Different Views

Of Corporate Social
Responsibility
 Corporate Social Responsibility

is a recent business philosophy that encourages companies to actively participate

in social concerns and community matters, focusing on customer satisfaction
and long-term profitability.
Milton Friedman and Edward Freeman's concept of Corporate Social Responsibility in 1970

Friedman believed that maximizing profits for

shareholders was the sole social responsibility of
a company. Freeman, on the other hand,
considered stakeholders to include customers,
employees, suppliers, community, environment,
and society. CSR goes beyond philanthropy and
includes legal obligations, social, environmental,
and ethical concerns.
 The World Business Council for
Sustainable Development

Defines CSR as a commitment to

ethical behavior, economic
development, and improving the
quality of life for all stakeholders.
 Triple Bottom line approach

Emphasizes a company's commitment to operating its

business in an economically, socially, and
environmentally sustainable manner.
 The key components of CSR would therefore include the following:

1.Corporate governance-Accountability, transparency and conformance with the laws are the major issues under corporate
governance. With good corporate governance policy, a company is able to accomplish its objectives, protect the rights of its
shareholders, abide by the legal requirements and offer transparency for all stakeholders.

2. Business ethics-Business ethics is the inclusion of the core values such as honesty, trust, respect, and fairness into the
policies, practices, and decision making of a company. It also consists of obedience to legal standards and submission to in-
house rules and regulations.
3.Workplace and labor relations - Human resources are crucial assets for a company, and workplace and labor relations are
essential CSR practices. These practices improve recruitment, retention, and reduce costs through continuous recruitment
and retraining.

4.Positive action – Some of the good practices which reflect CSR practices of the company are inclusion of people with
disability and people from the local community in the diversity of workforce. It also includes gender policy, guidelines on
of sexual harassment, prevention of HIV/AIDS and employee volunteering.
5. Supply chain - The company's business process encompasses the entire supply chain, including internal
operations. Neglecting social, environmental, and human rights aspects can negatively impact business.
Companies must utilize strategic positions to positively influence stakeholders.

6. Customers - Improved awareness and communication can enhance customer satisfaction and loyalty by
considering social, environmental, and social aspects of products and services production.

7. Environment - CSR goes beyond legal requirements and involves companies delivering environmental
benefits, including sustainable resource replacement, reducing adverse impacts, reducing pollutants, and
producing eco-friendly goods.

8. Community - A company's connection with its community depends on direct communication and risk
evaluation. CSR aims to positively impact the community and cultivate the company's brand image. Both direct
and indirect participation can be achieved through funding community projects and supporting local agencies'
projects.
 DRIVERS OF CSR

The idea of CSR is to encourage and support

accountability to all stakeholders not just
shareholders and investors. The business model
of CSR considers the companies are not
isolated economic entities and must operate in
connection with the society beside
competitiveness, survival and profitability
which are the traditional views.
 Some of the drivers pushing business towards CSR include:

1. The shirking role of Government- the government had usually depend on legislation on the provision of
social and environmental services in businesses.

2. Demands for greater disclosure-there is an increasing demand for disclosure coming from stakeholder s
who consist of customers, suppliers, employees, local communities, investors, media and pressure groups.

3. Increased customer interest- how a company conducts itself ethically may influence the buying decisions
of customers.

4. Growing investor pressure- these day investors often decide on the evaluation of company performance
based on criteria that embrace ethical concerns.
5. Competitive labor markets- gone are the days that employees are only looking at paychecks and
benefits.

6. Supplier relations- nowadays, most stakeholders are more and more interested in the affairs of
businesses. The trend now is to present codes of conduct for their suppliers, which would guarantee a
good image once these policies or practices would be followed.
 Historical phases of CSR

The practice of corporate social responsibility (CSR)

has had an extensive and widespread history.

