STRATEGIC MANAGEMENT

Group Members:
Rachelle Santos
Sheila Alhari
Jessa P. Buenaventura
Acel Mariano
DATAMEX COLLEGE
OF ST. ADELINE
ACTIVITY: GUESS THE PICTURES
?

C _ _ PA_Y
 ANSWER

COMPANY
_CO__MI_
 ANSWER

ECONOMIC
__W
ANSWER

LAW
_N__RO___N_
 ANSWER

ENVIRONMENT
S___A_
 ANSWER

SOCIAL
 CHAPTER 11: CORPORATE SOCIAL
RESPONSIBILITY (CSR)

OBJECTIVES:
1. Define corporate social responsibility
2. Know the drivers of corporate social responsibility
3. Identify the approaches and programs of CSR
4. State the principles governing social responsibility
5. Give the types of social responsibility
6. State the advantages and disadvantages of social
responsibility
What is Corporate Social Responsibility
(CSR)?

•It is a business process which involves interaction with

stakeholder (customer, supplier, employees and
communities) towards compliance with government
policies, environmental, social and economic concerns.
•A continuing commitment by business to behave ethically
and contribute to the economic development while
improving the quality of the workforce and their family, as
well as of the local community and society.
 THE DEVELOPMENT OF CORPORATE SOCIAL
RESPONSIBILITY IN THE PHILIPPINES

Corporate Social Responsibility (CSR) is a growing business model and

worldwide accepted and adopted by big corporation in the Philippines. CSR
programs gained popularity nationwide in year 2000 onwards for the
reasons that the company who adopts the program was recognized to be a
company who is:

• Ethically
• Law Abiding
• Profitable
• Socially supportive
• Environment concerns
On their business operations.
1. 1960’s - Donation
Companies like San Miguel Corporation and Manila Electric Company
(Meralco) give donations to charitable institutions in cash and in kind for
social activities.

2. 1970’s - Organization
CSR was used as a form of organization like Bishops Business Conference of
the Philippines (BBCP) and the Philippine Business for Social Progress (PBSP)
which is concerned in the economic development to help the poor in the
communities.

3. 1980’s - Involvement
With the worsening debt crisis of the Philippines economy in1980’s
business and corporations responded to extend their services to their
communities through Community Relations or COMREL through promotions
of peaceful business operations.
4. 1990’s - Institutionalization
Highlighting the need that every business corporation must
contribute to society wellbeing; corporate citizenship was initiated. It
involved policy making and networking as part of the Corporate Social
Responsibility.

5. 2000’s - Continuous Improvement

To continue the CSR programs, social organizations were organized
toward continuity of acceptable programs to allow the poor to have
access to basic education, health services, credits and skill
development for nation building.
 What are the Drivers of Corporate
Social Responsibility ?

CSR is considered as a strategy to increase

awareness of the customers to have a profitable
Redention are the sleess operation. Customer-
centric, Customer byalty, Customer Retention are
the elements to have a long and lasting business
and good business performance.
Thus, the effectiveness of Corporate Social
Responsibility (CSR) consists of:

1. External Drivers

a) Regulation
Compliance with government laws and policies of
concerned cities and municipalities in form of
environmental compliance, community development,
permits and others.
b) Market Forces
All business operations deal with various market
forces like:

•Competition

•Natural Forces

•Demographic Factor

c) Societal Forces
The norms and belief of the people in the
community.
2. Internal Drivers
a) Individual Behavior - The monitoring
of company behavior
b) Operation - The CSR Business
Performance in terms of:

•Principles

•Policies Communicated

•Policies Implemented
c) Strategies

•Performance Data

•Impact Data
 CORPORATE SOCIAL RESPONSIBILITIES
APPROACHES AND PROGRAM

The rapid development of corporate social

responsibility among carporations through the
Philippines, have manifested various approaches
and programs laying their list of initiative and its
beneficiaries with annual evaluation of how the
initiatives, plans and program benefited the
communities.
 Some of the approaches gathered are:

1. CSR as value Creation/Innovation

a. Business Mission/Vision

b. Promote competitive edge among competitors

c. Integrate Business and community

d. Skill Development/Human Capital Development

2. CSR as Risk Management

a. Promote Policy and Legal Compliance and Reporting

b. Promote acceptable Strategic Operations Impact

3. CSR as Corporate Philanthropy

a. Support and access to basic needs like Education

EXAMPLE OF TYPICAL PROGRAM OF CSR IN
THE PHILIPPINES

Fujifilm Group (PHILS) established its approached

to CSR in 2006 revised it in 2014 in step with
social changes to promote awareness in and
implementation by every employee. The Group
developed the Six Policy statements:
1. Green Policy/Environmental Policy
The Fujifilm Group companies around the world aim to
stay at the forefront of efforts to attain these goals in
terms of environmental, economic and social terms.
They strive for customer satisfaction as well as
contributions to "sustainable development" by
achieving high environmental quality in products,
services and corporate activities.

