• Organizations now understand the importance of giving back to society.

• They also have the economic responsibility to produce goods and services to meet to
meet society’s demands.
• Most business organizations go out of their way to give back and give more to the society
( corporate social responsibility)
LESSON 1 : CORPORATE SOCIAL
RESPONSIBILITY
is a practice of business organizations that accounts for the social and environmental
impacts that the business operation creates.
LEVEL OF BUSINESS ORGANIZATIONS’ SOCIAL
RESPONSIBILITY
1. Duty not to cause harm.
2. Responsibility to prevent harm.
3. Responsibility to do good
4. Social Web Model of CSR
5. Integrative Model of CSR
DUTY NOT TO CAUSE HARM

• If a company caused harm to a property or 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
capability to prevent harm from occurring.
• Example: Pharmaceutical companies in the Philippines offer cheaper or affordable
products for poor who can’t afford branded medicines.
RESPONSIBILITY TO DO GOOD

• Social organizations has to provide solutions to social issues and give support to
education, arts and culture with in line to social responsibility to make society a better
place.
MODELS OF CORPORATE SOCIAL
RESPONSIBILITY
1. Economic Model of CSR
2. Philanthropic Model of CSR
3. Social Web Model of CSR
4. Integrative Model of CSR
ECONOMIC MODEL OF CSR

• Companies have an economic responsibility to produce goods and services that

corresponds to the demands of the market.
• They contribute to the growth of the economy and provide jobs to more employees as
they grow and expand.
PHILANTHROPIC MODEL OF CSR

• Defines the free will of business organizations to contribute to social causes as a matter of
philanthropy.
SOCIAL WEB MODEL OF CSR

• Views a business organization as a citizen of the society in which it operates. As

members of the society, business organizations must conform to the normal ethical duties
and obligations that are expected from citizen.
• Ex. Business organization have the right to employ the people they need to run the
business, they have the responsibility to provide the employees a healthy work
environment and a just compensation for their work.
INTEGRATIVE MODEL OF CSR

• Focus on fulfilling a mission and vision that provides a solution to a social issue.
• Ex. Social enterprise – is a for-profit business organization that seeks solutions to
pressing social issues.
ACTIVITY # 1
If you were a youth leader in your community, how would you encourage business organizations to
practice their corporate social responsibility for the youth.
You are assigned to formulate youth-oriented activities to be propose for several companies in your
community. You have to identify the needs of the youth in your community and based on these, make
a plan that consists of the following:
• Proposed theme/title of youth-oriented activities
• Duration of implementation
• Objectives
• Specific mechanics/details of activities
• Materials needed/logistical requirements
• Target partner companies in your community
• Budget
LESSON 2: EMPLOYER RESPONSIBILITIES AND
EMPLOYEE RIGHTS
ETHICAL ISSUES AND CHALLENGES IN THE
WORKPLACE
• Contractualization of Employees (endo)
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.
• Employees who are disengaged and not motivated to commit to work tend to violate
company standards.
• Immediate supervisor or manager handling employees
• Rewards and compensation benefits
EMPLOYMENT RELATIONSHIP (EMPLOYERS
RESPONSIBILITIES AND EMPLOYEE RIGHTS)
• This section will explore the and ethical boundaries that will define employer
responsibilities and employee rights, making up the employment relationship.
1. DUE PROCESS AND JUST CAUSE

• When an employee commits a mistake, and the employer will have to take action to give
the employee a sanction commensurate with the mistake committed, the employee must
be given a disciplinary action undergoes to ensure fair treatment and trial.
• Due process include effective mechanisms and procedures to ensure that there are justice
and fairness.
• If the sanction will be given, the company has a set rule of guidelines, called code of
conduct or employee manual.
2. 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.
3. HEALTH AND SAFETY

• Employees have a legal right to be safe at work.

