SOCIAL RESPONSIBILITYPamela G. VirtusioMBBA-StudentUniversity of Batangas

• Refers to the Obligation of a business enterprise to act according to the objectives and values that are desirable in a society.

• Is voluntary in nature, therefore each firm may exercise their freedom, to decide their freedom, to decide their extent of being socially responsible.

Social Responsibility

Social Responsibility Towards the Employee• Good Working Condition: Basic Employées Right.

Working Condition refers to the safety and healthfulness of the workplace, particularly the physical work environment and the procedures followed in performing the work.

Dimension of Working ConditionComprise the multiple aspects of the workplace:1. Structure of Workforce2. Physical Environment3. Working Time Issues4. Organizational Environment5. Social Environment6. Psychosocial Risks

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• Equal Employement Opportunities and Affirmative Action.

Equal Job Opportunity is a labor policy that prohibits business from discriminating against otherwise-qualified people with disabilities.

Job Discrimination refers to the unjust act of differentiating one group of people not on the basis of personal merit but on the basis of partiality or bias.

Affirmative Action involves policies to increase opportunities for ethnic minorities by favoring them in hiring and promotion, college admissions, and the awarding government contracts.

• Against Contractualization• Anti-Sexual Harrassment

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Sexual Harrassment is a forms of unlawful sex discrimination, which includes unwanted verbal or physical behavior of sexual nature that occurs in the workplace or in an educational setting under certain conditions.

Two Types:1. Sexual Coercion is that which is explicitly or implicitly made as condition

for favorable decisions affecting one’s employment, gain or loss of tangible job benefits.

2. Sexual Annoyance, although not directly related to anyone’s employment, still creates an intimidating, hostile, or offensive environment in the workplace.

• Challenging Child Labor Child Labor, the employment of children below 15 years old, is both illegal and unethical.

Social Responsibility Towards the Consumers, End Users & General Public Deceptive Practices

refers to acts that mislead deliberately or acts that cause one to believe what is not true or cause one not to believe what is true, the intention of which is to take unfair advantage of another.

Consumer Protection Basic Rights. The Basic Right of consumers, as set forth by US President John F. Kennedy in his 1962 message to Congress on consumerism, are the ff:a. The Right to safetyb. The Right to informedc. The Right to choose andd. The Right to be heard.

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Ethics in Advertising and MarketingAdvertising Ethics (Cunningham 1999) defined as « what is the right

or good in the conduct of the advertising function. It is concerned with questions of what ought to be done, not just with what legally must be done ».

Commercial Advertising evolves in high-speed and stimulating changeovers , spark plugged by a variety of technological sophistication.

Persuasive Advertising aims to create a need for the product or service. Because it is chiefly directed to feelings and the unconsious motivations of the consumers, persuasive advertising tends to be emotional. It is what advertisers refer to as « hard sell or subliminal ads. »

PANA has formulated A Statement of Advertising Principles in the form of a code of ethics as follows: A GOOD ADVERTISING recognizes both its economic and social responsibility to help reduce distribution costs and to serve public interest.

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A GOOD ADVERTISING depends its success on public confidence. Hence , it cannot permit those practices that tend to impair such confidence.A GOOD ADVERTISING aims to inform the consumer and help him buy intelligently .A GOOD ADVERTISING tells the truth. It is accurate, honest and trustworthy. It avoids exaggerations, misstatement of facts, as well as possible deception through implication or omission.A GOOD ADVERTISING conforms not only to the law but to the generally accepted standards of good taste and decency and to the moral and aesthetic sentiments of the country.A GOOD ADVERTISING helps to uphold the dignity of the individual and contributes to the building of a civilized society.

Social Responsibility Towards the Competitors Challenging Market Dominance and Price-Fixing

Scheme Fighting the Cartel Upholding Intellectual Property Rights

Social Responsibility Towards the Contractors, Suppliers and Government

o Stopping Bribery and Extortion

o Bribery is a dangerous game that business sector and the government ike chess grandmasters have specialized to play

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– Bribery is committed when a company or an individual gives gift or makes a promise to any person in authority for the purpose of influencing that official.

– A bribe can be in the form of money or favor given or promised in order to influence the judgement or conduct of a person in a position of trust

– Bribery generally involves payments to someone to pervert the course of business by taking proper or illegal action.

Extortion is any form of taking or obtaining property from another person by means of illegal compulsion or oppressive exaction. It is defined as a crime committed by an office of the law, who , under cover of office, unlawfully takes any money or other valuable.

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o Fighting Fraud and Other White-Collar Crimes

Corruption of human soul is called sin. This is true in theology. Corruption may be defined as any dishonest or illegal practice that

undermines the integrity of the organization.Following are certain generic forms of corruption that can

undermine business integrity:1. Bribery2. Fraud and deception3. Vulnerabilities in contracting and procurement4. Illegal information brokering5. Organized Crime6. Money Laundering

Fraud, defined as « theft with deception, » is a form of corruption which all companies have to face.

(Conti.)• Types of Fraud which company is exposed to include:

1. Diversion of Company Funds.2. Theft of Assets like computers, information and cash.3.Granting of inappropriate open credit.4. Fraud connected with bidding processes.5. Mispresentation of seismic data on the amount or quality of reserves.6. Fraud in procurement and contracting.7. Invoicing and payment of fraud8. Deliberate nonperformance9. Theft of stock in transit10. Computer Fraud

F.A.S.T.R.A.C.K. to Combat Fraud and Corruption

(Conti.)o Corporate Duty to Pay Correct Taxes

Taxation is an organized mandatory system of raising moneyOr revenue to finance government, support its existence, and carry out itsLegitimate objectives.

In taxation, there are two things to be justified:1. imposing a tax burden2. determining its distributive impact

Tax Evasion is a failure to pay legally due taxes. As they affect individual behavior, high tax rates affect corporate behavior.

Tax Avoidance happens when taxpayers exploit some legally permissible alternative methods of assessing taxable property or income in order to avoid or reduce tax liability.

Social Responsibility Towards the Environment

Private business is socially reponsible for the environment (Kenm, Parto, and Gibson, 2005). When we speak of the business’ general obligations towards the environment, we cannot disregard three consideration namely:

1. The fact that business establishments cannot use with impurity the different categories of creatures and resources, whether living or inanimate simply as they want.

2. Business must realize that natural resoources are limited. As it has already been proven on a number of occassions, most our natural resources are not renewable.

3. Finally, business must comprehend the evil effects of certain types of industrial development on the quality of life. We all know that the direct or indirect result of industrialization is the pollution of the environment, with serious consequences for the health and safety population.

THANK YOU(‘’,)