2. Social Contribution Policy

Fujifilm Group work together with local communities as
a good corporate citizen and contribute to society by
responding sincerely to the demands and expectations
of those communities.
3. Guidelines for Biodiversity
The Group conducts a range of environmental activities
to conserve biodiversity.

4. Procurement Policy
The Group seek to contribute to the development of
society and enhancement of the quality of life of
people throughout the world by providing top-quality
products and services.
5. Quality Policy
To provide the market with products that had both
high quality and high environmental performance.

6. Occupational Health and Safety Policy

Ensure employee protection by placing top priority on
safety and implementing exhaustive compliance with
laws and regulations related to occupational heath
and safety.
 PRINCIPLES OF CORPORATE SOCIAL
RESPONSIBILITY

There are three important principles that embodied

the CSR to be realistic, reliable and effective. These
are:

1. Sustainability
The most important aspect in dealing with CSR and its program is
Sustainability. Sustainability is a development action that
requires the stakeholder to check internally their operational
activities if it affects the communities in terms of social,
environment or economics development. If its impact through
better and effective waste disposal system and other ways not to
compromise the future needs of the future generations.
2. Accountability
To achieve sustainability in CSR program, Accountability is
prerequisite, by being responsible for all undertaking and
programs of the CSR. All programs as well as list of initiative
must be accounted for if such beneficiaries were able to
benefit with the program if not, there should be a check
and balance of the probable reasons why such initiative fails
and how to prevent such actions not to happen again.
3. Transparency
Transparency is the act of opening communication with
stakeholders characterized by a reliable level of information
disclosure, clarity and accuracy.
 TYPES OF CORPORATE SOCIAL
RESPONSIBILITY
1. Basics
Corporate social responsibility is the commitment a company has
to the community outside of its shareholders and employees.
2. Traditional Conflict Model
Social values and benefits are seen in conflict with shareholder's
profits Under this model, corporations opting to practice forms
of social responsibility are likely to see added costs for doing so.
Proponents of this conceptual model (trade-offs generally argue
that the nature of business is one of t between economie and
moral values, and corporate managers will inevitably be forced
to decide between their social and fiduciary responsibilities or
their commitment to shareholder equity value.
3. Added Value Model
This model tends to focus on issues like the value of CSR in
attracting socially conscious consumers, finding socially
conscious employees and managing the risk of negative press.
4. Multiple Goals Model4. Multiple Goals Model
It is a form of corporate self-regulation integrated into a
business model. CSR policy functions as a self-regulatory
mechanism whereby a business monitors and ensures its
active compliance with the spirit of the law, ethical standards
and international norms. CSR aims to embrace responsibility
for corporate actions and to encourage a positive impact on
the environment and stakeholders including consumers,
employees, inventors, communities and others.
 Advantages and Disadvantages of CSR

Advantages of CSR

a. Improved Financial Performance

b. Enhanced Brand Image & Reputation
c. Increased Sales and Customer Loyalty
d. Increased Ability to Attract and Retain Employees
e. Reduced Regulatory Oversight
f.Easier Access to Capital
Disadvantages of CSR

a. Less Profit

b. Competitive Disadvantage

c. Loss of Focus

d. Lasting Impact

e. Costs
 Test Questions
TEST 1- ASSIGNMENTS

Define the following terms:

1. Social Responsibility
2 External drivers of CSR
3. Internal drivers of CSR
4. Corporate philosophy of CSR
5.Multiple Goals Model
TEST II-REVIEW QUESTIONS

1. Discuss the development of social responsibility

2. Enumerate the drivers of Corporate Social
Responsibility
3. Approaches and programs of Corporate Social
Responsibility
4. Principles of Corporate Social Responsibility
5. Enumerate the types of Corporate Social
Responsibility
THANK YOU!