BCC BA 4 GOOD GOVERNANCE AND

SOCIAL RESPONSIBILITY

BESR-1 BUSINESS ETHICS AND

SOCIAL RESPONSIILTY

PRELIMS MODULE 1 – TOPICS

Corporate Social Responsibility
Social and Corporate Responsiveness

PREPARED BY: MARIA CHERRY A. SERRANO, PhDM

WEEK 1: Jan. 29-Feb. 4, 2024
Course Description:
• This course deals with the fundamentals of good governance,
corporate social responsibility, public relations in business and
other organization.
• It familiarize the students with different ethical principles,
technique and tools in developing good relation with various
types of public relations and corporate programs of a business
firm.
LEARNING OBJECTIVES:
At the end of this module, students are expected to:

1. Learn about Corporate Social Responsibility (CSR) and its

impact to the society;
2. Differentiate Social Responsiveness from Corporate
Responsiveness
DEFINITIONS:
.
GOOD GOVERNANCE- the processes and institutions produce results that meet
the needs of the society while making the best use of resources at their
disposal.
- it relates to the political and institutional processes and outcomes that
are necessary to achieve the goals of development.

SOCIAL RESPONSIBILITY – an ethical theory in which individuals are accountable

for fulfilling their civic duty, and the actions of an individual must benefit
the whole of society.

BUSINESS ETHICS – the standards for morally right and wrong conduct in
business.
 LESSON
Corporate Social Responsibility
 .
WHAT IS CORPORATE SOCIAL RESPONSIBILITY?

Corporate Social Responsibility- is a management concept whereby

companies integrate social and environmental concerns in their
business operations and interactions with their stakeholders.

It can refer to any effort to improve a company's environmental and

social impact. Companies can deploy CSR efforts in a piecemeal way, or as
part of a broader program. Increasingly, companies are creating
comprehensive CSR programs.

Corporate Social Responsibility (CSR), is a self-regulating business model

that drives companies to make sound social and environmental
decisions.
•
:
The
. Catalyst for Modern Corporate Social Responsibility
Although responsible companies had already existed for more than a
century before, the term Corporate Social Responsibility was officially
coined in 1953 by American economist Howard Bowen in his
publication Social Responsibilities of the Businessman. As such, Bowen is
often referred to as the father of CSR.
However, it wasn’t until the 1970s that CSR truly began to take flight
in the United States. In 1971, the concept of the ‘social contract’ between
businesses and society was introduced by the Committee for Economic
Development. This contract brought forward the idea that companies
function and exist because of public consent and, therefore, there is an
obligation to contribute to the needs of society.

•
. What is the Pyramid of Corporate Social Responsibility?

In his 1991 article The Pyramid of Corporate Social Responsibility, Dr.

Archie B. Carroll, a business management author and professor at the University
of Georgia, outlined the four areas he believed were essential in a company’s
corporate social responsibility.

These elements were organized in order of importance and presented visually

in what is now known as the Pyramid of Corporate Social Responsibility.
.
The pyramid is a simple framework which helps organizations balance the self-interests
. businesses (profit) with its wider, more virtuous goal of being socially responsible.
of

ELEMENTS OF THE PYRAMID OF CORPORATE SOCIAL RESPONSIBILITY

CSR program: Economic, Legal, Ethical, and Philanthropic.

Economic: The first and most vital level of the pyramid is a company’s economic
responsibilities.

 As a fundamental condition for its existence, a company must be profitable.

 If this requirement is not met, the business cannot survive, and as a result, the
company will not be able to move on to the other levels of the pyramid.
.confinesLegal: Companies
of the law.
must ensure that their business operations are within the

 At this level, organizations must fulfill their legal requirements.

 If legal requirements are not met the company’s survival may be at stake, preventing
them from moving on to other levels of the pyramid.

 These legal requirements include, but are not limited to, employment, competition,
and health and safety laws.
. Ethical: The next level of the pyramid is the company’s ethical responsibilities.
 In this stage, the company goes beyond legal requirements by acting morally and
ethically.
 The company makes a conscious decision to “do the right thing.”
 For example, in an attempt to reduce waste, some coffee shops have started offering
discounts to customers who bring their own reusable cups.
Ethical practices in employment
Sales technique
Accounting practices
Unethical practices of businesses:
False Product Claims Poor Working Condition Sexual Harassment
Hidden Terms in User Agreement Bribery Defamation
Philanthropic: Once the economic, legal, and ethical foundations of the pyramid have been
.built, the company can move on to the final level of the pyramid — philanthropic
responsibilities.

At this level, the company goes beyond its ethic responsibilities by actively giving back and
making a positive impact on society.

For example, financial giant Wells Fargo donates 1.5% of their revenue to various housing,
disaster relief, and military-focused charities.