At present, CSR could already be regarded as a global

phenomenon. Now, it has been clear that without the
moral and business components of CSR, no company
cloud be able to attain its corporate success.
 Phase 1: (1800s to 1900s)
PROFIT MAXIMIZING
TRUSTEESHIP MANAGEMENT
MANAGEMENT
1. Management
must maximize
profit,
2. Individual drive for
profit maximation
would ultimately create
wealth for the nation.
3. Business systems as
a profit maximizer are
used as a tool for the
elimination of
economic scarcity.
Phase 2: (early 1900s) Phase 3: (1930s)
QUALITY MANAGEMENT
1. Management was 1. Security if basic
considered both as an goods and services
instrument of was no longer a
stockholders and as a principal problem.
trustee for all groups
who contribute to the 2. Social and economic
business enterprise. problems brought
about the economic
2. Management was
growth expanded the
considered both as an
concept of social
instrument of
responsibility of
stockholders and as a
management.
trustee for all groups
who contribute to the
business enterprise.
4. Business ignored unsafe 3. Society demanded
concern is also to
working conditions, paid management’s active
maintain a fewer balance
starvation wages and used participation in helping
in the interests of
child labor in order to solve social and
employees, customers,
maximize profit. environmental problems
creditors, stockholders
in view of vast resources
and the community.
(funds, manpower,
5. Problems of cultural materials, management,
minorities, unsafe skills and technology) of
products, unfair businesses.
advertising and urban
poor problems were given
little if no attention at all. 4. Businesses is expected to
contribute to the improvement
6. Abuses of capitalism are of the quality of life which
extremely rampant and the involves cultural, social,
government tolerates these educational, political factors and
delorable business practices. economics security.
5. Society is unstable if
the quality of life of the
people is poor.
Businesses contribute to
a good quality of life
and society.

6. A prosperous society
is the best environment
for a business to thrive
in businesses will benefit
from its self-investment
in society.
UNORGANIZED CSR ( 1960s to 1970s )

• The Philippines were still experiencing the effects of US colonization at this time.
• As the largest corporate-led social development foundation in the Philippines, the
Philippines Business for Social Progress (PBSP) was established in 1971 by 50
Philippine corporations.
• Restrictions and a lack of knowledge established the aforementioned period, yet the
CSR was able to evolve through the PBSP.
ORGANIZED PHILANTHROPY ( 1980s to 1990s )

• During this time of organized philanthropy, the Philippine government introduced

numerous new laws including decentralization, liberalization, and deregulation.
• Many foundations were established at this time, including the Sarmiento Foundation
(1988), Roxas Foundation (1987), Coca-Cola Foundation Philippines (1986), and
ShoeMart Foundation (1983).
• Area Resource Management (ARM), a more organized CSR method, was created by
PBSP later in the 1990s.
ORGANIZED MOVEMENT ( 2000 and continues until present )

• In the CSR community, the concept of "shared value" has gained popularity in reference to
the unity of economic competition and community health.
• The league was established in 1991 with the goal of fostering and enhancing CSR within its
network of more than 80 of the biggest operating and grant-making corporate foundations and
enterprises in the Philippines.
• LCF has been at the forefront of the business community's growing interest in corporate
philanthropy, CSR, and dedication to nation-building for more than 20 years.
 DIFFERENT VIEWS OF CSR

The two approaches that form and guide managers

on how to line up their priorities and actions are
the Socioeconomic view and the Classical view
 SOCIOECONOMIC VIEW
• A business is a portion of the larger society and thus has
social responsibility that goes beyond making and
maximizing profits.

• Society encourages businesses to become involved in

social political and legal environment. Now-a-days
modern by organizations engage themselves into such
activities to influence political process for their benefits.
Social responsibility also includes the balance of
responsibility and power
 Businesses which are socially responsible have some recognizable common points
which are;

1. Public image
2.Better environment
3. Public expectation
4. Long-run profit
5. Balance responsibility and power
6. Stakeholders interest
7. Position of resources
 CLASSICAL VIEW

• It was Milton Friedman, a Nobel Prize winning

economist who endorsed this classical view.
Friedman wrote this insight in a New York Times
article entitled "The social responsibility of
business to increase its profits".
• Believes of this view consider socially
responsible actions as cost that may dilute their
economic productivity.
CHARACTERISTICS OF THE CLASSICAL VIEW OF
CSR

1. Profit maximization
2. Government concern
3. Aggressive competitive strategies
4. Utilization of resources
5. Unachieved business objective
 PYRAMID OF CORPORATE SOCIAL
RESPONSIBILITY
Economic Responsibility
• The first and most apparent is the economic responsibility is to be
profitable.
• A company need to meet the standards established for ethical,
environmental, and philanthropic practices while practicing earnings for
its investors as rewards.
• A business as an integral actor in economic development and nation
building contributes to the progress of the economy through its profits.
LEGAL RESPONSIBILITY
• To obey the all laws set forth by society all the time.
• The government acts as regulators of business so that the integrity of the business
practices is maintained and the interest of the public is protected.
• Disobeying business laws would mean paying for fines as penalty.
• Some of the required laws in business consist of basic business permits and
requirements, business tax, the right of the workers, intellectual property rights,
consumer protection, obligation and contracts, and anti- trust law among others.
 ECONOMIC
(Be profitable)

