safe drinking water, eye surgery,
bullying prevention and safe births.
 Examples of SE
Warby Parker
Following TOMS’ success, Warby Parker similarly launched
their “Buy a Pair, Give a Pair” program, which has resulted
in the company donating over five million pairs of glasses to
people in need as of 2019. In 2015, Warby Parker launched
their “Pupils Project,” which is a program that works with
local government agencies to provide free vision
screenings, eye exams and glasses to school children in
New York City and Baltimore.