 Bill Gates- Microsoft co-founder : S5.1 Billion

 Sergey Brin- Google co-founder: S 411.4 million
 Jeff Bezos- Amazon Founder: S122.2 million
 FexEx founder- Fred Smith: S65 million
 . programs vary in scope, but a few common initiatives include:
CSR

 Direct giving to non-profit groups, such as a local food bank, often in conjunction with
volunteer efforts by employees and donations from the company

 Job training programs for the disabled, or other disenfranchised groups

 Commitments to ensure diversity in the workforce across race, gender, and sexual orientation

 A focus on reducing the company’s environmental footprint through more efficient supply
chains, recycling, reduced energy use, and other efforts
.A focus on reducing the company’s environmental footprint through more efficient supply
chains, recycling, reduced energy use, and other efforts

 Sample of Ecological Footprints:

Transportation: it requires energy in a form of fossil fuels (which produce emissions
Energy consumption/ Food production/ Carbon emissions/ Waste Generation/ Water Usage

Why is it important to be conscious of our ecological footprints?

Because our carbon footprint has negative impact on the environment in multiple ways.
It is the main cause of human-induced climate change, it contributes to urban air pollution, it leads
to toxic acid rain, adds to coastal and ocean acidification, and it worsen the melting of glaciers and
polar ice.
.
THE
. EFFECTS OF ORGANIZATIONAL ACTIVITY
 Corporate Social Responsibility (CSR) not only can be impacting
the society we live in and create a healthier community, but it
can also be part of a business strategy for success.

 It builds a crucial ethical stand, in which members are

accountable for fulfilling their public duty. Our actions must
benefit the whole of society.

 In this way, we can create the right balance between economic

growth and the well-being of society and the environment.
SAMPLE
. SCENARIO:

With the continuous growth of wealth in the territory, it has become increasingly
common for some of Hong Kong’s Ultra High Net Worth Individuals to donate billions of
dollars to specific causes that they support and feel passionate about.

The creation of family foundations is growing in popularity. In the past couple of

decades, tycoons such as Li Ka Shing, Lee Shau Kee, Tin Ka Ping and the Li & Fung founding
brothers, have donated large amounts of money to various causes. These include education;
earthquake and tsunami relief; healthcare; land and rural development.

Another common manifestation of CSR plays out after natural disasters.

 2017 : Walmart and its foundation committed up to $20 million toward relief efforts
related to Hurricane Harvey in Texas.
 2018 : Home Depot said it would commit $3 million for disaster relief efforts in
communities impacted by Hurricanes Florence and Olivia, the California wildfires, and
flooding in the Midwest.
How CSR may start in a company:
.
CSR programs can begin as a result of pressure from community
members who want companies to be good neighbors.

However, research from Harvard Business School shows that once in

place, these programs often receive broad support from within the company.

CSR programs may start as the result of external pressure

but internal pressure often contributes
to the continuation of these programs.
How Corporate Social Responsibility Works
.
 CSR programs should exist for their own sake
 but the durability and support of these programs can improve if companies
see direct benefits.

There’s evidence that companies with robust CSR programs benefit from
better public relations
 happier customers
 improved company profit that will satisfy stakeholders.

Positive financial impact is clear.
 A shift toward renewable energy sources like solar panels at corporate
campuses might result in lower electricity
Improved public image.
.
 Consumers assess company’s public image when deciding whether to buy from it.
 Something simple, like staff members volunteering an hour a week at a charity,
shows that you’re a brand committed to helping others. As a result, you’ll appear
much more favourable to consumers.
Increased brand awareness and recognition. If you’re committed to ethical practices, this
. news will spread. More people will therefore hear about your brand, which creates
an increased brand awareness.

Cost savings. Many simple changes in favour of sustainability, such as using less packaging,
will help to decrease your production costs.

An advantage over competitors. By embracing CSR, you stand out from competitors in
your industry. You establish yourself as a company committed to going one step further by
considering social and environmental factors.

Increased customer engagement. If you’re using sustainable systems, you should shout
it from the rooftops. Post it on your social media channels and create a story
out of your efforts. Furthermore, you should show your efforts to local media outlets in the
hope they’ll give it some coverage. Customers will follow this and engage with your
brand and operations.
. Greater employee engagement. Similar to customer engagement, you also
need to ensure that your employees know your CSR strategies.

It’s proven that employees enjoy working more for a company that
has a good public image than one that doesn’t.

Furthermore, by showing that you’re committed to things like

human rights, you’re much more likely to attract and retain the top
candidates.

More benefits for employees. There are also a range of benefits for your
employees when you embrace CSR. Your workplace will be a more
positive and productive place to work, and by promoting things like
volunteering, you encourage personal and professional growth.
THE PRINCIPLES OF CSR: Sustainability, Transparency, Accountability
.
Sustainability- the ability to maintain various systems and processes —
environmentally, socially, and economically — over time. Sustainability originated in
natural resource economics, but has since gained broader currency in terms of
sustainable development and social equality.

