Chapter 8 Ethical

Consumerism and Corporate

Social Responsibility
Susanie Tantan-Almarez, MBM-HRM, CHRA
 CORPORATE SOCIAL
RESPONSIBILITY
It is a concept whereby companies integrate social and
environmental concerns in their business operations and
in their interaction with their stakeholders on a voluntary
basis.

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 BASIC PRINCIPLES OF
CSR
SUSTAINABILITY -Sustainability describes the ability to maintain various
systems and processes — environmental, social, and economic — over
time.
Businesses that follow sustainability tend to protect nature and make
conscious efforts to conserve natural resources. This not only enhances
the image of the business in the eyes of customers and other stakeholders
but also improves the availability of resources for everyone.

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 BASIC PRINCIPLES OF
CSR
ACCOUNTABILITY – is concerned with an
organization recognizing that its action affected the
external environment, and therefore assuming
responsibility for the effects of the action.

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 BASIC PRINCIPLES OF
CSR
TRANSPARENCY– means that the external impact
of the organization can be ascertained from the
organization’s reporting and pertinent facts are not
disguised within the reporting.

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 COMPONENTS OF CSR
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ECONOMIC RESPONSIBILITIES – it is based
on the underlying foundation of why a firm has
been created, normally to develop economic
value.

-refers to the organization’s commitment to

sustainability and environmentally friendly
operations.
 COMPONENTS OF CSR
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LEGAL RESPONSIBILITIES – are the laws and
regulations that all firms are expected to abide by as
they perform their daily function.

ETHICAL RESPONSIBILITES - refers to a

company’s commitment to operate their business in
an ethical manner that upholds human rights
principles, such as fair treatment of all stakeholders,
fair trade practices and equal pay.
 COMPONENTS OF CSR
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DISCRETIONARY RESPONSIBILITIES – refers
to a corporation’s aims, goals and objectives for
actively bettering society. One huge aspect of
corporate philanthropy is donating money from
company earnings to worthy causes within the
local community — often in the form of a trust or
foundation.
 ETHICAL CONSUMERISM
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◈ can be defined as the practice of purchasing
products and services produced in a way that
minimizes social and/or environmental
damage, while avoiding products and services
deemed to have a negative impact on society
or the environment.
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