LEGAL
(Obey the Law)

ETHICAL
(Be ethical)
ENVIRONMENTAL
(Sustainability and environmental
friendly operation)

PHILANTHROPIC
(Be a good corporate
citizen)
Ethical Responsibility: to do what is right even when business’s is not obligated to do so by law.

• Fair labor practices employees

The labor policy ought to be applied all employees, even those will at the highest levels of the company.
(Diversity, Teamwork)

In addition
• violation against employees
(Attention, action to form a reputable image’s)

• Suppliers
(Treated fairly, products, meeting trade standard)
Basically this responsibility is too challenging (Being profitable at the same time ethical
is conflicting)

Ethical responsibility must be adopted to all stakeholder, but not limited to investors,
employees, customers as well as to competitors

• Advertising is another example in this area. Often business stretch the truth to make
their advertisements not essentially false or essentially true. PANA, (Philippine
Association of National Advertisers).
Environmental Responsibility: is a must for businesses

As businesses become aware of environmental issues, they try contribute as good corporate citizens in lessening air,
land and was pollution that would harm the society.

Efforts in the disaster relief and environmental conservation (Newspaper)

Companies

• Support these efforts in order to help lessen carbon footprint.

• Developed platforms that allow their employees to work home-based instead of travelling to the office.

Senate Bill (SB) 1866 otherwise known as Philippine Ban on Plastic Straws and Stirrers is an initiative of the
government on plastic reduction nationwide to stop the notorious discarding of plastics.
Example of not caring the environment

• Boracay Island; The island had its temporary closure from April to October 2018 in order to prevent further coastal
and marine degradation. (Clean up drive)
Philanthropic Responsibility

Known also as discretionary responsibility is best described by the resources donated by companies toward
social, educational, recreational and/or cultural intentions.
Human rights, national disaster relief, clean water and education programs particularly in underdeveloped
countries.

Example of Philanthropic Responsibility

• Microsoft with its Bill and Melinda Gates Foundation.

Largest donation ever given in the world in the amount of $1.5 billion in Microsoft stock came from Bill Gates.
(2014).

support education the eradication of malaria, agricultural development and bring technology to communities
around the world.
Microsoft wants create a generation of technology-based people who are well-versed
in technology. Philanthropy does not only mean giving cash donations There are
numerous means a company may become philanthropic with less spending involved.
Some huge businesses offer capacity building seminars for promising and emerging
entrepreneurs as a philanthropic activity.
Even small companies (support sports team, a local school or charity, tree-planting at
the park or any other noteworthy causes

Philanthropy,
Used as good marketing on a positive light.
Criticisms
Counterbalance these negatives
 SOCIAL RESPONSIBILITY TO STAKEHOLDERS

Today, both large and small companies are also

faced with numerous issues that test them to
answer to the concerns of their stakeholders to
operate and perform in a socially responsible
fashion. Here are some of the major stakeholders
that companies need to focus on.
 TOWARDS CONSUMERS

Consumers are the most important stakeholders of any business

whether big or small. Putting up a profit-motivated company
would not work without consumers or the buying public.
Besides delivering the right product or service with a desirable
quality, consumers expect that they be provided at the right time,
right place, and reasonable price. Consumers always consider
good value for the money they spend.
A business cannot function without consumer. The survival
growth of business relies on consumer satisfaction, service and
support. All business organizations should always win the
confidence of the customers.
 Social Responsibilities of Company to a Consumer:

1. Quality - It is a must for a company in the manufacturing industry to create quality goods and provide quality
service for service-oriented kind of businesses.

2. Fair prices - It is not reasonable to charge high prices on customers.

3. Truthful advertising - Advertisements should offer accurate, relevant and updated facts, advantages and even side-
effects of the product. Providing information is one of the basic purposes of Corporate Social Responsibility
advertising.

4. After sales service - During the period of promised warranty, customers always anticipate that the company would
provide them after sale service.

