SOCIAL RESPONSIBILITY

FRAMEWORK
EDUARD G. LUTAO
Carroll (1991) provided four dimensions that provide a
structure or framework that characterizes companies'
responsibilities within societies:
Economic - An expectation of profit is natural when
shareholders form corporations.The lowest layer of the
pyramid suggests that companies must first be profitable
after they have paid their obligations to employees and
suppliers, and conform to consumers' needs and demands.
This is the very foundation and required of all corporations.
Legal - A corporation is created
through law and, as such, must
abide by the rules and
regulations imposed for
fairness and justice. Much like
economic responsibilities, it is
required for companies to be
legally compliant as well.
Ethical - Doing what is right for stakeholders is what ethical
companies should aim for. Society expects companies to take
on this responsibility beyond what is required of them legally.
Philanthropic - To fulfill this responsibility, companies
need to truly embrace philanthropy, meaning, issues that
pertain to the improvement of human lives must be
addressed without compromise. This responsibility,
however, is not required nor expected but rather desired by
companies.
 THE PHILIPPINE
CORPORATION CODE
EDUARD G. LUTAO
The Corporation Code of the Philippines was
approved in 1980.

Came out in 2002

It prescribes the rules and regulations in the

establishment and operation of corporations in the
Philippines.

Code was revised in 2019

PURPOSE OF THE CODE

Align to Philippine Governance Code

Align with international business community

standards

Put more pressure on board to perform better

CONTENT OF THE CODE

Incorporations of private corporations

Regulations of the board of directors

Powers and capacity of the corporations

By-laws

Board meetings
 PCC TO FORTIFY FURTHER ECONOMIC
DEVELOPMENT WITH FOLLOWING CHANGES:

Removal of the Minimum Number of Incorporators

Required minimum Php 1,000,000.00 capital stock on stock

corporations

Removal of 50-year corporate term. Corporation can exist indefinitely

Creation of one person corporation (OPC)

Use of internet in attending meeting and filing of reports

Power of the Securities and Exchange Commission (SEC) to remove

disqualify directors or trustees
 POLITICAL ISSUES AND
CORPORATE GOVERNANCE

Climate Change, Health Care, Income Taxes,

Bribery in government

Affect operational viability or survival

Board to mitigate risks

 POLITICAL ISSUES AND
QUESCUSSIONS
CORPORATE GOVERNANCE

Climate Change, Health Care, Income Taxes,

Bribery
1. Can a in government
corporation require an independent director
sitting on the board?
“Type a quote here.”
2. As a CEO, how do you improve existing operations?
Affect
3. Shouldoperational viability
a corporation come upor survival guidelines?
governance
What is the importance of this?
Board to mitigate–Johnny
risks Appleseed