• DOLE formulated the Occupational Safety and Health Standards (OSHS) in 1978 with
the constitutional mandate to safeguard the workers’ social economic well-being, as well
as their physical safety and health. OSH-Standards-2017-2.pdf (dole.gov.ph)
DISCRIMINATION AND DIVERSITY

• Discrimination - is merely being in favor of or against a person based on group, age,

social class, gender orientation, race, religion, or any category to which a person belongs
rather than on individual merit.
• Diversity – 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, expands organizational capabilities, encourage sharing of expertise and
skills.
 ACTIVITY

Direction: Read the case study below and then answer the questions that follow.
Mr. Reyno Raterta served AZB Corporation, an insurance firm, for 25 years. He is currently 50 years old and has
been the accountant of the firm. Ever since, the firm was doing traditional accounting methods and processes and Mr.
Raterta has become accustomed to the job already. Based on the recent management review of external opportunities,
they gathered that they can already secure a robust accounting system that will automate the manual accounting
processes and recording system of AZB Corporation. The system will thus replace most of the accounting personnel,
including Mr. Raterta. Due to limitation of skills to only traditional accounting, Mr. Raterta was offered an early
retirement program with a very attractive retirement package. Mr. Raterta, however, felt offended because he has been
serving the company for a long time.
QUESTIONS

1. Is AZB Corporation’s action of offering an early retirement program to Mr. Raterta just
and fair? Why or not?
2. What are the repercussions of keeping Mr. Raterta in the company?
LESSON 3: BUSINESS AND ENVIRONMENTAL
SUSTAINABILITY
• Without environmental sustainability, economic stability and social cohesion cannot be
achieved.
• Every individual or corporation must make conscious efforts so as not to contribute to
climate change. Most businesses now integrate environmental sustainability in their
business decisions.
ENVIRONMENTAL ISSUES AND SUSTAINABILITY
(JOSEPH WEISS)
1. CONSUMER AFFLUENCE
2. MATERIALISTIC CULTURAL VALUES
3. URBANIZATION
4. POPULATION EXPLOSION
5. NEW AND UNCONTROLLED TECHNOLOGIES
6. INDUSTRIALIZATION
1. CONSUMER AFFLUENCE

• The increase in wealth of individual income has led to increased and indiscriminate
spending and consumption, which produced waste.
• Affluent consumers results increasing on pollution, resource scarcity, and other forms of
environmental degradation around the world.
2. MATERIALISTIC CULTURAL VALUES

• Most people have acquired the mentality of consumption over conservation, and the
“throwaway culture”
• This promotes overconsumption and excessive production of disposable or short-lived
items.
3. URBANIZATION

• The concentration of people in cities increase pollution.

4. POPULATION EXPLOSION

• Population growth means more industrialization, product consumption, waste, and

pollution.
NEW AND UNCONTROLLED TECHNOLOGIES

• Some companies that prioritized profits, convenience, and consumption over

environmental protection disregard the impacts of the technologies.
ENVIRONMENTAL VALUES

• The natural steps uses back casting, a process in which it examines what the future will
be when we emerged through the funnel. It follows the steps below:
1. Begin with the end in mind. What do we have to do today in order to be successful in
this endeavor
2. Move backward from the vision to the present.
3. Move step by step toward the vision.
APPROACHES TO ENVIRONMENTAL
SUSTAINABILITY
• To facilitate activities and action that promote protection and proper use of natural resources, there are 3
different approaches to environmental sustainability that business organization can practice.
1. The market approach – in achieving environmental sustainability focuses on the capability of markets to
allocate resources efficiently to serve the goals of the greater good while seeking profits at the same time.
2. The regulatory approach – it implements laws and regulations on environmental protection. The regulatory
standards established by the government are supposed to be in place to prevent the occurrence of pollution,
environment degradation, and species extinction rather than to offer compensation after the fact.
3. The sustainability approach – is “development that meets the needs of the present without compromising
the ability of future generations to meet their own needs”
THE CIRCULAR FLOW MODEL
PRINCIPLES FOR BUSINESS SUSTAINABILITY

1. ECO-EFFICIENCY – is practically “doing more with less”, and has been an environmental guideline
for decades. Ex. Energy saving lighting
2. BIOMIMICRY – is the second principle where, ideally, the waste materials of one company are turned
into a resource by another firm. The ultimate goal of this principle is to eliminate waste instead of just
reducing it. Ex. Close – loop production, a manufacturing or production that seeks to integrate what is
presently waste back into production.
3. SERVICE – BASED ECONOMY – interprets consumer demand as a demand for services –
transportation, laundry, and maintenance of cars and appliances, among others. This principle produces
incentives for product redesigns that create more durable and more recyclable products. Ex. Laundry
shops
TRIPLE BOTTOM LINE APPROACH

