CORPORATE SOCIAL RESONSIBILITY (CSR) - business philosophy that requires company to

behave as good corporate citizens.

-addressing the interest of stakeholders simultaneous with profit-making

- To encourage and support accountability to all stakeholders not just the shareholders and
investors.

Ex. Avoid causing environmental pollution or exhausting limited natural resources.

Triple bottom line approach (3P’s) - emphasizes a company’s guarantee to operate its business in an
economically, socially and environmentally sustainable manner

1. People
2. Planet
3. Profit

MILTON FRIEDMAN and EDWARD FREEMAN- concept of CSR

MILTON FRIEDMAN said “the social responsibility of business is to increase profits and business is
business”

- His view focuses on maximizing the profits for the shareholders, considering that the
shareholder is the lone social responsibility of the business.

EDWARD FREEMAN- the stakeholders are those individuals of groups who can affect or affected by any
activities of the company.

- Stakeholders consist of shareholders as well as but not limited to customers, employees,

suppliers, community, environment and society in general.

WORLD BUSINESS COUNCIL- corporate social responsibility is the continuing commitment by business
to behave ethically and contribute to economic development while improving the quality of the life of
workforce.

COMPONENTS OF CSR

1. Corporate governance- 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- the inclusion of core values and consist of obedience to legal standards.
3. Workplace and Labor Relations- human resources are assets of a company and play an
important and critical roles, include but not limited to health and safety, employee relations and
work-life balance.
4. Positive action- inclusion of people with disability and people from the local community.
Includes gender policy, guidelines on prevention of sexual harassment, prevention of HIV
 5. Supply chain- company must use its strategic position to impact the supply chain totally to
positively influence the stakeholders
6. Customers- cost and quality of products and services
7. Environment- looking for sustainable replacement for the depleting natural resources
8. Community- where the company does its business
COMMON POINTS OF SOCIALLY RESPONSIBLE
1. Public image- business form a positive public image by pursuing these goals
2. Better environment- business can help in providing solution to problematic social problems and
offer comfort of a better quality of life
3. Public expectation- public suppose that business are not only after attaining economic goals but
also social ones
4. Long-run profit – highest likelihood to earn more secure long-term profit, consequences of
harmonious community relationships
5. Balance and responsibility and power- business is the most influential organizations in the
society. They should balance their power and responsibility at the same time.
6. Stockholders interest
7. Possession of resources- technical experts and managerial talents

ARCHIE CARROLL’S PYRAMID OF CORPORATE SOCIAL RESPONSIBILITIES

1. Economic responsibility- the first and most apparent is the economic responsibility to be
profitable. Business created to be the livelihood of their owners. Company makes use of
recycled products in it manufacturing process both lowers its cost and helps society by
consuming only fewer resources.
2. Legal responsibility- to obey all laws set forth by society all the time. Government acts as
regulations of business so that the integrity of business practices is maintained. Example is
non-compliance to food and drug safety law.
3. Ethical responsibility- to do what is right even when business is not obligated to do so by
law. Fair labor practices to employees in the form of equal pay for equal work. Advertising is
another example in this area.
4. Environmental responsibility- lessening the air, land and water pollution that would harm
the society.
5. Philanthropic responsibility- also known as discretionary responsibility described by the
resources donated by companies toward social, educational, recreational and cultural
intentions. Donated resources in the form of time, money or other types of resources to
charitable organizations and other institutions.

ETHICAL ISSUES AND PROBLEMS

1. EMPLOYEE FAVORITISM- preferring a person not because he is doing the best job but rather
because of some irrelevant feature-membership in a preferred group, personal like and dislike
and other unessential factors
 Types of favoritism
 Nepotism- practice of hiring family members irrespective of their qualifications
 Cronyism- the act of hiring friends without regard to qualifications
 Patronage- hiring friends and family members of those executives who became on
board because of either nepotism or cronyism. This type of favoritism is contagious as
the executive brings more of her favorite employees into positions of authority.
2. GIFT-GIVING AND BRIBERY- gift is something of value that is given as gesture of goodwill. Bribe
is a valuable thing but given in the hope of influence or benefit. The two related words are
tangible. “Thank you” gift should be given after large project has been awarded.
Three dimensional frameworks

