Philippine Christian University
Sampaloc 1, Dasmariñas City, Cavite 4114
SENIOR HIGH SCHOOL
S.Y. 2020-2021
MODULE IN BUSINESS ETHICS AND SOCIAL RESPONSIBILITY
CHAPTER 10: MODELS & FRAMEWORK OF SOCIAL
RESPONSIBILITY IN THE PRACTICE OF SOUND BUSINESS
WEEK 9 (APRIL 7-13, 2021)
Overview
The responsibility of an organization for the impacts of its decisions and activities on society and
the environment, through transparent and ethical behavior that: Contributes to sustainable
development, including health and the welfare of society. Takes into account the expectations of
stakeholders.
Objectives:
At the end of this chapter, you are expected to
1. explain the different models and frameworks of social responsibility
2. cite examples of companies that practice social responsibility in the conduct of their
business.
3. provide evidence that ethical/social responsibility is profitable, i.e makes good
business sense.
Disclaimer: This module is adapted and modified from the source materials listed in the references list. This is
an exclusive property of Philippine Christian University-Dasmariñas SHS and is provided only to enrolled
students for their academic use. This module is provided for free by the school through softcopy and/or printed
media. Reproduction of this module without official permission is prohibited.
Test Yourself:
Describe your own framework and models of social responsibility
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
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STUDY THESE TERM:
Framework- an essential supporting structure of a building, vehicle, or object.
Sound Business- Economic opportunity which is within the reach of the entrepreneur and which
will provide him with a desirable value.
Business Model- A business model is a company's core strategy for profitably
doing business. Models generally include information like products or services the business plans
to sell, target markets, and any anticipated expenses
Discussion:
MODELS OF SOCIALLY RESPONSIBLE BUSINESSES
many companies believe they have a responsibility to give back to society this includes
contribution of time and money a duty to provide an environmentally friendly product and
service and a desire to improve the lives of individuals here and around the globe such socially
responsible companies you to it that its consciousness permeates everything they do.
1. ACCESSIBILITY PARTNERS
many people take their computers smartphones and tablets for granted but for those with
disabilities challenges accessibility partners works with private and public item manufacturing
companies’ federal agencies and other organization to test and review products that make
information technology accessible to individuals with a variety of disabilities.
Disclaimer: This module is adapted and modified from the source materials listed in the references list. This is
an exclusive property of Philippine Christian University-Dasmariñas SHS and is provided only to enrolled
students for their academic use. This module is provided for free by the school through softcopy and/or printed
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2. ALTERED SEASONS
Kelly Reddington founded his eco-friendly candle companies altered season in 2003 at
the age 14 with the help of his mother when he assume ownership of the company is shifted it to
a one-for-one model to do more for the community for every candles sold altered season
provides a meal to an American in need through feeding America.
3. BEN & JERRY’S
Ben & Jerry’s founders Ben Cohen and Jerry Greenfield have infused the company with
the notions of giving back in every way possible, as well as “linked prosperity” between the
company, its employees, and the community.
4. BURT’S BEES
The focus for Burt’s Bees has always been on well-being and “the greater good.” As part
of the Natural Products Association, the company helped develop the Natural Standard for
Personal Care Products, which created guidelines for what can be deemed natural.
5. CHARITABLE AGENTS
Anyone who’s sold or purchased a home knows how cutthroat real estate agencies can be
about their commissions and fees. But what if you knew that part of that commission was going
to support your favorite charity? With Charitable Agents, a network committed to helping
homeowners and Realtors make a positive impact in their community, you can do just that.
6. CHILDREN INSPIRE DESIGN
Artist and mother Rebecca Peragine began selling her whimsical wall art cards, and posters
to promote environmental education for children.
7. COLE AND PARKER
This Canada-based sock company does more than just sell colorful footwear. Through its
partnership with microfinance organization Kiva, Cole, and Parker donates proceeds from every
sock sale to a fund that is used to provide small loans to entrepreneurs in developing countries
(Taylor, 2015)
Disclaimer: This module is adapted and modified from the source materials listed in the references list. This is
an exclusive property of Philippine Christian University-Dasmariñas SHS and is provided only to enrolled
students for their academic use. This module is provided for free by the school through softcopy and/or printed
media. Reproduction of this module without official permission is prohibited.
8. DO GOOD BUY US
The mission of Do-Good Buy Us is to sell “goods that do good.” This e-commerce website
is dedicated to changing consumerism by selling products made by organization that support
social causes.
