CHAPTER 5

CORPORATE SOCIAL
RESPONSIBILITY AND
ETHICS
GROUP 2
THE LEARNERS SHALL BE ABLE TO..

01 DESCRIBE THE CONCEPT OF CORPORATE SOCIAL

RESPONSIBILITY OR CSR.
02 ANALYZE THE DIFFERENT DRIVES OF CORPORATE
SOCIAL, RESPONSIBILITY.
03 DISCOVER THE HISTORICAL PHASES OD CSR.

04 EXPLAIN THE HISTORICAL DEVELOPMENT OF CSR IN THE

PHILIPPPINES .
05 COMPARE THE TWO VIES OF CSR, AND.

06 ILLUSTRATE THE PYRAMID OF CORPORATE SOCIAL

RESPONSIBILITY.
07 APPLY SOCIAL RESPONSIBILITY TOWARDS CONSUMERS,
GOVERNMENT, EMPLOYEES, AND THE ENVIRONMENT.
CORPORATE SOCIAL is the most recent practice of

RESPONSIBILITY (CSR)
companies in taking active
participation in social concerns
and community matters.
CSR is a business philosophy that
requires companies to behave as
good corporate citizens.
THE CONCEPT OF The ideas of Milton Friedman and
Edward Freeman gave rise to the

CORPORATE SOCIAL
concept of Corporate Social
Responsibility (CSR). As written

RESPONSIBILITY
in the New York Times Magazine
in 1970, Friedman said that “the
social responsibility of business
is to increase its profits" and
"the business of business is
business”.
 THE KEY COMPONENTS OF CSR

1. Corporate 2. Business ethics 3. Workplace and

governance labor relations
Business ethics is the inclusion of
Accountability, the core values such as honesty, Human resources are
transparency and trust, respect, and fairness into the assets of a company
conformance with the laws the policies, practices, and and thus play the most
are the major issues under decision making of a company. important and critical
corporate governance. roles.
 THE KEY COMPONENTS OF CSR

4. Positive action 5. Supply Chain 6. Customers

Some of the good The business process of any The cost and quality of
practices which company is not limited to the products and services
reflect CSR Practices internal operations but includes are possibly the greatest
of the company are the whole supply chain involved in but definitely not the
inclusion of people producing goods and providing only aspects of concern
with disability and services. to the customers.
people from the local
community in the
diversity of
workforce.
 THE KEY COMPONENTS OF CSR
7. Environment 8. Community
CSR is beyond

legal requirements The community where the company
including the issue on the does its business is another
environment. It is the role of the important
company to further deliver stakeholder.
environmental benefits besides
mandatory requirements
DRIVERS OF CSR
Some of the drivers pushing business towards CSR
include:
1. The shrinking role of government
2. Demands for greater disclosure
3. Increased customer interest
4. Growing investor pressure
5. Competitive labor markets
6. Supplier relations
 HISTORICAL PHASES OF CSR
The practice of corporate social responsibility (CSR)
has had an extensive and widespread history.

It is noteworthy then to understand the history of

CSR, to with:

Phase 1: (1800s to early 1900s) PROFIT MAXIMING

MANAGEMENT
Phase 2: (Early 1900s) TRUSTEESHIP MANAGEMENT
Phase 3: (1930s) QUALITY OF LIFE MANAGEMENT
 This period was characterized by
restrictions and lack of know-how but The Philippine government implemented
with PBSP, the CSR managed to new and many policies about deregulation,
evolve. Projects under

PBSP have decentralization and liberalization during
given assistance to powerless farmers, this period of organized philanthropy.
fishermen, countryside workers, It was in this period that numerous
underprivileged urban people and foundations were put up such as ShoeMart
ethnic cultural communities in the Foundation (1983),Coca- Cola Foundation
Philippines. Philippines (1986), Roxas Foundation(1987),

Sarmiento Foundation (1988)and the rest.
UNORGANIZED CSR

(1960S TO 1970S)

ORGANIZED PHILANTHROPY
(1980S TO1990S)

 From the year 2000 and until present,

the organized movement is still in

existence. Globalization was the great

influence in the spread of CSR
worldwide. The interdependence of
business competition and community
health became 'popular as "shared
value'" in the field of CSR.

ORGANIZED MOVEMENT (2000 AND

CONTINUES UNTIL PRESENT)

SOCIOECONOMIC VIEW
The socioeconomic view says that a business is a
portion of the larger society and thus has social
responsibility that goes beyond making and
maximizing profits.
BUSINESSES WHICH ARE SOCIALLY RESPONSIBLE
HAVE SOME RECOGNIZABLE COMMON POINTS WHICH
ARE:
1. Public image
2. Better environment
3, Public expectation
4. Long-run profit
5. Balance responsibility and power
6. Stockholders interest
7. Possession of resources
CLASSICAL VIEW
It was Milton Friedman, a Nobel Prize winning
economist who endorsed this classical view.
The classical view says that the primary role of
business is to provide goods and services to
maximize profits for the benefits and satisfaction of
the shareholders' interest in an open and free
competition with obedience to laws.
HERE ARE THE COMMON
CHARACTERISTICS OF THE CLASSICAL
VIEW OF CSR:
1. Profit Maximization
2. Government concern
3. Aggressive competitive
4. Utilization of resources
5. Unachived business objective
PYRAMID OF
CORPORATE SOCIAL
RESPONSIBILITIES
In this pyramid it considered four
types of responsibilities which are
actually an assortment of specific
responsibilities that follow a
successive fashion but are
interdependent to one another.
 01 02 03

