CORPORATE SOCIAL

RESPONSIBILITY
MR. RUBEN B. LIGUTAN, LPT
 Corporate Social Responsibility
• Responsibilities are the things we ought or should do.
• CSR is a practice of business organizations that accounts for the social and
environmental impacts that the business operation creates.
• Practicing CSR means that a business organization commits to developing
policies and business practices that ensure sustainability of environmental
resources, ethical treatment of employees, and protection of community
welfare, among others.
• Business organizations have at least three social responsibilities that are
described in three levels based on how demanding or binding the
responsibility…
 Corporate Social Responsibility
1. The first and most demanding responsibility, which is also called “duty” or
“obligation”, is the duty not to cause harm to others.
2. The second one, which is less binding than duty or obligation, is the
responsibility to prevent harm at all cost.
3. The third and last level is the responsibility to do good.
 Duty Not to Cause Harm

 A business organization has a duty to not harm, even if an action that may
result in avoidable harm is not explicitly prohibited by law. If a company caused
harm to a property or a person, and if it could have been avoided by exercising
due care or proper planning, then both the law and ethics would determine that
the business organization should be held liable for violating its responsibilities.
 Responsibility to Prevent Harm
 There are instances when a company does not cause harm but has the
potential or the capability to prevent harm from occurring.
 Responsibility to Do Good
 Providing solutions to social issues and giving support to education, arts, and
culture are some examples of activities or programs that business
organizations can do in line with this responsibility.
Models of Corporate Social
Responsibility
 Economic Model
 Companies have an economic responsibility to produce goods and services
that correspond to the demands of the market. In doing so, they contribute to
the growth of the economy and provide jobs to more employees as they grow
and expand.
 The emergence of business process outsourcing (BPO) companies in the
Philippines contributed to the significant growth of the Philippine economy
and has provided employment for the Filipinos.
 It suggests that companies should be managed based on the sole benefit of
the stakeholders alone, the stakeholder theory argues that this is an
inadequate understanding of business.
 The EM uses two fundamental ethical norms for its justifications: the utilitarian
considerations of social well-being and individual rights, and the balance of
ethical interests of all affected parties.
 Philanthropic Model
 Philanthropy is defined as the practice of giving money and time to help make
life better for other people.
 Philanthropic model of CSR defined the free will of business organizations to
contribute to social causes as a matter of philanthropy.
 Just as individuals are not really obligated or required to donate to charitable
institutions, business organizations likewise have no strict obligation to
contribute to social causes.
 There may be several reasons why a company gets involved in charity work.
One of which is it gives the company positive publicity and thus creates a
good public image for the company. If a company donates regularly to a
charitable institution or a cause, the people will think highly of the company.
 Social Web Model of CSR
 It views a business organization as a citizen of the society in which it
operates.
 Every citizen has moral obligation to respect human rights- this is the “moral
minimum” that is expected from everyone whether acting as an individual or
making decisions for a business organization.
 According to philosopher Norman Bowie, the ethical imperative of causing no
harm overrides other ethical considerations. However, as a business entity,
companies have a duty to their stakeholders to purse and grow their profits.
 Embedded within the social web model of CSR is the stakeholder theory,
which states that every business decision has an impact on a wide variety of
people, that is, providing benefits to some and imposing costs on others.
 Social Web Model of CSR
 Stakeholders are defined as any group of individuals that can affect or be
affected by the organization. They can be suppliers, employees, customers,
investors, owners, competitors, the government, and the general public.
 In stakeholder theory, business owners make decisions that may affects a
wide variety of people resulting in benefits for some and costs for others.
 Integrative Model of CSR
 A social enterprise is a for-profit business organization that seeks solutions to
pressing social issues. This type of business organization brings social goals
into the core of its business model and fully integrates economic and social
goals; thus their CSR model is referred to as the integrative model of
CSR.
 If a company is financially profitable and successful but exploits the
environment, it fails in its fundamental social responsibility.
CSR = Good Business Sense
 A good reputation earns a positive image from the public, which may affect the
public’s purchase decisions. After all, if the people feel good about a business
organization because it supports causes that are important to a particular set
of consumers, they may feel positive about supporting the organization, too,
to feel good about themselves.
