Business Ethic and Socail Responsibility

8/7/2019 Business Ethic and Socail Responsibility

1/28

2-1

Business Ethic and CorporateSocial Responsibility

Presented by:Group-V


2/28

2-22

Objectives Ex plain corporate social responsibility (CSR)

Provide business ex amples of CSR D ifferentiate social responsibility and responsiveness Ex plain corporate social performance (CSP )

R elate social performance to financial performance D escribe the socially conscious investing movement


3/28

2-3

T he CSR Concept A rguments F or and Agains t CorporateSocial R esponsibility Corporate SocialR esponsiveness

Corporate SocialPerformance (CSP )Social Performance andFinancial PerformanceSocially Conscious orE thical Investing

Outline

Summary


4/28

2-4

Introduction T he focus of this presentation is on corporate

social responsibility, which involves responsibilitiesoutside of making a profit and the key questions forcorporations include:

D oes business have a social responsibility?If so, what is the ex tent and type of the responsibility?

R eference: www. pg .com/about_pg/corporate/corp/citizenship_main .j html


5/28

2-5

Corporate Social Responsibility(CSR)

Preliminary definitions of CSR T he impact of a companys actions on society.

R equires a manager to consider his acts in terms of a whole social system, and holds him responsible forthe effects of his acts anywhere in that system.

R eference: www. pg .com/about_pg/corporate/corp/citizenship_main .j html


6/28

2-6


Corporate Citizenship ConceptsCorporate social responsibility emphasizesobligation and accountability to society Corporate social responsiveness emphasizesaction, activity Corporate social performance emphasizesoutcomes, results


7/28

Corporate Social Responsibility (CSR) Business C riticism / Social Response Cycle

Factors in the Societal E nvironment

Criticism of Business

Increased concernfor the Social E nvironment

A ChangedSocial Contract

Business A ssumption of Corporate Social R esponsibility

Social R esponsiveness, Social Performance, Corporate Citizenship

A More Satisfied Society

Fewer Factors Leading to Business Criticism

Increased Ex pectations Leading to More Criticism

2-7R eference: www. pg .com/about_pg/corporate/corp/citizenship_main .j html


8/28

2-8


Historical PerspectiveE

conomic model

the invisible hand of themarketplace protected societal interestLegal model laws protected societal interests


9/28

2-9


Historical Perspective

Modified economic model Philanthropy Community obligations Paternalism

R eference: http:// www.miltonhershey .com


10/28

2-10


Historical Perspective W hat was the main motivation?

T o keep government at arms length

R eference: http// www.bsr .org/


11/28

2-11


Historical PerspectiveFrom the 1950s to the present the

concept of CSR has gained considerableacceptance and the meaning has beenbroadened to include additional components.


12/28

2-12


Evolving Viewpoints

CSR considers the impact of the companysactions on society ( Bauer )CSR requires decision makers to take actionsthat protect and improve the welfare of society as a whole along with their owninterests ( D avis and Blomstrom )


13/28

2-13


Evolving Viewpoints

CSR mandates that the corporation has notonly economic and legal obligations, but alsocertain responsibilities to society that ex tendbeyond these obligations ( McGuire )


14/28

2-14


Evolving Viewpoints

CSR relates primarily to achieving outcomesfrom organizational decisions concerning specific issues or problems, which by somenormative standard have beneficial ratherthan adverse effects upon pertinent corporatestakeholders. T he normative correctness of the products of corporate action have been

the main focus of CSR ( E

pstein )


15/28

2-15


Carrolls Four Part DefinitionCSR encompasses the economic, legal, ethicaland discretionary ( philanthropic ) ex pectationsthat society has of organizations at a givenpoint in time


16/28

Corporate Social Responsibility (CSR)Four Part Definition

U nderstanding the F our C omponents

Responsibility SocietalExpectation

Objective

E conomic R equired Be profitable. Max imize sales,minimize costs, etc.

Legal R equired Obey laws and regulations.

E thical Ex pected D o what is right, fair and just.

D iscretionary ( Philanthropic )

D esired /Ex pected

Be a good corporate citizen.

Business and Society: Ethics and Stakeholder Management, 5E Carroll & Buchholtz

Copyright 2003 by South-Western, a division of Thomson Learning. All rights reserved 2-16


17/28

2-17

Pyramid of CSR

Philanthropic ResponsibilitiesPhilanthropic ResponsibilitiesBe a good corporate citizen.

E thical ResponsibilitiesE thical ResponsibilitiesBe ethical.

Legal ResponsibilitiesLegal ResponsibilitiesObey the law.

E conomic ResponsibilitiesE conomic ResponsibilitiesBe profitable.


18/28


19/28

2-19

Model of CSR Model Corporation Responsibility Responsiveness Performance

SM Mall/Supermarkets

To minimize theuse of plastic bags

Conduct campaignon using paper bag as replacement tothe plastic bags

Minimized garbageproduction inMetro Manila

L A MOIY AN Corp. E mploymentopportunities forpersons withdisabilities

In compliance withMagna-carta forP WD s whichincludes hiring of P WD s asmanpower of companies withequal rights,benefits andprivileges

A s of to date, 30per cent of L A MOIY AN manpower areP WD s


20/28

2-20

Corporate Social Responsibility (CSR) Arguments Against:

R estricts the free market goal of profit max imizationBusiness is not equipped tohandle social activities

D ilutes the primary aim of business

Increase business power

Limits the ability to compete in aglobal marketplace

Arguments for: Addresses social issues business

caused and allows business to bepart of the solutionProtects business self-interestLimits future governmentintervention

Addresses issues by using business resources and ex pertise Addresses issues by being

proactive


21/28

2-21

Corporate Social Performance

Carrolls CSP model integrates economic concernsinto a social performance framework


22/28

2-22

Corporate CitizenshipC orporate citizenshipembraces all the facets of corporate social responsibility, responsivenessand performance.


23/28

2-23

Socialand FinancialPerformance

G ood CorporateSocial Performance

Perspective 1: CSP Drives the Relationship

G ood CorporateFinancialPerformance

G ood CorporateReputation


Perspective 2: CFP Drives the Relationship

G ood CorporateSocialPerformance


G ood CorporateSocial Performance

Perspective 3: Interactive Relationship Among CSP, CFP, and CR




24/28


25/28

2-25

Selected Key TermsBusiness for SocialR esponsibility

Community obligationsCorporate CitizenshipCorporate socialresponsibility Corporatesocial responsivenessCorporate socialperformance

E conomic, legal, ethicaland discretionary

responsibilitiesPaternalismPhilanthropy

Pyramid of CSR Socially consciousinvesting


26/28

2-26

ConclusionBusiness R esponsibilities in the 21st C entury

D emonstrate a commitment to societys values andcontribute to societys social, environmental, and

economic goals through action.Insulate society from the negative impacts of company operations, products and services.Share benefits of company activities with key stakeholders as well as with shareholders.

D emonstrate that the company can make moremoney by doing the right thing.


27/28

2-27

Name of members Office/Agency

Bercasio Melchor L Philippine Marine Corps

Ambros Severino

AJr.

DS WD

-N

CR D elgado Jojo A Philippine Marine Corps

Sanada Susana A D S WD -N CR

Monteverde E ric B D S WD -N CR

Lagasca E ditha T D S WD -N CR

R amos R osalia C D S WD -N CR

G roup-V


28/28

2-28

End of presentation

Documents

Business Ethic and Socail Responsibility