A Written Report on Corporate Social Responsibility

By: BSAN 2A Group 3

SICAT, RIOROSE S.
THE CONCEPT OF CORPORATE SOCIAL RESPONSIBILITY
Corporate Social Responsibility or CSR refers to the need of the business to be good
corporate citizens. CSR involves going beyond the law’s requirements in protecting the
environment and contributing to social welfare. It is widely accepted as an obligation of modern
business.

Mass off layoffs and record profits at the same time, manager salaries, security of natural
resources and imminent climate catastrophe, morally questionable advertising, child labor,
corporate fraud, financial crisis and the occupy “WALL STREET MOVEMENT”. These are just
few issues you just heared about under the topic of sustainability. These things are dealing with
the purpose of Business Ethics and Corporate Social Responsibility.

CSR is a management concept where companies combine social and environmental concern
with their business. It is generally understood as being the way through which a company
achieves a balance of enviornment, economy and social factors. When company are trying to be
corporately and socially responsinble, they are aiming to achieve the triple bottom line, the triple
bottom line includes ENVIRONMENTAL, which is not harming the environment, SOCIAL,
giving back to community or charity And three divisions also called as the 3PS which is
PLANET, PEOPLE, PROFIT.

KEY TAKEAWAYS:
 CSR goes beyond earning money for shareholders
 It is concerned with protecting the interest of all stakeholders, such as employees,
customers, suppliers, and the communities in which businesses operate.
EXAMPLES OF CORPORATE SOCIAL RESPONSIBILITY
 Adopting humane employee practices.
 Caring for environment.
 Engaging in Philanthropic endeavors.
PURPOSE OF CSR
 To identify and improve impact on society and environment.
 Brand enhancement - increase the popularity of the company market differentiation.
 Market Differentiation- being different from other companies.
 Employee satisfaction- having a good relationship with workers.
CAROLL’S 4 PART PYRAMID OF CSR
 PHILANTHROPIC- good corporate citizen.
 ETHICAL- To do what is right and fair.
 LEGAL- Abide by laws.
 ECONOMIC- Maximize shareholder returns.

ADVANTAGES REPUTATION- CSR can help the reputation of the company reduce their
risks and help improve their business methods.
RESPECT- It can teach workers to respect current customers, the society and the environment.
It is a great way to raise morale in the workplace.
RELATIONSHIPS- attract the customers towards the company. This will lead to more profit of
the company. It can also help in establishing a deeper relationship for customers

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A Written Report on Corporate Social Responsibility
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DISADVANTAGES
NOT HELPING THE ENVIRONMENT- mismanagement of CSR can lead to companies
claiming to be helping the environment and community but could be lying and not actually
doing what they claimed to be doing.
COST NOT FAIR- cost of CSR are not fair for smaller businesses as they cannot always afford
to take action to help their community.

VALDOZ, AMOR YVETTE A.

FOUR CATEGORIES OF CORPORATE SOCIAL RESPONSIBILITY
1. Philanthropic Responsibility
 Philanthropic responsibility means to serve humanity.
 This criterion pays attention to the well-being of the unprivileged or needy people. They
badly need a support to live in this world.
2. Environmental Responsibility
 Environmental responsibilities aim at limiting pollution and reducing greenhouse gases.
Companies are bound to fulfill their environmental responsibility because awareness of
environmental issues is growing largely among the consumers and today, they want
business to take necessary steps to save our planet.

HUERTE, JALLANA P.
FOUR CATEGORIES OF CORPORATE SOCIAL RESPONSIBILITY (Cont.)
3. Human rights responsibility

Human rights responsibility initiatives involve providing fair labor practices (e.g., equal
pay for equal work) and fair-trade practices, and disavowing child labor.

4. Economic responsibility

Economic responsibility initiatives involve improving the firm’s business operation

while participating in sustainable practices – for example, using a new manufacturing process to
minimize wastage.

CO, ANDREA MARTHA ISOBEL L.

ASSESSMENT ON THE PRACTICE OF CORPORATE SOCIAL RESPONSIBILITY

Orthodoxy - the correct policy

Orthopraxy - the best practice

CSR ASSESSMENT
- is an evaluation of how well a company has integrated the principles of CSR into their
business.
- the first step in the “planning” phase of the CSR implementation framework proposed by
Hohnen and Potts

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A Written Report on Corporate Social Responsibility
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- with regard to CSR ASSESSMENT we need to take into consideration the following:
1. Company’s products and services
2. Decision making process
3. Operational Activities
4. Stakeholders

WHAT IS THE GOAL OF CSR ASSESSMENT

“to collect as much information as possible to move to the next step of developing a new CSR
strategy or making necessary changes to an existing strategy.”

