CHAPTER 7- BUSINESS AND ECOLOGY
found a justification to exploit and abuse the earth
LESSON 1- THE DIMENSIONS OF ECOLOGICAL
PROBLEM
→Different dimensions from the book of Fr.
Moga S.J.- Toward Authentic Morality
1.1 Population Explosion- rapid increase of the
world’s population.
●Main reason- advanced medical care- lessened the
rate of infant mortality and increased the life span of
human beings
●Earth and its resources are limited- if it keeps
growing the resources will be depleted
e.g. famine, poverty, pollution (until earth
will be unlivable)
1.2 Depletion of Natural Resources- The growth of
this problem worldwide is largely due to activities of
business. It can cause technological regression or
returning to previous state. Due to technology,
many resources are being consumed far faster than
they can be replenished.
e.g. Oil depletion, deforestation, mineral
depletion (phosphorus, iron, copper, zinc)
1.3 Pollution of the Environment- wastes of the
population and the modern industrial life are
destroying the land, air, water and the planet earth.
●According to DENR or Department of Environment
and Natural Resources- 60% air pollution in Metro
Manila comes from motor vehicles
●Water pollution- out of 400 major river in the
Philippines, 50 rivers- heavily polluted, 10 rivers-
virtually dead
●Destruction of Ozone Layer- too much heat
1.4 The Destruction of the Planet Earth- soil
erosion- can no longer support cultivation, farming,
gardening.
●Causes of soil erosion- flooding, logging, mining,
construction
LESSON 2- TRADITIONAL ATTITUDES OF
BUSINESS TOWARDS THE ENVIRONMENT
●Business or the creation of different goods and
services- helped to promote the quality of life of
people.
→Traditional beliefs of businessmen, in relation
to the environment
1. Business People believed that the world is “free
and unlimited.”
-Because of this paradigm, businessmen
without regard for the next generations.
2. The businessman’s pursuit for private interest at
the expense of the common good has created an
imbalance between individual gain and social cost.
e.g. companies or factories throwing chemical
waste on the river or oceans. This practice saves
production costs but makes the environment unsafe.
Private cost is minimized but the social cost are
increased.
LESSON 3- ENVIRONMENTAL ETHICS
●Ethics and the Filipino by Ramon Agapay-
Environmental Ethics as the study of man’s moral
obligation to preserve the environment and the
natural order of things.
→The preservation and protection of the
environment, man has 3 important things to
imbibe:
1. Man has a moral obligation to preserve the
environment.
2. Man has a primary duty to take care of the
environment.
3. Man must submit to the demands of natural law
and must not intervene carelessly with the work of
nature.
LESSON 4 - THE MORAL AND SOCIAL
OBLIGATIONS OF BUSINESS TO THE
ENVIRONMENT
Three factors that must be considered to be
socially responsible to the environment
(Dr. Jose Mario B. Maximiano)
1) Business cannot use with impunity the different
categories of creatures and resources, whether living
or inanimate, simply as they will.
2) Business must realize that the natural resources
are limited.
3) Business must comprehend the evil effects of
industrial development on the quality of life.
Reasons for social responsibility of business
towards the environment
(Dr. Jose Mario B. Maximiano)
1.) Business is socially responsible to the
environment because it is an important part of the
macro-ecological system.
2.) Business depends on the natural environment
for its operations.
3.) Business also must take into account the ethical
issues when it relates with environment.
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LESSON 5 - VALDEZ PRINCIPLES
The Coalition for Environmentally Responsible
Economies ( CERES) in Boston drafted in 1990 a
Guide to the Valdez Principles.