9. FASHION PROJECT
If you’ve ever donated some old clothes by dropping them into a public collection bin, you
know that it’s nearly impossible to discover the impact your donation may have had, Fashion
Project, a “re-commerce” platform that allows consumers to donate and shop for second-hand
clothes, offers people the opportunity to make a tangible difference with their donations, and
purchases.
10. GENERAL ELECTRIC (GE)
To stay true to GE’s mission, Ecomagination offerings include products that significantly
and measurably improve customers’ operating performance or value proposition and
environmental performance.
11. GIFT OF HAPPINESS
Donating a portion of your sales to charity is a popular way for retailers to get involved in
corporate social responsibility (CSR). Gift of Happiness has put its own spin on this approach,
donating 5 percent of every purchase to the listed charity of the customer’s choice. But what
makes this cause-centric marketplace truly unique is its transparent follow-through: Every
charity has a “progress bar,” and customers can check back to see how much closer their favorite
causes are to reach their funding goals (Taylor, 2015).
12. GOOGLE
For many people, their first exposure to a corporation working for “good” was related to
Google. The search giant has made aggressive moves on multiple fronts toward good citizenship,
but it is clear that, as one of the world’s largest corporations, every single effort is paying off. For
example, Google Green is a corporate effort to use resources efficiently and support renewable
power.
Disclaimer: This module is adapted and modified from the source materials listed in the references list. This is
an exclusive property of Philippine Christian University-Dasmariñas SHS and is provided only to enrolled
students for their academic use. This module is provided for free by the school through softcopy and/or printed
media. Reproduction of this module without official permission is prohibited.
13. HEADBANDS OF HOPE
After a life-changing internship at the Make-A-Wish Foundation Jessica Ekstorm decided
she wanted to continue helping children with life-threatening illnesses by starting her own
business. her company, Headbands of Hope, sells made-in-the-US.
14. HERO FARM
Founded by two laid-off advertising executives, HERO farm is a social mission-focused
marketing an design agency whose philosophy is “DO great work for good people”.
15. IMAGE OUTFITTERS
Since its launch in 1998, promotional products manufacturer Image Outfitters has made
annual donations to local charities. Last year, the company changed its sales model after seeing
how adversely the economic downturn affected these organizations.
FRAMEWORKS OF SOCIALLY RESPONSIBLE BUSINESSES
Reputation has released its annual global (CSR) RepTrak 100 which highlights the
companies that have the best reputation for corporate social responsibility among the general
public in 15 countries google top that ranking for the second year in a row with a significant lead
over all other companies in the ranking.
Companies with the top 10 corporate social responsibility (CSR) reputations
globally in 2015 are:
1. Google
2. BMW
3. The Walt Disney Company
4. Microsoft
5. Daimer
6. LEGO
7. Apple
8. Intel
9. Rolls-Royce Aerospace
10. Rolex
Disclaimer: This module is adapted and modified from the source materials listed in the references list. This is
an exclusive property of Philippine Christian University-Dasmariñas SHS and is provided only to enrolled
students for their academic use. This module is provided for free by the school through softcopy and/or printed
media. Reproduction of this module without official permission is prohibited.
GOOGLE’S CSR FRAMEWORK
Google stakeholders are diverse because of the company's wide array of products the
company's diversification into its original product such as google search as well as recent product
like google class and google fiber internet and cable television service the firm stakeholder
conform different groups impacted to these varied businesses to maintain its leadership as an
innovative technology fear google must address the interest of each stakeholder through suitable
corporate social responsibility policies.
GOOGLE’S STAKEHOLDER GROUPS
google has many stakeholders but they can be grouped based on shared interests many of
the companies CSR programs are directed towards the stakeholder groups google considers the
following as the most significant stakeholders:
A. Users
B. Employees
C. Advertisers and other customers
D. Investors
E. Governments
F. Communities
The list above is arranged to indicate the priority or importance of the stakeholders based on
Google’s CSR efforts. These stakeholders affect the company by pushing for the satisfaction of
their interests. Google considers users as the most significant in terms of their effect on the firm.
a. Users: Google’s Top-Priority Stakeholders
Users are individuals and organizations that use Google’s product. In general, these
stakeholders do not necessarily pay the company. For example, users include people who use
Google’s search engine and Chrome.
b. Employees
Employees are the second priority among Google’s stakeholders. Employees are interested
in proper compensation and a rewarding experience in working for the company. This
stakeholder group is important because they define the company’s capabilities, such as the
capability to innovate rapidly.
