CHAPTER 2: BUSINESS ETHICS AND SOCIAL RESPONSIBILITY
LESSON 1
1. What is corporate social
responsibility?
2. Give other examples of CSR
programs by well-known
companies.
3. Do you think CSR ultimately
benefits society? Explain your
answer.
To quote well-known economist Milton
Friedman:
“there is one and only one social
responsibility of business…. to use its
resources and engage in activities
designed to increase its profits so long as
it stays within the rules of the game,
which is to say, engages in open and free
competition without deception or fraud”
(The Growing Business Handbook, 13th
edition, Goodman Derrick LLP).
Business Ethics
- are principles that guide the way a
business behaves.
- The same principles that
determine an individual’s actions
also apply to business”
- Simply, business ethics is
distinguishing between right and
wrong, and choosing the right
choice.
- Business ethics should be a guide
in creating business policies,
practices, and codes of conduct
Social responsibility
- does not mean you are just
responsible for yourself. It means
you are responsible to your
partners, employees, stakeholders,
customers, the industry at large,
the affected population, and the
world.
- In business, social responsibility
is more known as corporate social
responsibility (CSR).
-
Corporate Social Responsibility
- is a way of balancing profit-
making activities and activities
that benefit communities or
society.
- CSR involves business practices
and activities that benefit the
environment and society.
Some forms of CSR are:
o environmental efforts
o philanthropy
o ethical labor practices
o volunteer work.
How do companies get their ethics and
social responsibility messages across?
These can be seen through their:
o Advertisements
o Web sites
o Press releases
o Activities through their partner
foundations
Examples of the social responsibility
thrusts of a few well-known companies
in the country.
1. Jollibee Foods Corporation’s
CSR Programs
2. GMA Kapuso Foundation, Inc.
3. Philip Morris Fortune Tabacco
Corporation (PMFTC)
Jollibee Foods Corporation’s CSR
Programs
o (Published in Philippine Daily
Inquirer last 27 January 2009).
o JFC espouses the principle of
shared value in its corporate
 CHAPTER 2: BUSINESS ETHICS AND SOCIAL RESPONSIBILITY
social responsibility (CSR)
activities.
o Jollibee Foundation, implements
programs that address access to
education, livelihood
development, leadership
development, and disaster
response, issues that are also of
relevance to the company’s core
business.
Jollibee Foundation’s Busog, Lusog,
Talino (BLT) brings together local
education stakeholders and JFC
employee volunteers to mitigate hunger
and undernourishment, widely attributed
causes of school attendance decline and
drop-out among lower grade pupils.
o For SY 2008-2009, BLT is being
implemented in 54 public
elementary schools benefiting
1,822 pupil beneficiaries.
o Aside from education, Jollibee
Foundation also has initiatives in
livelihood, leadership
development, and provide
assistance in times of calamities.
GMA Kapuso Foundation, Inc.
Vision
- We are the most accomplished,
most trusted, and most credible
non-government organization in
the Philippines; the leader in
serving and uplifting the lives of
the underprivileged members of
our society through serbisyong
totoo and the responsible use of
media.
Mission
- We uplift the lives of the
underprivileged Filipinos all over
the Philippines by:
1. providing quick-response
relief operations to fulfill their
most immediate needs in times
of crisis;
2. undertaking health, nutrition,
and medical projects to
promote greater equity in
health; and
3. carrying out developmental
programs designed to promote
education and foster learning.
We value our relationships with our
local, national and international partners,
and recognize the impact that they have
on our capability to provide help to those
who need it most.
We are committed in ensuring
sustainable operations to enable us to
continue being a “strong bridge” for our
donors and beneficiaries by actively
promoting the Foundation’s initiatives to
solicit sufficient funding.
Philip Morris Fortune Tobacco
Corporation (PMFTC)
- PMPMI and Fortune Tobacco
Corporation entered into an
agreement to combine their
business operations and selected
assets in a new company called
PMFTC Inc.
We are committed to the responsible
manufacture, marketing, and distribution
of our products.
 CHAPTER 2: BUSINESS ETHICS AND SOCIAL RESPONSIBILITY

We are also dedicated to making a

difference in our communities.

We partner with the government and

organizations that work to make a
positive impact in the areas of education,
environment, poverty alleviation, culture
and arts, social services, and disaster
relief.

- PMFTC has also created an

employee volunteerism program
that encourages employees to do
their part by devoting some of
their free time to volunteer work,
such as helping refurbish public
school buildings, mentoring and
teaching children in need, and
participating in environmental
sustainability initiatives, such as
reforestation.

Ethics is not just doing what is right for

you or your company, but for a greater
population and group.