GOOD
GOVERNANCE
& SOCIAL
RESPONSIBILIT
Y
INSTRUCTOR: CHERRY D. GANANCIAL, MM
COURSE DESCRIPTION
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The course deals with the basic conceptual themes and ideas
about the interaction of business and society. It will tackle
issues such as business and the social, ethical, natural
environment; business and stakeholders; and current social
issues that somehow affect business operations. Concerns
which are often overlooked by business in its pursuits of
profits such as corporate social responsibility will also be
given emphasis to instill in the students a sense of urgency
given in the global changes happening now.
COURSE OBJECTIVES
1.Explain the role of ethics and social responsibility in the global economy.
2.Explain the relevant study of the fundamental moral principles applied
to business.
3.Facilitate ethical deliberation by stirring the moral conscience.
4.Develop reasoning and analytical skills needed for ethical decision
making in business.
5.Engage the students in ethical practice, social justice, and social
responsibility initiatives.
6.Provide an understanding on philosophical basis in doing what is right.
7.Analyze case studies of up to date moral problems faced by
businesses
Criteria for Grading
Regular Attendance
10%
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Quizzes/Class Exercises
10%
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Reports/Assignments
20%
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Cases
15%
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Midterm Exam
20%
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Final Exam
25%
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100%
Chapter 1: SOCIAL RESPONSIBILITY
FRAMEWORK
What do you think is the inherent
connection between corporation
and society?
Chapter 1 Objectives
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Define corporation.
Identify the values and mores that make up a
good organization/
Analyze the role of management in the survival of
a company.
Know your stand if corporations should behave
ethically and be morally accountable to society at
large.
WHAT IS A CORPORATION?
The Corporation
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A corporation is a legal entity created by an
individual or group of shareholders who have
ownership of the corporation. (through shares of
stocks issued by the corporation) to engage in
business activities.
Monks and Minow defines a corporation as a
structure established by law to allow different
parties to contribute to capital, expertise, and
labor or the maximum benefit of all of them.
4 Appealing Attributes
1.
2.
3.
4.
Limited Liability
Transferability
Legal Personality
Centralized Management
The Philippine Corporation
The RCC focuses on 4 areas of reforms:
Enhancement of ease of doing business in the
1.
Philippines
Fortified stockholder protection and
2.
institutionalized corporate governance provisions
Emphasis on corporate social responsibility
3.
Improved policies and regulatory corporate
4.
framework
The Philippine Corporation
According to the 2019 Revised Corporation Code (RCC)
There is no minimum number of incorporators but shall not
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have more than 20.
Granted perpetual corporate term (in lieu of the previous 50●
year term)
Removal of the required subscribed/paid-up capital, and
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residency of incorporators was made to keep with global
standards.
Significant change was the introduction of the One Person
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Corporation (OPC)
Importance of Social Responsibility and
Good Governance
The way a corporation conducts its business has profound
effects on individuals in the societies they operate.
Corporations have continued to grow and can sometimes
influence government policy through political lobbying.
CORPORATE SOCIAL RESPONSIBILITY
Corporate Social Responsibility (CSR) is a
manifestation of good corporate governance. It is
an ongoing commitment of organization to ensure
accountability to the stakeholders their existence
impact.
CORPORATE SOCIAL RESPONSIBILITY
Corporate Social Responsibility (CSR) is a manifestation of good
corporate governance. It is an ongoing commitment of
organization to ensure accountability to the stakeholders
their existence impact.
Archie Carroll CSR Pyramid
A Brief History of CSR
The 1800s and the Birth of Responsible Organizations
While there has been a recent spike in the popularity of CSR, evidence of businesses’
concern for society can be traced back to practices originating from the Industrial Revolution.
In the mid-to-late 1800s, there was growing concern about worker wellbeing and productivity
among industrialists.
Growing criticisms of the emerging factory system, working conditions, and the
employment of women and children were being brought to light, especially in the United States.