1. Protection of the Biosphere
2. Sustainable Use of Natural Resources
3. Reduction and Disposal of Waste
4. Wise Use of Energy
5.Risk Reduction
6.Marketing of Safe Products and Services
7.Damage Compensation
8.Disclosure
9.Environmental Directors and Managers
10.Assessment and Annual Audit
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CHAPTER 8 - ETHICS AND CORPORATE SOCIAL
RESPONSIBILITY
LESSON 1 - THE CONCEPT OF CORPORATE
SOCIAL RESPONSIBILITY
●The fundamental reason for examining the
activities of business from the moral perspective is
for the
1. Promotion of the common good.
2. Protection of the individual's interests.
3. Preservation of the human society in general.
●Social responsibility
--is a moral obligation of each and every individual,
institution, business and organization since they all
compose the society.
●Big corporations, not only do business by
maximizing profit but also incorporate social
responsibility as an integral part of their business
operations and strategies.
●Corporate social responsibility
--ls generally understood to be the private sector's
way of integrating compliance with economic,
environmental and social imperatives with the
imperatives of their own business activities.
--fulfilling the moral obligations of the business by
involving itself with commitments and activities that
contribute to and help improve the condition of the
society, the community and the environment.
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LESSON 3 - HISTORICAL PHASES OF
CORPORATE SOCIAL RESPONSIBILITY
●Three phases of Social Responsibility
By Professor Robert Hay and Ed Gray
Phase 1
1. Management must maximize profit.
2. Business systems as profit maximizers.
3. Businesses ignored unsafe working conditions,
paid starvation wages and used child labor in order
to maximize profit.
4. Problems of cultural minorities, unsafe products,
unfair advertising and urban poor problems were
given little if no attention at all.
5. Abuses of capitalism
Phase 2
1. Management was considered as an instrument.
2. Maintain a fair balance in the interests of
employees, customers, creditors, stockholders and
the community.
Phase 3
1. Security of basic goods and services was no longer
a principal problem.
2. Social and economic problems brought about by
economic growth expanded the concept of social
responsibility of management. '
3. Society demanded management's active
participation in helping solve social and
environmental problems
4. Business is expected to contribute to the
improvement of the quality of life
5. Society is unstable if the quality of life of the
people is poor.
6. A prosperous society is the best environment for a
business to thrive in.
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LESSON 4 - PERSPECTIVE ON CORPORATE
SOCIAL RESPONSIBILITY
●People’s attitudes, values and management culture
differ. LESSON 6 - THE FOUR CORPORATE
●Each has a social responsibility in society since RESPONSIBILITIES
every individual, body or institution makes up a (by Archie B. Carroll 1991)
society.
●Businesses have different viewpoints on social 1.) Philanthropic Responsibilities - DESIRED of
responsibility as well. business by society.
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2.) Ethical Responsibilities -
EXPECTED of business by society.
LESSON 5 - ASSESSMENT ON THE PRACTICE OF
CORPORATE SOCIAL RESPONSIBILITY
3.) Legal Responsibilities -
REQUIRED of business by society.
5.1 Arguments in Support of Corporate Social
Responsibility
4.) Economic Responsibilities -
[F. Fajardo. (2000).]
REQUIRED of business by society
● Long-run self-interest
---------------------------------------------
--business enterprises will benefit from their own
investment by using their resources in reducing or
LESSON 7 - THE SOCIAL RESPONSIBILTY
eliminating social problems.
TOWARDS CONSUMERS
● Business resources
● Consumers are considered to be the most
--businesses could use their huge resources in the
important stakeholders of the business besides its
improvement of societal and environmental
own employees.
conditions.
● Companies are duty-bound to fulfill and be
● Viability of Business
conscientious of their social responsibility towards
--as embodied in the deed of a corporation,
the customers of their business.
businesses are granted powers and privileges by the
government due to their contributions to the
● Cheating businessmen who swindle, deceive and
economy and valuable services to society.
take advantage of their trusting customers.
● Public Image
●Consumer rights which are:
--charitable, civic and socioeconomic projects are
--the right to safety
some of the activities where businesses take part.
--the right to be informed
--the right to choose
● Profit from Social Problems
--the right to be heard
--businesses can turn problems into profits by being
creative and resourceful.
(By U.S. President John F. Kennedy.)

