Why "corporate" in CSR? • CSR specifically focuses on corporation most commonly used for large, established corporations due to their significant impact on society due to their size, reach, and resource consumption, Corporations face greater public scrutiny or examination for their actions and environmental footprint) While social responsibility is applicable sa tanan business. • Sustainable business practices, Triple bottom line (considering social, environmental, and economic impact), Social impact business. • Social Responsi. : individual and organizational responsibilities or obligations for the benefit of society. It's about considering the impact of your actions on others and the world around you . • Corporate Social Responsibility (CSR) encompasses the initiatives a company undertakes to manage its impact on society and the environment. While CSR can bring numerous benefits, it also presents challenges and potential drawbacks. Improves the Image of a Company • goodwill, positive reputation and customer loyalty. It's an intangible asset, meaning it has no physical form but contributes to a company's value) • CSR activities can significantly enhance the public perception of a company (how a customer feels about a company like their thoughts, emotions, and opinions related to a brand). • By engaging in initiatives that benefit society, the environment, or both, a company can create a positive image that attracts consumers. (It will not only bolster the comp. value and image but also it will create more profit for the corporation.) • When a company is seen as socially responsible, it builds trust and loyalty among its customers. • Jollibee, a beloved fast-food chain in the Philippines and other parts of the world, has also engaged in several CSR activities that have enhanced its image. • Environmental Initiatives: Jollibee has implemented various programs to reduce its environmental impact, wherein it promotes recycling and waste reduction in its operations. Jollibee also collaborates with environmental organizations to support tree-planting initiatives and other sustainability projects. The Department of Environment and Natural Resources (DENR) signed a memorandum of understanding with the Jollibee Foods Corp. (JFC) and the Jollibee Group Foundation (JGF) Inc. for the reforestation of mangrove areas and promotion of sustainability in various communities where the fast food chain is located. These efforts help position Jollibee as a company that cares about the environment, appealing to, eco-conscious consumers. • Community Development: Jollibee’s corporate foundation, the Jollibee Group Foundation, runs several programs aimed at community development. The foundation’s initiatives include providing scholarships, supporting farmers through the Farmer Entrepreneurship Program, and offering disaster relief assistance. By investing in community development, Jollibee builds a positive image as a company committed to social progress and helping those in need. • Jollibee’s CSR initiatives in environmental sustainability, community development, and employee engagement have significantly enhanced its image. These efforts demonstrate the company’s dedication to making a positive impact on society and the environment, attracting consumers who value corporate responsibility. Helps Attract and Retain Potential Employees • CSR activities make a company more attractive to potential employees who value social and environmental responsibility, enhance employee engagement and satisfaction, and retain talented staff. Job seekers often look for employers who reflect their own values and ethics. Companies that are committed to social and environmental causes can stand out in the job market. Additionally, existing employees are more likely to stay with a company that they feel is making a positive impact on society, leading to higher retention rates. • • • • Google: Google’s strong CSR initiatives, such as its commitment to renewable energy and improving educational access, make it a highly attractive employer. The company’s efforts in CSR have contributed to its reputation as one of the best places to work, helping it attract top talent. Ayala Corporation, one of the largest conglomerates in the Philippines, is known for its strong CSR initiatives. Ayala engages in various social development programs, including education, health, and disaster response, enhancing its reputation and making it an attractive employer. SM Investments Corporation focuses on sustainability and community support through its SM Foundation. The foundation's programs in education, health, and disaster relief attract employees who value social responsibility and community service. Companies like Ayala Corporation, SM Investments Corporation, and Google illustrate how effective CSR initiatives can create a positive and attractive workplace for current and future employees. Attracts New Investors • A company's reputation in the market plays a crucial role in attracting new investments. Engaging in CSR programs can significantly enhance a company's image and reputation. When a company is known for its responsible and ethical practices, it becomes more appealing to investors. As the company gains positive attention and visibility through its CSR activities, it attracts investment from entities or individuals.(Mostly likely kapag ang isa ka corpo. Mag tabang sa community or environment maganahan ang mga possible nga kasi Maganda ang ginagawa or impact sa activities sa corpo. especially mag increase kasi ang income ana sa business so probable taas ang balik na pera sa ilaha kapag mag delare na ang corpo. ug dividends) • Ayala Corporation, one of the oldest and largest conglomerates in the Philippines, has a strong focus on CSR through its Ayala Foundation. The foundation’s programs in education, youth leadership, sustainable livelihood, and disaster resilience have greatly enhanced Ayala’s reputation. This positive image attracts investors who are looking for companies committed to sustainable and ethical practices. A Brand New Way to Advertise Your Brand • CSR programs can serve as an effective way to advertise your brand. When a company engages in CSR activities, it gains a certain level of publicity, which can be seen as a form of advertisement (more likely kapag ma post sya sa mga newspapers or social media wherein people could witness or see kung ano ang Magandang ginawa ng corpo. isa sya ka way para itangkilik ang corpo. both product and services.) This type of publicity not only