SOCIAL RESPONSIBILITY

FRAMEWORK
ABELLERA, TRIXIE
PECAÑA, DARIEL
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THE CORPORATION
A corporation is a legal entity created by an individual or group of
shareholders who have ownership of the corporation (through shares
of stocks issued by the corporation) to engage in business activities.

Monks and Minow (2011) defines a corporation as a structure

established by law to allow different parties to contribute to
capital, expertise, and labor or the maximum benefit of all of them.
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Enhancement of ease of doing
business in the Philippines

THE PHILIPPINE Fortified stockholder protection

CORPORATION and institutionalized corporate

governance provisions

Emphasis on corporate social

The Revised Corporation Code (RCC)
responsibility
focused on four areas of reforms:
Improved policies and
regulatory corporate framework
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IMPORTANCE of
Social Responsibility and
Good Governance
The way a corporation conducts its business has profound effects on
individuals in the societies they operate. Corporations have continued to
grow and can sometimes influence government policy through political
lobbying.
 CORPORATE SOCIAL
RESPONSIBILITY

CSR is the responsibility of companies to

act and behave ethically to satisfy their
various stakeholders’ needs. It is an
ongoing commitment of organizations to
ensure accountability to the stakeholders
their existence impacts.
CSR ➡
 Philanthropic
4 DIMENSIONS
Companies need to truly embrace philanthropy,
meaning, issues that pertain to the improvement of
human lives must be addressed without compromise.
Above & beyond
PL compliance
Ethical
ETH Do what is right Society expects companies to take on this
responsibility beyond what is required of them legally.

LEGAL Follow rules

Legal
A corporation is created through law and, as such,
ECONOMIC Make a profit
must abide by the rules and regulations imposed for
fairness and justice.

STRUCTURE THAT CHARACTERIZES Economic

COMPANIES’ RESPONSIBILITIES Companies must first be profitable after they have
paid their obligations to employees and suppliers, and
WITHIN SOCIETIES
conform to consumers’ needs and demands.
A BRIEF HISTORY OF CSR

1950s CSR was officially introduced

CSR flourished as companies

1990s acknowledge their role as social
CST started as donations from catalysts.
1960s
various businesses

CSR has become an essential

witnessed a more coordinated
1970s efforts between companies and
intermediaries
adverse effects on the economy
1980s led to a closer collaboration
between donors and donees
2000s
part of a company’s identity
CSR now is a universally
21st
accepted norm of good
Century
corporate governance
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THE BUSINESS CASE

Economist Milton Friedman (1970) argued that the sole responsibility

of corporations is to generate profit for the shareholders and that it is
the government’s responsibility to provide for society’s needs.

The business case for CSR refers to reasons why businesses should
support and accept the CSR agenda. By doing so, these companies will
behave more responsibly.
DRIVERS & BARRIERS OF CSR

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Illustration of the opposing forces of CSR:

DRIVERS BARRIERS

Regulation C Limited Financial

Resources
Market Behavior S Profit
Social Activism
Culture
R Maximization
Availability of
Strategy Human Resources
 REGULATION
➡ Regulation and law provide a framework
that companies must comply with.
DRIVERS
MARKET BEHAVIOR
Regulation ➡ How the market behaves and influences;
Market Behavior and how companies engage in their
respective CSR initiatives and have become
Social Activism a source of competitive advantage.
Culture
SOCIAL ACTIVISM
Strategy ➡ How stakeholders in society react and
voice out their concerns to corporations
publicly through various means (such as

DRIVERS social media, demonstrations, lawsuits, etc.)

 CULTURE
➡ It is a mixture of beliefs, norms, symbols,
DRIVERS and the heritage that a particular country or
geographic area shares and practices. This is
Regulation built over time and becomes part of its
normative values.
Market Behavior
Social Activism STRATEGY
Culture ➡ Integrates CSR in its planning from the
different functional areas of a company
Strategy fortifies the relationship and becomes a
creator of value that benefits the corporation
in the long term.

DRIVERS
DRIVERS & BARRIERS OF CSR

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Illustration of the opposing forces of CSR:

DRIVERS BARRIERS

Regulation C Limited Financial

Resources
Market Behavior S Profit
Social Activism
Culture
R Maximization
Availability of
Strategy Human Resources
 LIMITED FINANCIAL RESOURCES
➡ A company needs to be profitable and
BARRIERS take care of its own needs before it has the
ability and resources to engage effectively in
Limited Financial social responsibility.
Resources
PROFIT MAXIMIZATION
Profit
Maximization ➡ A company that single-mindedly focuses
on operational efficiency.
Availability of
Human Resources AVAILABILITY OF HUMAN RESOURCES
➡ Efficient mobilization through employee
involvement and engagement in its programs.

BARRIERS
MEASURING CSR

The purpose of measurement is to understand what is being measured

better and lay groundwork for improvement.

▼ MEASURING CSR PROVIDES SEVERAL BENEFITS

Helping organizations make better decisions on allocating

resources with the greatest impact.
Improving processes that will make CSR initiatives more efficient.
Improving more support for the business case.
BALANCED SCORECARD

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Kaplan & Norton's (1996) Four Perspectives of the Balance Scorecard:

FINANCIAL

INTERNAL
VISION &
CUSTOMER BUSINESS
STRATEGY
PROCESS

LEARNING & GROWTH

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TRIPLE
PEOPLE BOTTOM LINE
Social
The increasing pressure from
Bear- the government and society to
Visible
able manage and assess the results
Sustain- of their operations gave way to
able scruntinizing companies from

PLANET PROFIT
their financial (profit), social
(people), and environmental
Equitable (planet) impact.
Environ- Financial
mental
THREE P's
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Leader perceptions provide evidence
regarding their CSR attitude and acts

LEADERSHIP of the leaders can trickle down to

affect employees’ subsequent
attitude, behavior, and actual
Both CSR and Leadership are founded on
engagement through volunteerism.
cencepts of service, integrity, and
inspiration to others.
A leader must also be able to
communicate their CSR stories

& CSR internally and externally effectively.

The cultural basis of Philippine CSR

The relationship between them is mutually
may be viewed from the concept of
empowering and transforming
fellowship, which has parallel
(Guarneri & Kao, 2008).
conceptual foundations with
leadership.
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FUTURE OF PHILIPPINE CSR

"With the current global trends on sustainability and community

connectivity, I believe that CSR will be critical in mapping out company
policies, especially when it comes to serving the best interest of the
greater public." - Mr. Chito Bauzon

Volunteerism and activism will be one of the key drivers in furthering

the progress of CSR.

The Philippines is abiding by international regulatory frameworks so

that CSR will be universal in its approach.
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FRAMEWORK