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5.2 Arguments Against the Practice of Corporate
Social Responsibility
LESSON 9 - CURRENT ACTIVITIES RELATED TO
CORPORATE SOCIAL RESPONSIBILITY
● Profit maximization
--corporate executives and managers are primarily
● Establishment of certifying bodies to develop
responsible to investors and stockholders.
standards, programs and to train and certify
employees, managers and businesses with quality
● Lack of Social Skills
programs, certifications and accreditation.
--businessmen lack the appropriate skills in solving
social concerns.
● Training their employees for customer care.
● Lack of Social Accountability
● Improvement of compensation and benefits
--the social needs and problems should not depend
packages for employees.
on businessmen.
● Higher Product Cost
● Establishment of programs for the protection and
--businesses’ active participation in social,
preservation of the environment.
charitable or civic projects leads to additional
expenses and wastes man hours of the company.
● Active participation in sociocivic and charitable
activities.
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● Development of customer complaint desks or
hotlines.
● Recruitment of competent and technical
employees.
● Training quality people that will handle all aspects
of the business processes .
● Application of good manufacturing practices and
advance quality assurance standards for safe and
good quality products.
● Strengthening of ties with agencies and creating
organizing bodies.
Several of these commitments and activities
fulfill the firms’ moral obligation to societal,
economic and environmental concerns. In
general, they act in response to these key
elements and issues:
1.) Stakeholder rights;
2.) Supplier relations;
3.) Human rights;
4.) Human resource management practices;
5.) Consumer rights and protection;
6.) Labor protection and security;
7.) Environmental protection;
8.) Corporate governance;
9.) Community development; and
10.) Health and safety.
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CHAPTER 9 DEVELOPING GOOD WORK ETHIC
1. The Definition of Work
1. Work is the “use” or application of our physical
powers to accomplish certain tasks. It is the “use”
because nobody can own another man’s body, nor
can anyone sell his body or any part of it, for
purposes of material advantage and gain.
2. The purpose of work is to obtain an economic
gain _ or power. This is part of the essence of work.
2.The Meaning of Work in the Holy Bible
The Theological Meaning of Work According to St.
Thomas Aquinas The angelic doctor of the church,
St. Thomas Aquinas enumerates four purposes of
work in his treatise entitled Summa Theologica:
1. it provides for one’s daily livelihood;
2. it prevents idleness which is a source of many
‘evils; ; ‘
3. It curbs the rebellious flesh; and
4. It enables man to give alms from his material
Surplus. _ For St. Thomas Aquinas, man is called to
serve God through his work. The Human Perspective
of Work
How to Enjoy Work and Create Spiritual Values in
the Workplace:
1. Practice the Golden Rule;
2. Guard your mouth;
3. Stop the green jokes;
4. Practice ethical behavior:
5. Learn to forgive;
6. Be generous;
7. Respect superiors and coworkers;
8. Be considerate;
9. Perform your work and fulfill your duties to the
best of your ability;
10 Be a grateful person;
11. Do not bring the problems at home to the
workplace or vice versa;
12. Be an inspiration to others; Read the Bible every
day; Develop a personal relationship with God; and
13.Smile and enjoy your work. (Remember: work has
been sanctified, it must also sanctify you.)
6. Basic Duties of Employers (R. Agapay, 1991)
1. Respect the dignity of the workers;
2. Appreciate their work;
3. Never treat them as slaves for making money;
4. Never assign them tasks beyond their
strength, nor employ them in work not suited
to their age or gender;
5. Give them commensurate.and fair wages;
6. Provide for their health and social recreation;
Provide them time for the practice of their
religion; Instruct them on how to use their
money wisely; Instruct them to love their
family; and
7. Provide them with opportunities for
promotion.
7 Basic Duties of Workers:
1. Work honestly and comply with all
agreements; Never injure capital, nor steal
from the employer;
2. Never Outrage the person of the employer,
3. Never employ deceit or violence in presenting
a cau and
4. Never consult with “agitators” or men of evil
principles