ETHICS AND CORPORATE
SOCIAL RESPONSIBILITY
Lesson
6
INTRODUCTION
• Business
community
is
confronted
with
a
great
deal
of
challenges
and
opportuni@es.
• Businesses
are
prodded,
asked
or
encouraged
to
improve
their
business
prac@ces
in
ways
that
respect
ethical
values,
people,
communi@es,
and
the
environment.
INTRODUCTION
• Businesses
recognize
that
aside
from
making
profit,
they
are
morally
obliged
to
become
innova@ve,
compe@@ve,
produc@ve,
and
responsible
members
of
the
society.
• Business
has
a
moral
obliga@on,
even
if
not
legally
required,
to
protect
and
uphold
the
interests
of
their
stakeholders
and
meet
the
tests
of
good
corporate
ci@zenship.
1. THE CONCEPT OF CORPORATE
SOCIAL RESPONSIBILITY
• The
fundamental
reason
for
examining
the
ac@vi@es
of
business
from
the
moral
perspec@ve
is
for
the
promo@on
of
the
common
good,
protec@on
of
the
individual’s
interests,
and
the
preserva@on
of
the
human
society
in
general.
• Without
ethics,
businesses
will
be
chao@c
because
there
will
be
no
understanding
and
agreement
about
what
is
wrong
and
right
in
the
human
conduct.
• Ethics
in
any
field
must
be
rooted
in
a
sense
of
morality
and
jus@ce
that
is
associated
with
human
ac@on.
• Social
responsibility
is
a
moral
obliga@on
of
each
and
every
individual,
ins@tu@on,
business,
and
organiza@on
since
they
all
compose
the
society.
• Businesses
are
beset
with
the
challenge
to
advocate
more
collabora@ons,
with
pressures
to
become
more
transparent
with
stakeholders,
deliver
more
value
for
shareholders,
and
provide
more
opportuni@es
and
security
for
employees.
• Businesses,
especially
big
corpora@ons,
not
only
do
business
by
maximizing
profit
but
also
incorporate
social
responsibility
as
an
integral
part
of
their
business
opera@ons
and
strategies.
• A
firm’s
embrace
of
a
set
of
business
ethics
is
an
affirma@on
that
it
promotes
the
dignity
of
employees,
acts
justly
with
shareholders,
customers
and
compe@tors,
and
plays
a
role
for
the
protec@on
and
well
being
of
the
community
and
the
environment.
CORPORATE
SOCIAL
RESPONSIBILITY
• According
to
BAUER:
– “Corporate
social
responsibility
means
seriously
considering
the
impact
of
the
company’s
ac@ons
on
the
society.”
• According
to
Davis
and
Blomstrom:
– “The
obliga@on
of
decision
makers
to
take
ac@ons
which
protect
and
improve
the
welfare
of
the
society
as
a
whole
along
with
their
own
interests.”
CORPORATE
SOCIAL
RESPONSIBILITY
• According
to
McGuire:
– “The
idea
of
social
responsibility
supposes
that
the
corpora@on
has
not
only
economic
and
legal
obliga@ons,
but
also
certain
responsibili@es
to
society
which
extend
beyond
these
obliga@ons.”
• According
to
Epstein:
– “Relates
primarily
to
achieving
outcomes
from
organiza@onal
decisions
concerning
specific
issues
or
problems
which
have
beneficial
rather
than
adverse
effects
upon
per@nent
corporate
stakeholders.”
CORPORATE
SOCIAL
RESPONSIBILITY
• According
to
Epstein:
– “The
norma@ve
correctness
of
the
results
of
corporate
ac@ons
has
been
the
focus
of
corporate
social
responsibility.”
• According
to
Professor
Keith
Davis
(Arizona
State
University):
– “The
response
of
the
corpora@on
to
issues
beyond
its
narrow
economic,
technical,
and
legal
requirements.
It
is
the
obliga@on
of
the
corpora@on
to
evaluate
the
effects
of
its
decisions
on
the
external
social
system.”
CORPORATE
SOCIAL
RESPONSIBILITY
• According
to
Peter
Drucker:
– “The
first
responsibility
to
society
is
to
operate
at
a
profit…business
is
the
wealth-‐crea@ng
organ
of
society.
But
what
is
important
is
that
management
realizes
that
it
must
consider
the
impact
of
every
business
policy
and
business
ac@on
on
society.