FOUR (4) CSR THEMES

- these are four suggested themes that are essential for the determining the main points for CSR
and its assessment.
a) Environment
b) Labor and Human Rights
c) Ethics
d) Sustainable Procurement
AYALA LAND INC., AND ITS CSR ASPECTS
- Ayala Land Inc., is one of the country’s biggest and most influential company that applies CSR
- has gained various awards involving corporate governance
- was named the “Top CSR Company in the Philippines” in 2019
- applies the GRI or the Global Reporting Initiative that includes how the company manages its
CSR through their pillars and established code of ethics

Environment
•Implementing energy and water conservation programs
•Implementing waste management programs
•Commitment to be carbon neutral by 2022
Labor and Human Rights
•Investing in human capital in communities where we locate
•Prioritizing local hiring
•Allocating space for homegrown business
Ethics
•Anti-Corruption (GRI 205)
•Anti-Competitive Behavior (GRI 206)
Sustainable Procurement
•“To ensure that business partners, suppliers, and service providers maintain the highest
standards of quality and business integrity with its dealing with ALI, acknowledgment of our
Vendor Code of Ethics is set as one of the accreditation requirements.” (GRI 204)

*United Nation’s Sustainable Development Goals can also be used as themes for CSR

FIVE STAGES OF CSR

1.ASSEMBLE A CSR LEADERSHIP TEAM;
2.DEVELOP A WORKING DEFINITION OF CSR;
3.IDENTIFY LEGAL REQUIREMENTS;

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A Written Report on Corporate Social Responsibility
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4.REVIEW CORPORATE DOCUMENTS, PROCESSES AND ACTIVITIES; AND
5.IDENTIFY AND ENGAGE KEY STAKEHOLDERS THROUGH INTERVIEWS,
SURVEYS AND OBSERVATION.

THE BIGGEST CHALLENGE IN CSR

 To implement and sustain

CALAGUE, KRISHA MAE G.

CORPORATE CITIZENSHIP
Corporate citizenship involves the social responsibility of businesses and the extent to which
they meet legal, ethical, and economic responsibilities, as established by shareholders. The goal
is to produce higher standards of living and quality of life for the communities that surround
them and still maintain profitability for stakeholders.
Company shows commitment to Corporate Citizenship by:

 Hiring disabled and other individuals who need work by supporting a diverse workforce
 Supporting non-profits in helping community members find jobs, keep towns clean and
donate to charities across the nation
 Providing accessibility to community stakeholders through installing handicap entrances,
ride restraints, holding open door meetings and asking for customer feedback daily

BENEFITS OF CORPORATE CITIZENSHIP

Excellent employee relations by increasing company morale, participation,

productivity and retainment: Companies accomplishes this by treating their employees and
community ethically. For instance, employees are participating in numerous charity events, such
as Habitat for Humanity, donating to local food pantries and providing engineering workshops
on ride design to area high schools.

Improved customer relations by treating their customers ethically and

listening to their wants, needs and feedback.

Enhanced marketing occurs because customers are more receptive to ethical

companies and their products. This allows the company to offer prestige pricing, or high
pricing, for entrance to their park due to their reputation, customer service and high quality.

EXAMPLES OF CORPORATE CITIZENSHIP

Hewlett Packard, for example, has invested in digital communities in

Sao Paulo, Brazil, in villages in India and South Africa, and in inner-city Baltimore to create
new market opportunities and promote community economic development. On the business side
of the deal, HP has partnered with local business leaders, community groups, and NGOs to
create web-based services for education, healthcare, and agriculture needs. These efforts, led by
the company’s emerging market solutions team, aim to give HP “first mover” skills, credibility,
and advantage in reaching other emerging markets. On the citizenship side, this is all part of
HP’s “e-inclusion” strategy to reduce the digital divide.

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A Written Report on Corporate Social Responsibility
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Ben & Jerry’s and Patagonia are example among many companies that
make social and environmental activism central to their mission and appeal to consumers. Ben &
Jerry’s credo speaks of an economic, product, and social mission and its product manufacture,
packaging, and marketing all designed for green consumers. The cause-related marketing of the
eco-friendly products of Patagonia give credence to the maxim that you can both “do good” and
“do well.”