ECONOMIC LEGAL ETHICAL

RESPONSIBILITY RESPONSIBLITY RESPONSIBILITY
the first and most The second level of The third, which is
apparent is the the pyramid is the directly connected to the
economic business' legal legal responsibility, is the
responsibility to responsibility to ethical responsibility.
be profitable. obey the all laws set

forth by society all
the time.
 04 05

ENVIRONMENTAL PHILANTHROPIC
RESPONSIBILITY RESPONSIBILITY

Environmental responsibility is a must Philanthropic responsibility known also

for businesses, though this is not as discretionary responsibility is best
actually included among the described by the resources donated by
responsibilities by Archie Carroll in the companies toward social, educational,
pyramid of CSR. recreational and/or cultural intentions.

SOCIAL RESPONSIBILITY TO
STAKEHOLDERS
Today, both large and small companies are
also faced with numerous issues that test
them to answer to the concerns of their
stakeholders to operate and perform in a
socially responsible fashion.
TOWARDS CONSUMERS
The consumers are without doubt, the
important stakeholders of any
business whether big or small
THIS IS FEASIBLE BY HAVING A POSITIVE ATTITUDE TOWARDS
CUSTOMERS AND ACHIEVING THE FOLLOWING SOCIAL
RESPONSIBILITIES TOWARDS THEM:

01 QUALITY

02 FAIR PRICES

03 TRUTHFUL ADVERTISING

04 AFTER SALES SERVICE

05 RESEARCH AND DEVELOPMENT

06 CONSUMER'S SAFETY

07 REGULAR SUPPLY
THIS IS FEASIBLE BY HAVING A POSITIVE ATTITUDE TOWARDS
CUSTOMERS AND ACHIEVING THE FOLLOWING SOCIAL
RESPONSIBILITIES TOWARDS THEM:

08 ATTEND COMPLAINTS

09 AVOID MONOPOLISTIC COMPETITION

10 TRAINING
TOWARDS EMPLOYEES
The employees are very
significant, a company must fulfill
its obligations to them to
increase more its productivity.
HERE ARE THE RESPONSIBILITIES OF A COMPANY TO ITS
EMPLOYEES, AS FOLLOWS:

01 MEANINGFUL WORK AND JOB SATISFACTION

02 FAIR RETURNS

03 BEST PHYSICAL AND MENTAL ATMOSPHERE

04 PARTICIPATION IN THE MANAGEMENT

05 TRAINING PROMOTION AND WELFARE SCHEMES

06 RECOGNITION OF UNIONS

07 PROPER PERSONNEL POLICIES

TOWARDS THE GOVERNMENT
The government is basically responsible for
controlling the laws and protecting the security of
the country. Hence, the government actually plays a
vital part also in the standpoint of CSR as an external
stakeholder.
One benefit of having government policies in place is
for businesses to function without bringing any harm
to both the society and the environment. Companies
and the communities are able to establish and
maintain good relations.
HERE ARE SOME OF THE RESPONSIBILITIES OF BUSINESSES
TOWARDS THEIR RESPECTIVE GOVERNMENTS:

01 PAY TAXES

02 FOLLOW ENVIRONMENTAL REGULATIONS

03 ABIDE BY LABOR LAWS

04 AVOID RESTRICTIVE TRADE PRACTICES

05 FINANCIAL DISCLOSURE

06 AVOID CORRUPTION
TOWARDS TO THE LOCAL COMMUNITY
A local community is a group smaller in size
and number compared to a society in
general. It may consist of places where a
company operates and functions as well as
where it negotiates about common issues
of concern.
 HERE ARE SOME SUGGESTED APPROACHES TO ESTABLISH A GOOD
RELATIONSHIP WITH COMMUNITIES THAT CAN ALSO HELP BUSINESSES
IN RETURN:

01 IN THE FIELD OF INDUSTRY

02 IN THE FIELD OF AGRICULTURE

03 HOUSING FACILITIES

04 TRANSPORTATION

05 HEALTH AND EDUCATION

06 INDUSTRIAL AID TO EDUCATION

IN URBAN AREAS
TOWARDS THE ENVIRONMENT
The aim of Environmental CSR is
to lessen the harm effects on the
environment from any business'
processes.


HERE ARE SOME WAYS THAT BUSINESSES CAN HELP PROTECT AND
SAVE THE ENVIRONMENT, WHICH ARE:

01 REDUCE PAPER WASRE

02 USE LED LIGHT BULBS

03 ALLOW TELECOMMUTING

04 IMPROVE AIR QUALITY WITH INDOOR PLANTS

HERE ARE SOME WAYS THAT BUSINESSES CAN HELP PROTECT AND
SAVE THE ENVIRONMENT, WHICH ARE:

05 POWER OFF COMPUTERS

06 SET-UP RECYCLING BINS IN COMMON AREAS

07 REDUCE TRAVEL

08 GIVE FILTERED WATER

THANK YOU
FOR LISTENING!