SOCIAL

FUNCTION OF
BUSINESS
CORPORATE SOCIAL RESPONSIBILITY
• CSR is a continuing commitment by
business to behave ethically and contribute
to economic development while improving
the quality of life of the workforce and their
families, local community and society at
large.
“ S O M A S S I V E A N D P E R VA S I V E I S P O V E R T Y I N O U R C O U N T R Y T H A T
OUR RESPONSE TO IT CANNOT BE SMALL”
- T O N Y M E L O T O , G AWA D K A L I N G A
FOUNDER

GAWAD
KALINGA
 T H E A C H I E V E M E N T S O F G K H AV E B E E N R E M A R K A B L E I N 2 4 Y E A R S O F
EXISTENCE
 H A S B U I LT C L O S E T O 2 0 0 , 0 0 0 H O U S E S I N M O R E T H A N 2 , 0 0 0 G K P O O R
VILLAGES
 T H E G E N E R O S I T Y, C O M M I T M E N T, A N D H E R O I C S A C R I F I C E O F I T S F U L L -
T I M E W O R K E R S , C A R E TA K E R T E A M S , D O N O R S , V O L U N T E E R S , A N D
I N S T I T U T I O N A L P A R T N E R S H AV E M A D E A D I F F E R E N C E I N T H E L I V E S O F
MORE THAN 500,000 PEOPLE IN OVER 2,000 COMMUNITIES IN THE
AT THE END OF THE LESSON,
THE STUDENTS SHOULD BE ABLE TO:

• EXPLAIN THE RESPONSIBILITIES OF BUSINESS TO

ITS STAKEHOLDERS;
• PERFORM THE ROLE OF BUSINESS TO
SOCIOECONOMIC DEVELOPMENT OF THE
COUNTRY
• UNDERSTAND AREAS OF BUSINESS MOST IN NEED
OF ETHICAL ATTENTION.
 EXPLAIN THE
RESPONSIBILITIES OF
BUSINESS TO ITS
STAKEHOLDERS
BUSINESS STAKEHOLDERS
• Shareholders Generate profits and pay dividends.
• Employees health and safety at work, security, fair
pay.
• Customers – provide good quality products at
reasonable prices. Safety, honesty, decency and
truthfulness.
• Suppliers – pay on time, pay fair rates for the work
done, provide element of security.
WHY SHOULD BUSINESS BE ETHICALLY SENSITIVE?

• Businesses play a major role in keeping any economy alive.

• Business without ethics threatens the survival of the human
society.
• Accountability failures have led to bankruptcies and
restatements of financial statements that have harmed
countless shareholders, employees, pensioners and other
stakeholders.
T H E F U N D A M E N TA L
REASONS FOR EXAMINING
THE ACTIVITIES OF
BUSINESS FROM THE
SOCIAL AND ETHICAL
PERSPECTIVE ARE:
1. F O R T H E P R O M O T I O N O F T H E C O M M O N
GOOD
2. P R O T E C T I O N O F I N D I V I D U A L’ S
INTERESTS
3. P R E S E R VAT I O N O F T H E H U M A N S O C I E T Y
WHAT IS POVERTY?
Deficiency or shortage of some sort, typically in
comparison either to the living standard of others with
the same society or culture (relative poverty) or to a
universal measure of adequate provision (absolute
poverty).
This shortage has been considered synonymous with the
lack of income or at least insufficient income to meet the
households daily needs.
BUSINESS ROLE IN POVERTY
ALLEVIATION
• SME defined usually 250 employees are
believed to be important contributors to
economic growth and a tool to reduce poverty.

• Microfinance is believed to be effective tool

against poverty.
 THE ROLE OF
BUSINESS IN
SOCIOECONOMIC
DEVELOPMENT
 PERFORM THE BUSINESS
ORGANIZATIONS’
CONTRIBUTIONS TO
SOCIOECONOMIC
DEVELOPMENT OF THE
COUNTRY
 CONTENT - 10 PTS.
 PRESENTATION/DELIVERY– 10 PTS.
 GROUP PARTICIPATION – 10 PTS.
 CONTRIBUTE TO LOCAL ECONOMIES BY BRINGING
GROWTH AND INNOVATION TO THE COMMUNITY IN WHICH
THE BUSINESS IS ESTABLISHED.
 HELP STIMULATE ECONOMIC GROWTH BY PROVIDING
EMPLOYMENT OPPORTUNITIES TO PEOPLE WHO MAY NOT
BE EMPLOYABLE BY LARGER CORPORATIONS.
 DRIVE ECONOMIC STABILITY AND GROWTH BY PROVIDING
VALUABLE SERVICES, PRODUCTS AND TAXES THAT
DIRECTLY CONTRIBUTE TO THE HEALTH OF THE
COMMUNITY.
 MEANS BY WHICH WE GET MOST OF THE GOODS AND
SERVICES THAT WE, AS CONSUMERS, WANT AND NEED.
 AREAS OF
BUSINESS MOST IN
NEED OF ETHICAL
ATTENTION
THE MORALITY OF ADVERTISING
• Deceptive advertising, or false advertising, is any
type of advertising that is false, misleading, or has
the effect of deceiving consumers.
– through sentences and propositions
– through pictures
– through individual words
– through combination of objects
IS DECEPTIVE ADVERTISING ILLEGAL?
• Article 108 of the Consumer Act of the Philippines
(Republic Act No. 7394) declares that “The State
shall protect the consumer from misleading
advertisements and fraudulent sales promotion
practices”
 BASIC EMPLOYEE RIGHTS, JOB DISCRIMINATION,
OTHER LABOR RELATED ETHICAL ISSUES

• Labor code of the Philippines (or Presidential Decree No. 442)

– Lays down the rights of workers in relation to wages, rights to self-organization,
collective bargaining, security of tenure, and just and humane conditions at
work.
• Republic act no 6727 also known as “ Wage Rationalization Act” mandates the
fixing of the minimum wages applicable to different industrial sectors.
• Book Four of the Labor Code
– lays down the Health, Safety and Social Welfare Benefits
• Book Five of the Labor Code (Labor Relations)
– Lays down the policies of the State with regards to labor.
WHAT IS DISCRIMINATION IN THE WORKPLACE?

• Race, color, national extraction or social origin

• Sex, gender identity or sexual orientation
• Age
• Physical, intellectual, mental or psychiatric disability
• Pregnancy or potential pregnancy
• Marital status, relationship status and family or
career's responsibilities
• Religion
INSIDER TRADING
 In the stock market is characterized as the buying
and selling of shares of stock on the basis of
information known only to the trader.
 the illegal practice of trading on the stock
exchange to one's own advantage through having
access to confidential information.
WHISTLE BLOWING
 is the act for an employee (or former employee), of disclosing
what he believes to be unethical or illegal behavior to higher
management (internal whistle-blowing) or to an external
authority or the public (external whistle-blowing).
 Its status “messenger of truth” is debated:
 they are traitorous violators of organizational loyalty norms
 they are heroic defenders of values considered to be more
important than company loyalty
 It is generally considered from the viewpoint of professional
morality.
POLLUTION AND RESOURCES
DEPLETION
• Pollution and resource depletion are the major human
effects on the environment.
• Causes:
– Overpopulation
– Deforestation
– Mining