It
has
to
consider
whether
the
ac@on
is
likely
to
promote
to
its
stability,
strength
and
harmony…the
ul@mate
responsibility
to
itself,
to
our
heritage,
to
our
society
and
to
our
way
of
life.”
CORPORATE
SOCIAL
RESPONSIBILITY
• CSR
is
a
concept
that
has
developed
an
emerging
prevalence
around
the
globe.
• It
is
said
that
business
is
as
old
as
the
civiliza@on.
• CSR
is
an
evolving
term
that
does
not
have
a
standard
defini@on.
• CSR
means
extending
beyond
the
business’
compliance
with
laws
and
other
legal
requirements.
• It
means
fulfilling
the
moral
obliga@ons
of
the
business
by
involving
itself
with
commitments
and
ac@vi@es
that
contribute
to
and
help
improve
the
condi@on
of
the
society,
the
community,
and
the
environment.
2.
CORPORATE
SOCIAL
RESPONSIBILITY
FROM
A
HISTORICAL
PERSPECTIVE
2.1
THE
ANCIENT
AND
MEDIEVAL
PERIOD
• During
the
ancient
@mes,
people
believe
that
businessmen
and
wealthy
people
should
do
business
to
the
community
as
part
of
public
or
social
service.
• To
make
money
or
to
lend
money
is
an
ac@vity
greatly
despised.
• The
Greeks
and
Romans
treated
businessman
next
to
slaves.
2.1
THE
ANCIENT
AND
MEDIEVAL
PERIOD
• Plato,
the
Greek
philosopher
and
follower
of
Socrates
who
taught,
wrote
and
presented
his
ideas
in
the
form
of
drama@c
dialogues,
recommended
that
such
ac@vi@es
be
prohibited.
The elite of the society condemned businessmen,
criticizing them for utilizing their money for profit
and not for service to the community.
CATHOLIC
CHURCH
VS.
BUSINESS
• Cri@cisms
against
the
evil
of
business
came
far
and
wide
during
the
medieval
period
when
the
Catholic
Church
became
most
powerful
ins@tu@on
in
Europe.
• The
Catholic
Church
does
not
trust
the
business
system
and
deemed
profit-‐mo@ve
as
an@-‐Chris@an
believing
that
the
merchant
never
or
seldom
pleases
God.
ST.
THOMAS
AQUINAS
• Jus@fied
that
business
could
exist
as
long
as
it
was
used
for
the
good
of
the
community.
• He
was
responsible
for
introducing
the
concept
of
compensatory
jus/ce
which
maintains
that
prices
and
wages
should
be
fair.
Because of this and despite the poverty experienced,
people in the 1500s enjoyed a standard of living in
Europe, which never happened in the next 300 years
that followed.
2.2
PERIOD
OF
MERCANTILISM
• Mercan@lism
is
a
poli@co-‐economic
philosophy.
• European
governments
ac@vely
par@cipated
in
business
ac@vi@es
and
established
monopolies.
• To
them,
the
main
source
of
power
and
pres@ge
is
the
acquisi@on
of
gold
and
silver
through
trade.
• Coloniza@on
of
more
territories
became
more
rampant
as
these
territories
were
used
as
sources
of
raw
materials
and
cheap
if
not
free
labor.
GALLEON
TRADE
OR
“KALAKALANG
GALYON”
• It
was
in
1521
when
the
Philippines
came
to
be
discovered
by
the
Spanish
conquistadores
who
came
to
the
shores
and
occupied
the
islands.
The Spaniard’s initial objective in navigating the
oceans was to look for spices for the production
and marketing of tobacco monopolized by the
Spanish government.
• The
medieval
and
mercan@lism
periods
showed
several
viola@ons
of
social
responsibility.
• Colonies
were
exploited
by
European
colonial
masters.
• Millions
of
Africans
were
sent
to
work
as
slaves
in
the
North,
South,
and
Central
America.
• The
Color
Purple,
a
movie
starred
by
Whoopi
Goldberg,
depicts
the
life
of
an
African
forced
into
slavery.
• Yet
during
that
@me,
no
moral
issue
was
raised
in
Europe
and
in
fact,
it
was
the
@me
when
pirates
could
become
heroes.
• Capturing
foreign
ships
was
a
prac@ce
of
countries
with
strong
fleets.