5. Research and development - It is actually a requirement of consumers for businesses to perform research and
development (R&D
6. Consumer's safety - It is always expected by consumers that any product they bought shall not harm their
health and most importantly their lives.

7. Regular Supply - Goods and services must be provided to customers on a regular basis. It is a business
sin to create false scarcity of goods.

8. Attend complaints - Businesses should always attend to any queries and complaints of customers the
soonest possible.

9. Avoid monopolistic competition - It is always healthy for any industry to have a competitive business
environment. For the sake of customers, businesses of any industry should not allow that monopoly exists.

10. Training - Sometimes, businesses need to train their customers on the use of the products bought. This
training is given either for free for a fee.
 Towards Employees
• CSR programs should reflect that a business is more socially
focused instead of just merely profit-oriented. CSR
intentions must be contained in the values of the
organizations.

• The practice of CSR, besides the obligation to society and

the environment, it also refers to an obligation towards the
employees of a company. Since, the employees are very
significant, a company must fulfill its obligations to them to
increase more it's productivity.
 Responsibilities of a Company to its
Employees
1. Meaningful work and job satisfaction - Employees must be ethically treated by giving them challenging but
meaningful tasks, good working conditions, and job security.

2. Fair returns - Payment to employees and other well-designed compensation package (sufficient wages, salaries)
must be given on-time so that they can meet their individual financial obligations.

3. Best physical and mental atmosphere - Provide the employees with fresh, decent, healthy, and safe working
conditions.

4. Participation in the management - Encourage work teams, suggestion system, profit-sharing, and other ways of
participation.

5. Training, promotion, and welfare schemes - Offer opportunities for skills development to the employees.
6. Recognition of unions - Recognizes the right of employees to form their union.

7. Proper personnel policies - A good practice of CSR is to have a concrete and proper personnel policies in
transfers, promotions, recruitment, training and other related areas.

8. Health and safety measures - Maintain a safe working environment.

9. Grievance procedure - Build a working climate free from harassment and other forms of discrimination.

• CSR creates a deep influence towards attitude and level of awareness of employees. Thus, it gives them a
sense of direction, and cultivates positive perception concerning their employer and also themselves. In this
sense, businesses must see that the view of their employees about CSR must continue to be optimistic.
 Towards the Government
The government is basically responsible for controlling the
laws and protecting the security of the country. One benefit of
having government policies is place is for businesses to
function without bringing any harm to both the society and
the government. Furthermore, companies and communities
are able to establish and maintain good relations. Lastly, the
main obligation of business according to Friedman is to make
money for its investors, nevertheless companies are still
obligated to follow the laws of the countries where they
operate their businesses.
 Here are some of the responsibilities of businesses towards their respective governments:

1. Pay taxes - The government imposed various taxes and fees on the businesses such as excise duty, sales tax and
corporate tax.

2. Follow environmental regulations - those businesses in the industrial and manufacturing sectors have been
enforced strict rules concerning the quantity and the variety of pollutants that they are permissible to produce.

3. Abide by labor laws - These laws are about proper treatment of employees.

4. Avoid restrictive trade practices - businesses are not permitted to engage in restrictive trade practices even
under competition.

5. Financial disclosure - financial statements of companies need to be disclosed to the government for taxation
purposes.

6. Avoid corruption - almost all countries bribing public officials by businesses is prohibited.
 Towards the Local Community
A local community is a group of smaller size and numbers than a
society in general. It may consist of places where a company operates
and functions as well as places where it negotiates about common
issues of concern. These places are proximate relative to the
geographic location of the business.

Companies voluntarily involve themselves in social activities in

order to establish relationships with society at large. This is called
corporate social responsibility, which gives them a way to fulfill their
social obligation to the community. Companies can go beyond just
maximizing profits through CSR. Companies typically get fulfillment
and satisfaction from participating in local community CSR
initiatives.
 There are several reasons why a company would involve itself in
the local community:

Companies, particularly big corporations, know that they have a lot of impact on society, so they are aware of their
obligations. Companies wanted to be professional and responsible in the eyes of the people residing in the local
community.

• Companies are interested in filling the scarcity or the needs of the local community using the products they
manufacture or services they provide.

• Companies are encouraged to create new products and market them through community involvement.