 Content- item given expresses the nature of gifting. The price of the gift determines the
nature of the gifts
 Context- the intent to prompt an action is the basis in determining if the item given is a
bribe. It is crucial to know the motives behind the gift giving
 Culture- an important setting the boundaries and protocols so that gifts are received as
gifts
BRIBERY IN THE PHILIPPINES- Articles 210 of the revised penal code
 Direct bribery- committed by the public officer who accepts an offer or promise or
receives a gift or present by himself or through another
 Indirect bribery- committed by whom accepts a gift offered to him by reason of his
office
 Qualified bribery- committed by entrusting with law enforcement, who refrains from
arresting or prosecuting an offender who has committed a crime punishable by
reclusion perpetua

Republic ACT No. 3019 The Anti-Graft and Corrupt Practices Act- the main anti-corruption
law

3. DISCRIMINATION AND HARRASMENT

Two types of sexual harassment
1. Quid pro qou- “this for that” in Latin. The exchange of something of value between parties
engaging in a contract. When a manager offers that he will give the employees something in
return for that employee’s satisfaction of sexual demand.
2. Hostile work environment- when one’s behavior within a workplace creates an environment
that is difficult or uncomfortable for another person to work in, due discrimination

4. HEALTH AND SAFETY- paramount to the success and productivity of a business

Types of threats

 Ergonomic hazards- works that requires employee to use repetitive or awkward motion
  Chemical hazards-comprise of carbon monoxide, gasoline and asbestos.
 Biological hazards- those that come from working with people, plants and animals.

5. INCORRECT ACCOUNTING- is a mandate that business should at all times maintain precise and
truthful bookkeeping records.

6. SOCIAL MEDIA –

7. WHISTLEBLOWING- a person who exposes any kind of information or activity that is considered
illegal, unethical or not correct within a private or public organization. A whistleblower is a “traitor” or
“treason”

8. CONFLICT OF INTEREST- when a person’s professional or personal obligations come up against a

competing personal obligation. Example, a job opens up in the business and two people apply, one
whom the employer knows.

9. JUST COMPENSATION-

10. WRONGFUL DISMISSAL- also called termination or wrongful discharge, is a situation in which an
employee’s contract of employment has been terminated by the employer

11. MONEY LAUNDERING- the practice by which criminals disguise the original ownership and control of
the earnings of criminal activity through making such earnings seem to have derived from a valid source.

12. INSIDER TRADING

13. MULTI-LEVEL MARKETING SND PYRAMIDING- a strategy of some direct-sales companies which
make use of current distributors to recruit new distributors through paying the current distributors a
current percentage amount.

WORK – known such as job, source of income, a living or an employment

- Defines a person and his standing in the society

- Organizing society through forming social, structures and classes.
- For Budd, “purposeful human activity involving physical or mental exertion that is not
undertaken solely for pleasure and that has economic and symbolic value
- Both a personal ( develop holistically a person) and social activity ( aim to preserve the
human society

5C’s model of work

1. Calling implies work is motivated and rewarding by a lofty, nonmaterial goal

2. Career label- work as stimulating fun, exciting and inspiring and external rewards such as
money to support family.
 3. Chore –a work that one feels forced to do for lone purpose of earning a living or in exchange
for other tangible outcomes
4. Coast – work is not of main importance to one’s life
5. Knowledge –work meaning will help in shaping human resource management strategies.
Job design should focus on issues of employee engagement and motivation.

THEOLOGICAL MEANING OF WORK- God is the primary worker who became busy with the creation of
the world. WORK is an activity of GOD

WORK ETHICS – is a set of moral principles that an employee uses in the performance of his job

- In business language, It is the belief in the moral benefit and importance of work and its
inherent ability to strengthen character.
- Refers to key characteristics that one should possess in the workplace
- Defining a person’s identity

CHRISTIAN WORK ETHICS - Colossians 3:23-25 that a person whether he is slave or free must work with
all his heart, because he is not working for men but for God

FACTORS DEMONSTRATING STRONG WORK ETHICS

1. Integrity
2. Be honest
3. Maintain a balance and consistent work performance
4. Always shows respect
5. Follow the rules
6. Work with others
7. Stay fit and healthy