• At
the
@me
of
the
famous
English
Pirate
Francis
Drake,
the
strength
of
a
country’s
fleet
was
shown
when
they
were
able
to
conquer
the
ships
of
other
countries.
The power of the Catholic Church as the most
influential body in Europe did not only
diminish because European governments
became active but also due to the influence
brought about by the philosophy and
doctrines introduced to the society.
• Max
Weber
– Protestant
Ethics
and
the
Spirit
of
Capitalism
• That
Protestant
values
encouraged
thrig,
industry,
and
materialism
making
Protestant
countries
more
progressive
than
Catholic
countries.
• The
promo@on
and
growth
of
business
as
well
as
the
regard
for
social
responsibility
was
regarded
and
supported
by
the
government.
• The
Harmony
of
Interest
Theory
of
England:
– “Business
should
act
in
accordance
with
na@onal
interest
because
the
state
supported
it.”
• Special
privileges
were
granted
to
businessmen
for
performing
outstanding
public
service
in
the
conduct
of
their
business.
• Those
who
failed
and
were
not
able
to
contribute
were
fined
and
punished.
2.3
THE
INDUSTRIAL
REVOLUTION
• The
industrial
revolu@on
is
the
@me
when
machines
were
introduced,
thus
contribu@ng
to
improved
produc@on
and
business
growth.
• Along
with
these
improvements
was
the
change
in
the
businessman’s
aitude
and
values
towards
business.
• Represen@ng
absolute
virtue,
businessmen
regarded
wealth
as
a
symbol
of
moral
excellence.
• Absolute
free
enterprise
became
an
argument,
rejec@ng
the
concept
of
social
responsibility
and
promo@ng
the
individualist
philosophy
that
the
government
must
not
interfere
with
the
ac@vi@es
of
the
business.
• Businessmen
reasoned
out
that
the
role
of
the
government
should
be
to
encourage
the
growth
of
unregulated
business
to
which
the
government
responded
and
quickly
favored.
• Their
ac@vi@es
became
free,
making
big
businesses
powerful.
The capitalists in England were the ones who
thoroughly enjoyed this prerogative.
They were given the free hand to run their
businesses and all their activities became
unrestrained.
• Workers
including
children
and
the
aged
were
exploited
and
forced
to
work
leaving
only
six
hours
in
a
day
for
rest
and
sleep
but
wages
given
to
the
workers
were
extremely
low.
• Workers
were
leg
without
a
choice
because
inasmuch
as
they
needed
enough
rest,
they
had
moved
to
work
longer
hours
so
they
could
sa@sfy
their
most
basic
needs.
• Furthermore,
capitalists
abused
unrestrained
business
ac@vi@es
by
chea@ng
and
selling
their
poor
quality
products
at
very
high
prices.
• Karl
Marx
and
Robert
Owen,
figh@ng
against
these
abuses
thereby
earning
them
the
@tles
“social
reformists.”
• The
emergence
of
big
corpora@ons
also
happened
during
@me.
Corporate social responsibility was totally
absent as big corporations acted above the law.
They created their own government and used
their wealth to bribe and cheat so that they
would remain untouched by the long arms of
law.
2.4
AFTER
THE
PERIOD
OF
DEPRESSION
(1930S
TO
THE
PRESENT)
• At
the
onset
of
1930s,
the
government,
especially
in
progressive
countries
protected
the
welfare
of
the
public
against
the
abuses
of
businesses.
• Thereon
up
to
a
decade
ago,
businesses
viewed
social
responsibility
as
an
adherence
to
rules
and
regula@ons
and
compliance
with
administra@ve
and
legal
standards.
• On
the
rise
across
the
globe
is
the
mandate
to
create
a
more
compe@@ve,
produc@ve,
and
knowledge-‐
based
economy.
• Ethics
in
business
and
social
responsibility
are
now
given
serious
amen@on
by
more
and
more
companies
as
they
realize
that
their
success
lies
in
earning
the
confidence
and
respect
of
the
society.
• Being
held
morally
responsible
for
their
ac@ons,
on
the
rise
are
individuals,
firms,
and
companies
who
con@nually
strive
to
improve
their
business
prac@ces,
emphasizing
both
legal
and
ethical
behavior
where
they
are
held
increasingly
accountable
• As
the
growing
demands
for
higher
CSR
emerge
approaches
to
this
moral
obliga@on
has
now
become
a
business
pursuit.
