Corporate social Responsibility - This is particularly important when violations or
- refers to practices and activities that business offenses in the workplace during work hours occur,
organizations adopt in the course of their wherein the organization as the employer can be
operations which have social and environmental held liable for damages or losses caused by staff
impacts and relevance. or individuals.
- Practicing CSR means that a business - Companies create and implement programs and
organization commits to developing policies and protocols not only to maintain the quality of their
business practices that ensure sustainability of products and services but also ensure the health
environmental resources, ethical treatment of and safety of their employees.
employees, and protection of community welfare, - Ex. A construction company requires its workers
among others. on site to use PPEs.
- a term used to describe the company's obligation ● Duty of Care
to be sensitive to the needs of all the stakeholders - company’s ethical responsibility to prevent harm
in its business operations. from happening.
- It is also referred to as corporate citizenship which - all organizations have the duty of care to their
states that the long-term interests of business are stakeholders—employees, stockholders, and the
best served when its profitability and growth are society in general.
accomplished along with its social responsibility. ● RA 7877 or the Anti-Sexual Harassment Act of
- "It is the continuing commitment by business to 1995
behave ethically and contribute to economic - must be implemented in all organizations
development while improving the quality of life of 3. Responsibility to do good
the workforce and their families as well as of the - Business organizations have the social
local community and society at large.” responsibility to do good things by making the
society a better place.
Business organizations have at least three social - Providing solutions to social issues and giving
responsibilities: support to education, arts and culture
1. Duty not to cause harm - In the recent years, companies have taken CSR
- even if an action that may result in avoidable harm initiatives to positively impact the environment,
is not explicitly prohibited by law. people and overall, the society.
- If a company caused harm to a property or a - Whatever their motivation, whether to attract and
person, and if the harm could have been avoided retain employees, improve brand name and
by exercising due care or proper planning, then reputation, or build relationships with customers
both law and ethics would deem that the company and their communities, the bottom line is that
should be held liable for violating its companies that are socially responsible do good
responsibilities. for others, and not merely run a business for
- taking responsibility and immediate action even if it profits.
incurs costs and could damage the company’s
brand and reputation. Models of Corporate Social Responsibility
2. Responsibility to prevent harm 1. Economic Model
- instances when a company does not cause harm - based on the traditional model view that a
but has the potential or the capability to prevent business’s raison d’être (reason of existence) is to
harm from occurring. respond to the demands of the market by
- A positive action such as having an organizational providing products or services and to earn profits
policy or specific rules and regulations is an for its shareholders.
example of addressing this level of social - This model posits that the society benefits from the
responsibility. success of business organizations which are
indirectly fulfilling their social responsibility by
contributing to the growth of the economy and by ● Norman Bowie
providing jobs to more people as they grow and - stated that the ethical imperative of causing no
expand. harm overrides other ethical considerations. As
● Brand Process Outsourcing (BPO) long as the company is able to comply with the
- has contributed to the significant growth of the moral minimum and it causes no harm, it is
Philippine economy and has provided employment realizing its responsibility to maximize profits.
for Filipinos - Overall, companies have a social responsibility to
- Because of this, the government has given uphold the welfare of their employees, ensure a
incentives to BPO companies safe and healthy workplace, and observe other
2. Philanthropic Model human rights, whether or not these are specified
● Philanthropy- “an act or gift done or made for or required by law.
humanitarian purposes.” It is the practice of doing ● Stakeholder Theory
or giving something to help make life better for - Every business decision has an impact on a wide
other people. variety of people, that is, providing benefits to
- This model describes the free will of business some and imposing costs on others.
organizations to contribute to social causes as a - Stakeholders: group of individuals that can affect
matter of philanthropy. or be affected by the organization.
- Just as individuals are not obligated or required to - Opportunity Costs: every decision involves
donate to charitable institutions, business opportunities or choices that are given up.
organizations likewise have no strict obligation to - Business owners make decisions that may affect a
contribute to social causes. wide variety of people resulting in benefits for
- However, they are still encouraged to participate in some and costs for others.
helping the society beyond what is required by law. - R. Edward Freeman: stakeholder theory
- However, there are some companies that addresses morals and values in managing a
contribute to a social cause without seeking any business, with the consideration of the
benefit. These companies simply want to give stakeholders’ interest.
back to the community. - “for whose benefit and at whose cost should the
● Several reasons why a company gets involved business be managed?”
in charity work: - Freeman: no stakeholder group should be
- it gives the company positive publicity, while prioritized over another, although in one way or
providing its members to participate in their another, one group will benefit at the expense of
philanthropic activities. another.
- They earn tax holidays or deductions when they - Business organizations exist in a web of
do such activities. The government grants tax relationships with different stakeholders which
relief, which is deductible expense to reduce creates different responsibilities to each one of
taxable income, by claiming donations as them.
charitable contributions. - It is not possible for a company to satisfy the
3. Social Web Model of CSR requirements of all stakeholders, but the company
- views business organizations as citizens of the must learn to make decisions that would prioritize
society in which they operate. competing and conflicting responsibilities.
- they must conform to the normal ethical duties and 4. Integrative model of CSR
obligations that are expected from them. - While non-profit organizations focus on fulfilling
- Every citizen has a moral obligation to respect their mission to provide solutions to social issues,
human rights—this is the “moral minimum” that is there are also for-profit organizations that do the
expected from everyone, whether acting as an same.
individual or making decisions for a business - includes social entrepreneurship and sustainability
organization. at the core of their business model.
● Social enterprise- for-profit business
organizations that seek solutions to pressing social
issues. This type of business organization brings
social goals into the core of its business model
and fully integrates economic and social goals.
● Sustainability - holds that a company’s financial
goals must be balanced against, and may be
overridden by, environmental considerations.
CSR = Good Business Sense
a. A good reputation earns a positive image in the
eyes of the public, which may affect their purchase
decisions.
b. A good reputation earns loyalty from employees.
● Reputation Management - practice of managing
the image of a company
