Group 1

Good Governance and Social Responsibility

CSR Consulting Firms - individuals or agencies that help businesses develop ethical, environmentally
responsible and/or community-minded programs that create links between a business and the community.

TOP CSR CONSULTING FIRMS

1. Philippine Business for Social Progress - implements development projects on behalf of the private
sector and promotes the practice of corporate citizenship as a model for poverty reduction.
- the largest business-led Non Governmental Organization.
- has 260 corporate members and growing.
2. Anthesis - a global consultancy that offers commercially-driven sustainability strategies to corporations.
- provides companies with a wide array of services and assists them in goal setting.
• If a company is looking to boost its environmental sustainability initiatives, anthesis is the perfect fit.
3. Realized Worth - works side by side with companies that want to implement great corporate giving and
volunteer programs.
- it’s been working since 2008 across the globe through comprehensive giving programs.

4. Cause Consulting - A strategy and communications firm that helps company grow their business and
impact society.
- helps the business to create comprehensive CSR Strategies.

CSR HISTORY AND EVOLUTION

A. The Early Classical Period
• Corporate social responsibility was viewed as an upshot of the industrial development progression.
• Focus on agriculture to a reliance on manufacturing.
• With the growth and expansion of vast companies in 1870s, the undertakings of these firms progressively
disturbed other group domains.

B. The Immediate Post-War Period (1950s-1960s)

• The social responsibility of commerce and industry had attained its momentum following World War II.
Corporate Philanthropy - an element of standard social composition and business structure.
Two Ideologies for current understanding on CSR:
1. Stewardship
2. Charity

C. Trends During the 1970s

• The feel of the hostilities and war based on corporate social responsibility changed to a certain extent.
• It focuses on responsiveness transformed the importance from what corporations could do to survive to
what they could actually offer.
The attention and emphasis in the war budged from:
1. Corporate Responsibility
2. Corporate Responsiveness

D. Shifts During the 1990s

• The model of CSR materialized as the upshot of innovative forms of stakeholder engagement and social
regulation increased demand of stakeholder and governmental regulation for reporting.
Researchers enhanced their assessment through:
1. Sustainability
2. Business Ethics
3. Corporate Social Performance
4. Green Marketing
5. Stakeholder Theory
Business Responsibilities in the 21st Century
• Establish and validate a pledge and obligation to commit to society's values.
• Protect society from undesirable and damaging effects of business operations.
• Share benefits of business pursuits.
• Validate that a business can actually make more by doing the right thing.

CSR AND BUSINESS ETHICS

Social Responsibility - a principled charter and advocates that an individual or an organization has a duty to
perform for the benefit of the society.
- to positively impact the society while also improving the company’s management.
• According to International Organization for Standardization (ISO), the relationship of social
responsibility to the society and environment is a critical factor in their ability to continue to operate
effectively.
CSR - refers to business practices encompassing schemes that do good to society.

Four Types of Social Responsibility

1. Environmental Efforts
One major emphasis of corporate social responsibility by contributing to local and national characteristics
magnitude have a large carbon footprint.
2. Philanthropy
Businesses also exercise social responsibility by contributing to local and national charitable institutions.
3. Ethical Labor Practices
By way of handling employees fairly and honorably, businesses can also established their corporate social
responsibility.
4. Volunteering
Presence in volunteer events reveal a great deal about a company's candor and genuineness.

Ethics - came from the Greek word Ethikos which means, having to do with character.
- known as the Moral Science or Moral Philosophy.
- refers to the theory of morality of right conduct.

Business Ethics - refers to the standards for morally right and wrong conduct in business.
This study of perception of people about:
a. Morality
b. Moral Norms
c. Moral Rules
d. Ethical principles
* Social Responsibility and Business Ethics are every so often being confused to be one and the same terms of
impressions and concepts.

What it Means to be Socially Responsible and Ethical?

The theory of social responsibility is fostered on a system of ethics, wherein assessments, resolutions,
and measures must be ethically justified and supported before carrying on the task.

When Do Social Responsibility and Ethics Apply?

The theory of social responsibility and ethics operates in both individual and group dimensions. The
concept of ethics and social responsibility must start on a personal note.
Factors Influencing Business Ethics
1. Leadership. Leaders are those who are managing and directing a group of people or an organization
towards achieving a common goal.
2. Performance and Working Environment. Good performance generates inspiration and enthusiasm to
all personnel to work harder. The operational environment must hold the energy of being industrious in order
for all to flow properly.
3. Deontology. The philosophy that says people should meet their obligations and duties when analyzing an
ethical dilemma.