Disclaimer: This module is adapted and modified from the source materials listed in the references list. This is
an exclusive property of Philippine Christian University-Dasmariñas SHS and is provided only to enrolled
students for their academic use. This module is provided for free by the school through softcopy and/or printed
media. Reproduction of this module without official permission is prohibited.
c. Advertisers and Other Customers
Google’s success is based on the ability of the firm’s CSR efforts to satisfy the needs of
advertisers and other customers as a stakeholder group. Advertisers are the main source of the
company’s revenues. These stakeholders are interested in getting effective services, such as
effective online advertising campaigns. Advertisers and other customers are an important
stakeholder group because they directly determine Google’s financial performance.
d. Investors
Since it went public in 2004, Google now considers investors as a major stakeholder
group influencing CSR activities. Investors are interested in ensuring that Google grows its
profits. Investors are important stakeholders because they determine the availability of capital
that the company uses in its business.
e. Governments
They are a major stakeholder group. They affect Google through regulations. The
company deals with many governments because its business global. As stakeholders,
governments are interested in ensuring Google’s regulatory compliance. These stakeholders are
important because they can approve or prohibit Google’s business operations in their
jurisdictions.
f. Communities
Communities are also stakeholder’s in Google’s business. They are interested in direct or
indirect benefits that they get from the company. Theoretically, firms can benefit communities
through charity programs, philanthropy, and related activities. Communities are important
stakeholders because they can affect customer’s perception and response to Google’s products.
NIKON’S CSR FRAMEWORK
The Nikon group has established a basic approach to corporate social responsibilities
founded on its corporate philosophy of “Trustworthiness and Creativity”.
a. The Nikon’s Group Approach to CSR
For Nikon Group, fulfilling CSR means embodying our corporate philosophy:
“Trustworthiness and Creativity”. We seek to contribute to the sustainable development of
society by responding to the trust that society places in us, and creating new value that exceeds
expectations.
They are also working to increase CSR awareness among each and every employee
through the Nikon CSR Charter, which is Nikon Group’s basic policy on social responsibility,
and the Nikon Code of Conduct, which guides our behavior in daily business activity.
Disclaimer: This module is adapted and modified from the source materials listed in the references list. This is
an exclusive property of Philippine Christian University-Dasmariñas SHS and is provided only to enrolled
students for their academic use. This module is provided for free by the school through softcopy and/or printed
media. Reproduction of this module without official permission is prohibited.
b. Nikon Corporate Social Responsibility (CSR) Charter
1. Sound Corporate Activities
The Nikon Group endeavors to comply with international regulations, related laws, and
internal rules, exercise sound, and fair corporate practices, earn the trust of stakeholders such as
customers, stakeholders, employees, business partners, and society. The group will maintain
constructive relationship with administrative bodies, remaining politically neutral and complying
with laws, and will not engage in relationships with individuals or groups that threaten social
order or safety.
2. Provision of Valuable Goods and Services for Society
The Nikon Group will provide valuable products and services with superior quality and
safety to society, endeavoring to increase the satisfaction and trust of our customers and
contributing to the healthy development of society.
3. Respect for Human Beings
The Nikon Group will respect diversity and individual human rights and provide a
healthy and safe working environment in which all persons receive fair treatment without
discrimination. It will also oppose enforced labor and child labor and respect fundamental rights
as well as worker’s rights.
4. Protection of the Natural Environment
The Nikon Group will proactively engage In environmental efforts and work to protect
the natural environment, as these are common issues for all of mankind.
5. Responsibility to Society as a Corporate Citizen
The Nikon Group will carry out corporate activities that take into account the cultures
and practices of each country and region and proactively engage in activities that contribute to
society as a good corporate citizen.
6. Socially responsible Behavior within the Supply Chain
The Nikon Group will encourage socially responsible behavior within its supply chain.
7. Transparent Operating Activities
The Nikon Group will communicate extensively with customers, stakeholders,
employees, business partners, and society and disclose business information in a timely and fair
manner. It will also conduct reliable financial reporting through accurate accounting processes.