Transparency- clarity and openness in actions. Especially when it comes to various

organizational bodies in the society, transparency is viewed as one of the core values
based on which customer credibility rises. If the policy frameworks of an organization are
not open, and if the organization fails to provide the necessary information to various
parties, such an organization is not trusted by the customers.
Along with the advancement of technology and the widespread of the internet,
transparency among the public has heightened greatly. Critics, however,
believe that too much of transparency can also create problems in the society
Accountability . Unlike transparency which focuses on openness,
accountability
. can be viewed as a form of acknowledgment.
 This can simply be defined as being obliged to explain actions or
decisions. It is taking responsibility for one’s actions. Accountability
operates on a number of levels in the society starting from the individual
level and extends till the institutional level. Within organizations,
accountability is usually considered as one of the ethics of
employees.
 For example, a group leader should take responsibility for the
performance of the group as well as the decisions that he takes on
behalf of the groups.
 In the same way, group member should also be accountable for their
individual contribution towards the task performance as well as the
collective effort.
Difference between Transparency and Accountability:
.
 Definitions:
• Transparency refers to conducting activities or performing actions in an open and clear
manner.
• Accountability refers to being responsible for one’s actions and having the ability to
provide sound reasoning for actions.
 Focus:
• Transparency focuses on openness and clarity.
• Accountability focuses on acknowledgement and being responsible for one’s actions.
 Connection between Transparency and Accountability:
• Usually, transparency is considered as a pre-requisite of accountability as well. This is
because for an action to be evaluated properly there should be accessibility to all necessary
information. If the access is denied, then accountability cannot be proven.

 Both transparency and accountability are viewed as necessary conditions for good management. This
applies in a large variety of settings starting from the individual to organizations.
 LESSON
Social Responsiveness
Corporate Responsiveness
SOCIAL RESPONSIVENESS AND PERFORMANCE
. The concept of social responsiveness can broadly describe a person's obligation to contribute
to the welfare of others.

Social Responsiveness
 Individuals contribute on a personal level in order for the system to work.
 During election times, for example, you've no doubt heard the phrase 'it's your civic duty'
to vote and pay attention to politics.'

 On a more individual level, you may have participated in a neighborhood clean- up or

volunteered with a local organization.

 In most cases, you have participated in these activities because you recognize that, as a
member of the community, you are obligated to contribute in order for that community to
thrive.
.
.
 In the broadest sense of the term, social responsiveness is a person's
obligation to contribute to their community or country in a way that makes
the quality of life and environment better for those around them.

 Volunteering at the local homeless shelter or soup kitchen, for example,

would be considered social responsiveness because you are doing your
part to improve the lives and circumstances of those living in your
community.
It
. should be noted that not all social responsiveness needs to be as active
as in the example above; it can be a passive act as well.
If, for example, you chose to boycott a particular company because
you felt that their business practices were harmful or destructive,
this would also be an act of social responsiveness because you are
intentionally avoiding something that you believe deteriorates the
welfare of others.
Corporate Responsiveness
While the term 'social responsiveness' broadly refers to the act of
contributing to the welfare of others, it is often applied in the context of
corporate businesses. Although corporations are not legally required to
contribute to the welfare of others, in many ways there exists a kind of
ethical self-regulation that encourages, among other things, charitable
giving.
 For example, large corporations like the clothing company
. Timberland reserve one or more days each year where their
employees engage in volunteer projects to clean, rebuild, or
otherwise give back to the community.
 These activities are funded by the company, which supports such
projects that contribute to the communities in which they are
located or have large market shares.
A less direct example would be a company that enforces a strict
adherence to environmental standards or social policies, like
maternity leave. (105 maternity leave; 60 days miscarriage;
Though they are not making a direct intentional effort to go out and
volunteer, they are making a concerted effort to reduce their environmental
footprint by causing as little harm to the environment as is possible.
.
In recent years, hotels have begun to limit the amount of
washing linens and towels in order to reduce their impact
on the environment.
-end-
.
References:
.
e-book: Corporate Social Responsibility by David Crowther and Guler Aras

Related Articles from the internet:

https://www.differencebetween.com/difference-between-transparency-and-
vs-accountability
.Prelims: Module 1
NAME: _________________________________
Activity for Prelims Module 1: (15 POINTS)
1. Research one corporation that starts with your name . How does it contribute to the society through
its corporation social responsibility policies (CSR).

Sample: If your name starts with letter A (for Andres). You can research the CSR program
of Adidas.

2. As a responsible individual, give five (5) significant social responsiveness you’ve done as your
contribution to the society.

3. Increased Profit is the number one goal of corporations. But there are corporations which spend much
in giving back to the society. Do you believe that spending for the community as part of their
CSR would decrease their profits and discourage investors? Explain your answers.

THANK YOU.
SUMMARY
WEEK DATE MODULE TITLE LEARNING OUTCOME
WEEK 1 Module 1
WEEK 2 Module 2
WEEK 3 Module 3
WEEK 4 Module 4
WEEK 5 Module 5
WEEK 6 PRELIM
WEEK 7 Module 7
WEEK 8 Module 8
WEEK 9 Module 9
WEEK 10 MIDTERM
WEEK 11 Module 11
WEEK 12 Module 12
WEEK 13 Module 13
WEEK 14 SEMI FINALS
WEEK 15 Module 15
WEEK 16 Module 16
WEEK 17 Module 17
WEEK 18 FINALS