Benefits Of Business Ethics

A. Goodwill of the People - The public would generally want to build long term relationships with groups
that executes their tasks on the principle of ethics.
B. Business Ethics have Substantially Improved the Society – Creation of anti-trust laws, unions and
other regulatory bodies has been a factor to the enhancement of the society.
C. Ethical Practices Support Employees’ Growth - Ethics in the workplace help employees face reality,
both beneficial and detrimental- in the organization.
D. Strong Teamwork and High Productivity - Constant change and channel of communication will
guarantee the employee complements to the value of the organization.
E. High Profit - Reputation of the business and its share prices also build up if the firm act upon Corporate
Social Responsibility (CSR)

Types of CSR
• Ethical CSR - all about responsibility to circumvent and prevent damage, impairment and/or social
grievances.
• Altruistic CSR - the participating and promoting to support common good at the viable outlays of the
company for noble, humane, or charitable causes.
• Strategic CSR - It’s regarding the organization’s social welfare responsibilities that benefit mutually the
business and its stakeholders.

Characteristics of CSR
1. Voluntary - Many definitions of CSR will typically see it as being about voluntary activities that go beyond
those prescribed by the law.
2. Internalizing and/or Managing Externalities - Mutually and in sync, this feature of Corporate Social
Responsibility, where externalities are the progressive (positive) and undesirable, damaging, and destructive
(negative) side effects of economic behavior of others on the company.
3. Multiple Stakeholder Orientation - CSR involves considering a range of interests and impacts among a
variety of different stakeholders other than just shareholders.
4. Alignment of Social and Economic Responsibilities - It is unimaginable for a firm to be socially
responsible while neglecting its economical responsibilities.
5. Practices and Values - Businesses have a specific set of programs on how to deliver their schemes and
tactics as they see fit when dealing with social concerns.
6. Beyond Philanthropy - Philanthropy in Corporate Social Responsibility is primarily about humanity and
compassion.
 Group 2
Good Governance and Social Responsibility

FORMS AND DIMENSION OF CSR

Carroll's CSR Pyramid - The Four Responsibilities
- a simple framework that helps argue how organizations should meet their social responsibilities.
A. Philanthropic Responsibility (Desired by society)
- involves being a good corporate citizen by contributing resources to the community, thus improving
the quality of life of others.
B. Ethical Responsibility (Expected by society)
- organization's management are to follow the generally held beliefs about the behavior in a society.
C. Legal Responsibility (Required by society)
- defined by governments in laws that management are expected to comply; play by the rules.
D. Economic Responsibility (Required by society)
- organization's management are to produce goods and services of value to society so that the firm
may repay its creditors and shareholders.

Dimensions of CSR Driving Forces Behind CSR

 Legal Compliance • Globalization
 Business ethics, values, and principles • Power and influence of business corporations
 Corporate governance • Growing access to education and information
 Employee rights and welfare • Growing awareness of environmental issues
 Human rights
• Spread of corporate scandals and public distrust
 Commitment to socio-economic development
 Accountability and transparency
 Market relations
 Ecological concerns
 Sustainability

Drivers Pushing Business To CSR

1. The Shrinking role of government
In the past, governments relied on legislation and regulations to deliver social and environmental
objectives to the business sector.
2. Demands for greater disclosure
There is a continues growing demand for corporate disclosure from stakeholders, including customers,
suppliers, employees, communities, investors and activist organization.
3. Increased customer interest
There is a clear evidence that the ethical conduct of corporations exerts a growing influence on the
purchasing decisions of customers.
4. Growing investor's pressure
There is a marked changed in the way investors assess companies and they have included ethical
concerns in their criteria.
5. Competitive labor markets
Employees, especially in developed countries, are now looking beyond paycheck and benefits.
6. Supplier relations
As stakeholders are becoming increasingly interested in business affairs, companies take steps to
ensure that their partners conduct themselves in socially responsible manner.
GLOBAL TRENDS IN CSR
 Since the early 1990s, the European Commission has taken an active interest in CSR.
 In 1993, the then president of the EC, Jacques Delors, called on European business community to take a
more active stance against social exclusive.
 In March 2000, the Council of Ministers, during their meeting in Lisbon, made a renewed appeal for
business to adopt a more sustainable approach, in every sense of the world.
 In 2001, this interest manifested itself in the form of a green paper (or consultation document) entitled
''Promoting a European framework for corporate social responsibility''