8. Responsibility of Top Management
Top management and employees positions within each department must understand that
they play an essential role in fulfilling the spirit of this Charter and thus, in addition to leading by
Disclaimer: This module is adapted and modified from the source materials listed in the references list. This is
an exclusive property of Philippine Christian University-Dasmariñas SHS and is provided only to enrolled
students for their academic use. This module is provided for free by the school through softcopy and/or printed
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example, they must ensure that this information is disseminated to everyone on the Group and all
related parties. Management must always strive to understand the opinions of those both inside
and outside of Nikon to develop a sound internal framework that ensures that the spirit of this
Charter is upheld. If any incident occurs that violates this Charter, top management will
demonstrate, internally and externally, their determination to solve the problem and strive to
identify the cause and prevent its recurrence. Furthermore, they will uphold information
disclosure and accountability obligations. Hey will clarify the authority and responsibility of
each manager and employee and deal rigorously and objectively with all people involved in the
matter, including top management.
TOTAL CORPORATE SOCIAL RESPONSIBILITY FRAMEWORK
Here is a model for evaluating on organization’s social performance. The model indicates
that total corporate social responsibility can be subdivided into four criteria; Economic, Legal,
Ethical, and Discretionary Responsibilities.
Discretionary responsibility
contribute to the
community and quality of
life
Ethical Responsibility
(Be ethical do what is right avoid harm)
Legal Responsibility
(obey the law)
Economic Responsibility
(Be Profitable)
a. Economic Res
ponsibilities:
The first criterion of social responsibility is Economic Responsibility. The
business institution is, above all, the basic economic unit of society. Its responsibility is to
produce goods and services that a society wants and maximize profit for its owners and
shareholders. Economic responsibilities, carried to the extreme, are called profitmaximizing view; it was advocated by Nobel economist Milton Friedman. This view
argued that a company should be operated on a profit-oriented basis, with its sole mission
to increase its profits so long as is stays within the rule of the game.
Disclaimer: This module is adapted and modified from the source materials listed in the references list. This is
an exclusive property of Philippine Christian University-Dasmariñas SHS and is provided only to enrolled
students for their academic use. This module is provided for free by the school through softcopy and/or printed
media. Reproduction of this module without official permission is prohibited.
The purely profit-maximizing view is no longer considered an adequate criterion
of performance in the world in general. Treating economic gain in the social as the only
social responsibility can lead companies into trouble.
b. Legal responsibilities
All modern societies lay down ground rules, laws and regulations that businesses
are expected to follow. Legal responsibility defines what society deems as important with
respect to appropriate corporate behavior. Businesses are expected to fulfill their
economic goals within the legal framework. Legal requirements are imposed by local
councils, state and federal governments and their regulating agencies. Organizations that
knowingly break the law are poor performers in this category. Intentionally
manufacturing defective goods or billing a client for work not done is illegal. Legal
sanctions may include embarrassing public apologies or corporate ‘confessions.
c. Ethical Responsibilities
This includes behavior that is not necessarily codified into law and may not serve
the organization’s direct economic interests. To be ethical, organization’s decision makers
should act with equity, fairness, and impartiality, respect the rights of individuals, and
provide different treatments of individual only when differences between them are
relevant to the organization’s goal and tasks. Unethical behavior occurs when decisions
enable an individual or organization to gain expense of society.
d. Discretionary Responsibility
It is purely voluntary and guided by an organization’s desire to make social
contributions not mandated by economics, laws, or ethics. Discretionary activities include
generous philanthropic contributions that offer no payback to the organization and are not
expected. Discretionary responsibility is the highest criterion of social responsibility
because it goes beyond societal expectations to contribute to the community’s welfare.
THE FOUR-WAY TEST FRAMEWORK
The FOUR-WAY TEST is the exemplary Framework of Corporate Social
Responsibility. This framework has been used and emphasized by several public service
organizations in the US and other countries for many years. It is short and simple but has
broad application to all types of organizational activities. Labor and contract negotiators
have found the Four Way Test especially useful as a set of overall guiding principles.
The four points can provide guidelines to be followed and used as a test for any
decisions or action. In a given situation, all of these guidelines may not be entirely
satisfactory but they do provide a set of useful criteria that are easily remembered. The
Disclaimer: This module is adapted and modified from the source materials listed in the references list. This is
an exclusive property of Philippine Christian University-Dasmariñas SHS and is provided only to enrolled
students for their academic use. This module is provided for free by the school through softcopy and/or printed
media. Reproduction of this module without official permission is prohibited.
more the individual strives to use these guidelines, the more salient they become to his or
her choice.
Herbert J. Taylor promoted these Four-Way Test:
1. Is it the truth?
2. Is it fair to all concerned?
3. Will it build goodwill and better friendships?
4. Will it be beneficial to all concerned?
CRITERIA FOR ETHICAL DECISION MAKING
Making ethical dilemmas involve conflict between the needs of the part and of the
whole the individual versus the organization or the organization versus society as a whole.