1. FINANCIAL (PROFIT)
2. SOCIAL (PEOPLE)
3. ECOLOGICAL (PLANET)
LESSON 4: ETHICS AND MARKETING

MARKETING – is defined as a business activity that aims to build value for the customers
and manage customer relationship in order for the company to gain value in return. This
exchange of transaction involves convincing the customers of a product’s value through
marketing activities – advertising, events, sponsorship, and many others. To make
customers believe the value of its product, a company must be able to showcase the best
features of its product in the most creative way. This may lead to companies overstating the
benefits of their products or worse, saying something that may not be true about their
products just to be able to gain the attention of cnsumers.
PRODUCT SAFETY AND LIABILITY

• In the Philippines, the Bureau of Product Standards (BPS) under the Department of Trade
and Industry (DTI) is responsible for developing, promulgating, implementing, and
promoting standardization activities as mandated by Republic Act. No. 4109 (Charter of
BPS) and Republic Act No. 7394 (Consumer Act of the Philippines)
• BPS formulates Philippine National Standards(PNS) or adopts relevant international or
foreign standards to help industries produce quality products and raise their productivity.
This standards do not only protect consumers but also facilitate trade and compliance
with standards in the global market.
“CAVEAT EMPTOR APPROACH”

• “LET THE BUYER BEWARE”

• Assumes that consumers have the responsibility to look for their own interest and protect
their own safety when buying a product.
ETHICAL ISSUES IN ADVERTISING

1. False advertising
False advertising happens when a company overstates or embellishes the benefits of
its products and services. Overpromising can be harmful to gaining customers' trust.
2. Portraying hurtful stereotypes
When creating a message, consider if you are targeting a specific market or a
stereotype. Examples of stereotypes include gender roles, race and age. Market
research can help remove bias and assumptions and give specific demographics for
a target market.
3. Misusing customer data
• You might not even know that you are misusing your customer data. Third-party vendors may
also be using this data without your knowledge, but customers will fault your business whether
you are aware of the issue or not.
• Make sure the data you collect is safe from third parties. You may want to consult with a privacy
expert to ensure your customer data is safe and not sold to other parties without your knowledge.
• Customer privacy is a big concern as people are skeptical of how companies use their personal
information and track their behavior. However, companies use this information to understand their
target market and help produce the products they want.
4. Negative advertising
• Competition is a part of business, but you should never advertise the negatives of
other companies to try to win their business. This type of negative advertising --
or smear tactic -- can be unethical.
• Discrediting a competitor to gain new customers may do the opposite. Customers
may lose respect for your company. You could also face a legal fallout with the
other company if you name its brand in these advertisements.
5. Advertising misleading pricing
• There are some marketing issues involving price hikes and predatory promotions.
When businesses artificially inflate prices either during a high-demand time or
sales promotion, this is known as price hiking.
• Predatory promotion is the practice of promoting extremely low prices to attract
customers, stealing them away from competition. These advertised prices are
typically so low that the competition can't beat the price, so customers leave for a
better deal. After the customer signs on, the business returns to its normal
pricing.
SUSTAINABLE MARKETING

• Sustainable or green marketing focuses on actions that promote sustainable ways of

marketing a business organization’s products.
FOUR P’S OF MARKETING AND GREEN
MARKETING
1. PRODUCT – Products undergo changes throughout their availability in the market,
through innovation, a company can implement more sustainable ways of manufacturing
them.
2. PRICE – Price is an important component of marketing, simply because its is the only
one among the four Ps that produces revenue for the company. Consumers consider the
price of a product before buying it, and companies consider the price of a product to
ensure profitability of the company.
3. PLACE – The channel of distribution can be turned green by utilizing cost-efficient
delivery, use of energy-efficient vehicles, and measures in reducing carbon footprint such as
having a well planned delivery schedule.
4. PROMOTION – Capitalizing on the green marketing efforts of a company may be a
good idea to create a positive image for the company. The use of terms such as eco-friendly,
natural, organic, and energy efficient, among others, may help customer decide to choose
the company over its competitors.
"Know the Facts:" Resources for Consumers (caoc.org)
5 ethical issues in marketing to avoid (techtarget.com)