Economic Age Stage of CSR Modus Operandi Key Enabler Stakeholder Target
Shareholders, government,
Greed Defensive Ad hoc interventions Investments
and employees
Philanthropy Charitable Charitable programs Projects Communities
Marketing Promotional Public relations Media General Public
Shareholders and
Management Strategic Management systems Codes
NGOs/CSOs
Responsibility Systemic Business models Products Regulators and customers

Wayne Visser’s Five Stages of CSR Evolution

1. Defensive CSR
• The first stage which is termed as greed. CSR initiatives are done as a means of defending the
direct interests of the shareholders.
2. Charitable CSR
• Charity is the interest of all CSR initiatives and usually conducted by Foundations.
3. Promotional CSR
• Companies at this age realized that they must earn the ''license to operate'' in the area where they
are situated and thus, implement promotional CSR.
4. Strategic CSR
• Companies focused on their core business and aligned.
5. Systemic CSR
• The final and desired economic age of responsibilities with systematic CSR in operations.

Examples of Top Corporate Social Responsibility Initiatives in 2017

a) Levi’s - demonstrates social responsibility to a large extent through sustainability initiatives that are
''sewn into the fabric'' of the company.
LEVI'S accomplished this through:
• In integrated its factories even before the law required it and established comprehensive workplace
code of conduct for their manufactured supplies.
• It launched the Workers Well-being program to improve the lives of the apparel workers outside of
the factory walls.
• It is the first company in their industry to establish global guidelines for water quality standards for
their suppliers.
• First company also to provide financial incentives for garment suppliers in developing countries to
upgrade environmental, health, safety and Labor standards.
• It strived to leverage their iconic brands to drive positive, sustainable change and profitable business
results.
• It introduced scientific approach in making product life cycle even more sustainable which led to the
"water-less process and water-less collection".
• It also pioneered in the practice of reducing the use of energy, water, chemicals and other materials
in the apparel industry.
b) Starbucks - established in 1970, this company has always operated with sensitivity to social
responsibility and is committed to sustainability and strengthening communities through:
• The company has committed to farmers as partners in Conservation International's ''Sustainable
Coffee Challenge'' .
• Provide 100 million trees to farmers by 205 as part of its commitment to one billion coffee trees
through the Sustainable Coffee Challenge.
• Build and operate 10,000 Greener Retail stores globally by 2025 under its new verification program
that promotes environmental building standards, energy efficiency and partner engagement.
• Hire 25,000 veterans and military spouses by 2025 to help in generation livelihood and employment to
the senior sector of the community.
• Continue the Starbucks College Achievement Plan and target to graduate 25,000 scholars by 2025 and
increase the program's accessibility and performance.
• Provide opportunity to youth by employing 100,000 youth by 2020 and reach out to young people
who are disconnected from work and school.
• Hire 10,000 refuges globally by 2022

c) General Electric
• The GE Foundation contributed US$88 million to community and educational programs in 2016.
• They also matched the contributions made by their employees and retirees through by Matching Gifts
Program.
• The foundation's signature projects focused on health-care access in communities around the world.
• It also brings innovative skills and learning and building sustainable solutions to identified health
problems.
• The Foundation is powered by generosity and talent of its employee who have a strong commitment
to their communities

d) IBM
• It has a project called “Citizen IBM” . This promotes discussion on IBM’s corporate citizenship
program and how its employees are donating time, talent and technology to assist communities
around the world.
• At IBM Foundation, Earth Day is celebrated in keeping with their tradition to advance science
knowledge which is the cornerstone of technological achievement.
• It gives grant to three groups of scientists who are working at the forefront of climate change and
environmental research.
• It also has chosen three groundbreaking research projects from more than 70 applications around the
world for their potential to make a contribution to our understanding of climate change impacts and
potential solutions.
• For their World Community Grid’s Network, over 700,000 volunteers all over the world have already
powered important environmental discoveries in clean energy and clean water.

e) IKEA - a home furnishing company founded in Sweden in 1943.

- founded by Ingvar Kamprad, who began peddling useful items to neighbors on his bicycle.
• At the end of 2009 financial year, IKEA operated 267 stores in 25 countries.
• When disasters and conflicts turn children’s lives upside down, IKEA’s partner need quick access to
funds to provide life-saving assistance. The IKEA Foundation supports “Save the Children” with
emergency funding so they can send their staff to hard-hit communities in 24 hours.
• This on-going partnership, which began in 2013, has helped over 300,000 children and adults during
the more than 30 emergencies all over the world. These include earthquakes which hit Indonesia, and
the Philippines, and fighting in Iraq, Uganda and South Sudan.
• IKEA’s grant help set up temporary classrooms and provide teaching hits and other essentials such as
food and hygiene supplies.
 Group 3
Good Governance and Social Responsibility

The 10 Companies with the Best CSR Reputations In 2017

1. Lego 6. Intel
2. Microsoft 7. Robert Bosch
3. Google 8. Cisco Systems
4. Walt Disney Company 9. Rolls-Royce Aerospace
5. BMW Group 10. Colgate Palmolive

Corporate Social Responsibility - is a significant element in many employment compositions, with the idea
progressing to develop as time pass by with multitude of rousing declarations, artistic revolutions and fresh
modes swooping enterprises irrespective of size across the globe.