• Businesses
have
started
to
integrate
CSR
as
part
of
their
corporate
structures
and
processes.
• This
has
resulted
to
the
crea@on
of
innova@ve,
proac@ve
solu@ons
to
societal
and
environmental
concerns.
• Similarly, businesses have started to
collaborate and participate in the improvement
of the standards of their corporate social
responsibility policies, procedures, and
practices.
3.
HISTORICAL
PHASES
OF
CORPORATE
SOCIAL
RESPONSIBILITY
THREE
PHASES
OF
CORPORATE
SOCIAL
RESPONSIBILITY
• Social
responsibility
has
gone
through
three
phases,
each
phase
corresponding
to
par@cular
characteris@cs,
according
to
Professors
Robert
Hay
and
Ed
Gray
as
they
present
the
following
illustra@on.
THREE
PHASES
OF
CORPORATE
SOCIAL
RESPONSIBILITY
Phase
One:
Profit
Maximizing
Management
(1800s
to
early
1900s)
Phase
Two:
Trusteeship
Management
(Early
1900s)
Phase
Three:
Quality
of
Life
Management
(1930s)
CHARACTERISTICS:
Phase
One:
Profit
Maximizing
Management
(1800s
to
early
1900s)
• Management
must
maximize
profit.
• Individual
drive
for
profit
maximiza@on
would
ul@mately
create
wealth
for
the
na@on.
• Business
systems
as
a
profit
maximizer
are
used
as
a
tool
for
the
elimina@on
of
economic
scarcity.
• Businesses
ignored
unsafe
working
condi@ons,
paid
starva@on
wages,
and
used
child
labor
in
order
to
maximize
profit.
• Problems
of
cultural
minori@es,
unsafe
products,
unfair
adver@sing
and
urban
poor
problems
were
given
limle
if
no
amen@on
at
all.
• Abuses
of
capitalism
are
extremely
rampant
and
the
government
tolerates
these
deplorable
business
prac@ces.
Phase
Two:
Trusteeship
Management
(Early
1900s)
• Management
was
considered
both
as
an
instrument
of
stockholders
and
as
a
trustee
for
all
groups
who
contribute
to
the
business
enterprise.
• Aside
from
profit
maximiza@on,
management’s
concern
is
also
to
maintain
a
fair
balance
in
the
interests
of
employees,
customers,
creditors,
stockholders,
and
the
community.
Phase
Three:
Quality
of
Life
Management
(1930s)
• Security
of
basic
goods
and
services
was
no
longer
a
principal
problem.
• Social
and
economic
problems
brought
about
by
economic
growth
expanded
the
concept
of
social
responsibility
of
management.
• Society
demanded
management’s
ac@ve
par@cipa@on
in
helping
solve
social
and
environmental
problems
in
view
of
vast
resources
(funds,
manpower,
materials,
management
skills,
and
technology)
of
business.
• Business
is
expected
to
contribute
to
the
improvement
of
the
quality
of
life,
which
involves
cultural,
social,
educa@onal,
poli@cal
factors
and
economic
security.
• Society
is
unstable
if
the
quality
of
life
of
the
people
is
poor.
Phase
Three:
Quality
of
Life
Management
(1930s)
• Businesses
contribute
to
a
good
quality
of
life
and
society.
• A
prosperous
society
is
the
best
environment
for
a
business
to
thrive
in.
• Businesses
will
benefit
from
its
self-‐
investment
in
society.
4.
PERSPECTIVES
ON
CORPORATE
SOCIAL
RESPONSIBILITY
• People’s
aitudes,
values,
and
management
culture
differ.
• Consequently,
each
has
a
social
responsibility
in
society
since
every
individual,
body
or
ins@tu@on
makes
up
the
society.
• Businesses
have
different
viewpoints
on
social
responsibility
as
well.
1.
CLASSICAL
VIEW
• The
primary
responsibility
of
business
is
profit
maximiza@on.
• Obliga@on
of
management
is
to
sa@sfy
stockholders
for
their
investments.
• Supported
by
Milton
Friedman,
one
of
the
most
effec@ve
advocates
of
economic
freedom
and
free
enterprise.
2.
MANAGERIAL
VIEW
• Doers
do
not
emphasize
profit
maximiza@on
and
interests
of
stockholders.
