Polytechnic University of the Philippines College of Education Graduate Studies MH Del Pilar, Sta. Mesa, City of Manila

DIMENSIONS, PURPOSES AND ARGUMENTS AGAINST CORPORATE SOCIAL RESPONSIBILITY

A Written ReportPresented to the Faculty of the Graduate SchoolPolytechnic University of the PhilippinesSta. Mesa, Manila

In Partial Fulfillment of the RequirementsFor MEM 650 Corporate Social Responsibility and Good Governance

Submitted to:Dr. Catherine Q. Castaeda

Submitted by:Rose Ann H. Zimara

POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

I. Dimensions of Corporate Social ResponsibilityA. According to European Commission1. Internal Dimension a. The responsibility towards employees, including their health and safety, reasonable working hours, diversity in the recruitment process and due consultation of employees, when considering structural changes in the company. b. Responsible management of environmental impacts and efficient use of natural resources.2. External Dimensions - Responsibility which extends beyond the walls of the company to the local community and other stakeholders such as business suppliers, NGOs etc.B. According to Social Performance of a Company1. Corporate Philanthropy Includes charitable donations to nonprofit groups of all kind. Examples: McDonalds Ronald McDonald Houses for families whose critically ill children require treatment away from home. The Bill & Melinda Gates Foundation is by far the nations largest philanthropic foundation with assets of more than 34 Billion Dollars 2. Corporate Social Initiatives Enhanced forms of corporate philanthropy but it is more directly related to the companys competencies. Example: Logistic giant TNT keeps a 50 person emergency-response team on standby to go anywhere in the world to provide support in POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

warehousing, transportation, and communications.3. Corporate Responsibility Everything that has to do with acting responsibly within society. It includes the minimizing of pollution, using energy wisely, and providing a safe work environment.4. Corporate Policy refers to the position a firm takes on social, and political issues. For example: Patagonias corporate policy includes this statement: A love of wild and beautiful places demands participation in the fight to save them, and to help reverse the steep decline in the overall environmental health of our planet. They donate at least 1% of their sales to hundreds of grassroots environmental groups all over the world who work to help reverse the tide.C. Three Major Dimensions1. Economic Dimension - It refers to commitment to ethical practices inside enterprises, like corporate governance, preventing bribery and corruption, protecting consumer's lefts, and ethical investment.2. Social Dimension - The enterprise should participate in achieving the welfare of the society, and in improving and caring for the affairs of its employees. This should positively reflect on increasing their productivity, developing their technical abilities, and providing them with professional and employment security, besides health and social care. 3. Environmental Dimension - Enterprises obligation towards covering the environmental effects which result from its operations and products,POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

eliminating emissions and wastes, achieving maximum efficiency and productivity depending on available resources, and decreasing practices which may negatively affect the country and next generations enjoyment of resources. II. Purposes of Corporate Social ResponsibilityA. Promotes Long-Term Profits for BusinessB. Improves Stakeholder Relationships Managers often believe that developing a strong social agenda and series of social programs will improve the firms stakeholder relationship. At Coca-Cola, 60,000 employees were surveyed and reported that corporate social responsibility was the second biggest driver of their commitment and loyalty to the firm, after leadership.C. Enhances Business Reputation It is a valuable intangible asset, as it prompts repeat purchases by loyal consumers and helps to attract and retain better employees to spur productivity and enhance profitability. Rating Research, a British firm, created a reputation index to measure a company social reputation. The index evaluates critical intangible assets that constitute corporate reputation and broadly disseminates these ratings to interested parties.D. Attracting, retaining and maintaining a happy workforce - When employees and management feel they are working for a company that has a true conscience, they will likely be more enthusiastic and engaged in their jobs. This can build a sense of community and teamwork which brings everyone together and leads to happier, more productive employees.POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

E. Enhance the health by non-polluting measures.III. Arguments Against Corporate Social ResponsibilityA. Lowers Economic Efficiency and Profits Any time a business uses some of its resources for social purposes, it risks lowering its efficiency. For example: Businesses are told to concentrate on producing goods and services and selling them at the lowest competitive price. Even though corporate social responsibility is well intended, such social activities lower businesss efficiency, thereby depriving society of higher levels of economic production needed to maintain everyones standard of living.B. Imposes Hidden Costs Passed On to Stakeholders Many social proposals undertaken by business do not pay their own way in an economic sense; therefore, someone must pay for them. For example: if a company chooses to install expensive pollution abatement equipment. Stockholders may receive lower dividends, employees may be paid less or consumers may be charged higher prices. Jonathan Charkham said, When CSR is promoted, one should bear in mind that giving away other peoples money is easy!C. Responsibility of Business and Government In Levitts view, it is critical to maintain a clear dividing line between business and government. The domain of business is to maximize profit; establishing the rules of the game, so to speak, and taking care of the general welfare, is the domain of the government. D. Lack of Broad Support:The idea of business involvement in achieving social goals is not widely supported by many groups in society.POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

REFERENCESA. BOOKS

Beal, B.D. (2014). Corporate Social Responsibility: Definition, Core Issues, and Recent Developments. USA: Sage Publications, Inc.Gupta, M. (2009). Principles of Management. New Delhi: PHI Learning Private Limited.Horrigan, B. (2010). Corporate Social Responsibility in the 21st Century: Debates, Models and Practices Across Government, Law, and Business. USA: Edward Elgar Publishing, Inc. Lamb, Hair, & McDaniel. (2012). Essential of Marketing. USA: South-Western Cengage Learning.Mullerat, R., & Brennan, D. (2011). Corporate Social Responsibility: The Corporate Governance of the 21st Century. UK: Kluwer Law InternationalNickels, W.G., McHugh, J.M., & McHugh, S.M. (2012) Understanding Business Global Edition(10th Ed.). New York: McGraw-Hill EducationB. ELECTRONIC SOURCESFrontStream. (2013). Why Corporate Social Responsibility is so Important? Retrieved June 27, 2015 from http://www.frontstream.com/why-corporate-social-responsibility-is-so-important/.Corporate Social Responsibility (CSR) Principles, Dimensions and Requirements. (n.d.) Retrieved June 27, 2015 from http://www.ssif.gov.jo/EN/EN/CorporateSocialResponsibility/CSRGuide/CorporateSocialResponsibility CSRPrinciples/tabid/233/Default.aspxCorporate social responsibility. (2013). Retrieved June 27, 2015 from http://www.slideshare.net/madangkiramaswaamy/bgs-7?related=2