Top Five CSR Opportunities in 2017

1. Big companies are facing more pressure on the disclosure of information and the ethical consequence of
internet and new technologies.
2. There is a positive movement in the partnership between corporate business and social organizations
which encourage internal collaboration of CSR activities with company's functions such as research and
development.
3. Poverty alleviation is seen as an area where new project ideas can be explored.
4. Green consumption and green finance form part of the strategic context for CSR for companies onwards
5. Social media is now acting as a crucial channel in the communication of CSR activities and it is believed
it will take even a bigger role in the future.

15 Trends that also observed and is worthy of being watched;

1. Global CSR policies will create new challenges for more areas of collaboration
2. Employees will have greater influence over CSR programs
3. Companies will align its efforts toward intergovernmental initiatives
4. Increased transparency will drive industry partnership and positive change
5. A focus on climate change
6. A shift from disaster recovery to climate resilience
7. Shining the spotlight on social justice
8. The beginning of the end workplace harassment and inequality
9. Intensifying the diversity dialogue
10. Investing in employees
11. Focused and forward - thinking brand activism
12. The role of data
13. Formation of new resources
14. Global companies acting locally
15. More CSR in the C-suite

8 Millennium development goals at the heart of CSR

1. Eradicate extreme poverty and hunger
2. Achieve universal primary education
3. Promote gender equality and empower women.
4. Reduce child mortality
5. Improve maternal health
6. Combat HIV/AIDS,Malaria, and other fatal diseases
7. Ensure environmental sustainability
8. Develop a global partnership
STANDARDS AND PRINCIPLES OF CSR
Philosophically and ideologically, the doctrines of CSR are anchored on the following:
CSR: Do No Harm - inspire and urge business models not to inflict harm or cause damage to the society.
CSR: What Corporations Should Do - inspire and urge corporations to resolve past harm and put an end to
whatever is causing harm in the present.
CSR: What Corporations Could Do - inspire and urge corporations to utilize their influence and authority to
resolve the social problems that they can.

ISSUES STANDARD
Corporate governance OECD Principles of Corporate Governance
Corporate reporting Global reporting initiative guidelines on social, economic, and environmental reporting
Labor Fair labor association workplace code of conduct
Human Rights Amnesty International Human Rights Principles
Bribery and corruption OECD convention combating bribery of foreign public officials in international business
deals.
Money Laundering Basel committee on banking supervision. Wolfsburg anti-money laundering principles.
Environment Kyoto protocol
ISO 14000 environmental management series
Triple Bottom - Line Concept of CSR (3Ps)
1. PROFIT (economic) - financial and economic growth
2. PEOPLE (social) - labor rights, Right to work, privacy, and to hold opinions
3. PLANET (environment) - UN convention on Biodiversity, Treatment and reduction, Protection of resources
Two General Principles of social responsibility
1. CSR is a Business model
• it incorporates self-regulatory mechanisms into a firm's systems and procedures
2. CSR is "a management approach"
• commonly known as indicators or parameters, that chart the organization's bearing and mutual
outcomes within the sphere of its commercial, economic, societal and environmental actuality.
Four Factors Propelling the Trend by Benabou and Tirole
1. The common expectation that social responsibility is a normal good
2. Details about companies' operations are becoming more accessible
3. An increase in environmental and social externalities resulting from globalization
4. An increase in public awareness as well as long-run cost of pollution

PRINCIPLE 1 :
Accountability - refers to how the firm responds to all the problems it faces - whether external or internal.
Truthfully, there is no single establishment ever existed that never experienced challenges or setbacks.
• Concerned with organizations acknowledging that is dealings have an effect on the external setting
• Suggesting the shouldering of obligation for the effects of those activities
• Conveying the issue to all parties concerned (shareholder and stakeholders
• state of being answerable for decisions and activities to the organization's governing bodies, legal
authorities, and more broadly, its stakeholders

Eight Several Kinds Of Accountability

1. Personal 5. Accountability of individuals within the organization
2. Political 6. Corporate
3. Ethical 7. Accountability in education
4. Administrative 8. Media
Characteristics Of Accountability
• Understand to all factions concerned
• Application and significance to the users of the information provided
• Dependability in terms of precision of extent, illustration of impact, and independence from partiality
• Comparability, which indicates reliability and uniformity, both over time and amid various organizations

Accountability Standards
With the availability of accountability standards, organizations now have a criterion that serves as
benchmarks and yardsticks to measure.