Community giving, employee involvement, and entrepreneurship and employability are ways for a company to make
contributions to the local community. Some companies make donations to the community by supporting a local charity
with financial contributions; this is called community giving. Whereas, other companies volunteer their employees to
take the initiative of actively engaging in community programs categorized as employee involvement, such as
organizing clean-up events.
 Some of the significant areas where businesses can and do contribute towards local community welfare as part
of their social responsibility are:

1. In the field of industry – Some companies provide livelihood programs to help people in rural areas
or the least privileged citizens in urban communities. These programs could offer employment
opportunities for people living in these types of areas.

2. In the field of agriculture – Any large company can contribute to agricultural development through
its CSR programs. In their perspective, these CSR programs can provide full employment to the large
number of unemployed people in the labor market.

3. Housing facilities – There is a big need for this social responsibility of business. It is a reality that
the majority of Filipinos live in ill-planned and filthy houses, especially those in the squatter area. This
CSR approach extends financial aid by means of material and manpower support by businesses to
urban areas and disaster-prone places.
4. Transportation – It is usually the national government that is responsible for creating programs for cheap public
transport, for proper and full utilization of road capacity, for setting up improved licensing procedures, and for
laying out changes in urban and rural structures, among others. However, businesses could also help the
government with programs such as those mentioned.

5. Health and education – Businesses as part of their CSR, can help improve the quality of life of the community
to which they want to provide assistance.

6. Industrial aid to education in urban areas – Successful businesses have CSR programs that support schools,
colleges, and technical/ professional educational institutions. It is part of the modern social responsibility of
businesses to support educational programs, particularly technical education. In some cases, they help by lending
the services of their specialists (as visiting experts) and giving financial help.
 TOWARDS THE ENVIRONMENT

• Today some companies also initiated Green CSR which can decrease business risk, improve
reputation and offer opportunities for cost savings. Businesses that believe in this green
advocacy knew that even the simplest energy efficiency measures can generate savings and
make difference to businesses Energy efficiency measures can be done by switching off lights
and equipment when not in use, reducing the use of water or even just reducing the amount of
paper being wasted.
• Levi's Strauss & Co., an apparel company for instance knowing that every drop of water counts
had saved more than one billion liters of water globally since 2011. This company launched their
Water Less campaign with the intention to encourage and challenge everyone including its
customer for a more sustainable use of water worldwide.
• In 2014, covenant was signed between SMC thru SMC Global Power and the local government
of Sual, Pangasinan on giving residents with one million seedlings of coconut, coffee, and cacao.
•
 Here are some ways that businesses can help protect and save the environment, which are;

1. Reduce paper waste - Staff should be encouraged to do office stuffs electronically. Companies need
to cut back on paper use through setting up electronic collaboration tools.

2. Use LED light bulbs - These days offices had switch to LED light bulbs that cut-down their utility
bills because 95% of the energy in LEDs is converted into light and only 5% is wasted as heat.

3. Allow telecommuting - Telecommuting is advantageous for the environment. This human resource
(HR) practice reduces the energy consumption in office spaces every day, saving money and cutting
the business's carbon footprint.

4. Improve air quality with indoor plants - Indoor plants do not provide aesthetics but also improve the
general air quality. Besides being more eye-pleasing, indoor plants can help clean the air and remove
contaminants.
5. Power off computers - Businesses need to make it compulsory for all employees to power
down their computers, printers and copiers before they leave their respective offices.

6. Set-up recycling bins in common areas - Businesses should place recycling bins in common
work and meeting areas of the offices.

7.Reduce travel - Instead of travelling to a conference to get in touch with customers, schedule a
webinar and let them join online. These tech tools will not only save money of a company but
also reduce carbon emissions.

8. Give filtered water - Instead of plastic water bottles, employees should be encouraged to bring
their own reusable cups. Businesses may add filtration to their water system to make water
available clean water to employees throughout the day.
Thank You!
Discussant
Group 3
Alimbubuyog, Reysil B.
Belleza, Jemarie D.
Cabaces, Ma. Dianne S.
Cereno, Danica T.
Eco, Micah F.
Fababier, Julie R.
Imperial, Jomel A.
Juego, Earl John M.
Mata, Alexis
Oliveros, Aizelle Mishaleign A.
Ponciano, Nowelyn S.
Rodeo, Judy Ann T.
Zantua, Kobe Cloyd B.