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Historical Phases of

Corporate Social
Responsibility
Prepared by: Roanalyn Agulo
Profit
Maximizing Quality of Life
Management Management

Three
Phases of Phase 1
1800s
Phase 2
1900s
Phase 3
1930s

CSR
Trusteeship
Management
Phase 1:
Businesss primary responsibility to
Profit society is to underwrite the countrys
Maximizing economic growth and to oversee the
accumulation of wealth.
Management
Management must maximize profit.
Individual drive for profit maximization would
ultimately create wealth for the nation.
Business systems as profit maximizers are used as
tools for the elimination of economic scarcity.
Businesses ignored unsafe working conditions,
Phase 1: paid starvation wages and used child labor in order
to maximize profit.
Characteristics Problems of cultural minorities, unsafe products,
unfair advertising and urban poor problems were
given little if no attention at all.
Abuses of capitalism were extremely rampant and
the govt tolerated these deplorable business
practices.
Corporate managers need to maintain an
Phase 2: equitable balance among the competing
Trusteeship interests of all groups with a stake in the
organization.
Management
Management was considered both as an instrument of
stockholders and as a trustee for all groups who
contribute to the business enterprise.
Phase 2: Aside from the profit maximization, the
Characteristics management's concern is also to maintain a
fair balance in the interests of employees, customers,
creditors, stockholders and the community
Phase 3: Managers have to do more than achieve
Quality of economic goals, but they should manage
the quality of life by helping develop
Life solutions for societys ills.
Management
Security of basic goods and services was no longer a principal
problem.
Social and economic problems brought about by economic growth
expanded the concept of social responsibility of management.
Society demanded management's active participation in helping
solve social and environmental problems in view of the vast
resources (funds, manpower, materials, management, skills and
Phase 3: technology) of businesses.
Business is expected to contribute to the improvement of the
Characteristics quality of life which involves cultural, social, educational, political
factors and economic security.
Society is unstable if the quality of life of the people is poor.
Businesses contribute to a good quality of life and society.
A prosperous society is the best environment for a business to
thrive in. Businesses will benefit from its self-investment in society.