• To
balance
the
interests
of
employees,
customers,
suppliers,
and
local
plant
community
is
the
role
of
managers
of
big
businesses
3.
PUBLIC
VIEW
• Includes
the
needs
and
interests
of
the
whole
society
in
contrast
with
the
classical
and
managerial
views
• Establishes
harmony
with
both
business
opera@ons
and
public
interest.
4.
CHRISTIAN
VIEW
• Excess
wealth
should
be
given
to
the
less
fortunate.
Wealthy
individuals
have
a
responsibility
to
share
their
blessings
with
the
poor.
• A
successful
corpora@on
should
perform
its
social
responsibility
more
by
returning
a
fair
por@on
of
its
profits
to
the
people
in
the
form
of
social
services.
• Based
on
the
teachings
of
Jesus
Christ
as
taught
in
the
Bible.
5.1.1
Long
run
self-‐interest.
• In
the
long
run,
business
enterprises
will
benefit
from
their
own
investment
by
using
their
resources
in
reducing
or
elimina@ng
social
problems.
A
good
social
and
economic
condi@on
will
offer
an
encouraging
environment
for
businesses.
5.1.2
Business
resources.
– Business
could
use
their
huge
resources
in
the
improvement
of
societal
and
environmental
condi@ons.
Some
of
these
business
resources
are
manpower,
funds,
materials,
management
skills
and
technology.
5.1.3
Viability
of
business.
•
As
embodied
in
the
deed
of
a
corpora@on,
businesses
are
granted
powers
and
privileges
by
the
government
due
to
their
contribu@ons
to
the
economy
and
valuable
services
to
society.
The
government
can
also
revoke
the
charter
of
a
business
once
it
fails
to
meet
social
expecta@ons.
For
this
reason,
businesses
have
to
perform
their
social
responsibili@es.
5.1.4
Public
image.
– Charitable,
civic
and
socio-‐economic
projects
are
some
of
the
ac@vi@es
where
businesses
take
part.
As
they
become
ac@ve
with
such
projects,
their
public
image
is
also
enhanced.
They
leave
to
the
society
a
very
good
impression
of
their
corporate
image
that
amracts
more
competent
recruits
and
a
greater
number
of
customers.
5.1.5
Profit
from
social
problems.
– Businesses
can
turn
problems
into
profits
by
being
crea@ve
and
resourceful.
An
example
is
recycling
of
waste
materials
into
other
valuable
goods.
5.2
Arguments
Against
The
Prac@ce
Of
Corporate
Social
Responsibility
5.2.1
Profit
maximiza/on.
Corporate
execu@ves
and
managers
are
primarily
responsible
to
investors
and
stockholders.
It
is
their
duty
to
maximize
the
profit
of
their
business
and
not
the
concerns
of
society.
6. The Four Corporate Social
Responsibilities
• Taking
it
from
the
Pyramid
of
Social
Responsibility,
a
four-‐part
model
developed
by
Archie
B.
Carroll
and
published
in
the
July-‐August
1991
issue
of
the
Business
Horizons,
the
corporate
social
responsibili@es
of
a
business
can
be
classified
into
four
as
can
be
seen
from
the
next
figure.
– 6.1
Philanthropic
Responsibili@es
-‐
DESIRED
of
business
by
society.
– 6.2
Ethical
Responsibili@es
–
EXPECTED
of
business
by
society.
– 6.3
Legal
Responsibili@es
–
REQUIRED
of
business
by
society.
– 6.4
Economic
Responsibili@es
–
REQUIRED
of
business
by
society.
The Pyramid of
Corporate
Social Philanthropic
Responsibili1es
Responsibility (Good
corporate
ci@zenship)
Legal
Responsibilities
(Compliance with laws and
regulations)
Economic
Responsibilities
(Being profitable)
7.
Social
Responsibility
Towards
Consumers
• Consumers
are
considered
to
be
the
most
important
stakeholders
of
the
business
besides
its
own
employees.
Companies
are
duty-‐bound
to
fulfill
and
be
conscien@ous
of
their
social
responsibility
towards
the
customers
of
their
business.
Not
only
workers
experience
exploita@on,
chea@ng
and
abuse.
These
also
happened
to
customers
in
the
beginnings
of
the
history
of
social
responsibility
when
workers
were
forced
to
work
longer
ours
and
were
treated
as
slaves.