promotes the company but also aligns its products or services with its CSR initiatives, creating a positive association in the minds of consumers. • Jollibee Foods Corporation, a leading fast-food chain in the Philippines, uses its CSR programs to enhance its brand image. Through the Jollibee Group Foundation, the company runs various community programs such as the “Busog, Lusog, Talino” (BLT) feeding program for schoolchildren and disaster relief operations. These initiatives receive significant media coverage and public attention, effectively serving as a form of advertisement that highlights Jollibee’s commitment to social responsibility. (Mr. beast) Shift in Profit-making Objective • CSR initiatives often require companies to invest resources and effort into social or environmental goals. This investment can sometimes divert attention and resources away from maximizing profits, which is the primary objective of businesses. Economist Milton Friedman argued that the main responsibility of a business is to maximize profits for its shareholders, while still operating within legal and ethical boundaries. According to him, pursuing CSR initiatives like environmental protection or social programs meant spending shareholder money on something other than profit generation. He saw this as a form of overreach by corporate executives. He believed that the market itself, through consumer choices and government regulations, was a more efficient way to • address social and environmental issues. Hence, CSR activities divert from this core responsibility. When companies prioritize CSR too heavily, it may lead to missed opportunities for profit maximization or reduced competitiveness in the market. This shift in focus can affect strategic decision-making and long-term financial performance. A lot of criticism prevails with friedman’s view about CSR such as kapag mag focus lang ang corpo. sa generation of profits gina ignore niya ang broader impact sa companies sa society and environment.(so its seems that negative ang opinion Hamper Company Reputation • Implementing CSR can require companies to be transparent about their practices, including any shortcomings or issues with their products or operations. While transparency is generally positive, it can also expose flaws or ethical lapses that could damage a company's reputation. For example, if a CSR initiative reveals environmental damage dahil sa company's operations or quality issues with its products, customers, and stakeholders may view the company less favorably. Managing these risks requires careful communication and proactive management of CSR initiatives to ensure they improve rather than detract from the company's reputation. • Volkswagen faced a major scandal in 2015 when it was revealed that the company had installed software known as "defeat devices” in diesel engines to cheat emissions tests and the cars emitted pollutants far above legal limits. The scandal came to light when researchers and regulators discovered discrepancies between Volkswagen's emissions levels in real-world driving conditions and during testing. This revelation led to investigations by environmental authorities in several countries, including the United States, where the issue was initially uncovered. This deception not only harmed the environment but also damaged Volkswagen's reputation for trustworthiness, honesty, environmental responsibility, and adherence to regulations. It undermined consumer confidence in the brand and it faced significant legal and financial consequences. The company had to pay billions of dollars in fines, settlements, and compensation, and its stock value and affected sales globally. (Not only about making a difference to….Be transparent, honest, fair, accountable) Customer Impatience with Delayed Results • Adopting CSR initiatives initially boosts a company's reputation by associating it with a good cause. However, if the expected results from these initiatives are not seen quickly, customers and stakeholders might perceive CSR efforts as mere public relations tactics rather than genuine commitments. This could potentially harm the company's reputation in the long run. • In the past or early 2000s, Nike faced criticism for delayed progress in addressing labor practices in its overseas factories despite CSR commitments. Customers and stakeholders expressed impatience when improvements were slower than expected. Despite committing to improving working conditions and sustainability in their supply chain, the pace of progress has often been slower than expected. This delay has led to criticism that Nike's CSR efforts might be more about reputation management than genuine change. Sudden Rise in Production Costs • Engaging in CSR activities often requires financial investments, which can increase the overall cost of production for a company. When these costs are passed on to consumers through higher product prices, it can lead to dissatisfaction among customers. Large corporations might absorb these costs more easily, but smaller businesses could struggle to remain competitive. • Tesla, known for its innovative electric vehicles and commitment to sustainability, has also faced challenges related to CSR initiatives leading to increased production costs. Elon Musk, CEO of Tesla, has emphasized the company's goal of accelerating the world's transition to sustainable energy. This commitment includes investments in renewable energy sources, battery technology, and environmentally friendly production methods. • • • However, these initiatives come with significant costs. For instance, Tesla's investment in Gigafactories for battery production and solar energy projects has required substantial capital expenditures. These costs contribute to the higher price tags of Tesla's electric vehicles, which can limit accessibility and affordability for some customers. Despite these challenges, Tesla continues to push forward with its mission to make sustainable transportation and energy solutions more accessible globally. The balance between innovation, sustainability, and cost-effectiveness remains a crucial aspect of Tesla's CSR strategy. In conclusion, while CSR initiatives offer significant benefits, such as enhancing brand reputation and fostering goodwill, they also present challenges like customer impatience with delayed results and increased production costs, especially for smaller businesses. These factors need to be carefully considered and managed to ensure sustainable implementation of CSR strategies.