 A good reputation may also earn loyalty from employees. A business
organization with a positive images makes its employees feel proud of
belonging in the organization. If the employees are treated well, they tend to
stay longer and become more productive and efficient at work.
 There is truly nothing wrong with publicizing an organization’s CSR
contributions if the organization genuinely aims to further the benefits of the
society and not just fr the sake of publicity. The practice of managing the
image of a company is also referred to as reputation managements.
 Employer
Responsibilities and
Employee Rights
Ethical Issues and
Challenges in the
Workplace
 One of the most talked about employment-related ethical issues in the
Philippines is the contractualization of employees [colloquially known as
“endo” (end of contract) or “555”]. Employees under this arrangement do not
enjoy the social protection benefits that a regular employee receives such as
SSS, PhilHealth, Pag-IBIG Fund, vacation and sick leaves and security of
tenure, among others. Contractual employees are given a six-month contract
to work in a company. When the contract expires on the sixth month, after a
few weeks they will be rehired by the company under the same arrangement,
circumventing the law-mandated employment regularization status, which is
required upon staying with a company for six-months.
 The greatest influence on employee work commitment is fairness at work,
followed by care and concern for employees, which are all key components of
an ethical work environment. Employees who is disengaged and not
motivated to commit to work tend to violate company standards.
Employment Relationship
(Employment
Responsibilities and
Employee Rights)
 Due Process and Just Cause
 There are times when an employee commits a mistake, and the employer will have
to take actions to give the employee a sanction commensurate with the mistake
committed.
 The employee will gave to undergo due process- defined as the “rule that a legal;
case must be done in a way that protects the rights of all the people involved”. In
business context, it is the process that an employee facing a disciplinary action
undergoes to ensure fair treatment and trial.
 In business organizations, due process includes affective mechanisms and
procedures to ensure that there is justice and fairness among employees when
disciplinary action is taken against them.
 Code of conduct or employee manual- the company has set a rule of guidelines
which contains sanctions given for every mistake committed by an employee. The
management must practice consistency in implementing the code or conduct and
must only give the sanction equivalent to the mistake committed- noting more,
nothing less.
 Downsizing
 There are times when a company needs to downsize, that is, to terminate
employees to limit costs due to financial difficulties, closure of offices or
branches, automation and use of technology that replace human resources,
and other resources, and other reasons that the human management may
deem fit. Terminating workers is not necessarily as unethical decision;
however, companies must act ethically in the process of downsizing.
 When laying off employees, the management must maintain respect, dignity,
transparency, and consistency. The stakeholders that will be affected by the
action must be informed about the decision regarding downsizing. This should
not come as a surprise for the employees as they should be aware of the
current business conditions, but the notice should be given as soon as the
need is determined.
 Health and Safety
 Health and safety are intangible assets that employees have and are valued
both as a means for attaining other valuable ends and as ends in themselves.
 Instrumental value is defined as a means to an end. You value things because
of their function.
 Intrinsic value pertains to the value of something in itself.
 The Department of Labor and Employment (DOLE) formulated the
Occupational Safety and Health Standards (OSHS) in 1978 in compliance
with constitutional mandate to safeguard the workers’ social and economic
well-being, as well as their physical safety and health. This contains specific
measures to preserve workers’ safety in different industries.
Discrimination
and Diversity
 Discrimination
 It is merely being in favor of on against a person based on group, age, social
class, gender orientation, race, religion or any category to which that person
belongs rather than on individual merit.
 In the Philippines, age discrimination is forcing Filipinos to find work abroad.
According to Susan Ople of the Ople Policy Center, many companies are
reluctant to hire “older” job applicants. People above 30 years old are
considered “old” and are being discriminated against no matter how good their
work ethics are or how skilled they are in their field.
 Diversity
 It refers to the presence of differing culture, race, religion, language, ethnicity,
gender, ability, experience, age, social class, and other categories in the
workplace.
 Workforce diversity is important in organizations because it helps enhance
competitiveness, expand organizational capabilities, encourage sharing of
expertise and skills from past experiences, and enhance access to markets.
 Keep safe!
Keep the Faith
mga anak! I
miss you 
MR. RUBEN LIGUTAN, LPT