Accountability standards include, but not limited to the following:

a. INGO Accountability Charter
- signed by a large number of NGOs to "demonstrate their commitment to accountability and transparency"
b. Account Ability's AA 1000 series.
- " Principles based standards to help organizations become more accountable, responsible, and
sustainable. They address issues affecting governance, business models, and organizational strategy, as
well as providing operational guidance on sustainability assurance and stakeholder engagement"
c. Humanitarian Accountability Partnership (HAP) 2010 Standards.
- A standard for humanitarian organizations to help them" design, implement, assess, improve and
recognize accountable programmes."
d. Accountability, learning and Planning System (ALPS) by Action Aid
- a framework that sets out key accountability requirements, guidelines, and processes.

PRINCIPLE 2 :
Transparency - openness about decisions and activities that affect society, the economy and the
environment, and willingness to communicate these in a clear, accurate, timely, honest, and complete manner.

PRINCIPLE 3 :
Ethical Behavior
Business Ethics - relate to individual behaviors and actions that can be considered as right or wrong
with reference to moral principles
- is all about values driving business decision
CSR - is about the organization's obligation to all stakeholders and not just al shareholder
- is about tangible corporate practices
Ethical Behavior in Social Responsibility - a set of rules and values that define right and wrong conduct.
- they indicate when behavior is acceptable and when it is otherwise.
Moral Principles - the prescribed tenets of appropriate behavior that are envisioned to be impartial.
- drive the rules of ethics.
Ethical Decision - sensible and suitable since it supports and benefits stakeholders, organization, and society.
Unethical Decision - are judgments that one would favor to camouflage or hide from other people because
a personal gain is placed above others needs.

Societal Perspective
Societal Ethics - ideals that the oversee how fellows of a society are to deal with each other on
matters of equality, justice, deprivation, and individual rights and privileges.
• the inkling of what is upright behavior is mostly shaped by the society.
• several public opinion reviews insinuate an increasing dissatisfaction with the deficiency or absence of
ethical behaviour.
Legal Perspective
• Rules, Regulation, Decrees, Law: society's merits and criterions that are enforceable in the court of law.
• Ethics are NOT laws in any way, merely views and opinions about what is right or wrong conduct.
• Legality of any activity and judgments doesn't make them ethical.
• Laws change with the flow based on existing culture and moral ideologies.
• Laws and ethics may face struggle and conflict (especially with reference to reputation, costs and benefits).

Organizational Perspective
• To postulate management control and supervision for employees, a firm can outline ethical and unethical
behaviors.
• Organizations can also channel employee activities both officially (formal) and casually (informal)

Individual Perspective
• Regardless o predominant social, legislative, and administrative understandings and versions of what is
supposed to be ethical, people have their personal values and sense of what is right or wrong.
• Lawrence Kohlberg suggested people develop morally, much as they do physically, from early childhood to
adulthood.

THREE ETHICAL MODELS

1. UTILITARIAN MODEL - greatest good for the greatest number,but many hurt a few
- Milton Friedman is the best-known advocate of this approach
- All employees should strive to increase the company profits
PARTS:
• Organizational goals
• Efficiency
• Conflicts of interest

2. JUSTICE MODEL - judging Decision behavior by their consistency equitable with an fair and impartial
distribution of benefits (rewards) and cost among individuals and groups.
PRINCIPLES:
• Distributed Justice Principle - moral requirement that individuals not to be treated differently because
of arbitrarily defined characteristics.
• Fairness Principle - moral requirement that employees support the rules of the organization when
certain condition are met.
• Natural Duty Principle - moral requirement that decisions and behaviors be based on a variety of
universal obligations.

3. MORAL RIGHTS MODEL - judging decisions and behavior by their consistency with fundamental
personal and group liberties and privileges.
PRINCIPLES:
• Life and safety - employees, customers and public have the right not to have their lives and safety
endangered
• Truthfulness - they have the right not to be intentionally deceived on matters about which they should
be informed
• Privacy - citizens have the right to control access to personal information
• Free speech - employees have the right to criticize the ethics or legality of their employers
• Private Property - this right allows people to acquire,use,and dispose of personal assets and have life's
basic necessities