School of Business and Economics
Department of Business Administration
Cebu City, Philippines
BAC SORE: Good Governance and Social Responsibility
Group 5 (MW 12:00 - 1:30 P.M.)
Group 8
GROUP REPORT
Submitted by:
TORION, Kent Reynald F.
YAP, Lawrence Benedict P.
YBAÑEZ, John Wayne A.
LEYSON, Genesis Joy M.
Submitted to:
Engr. Janet A. Pontevedra, DBA
October 1, 2025
TOPIC: Social Enterprises, Inclusive Business, and Socially Responsible Investing
In today’s business environment, the role of corporations and organizations goes beyond
generating profits. Good governance requires companies to be socially responsible, ethical, and
inclusive in their operations. Businesses are now expected to help address pressing issues such as
poverty, inequality, and environmental degradation. This shift has given rise to different models
that align profit with purpose, such as social enterprises, inclusive business, and socially
responsible investing. Each approach represents a unique way of balancing financial growth with
the greater good of society.
B. Social Enterprises
Definition:
Social enterprises are mission-driven organizations that primarily exist to address social or
environmental challenges while ensuring financial sustainability. Unlike traditional businesses
that focus on profit maximization, social enterprises reinvest most of their earnings back into
their social mission.
Key Characteristics:
● Social mission comes first, while profit sustains the mission.
● Uses business strategies to solve social issues.
● Works directly with marginalized or underserved communities.
Examples in the Philippines:
● Human Nature – produces natural and sustainable personal care products while
supporting local farmers and workers.
● Rags2Riches – empowers women in poor communities by turning scrap cloth into
fashionable bags and accessories.
● Gawad Kalinga Enchanted Farm – incubates social enterprises to create jobs and
livelihood for poor families.
Discussion Point:
Social enterprises show how businesses can be designed to uplift communities and protect the
environment while remaining self-sustaining.
C. Inclusive Business
Definition:
Inclusive businesses are profit-driven corporations that intentionally integrate low-income
communities into their value chains. They provide opportunities for these communities to
participate as suppliers, distributors, workers, or consumers, creating shared value.
Key Characteristics:
● Prioritizes profit and scalability while including the poor in business operations.
● Low-income groups benefit as active stakeholders, not just as beneficiaries.
● Often involves large corporations with strong supply chains.
Examples in the Philippines:
● Nestlé Philippines – partners with smallholder farmers for raw material sourcing,
particularly coffee.
● Jollibee Group Foundation’s Farmer Entrepreneurship Program (FEP) – links farmers
directly as suppliers for Jollibee’s food chain.
● Unilever Philippines – empowers small entrepreneurs and sari-sari store owners through
training and livelihood support.
Discussion Point:
Inclusive business models demonstrate that companies can grow their profits while lifting people
out of poverty, thereby creating a win-win for both business and society.
D. Socially Responsible Investing (SRI)
Definition:
Socially Responsible Investing is the practice of making investment decisions not only on the
basis of profit but also by considering environmental, social, and governance (ESG) standards. It
ensures that money is invested in companies that uphold ethical, sustainable, and responsible
practices. Unlike traditional investing, which focuses solely on maximizing profit, SRI ensures
that capital is directed toward companies and industries that promote ethical, sustainable, and
responsible practices.
Key Characteristics:
● Seeks financial return while promoting positive social or environmental impact.
● Avoids harmful industries like tobacco, gambling, and fossil fuels.
● Encourages companies that demonstrate strong ESG commitments.
● Long-Term Perspective: Focuses on sustainable growth rather than short-term gains.
Examples in the Philippines:
● Ayala Corporation – heavily invests in renewable energy and sustainability projects.
● Aboitiz Power – focuses on clean and renewable energy expansion.
● First Gen Corporation – invests in geothermal, hydro, solar, and wind energy.
Global Example:
● Domini Impact Equity Fund – invests only in companies with responsible and sustainable
practices.
Discussion Point:
SRI proves that investors can earn returns while also contributing to a cleaner, more sustainable,
and ethical economy.
Conclusion
Social enterprises, inclusive businesses, and socially responsible investing reflect the growing
shift in business and governance toward sustainability and social impact. While social enterprises
put social good above profit, inclusive businesses integrate the poor into their value chains while
still prioritizing growth, and SRI encourages investments that benefit both investors and society.
Together, these models prove that business can be a force for good when guided by principles of
responsibility, inclusivity, and sustainability. In practicing good governance, companies are not
only accountable to their shareholders but also to the communities and environments in which
they operate.
True or False Quiz with Answers
1. In today’s business environment, good governance requires companies to be socially
responsible and ethical.
Answer: True
2. Social enterprises exist mainly to maximize profits for shareholders.
Answer: False
3. Social enterprises use business strategies to solve social or environmental issues.
Answer: True
4. In social enterprises, the social mission comes first, while profit sustains the mission.
Answer: True
5. Inclusive businesses are profit-driven but intentionally integrate low-income communities
into their value chains.
Answer: True
6. In inclusive businesses, low-income groups benefit only as passive beneficiaries.
Answer: False
7. Socially Responsible Investing (SRI) considers environmental, social, and governance
(ESG) standards in investment decisions.
Answer: True
8. SRI avoids investing in industries that cause harm, such as tobacco or gambling.
Answer: True
9. The main goal of SRI is to seek financial returns while promoting positive social or
environmental impact.
Answer: True
10.Overall, social enterprises, inclusive businesses, and SRI all represent models of aligning
profit with social responsibility.
Answer: True
0