The consensus among reformers was that current employment practices were contributing to
social problems, including poverty and labor unrest. However, industrial betterment and
welfare movements at the time were viewed as a combination of humanitarianism and
business acumen.
Also making an appearance in the late 1800s was the rise of philanthropy. Industrialist
Andrew Carnegie, who made most of his fortune in the steel industry, was known for donating
large portions of his wealth to causes related to education and scientific research.
Following in the footsteps of Carnegie, oil industry business magnate John D. Rockefeller
also donated more than half a billion dollars to religious, educational, and scientific causes.
A Brief History of CSR
The Catalyst for Modern Corporate Social Responsibility
Although responsible companies had already existed for more than a century
before, the term Corporate Social Responsibility was officially coined in 1953 by
American economist Howard Bowen in his publication Social Responsibilities of
the Businessman. As such, Bowen is often referred to as the father of CSR.
However, it wasn’t until the 1970s that CSR truly began to take flight in the
United States. In 1971, the concept of the ‘social contract’ between businesses
and society was introduced by the Committee for Economic Development. This
contract brought forward the idea that companies function and exist because of
public consent and, therefore, there is an obligation to contribute to the needs of
society.
By the 1980s, early CSR continued to evolve as more organizations began
incorporating social interests in their business practices while becoming more
responsive to stakeholders.
A Brief History of CSR
Universal Acceptance of Corporate Social Responsibility
The 1990s marked the beginning of widespread approval of CSR. In 1991,
University of Pittsburgh professor Donna J. Wood published Corporate Social
Performance Revisited, which expanded and improved on early CSR models by
providing a framework for assessing the impacts and outcomes of CSR programs.
In the same year, business management author and professor at the University
of Georgia Archie B. Carroll published his article The Pyramid of Corporate Social
Responsibility. In his paper, Carroll expanded on areas he believed were crucial
when implementing CSR in an organization.
By the early 2000s, CSR had become an essential strategy for many
organizations, with multi-million dollar companies, such as Wells Fargo, CocaCola, Walt Disney, and Pfizer incorporating this concept into their businesses
processes.
DRIVERS BARRIERS OF CSR
DRIVERS
BARRIERS
Regulation
Market
Behavior
Social
Activism
Culture
Strategy
C
S
R
Limited
financial
resources
Profit
Maximization
Availability of
human
resources
MEASURING CSR
The purpose of measurement is to understand what is being
measured better and lay the groundwork for improvement.
CSR is a management concept that is not easy to measure.
Measuring CSR provides several benefits, such as helping
organizations make better decisions on allocating resources
with the greatest impact, improving processes that will make
CSR initiatives more efficient, and providing more support for
the business case.
Kaplan and Norton’s Balanced Scorecard
TRIPLE BOTTOM LINE (PEOPLE, PLANET,
PROFIT)
LEADERSHIP
Leadership has a key role in influencing CSR. CSR and
leadership are founded on concepts of service,
integrity, and inspiration to others. The relationship
between them is mutually empowering and
transforming.
A leader must also be able to communicate their CSR
stories internally and externally effectively.
ASSIGNMENT/ACTIVITY
Be Socially Responsible
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You just graduated from the university and landed a job as a management trainee in a multinational
FMCG (fast-moving consumer goods) company. Write a personal plan on how you can initiate your
participation in the company’s engagements.
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As a senior executive (Corporate Communications) in a commercial bank, you were asked by the
CEO to take over the CSR program due to the resignation of the previous manager. The bank is
currently engaged in three different initiatives.
1. Planting trees as part of your environmental engagement in collaboration with a local NGO
2. Providing free education for deserving scholars directly managed by your foundation
3. Participating in feeding programs for the poor in depressed areas, also in collaboration with a
local NGO.
How would you go about evaluating the impact of each of the three initiatives? What are some of
the key metrics that should be part of your evaluation.