The major tests of every move in business, as in all games of strategy, are legality
and profit. The business strategist’s decisions must be as impersonal as those of a surgeon
performing an operation – concentrating on objective and technique, and subordinating
personal feelings.
•
•
If the chief executive admits that his son-in-law owns the stock, it is because he
stands to lose more if the fact comes out later than if he states it boldly and at
once.
If the supermarket manager orders the rotten tomatoes to be discarded, he does so
to avoid an increase in consumer complaints and a loss of goodwill.
All sensible businessmen prefer to be truthful, but they seldom feel inclined to tell
the whole truth. In the business game, truth-telling usually has to be kept within
narrow limits if trouble is to be avoided.
Managers faced with these kinds of tough ethical choices often benefit from a
normative strategy – one based on norms and values – to guide their decision making.
Normative ethics uses several approaches to describe values for guiding ethical decision
making. Four of these approaches that are relevant to managers are:
a. Utilitarian Approach
The ethical concept that moral behaviors produce the greatest good to the greatest
number. Under this approach, a decision maker is expected to consider the effect of each
decision alternative on all parties and select the one that optimizes the satisfaction of the
greatest number of people.
Disclaimer: This module is adapted and modified from the source materials listed in the references list. This is
an exclusive property of Philippine Christian University-Dasmariñas SHS and is provided only to enrolled
students for their academic use. This module is provided for free by the school through softcopy and/or printed
media. Reproduction of this module without official permission is prohibited.
b. Individualism Approach
The ethical concept that acts are moral if they promote the individual’s best longterm interests which ultimately leads to greater good. Because individualism is easily
misinterpreted to support immediate self-gain, it is not popular in highly organized and
group-oriented society today.
c. Moral-Rights Approach
The ethical concept that moral decisions are those that best maintains the rights of
those people affected by them.
Six Moral Rights should be considered during the decision making:
1. The right of free consent. Individuals are to be treated only as they knowingly
and freely consent to be treated.
2. The right of privacy. Individuals can choose to do as they please away from
work and have control over their private life.
3. The right of freedom of conscience. Individuals may refrain from carrying out
any order that validates their moral or religious norms.
4. The right of free speech. Individuals may criticize truthfully the ethics or
legality of actions of others.
5. The right of due process. Individuals have the right to an impartial hearing and
fair treatment
6. The right to life and safety. Individuals have the right to live without
endangerment or violation of their healthy and safety.
d. Justice Approach
The ethical concept that moral decisions must be based on standards of equity,
fairness, and impartiality.
Disclaimer: This module is adapted and modified from the source materials listed in the references list. This is
an exclusive property of Philippine Christian University-Dasmariñas SHS and is provided only to enrolled
students for their academic use. This module is provided for free by the school through softcopy and/or printed
media. Reproduction of this module without official permission is prohibited.
Activity #1
Name:________________________
Strand/Section:______________
INDIVIDUAL RESEARCH
Cite examples of at least 5 companies in the country or in your locality that practices social
responsibility in the conduct of their business. Describe in details those practices. (50pts)
1. Name of Company:
Conduct Business:
2. Name of Company:
Conduct Business:
3. Name of Company:
Conduct Business:
4. Name of Company:
Conduct Business:
5. Name of Company:
Conduct Business:
Reflection:
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
Disclaimer: This module is adapted and modified from the source materials listed in the references list. This is
an exclusive property of Philippine Christian University-Dasmariñas SHS and is provided only to enrolled
students for their academic use. This module is provided for free by the school through softcopy and/or printed
media. Reproduction of this module without official permission is prohibited.
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Disclaimer: This module is adapted and modified from the source materials listed in the references list. This is
an exclusive property of Philippine Christian University-Dasmariñas SHS and is provided only to enrolled
students for their academic use. This module is provided for free by the school through softcopy and/or printed
media. Reproduction of this module without official permission is prohibited.
Prepared by:
Checked by:
Noted by:
Ms. Excel Arididon, LPT
Dr. Mario S. Mecate, Ph.D
Ms. Precious Cortez
Ms. Coleen Cabrera
Disclaimer: This module is adapted and modified from the source materials listed in the references list. This is
an exclusive property of Philippine Christian University-Dasmariñas SHS and is provided only to enrolled
students for their academic use. This module is provided for free by the school through softcopy and/or printed
media. Reproduction of this module without official permission is prohibited.