FIVE (5) STAGES OF CORPORATE CITIZENSHIP

Mirvis and Googins have identified five stages of corporate citizenship --

elementary, engaged, innovative, integrated and transforming which represents the "distinct
patterns of activity at different points of development."
ELEMENTARY STAGE
Also known as the compliant stage, the citizenship activities in the
elementary stage are undefined because there is not enough corporate awareness and scant
senior management involvement. Small businesses, for example, usually comply with the
applicable health, safety and environmental laws, but have neither the time nor the resources
to get involved in other community and employee development activities.
ENGAGED STAGE
In the engaged stage, policies are developed for employees and managers
to participate in activities that go beyond rudimentary compliance. Senior management becomes
more actively involved by developing corporate-wide policies and tasking management at all
levels to perform to higher standards of corporate citizenship.
INNOVATIVE STAGE
Corporate citizenship policies are more comprehensive in the innovative
stage. Innovation and learning are achieved through increased stakeholder consultations and
participation in forums and conferences. Corporate citizenship programs are funded and
launched, usually at the functional level and with the support of senior management. There is
some measure of transparency as companies monitor their community involvement and issue
public reports.
INTEGRATED STAGES
Corporations incorporate and formalize citizenship activities in the
integrated stage. By monitoring performance through scorecards and indicators, corporations
"drive citizenship into their lines of business," according to Googins and Mirvis. The boards of
directors of public companies might be involved in monitoring performance by setting up
special board-level corporate citizenship committees. Other formal efforts to integrate
citizenship activities include stakeholder consultations and formal training.

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A Written Report on Corporate Social Responsibility
By: BSAN 2A Group 3
TRANSFORMING STAGE
At this stage, companies rarely operate solo in the social and
environmental fields. They work closely with other businesses, community groups and NGOs to
tackle problems, reach new markets and develop local economies.
Companies in the transforming stage have realized that corporate
citizenship makes strategic sense in developing new markets and driving sales growth.
Multinational corporations strive to become better global citizens in the transforming stage.
For example, drug companies, such as Merck and Novartis, donate or offer discounted drugs
to developing nations.

GALANG, EDEN KAYE D.

CORPORATE PHILANTHROPY

Corporate philanthropy is the act of a corporation or business promoting the welfare of others,
generally through charitable donations of funds or time.
It involves the act of donating to a charity or a foundation whose mission is to fight a cause and
deliver social impact. The donations can consist of monetary help as well as in-kind
contribution.
Types of Corporate Philanthropy
 Matching Gifts
Matching gifts are the most popular form of corporate philanthropy. Companies
with matching gift programs donate the same amount of money (or double or triple this
amount!) to the same nonprofits that their employees do.
 Volunteer Grants
Volunteer grants are second only to matching gifts in popularity. These corporate
philanthropy programs match employees’ volunteer hours with donations to those
nonprofits.
• Employee Grant Stipends
Some corporations will award grants to employees to donate to the nonprofit of their
choice. While these programs are less common than matching gift or volunteer grant
programs, they are impactful for the nonprofits that benefit from them.
• Community Grants
Companies, not employees, are the ones who initiate community grants. Nonprofits can
apply to companies with these programs in place to explain why their organization’s mission
would benefit from the grant money.

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A Written Report on Corporate Social Responsibility
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• Volunteer Support Initiatives
• Corporate philanthropy isn’t always about donating money. With volunteer support
initiatives, companies partner their employees with nonprofits to provide specialized
support only that company can provide.
• Corporate Sponsorships
• Companies frequently give financial support to a nonprofit to help further their mission.
The nonprofit will then recognize this by acknowledging that the business has supported
their activities, programs, and/or larger events.
How can corporate philanthropy help nonprofits?
• Corporate philanthropy helps nonprofits through various methods of support, such as
corporate matching gift programs and volunteer grants. The impact of donations and
volunteering for nonprofits can be drastically increased with the help of corporate
programs.
Corporate philanthropy example
• To have a better idea of what corporate philanthropy looks like, corporate giving
programs made by other companies are the best starting point.
• One of the best is Apple’s. The company has given 78 million dollars to charities
through matching gifts and volunteer employee programs. Per year, each employee gives
10 thousand of dollars to charities. That’s a lot. This is improving efficiently Apple’s
brand image.
Why is Corporate Philanthropy Important?
• Becoming familiar with corporate philanthropy is important, especially for nonprofits
and corporations. It encourages employee giving, which has a positive impact on
nonprofits and society, and benefits businesses by helping them reach their goals.
For example, corporate philanthropy can lead to:
Positive Work Environment
• Bringing employees together to participate in team volunteer grants or other team
programs encourages everyone to see themselves as part of the greater community. This
feeling of community then benefits the greater social good.
Increased Employee Engagement
• Companies with engaged employees who enjoy their jobs outperform companies with
disengaged workers by up to 202%! Collective participation in philanthropy engages
employees with each other.

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A Written Report on Corporate Social Responsibility
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Positive Public Image
Partnering with a nonprofit provides corporations the opportunity to publicly show their
communities how invested they are through press releases, social media, and word of mouth!
Their work then adds to greater social change.
Enhanced Consumer Relationships
• Consumers want to buy from companies that are doing good deeds in the world,
especially those that support causes they care about. By upholding their commitment to
these causes, companies make a huge impact.

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