• Albeit
their
awareness
of
the
poor
quality
of
their
products,
avaricious
businessmen
during
the
early
periods
cheated
their
customers
by
selling
their
poor
quality
products
with
very
expensive
prices.
Even
at
present,
there
are
s@ll
a
great
number
of
chea@ng
businessmen
who
swindle,
deceive,
and
take
advantage
of
their
trus@ng
customers.
Consumer rights which are, the right to safety, the right to
be informed, the right to choose and the right to be heard
were introduced by the famous former US President
John F. Kennedy. These rights became more contributory
to the now more intelligent and smarter consumers of our
generation. As more and more customers become aware
of their rights, businesses in turn have to take care not to
violate these rights.
8.
Social
Responsibility
Towards
The
Community
And
The
Environment
All living things are dependent on the earth’s natural
resources. Therefore, man has the social obligation to
preserve the environment and respect the natural order of
things. Of all the living things created by God, man is the
only living thing given the responsibility of taking care of
all the rest of the creatures on earth. It is a clear order
from God as written in the bible. Only man is given
authority over all the other creatures in the same way that
he is the only one given the ability to protect the
environment, and not to intervene with the forces of
nature.
The
business
industry
is
no
doubt
the
primary
user
of
the
earth’s
natural
resources.
In
the
everyday
course
of
a
business,
there
is
an
enormous
quan@ty
of
energy
and
raw
materials
are
being
used
in
the
manufacturing
of
products
and
services.
Energy
are
both
employed
and
discharged
into
the
environment.
When
resources
and
energy
is
used,
the
earth’s
natural
resources
are
depleted.
Businesses
benefit
so
much
from
the
environment
in
order
to
produce
the
products,
goods
and
services
they
need
for
their
business
to
prosper.
They
primarily
rely
of
the
benefits
provided
by
the
environment.
In
turn,
businesses
have
the
corporate
social
responsibility
of
preserving
and
maintaining
the
balance
of
nature
because
once
natural
resources
are
depleted,
these
can
never
be
replaced
no
mamer
how
magnificent
the
power
of
man’s
brain
is
9. Current Activities Related to Corporate Social
Responsibility
The response of the business industry to the call
to become more socially responsible
encompasses a great deal of activities in recent
years. Across the globe, teams and organizations
were created as part of making corporate social
responsibility an integral part of business
operations and strategies. These teams provide
information, tools, training and advisory
services that businesses use to collaborate and
develop business performance towards higher
standards of corporate social responsibility.
Some of these activities involve the following:
Establishment of certifying bodies to develop standards,
programs and to train and certify employees, managers
and businesses with quality programs, certifications and
accreditations
e.g. ISO Certifications; Total Quality Management;
5S of Good housekeeping; Self-evaluating and Product
Teams; Occupational Health and Safety; Health,
Safety, and Environmental Accreditations that will
ensure continual improvement of all aspects of the
business.
Training their employees for customer care and people
skills with the application of Customer Relationship
Management standards. Training of employees for
continuous improvement and development of skills.
Improvement of compensation and benefits
packages for employees to enjoy from hiring to
retirement while a number of benefits are also
rewarded to families of the employees such as health
and medical assistance, hospitalization benefits,
scholarship grants, among others.
Establishment of programs for the protection and
preservation of the environment some of which
include tree-planting activities, recycling of waste
materials, segregation of hazardous, infectious,
biodegradable and non-biodegradable waste
materials, among others.
Active participation in socio-civic and
charitable activities, adopt-a-community
programs, adopt-a-school programs, books and
toys donation to government agencies and
NGOs, scholarship grants, volunteer work to
communities and those affected by calamities.
Development of customer complaint desks or
hotlines, a large number of which are
impressively using state-of-the-art technology or
sub-contract with call centers in order to reach
customers wherever they are across the globe 24
hours a day, 7 days a week.
Recruitment of competent and technical
employees to ensure manufacturing of their
products follows the strictest standards.
Training quality people that will handle all
aspects of the business processes including
accreditation of suppliers, third-party
contractors, standardization of the
requirements for raw materials, calibration of
machines, handling of product complaints,
and after-sales service.
Applica@on
of
good
manufacturing
prac@ces
and
advance
quality
assurance
standards
for
safe
and
good
quality
products
including
handling
and
packaging.
Strengthening
of
@es
with
agencies
and
crea@ng
organizing
bodies
that
aim
at
the
promo@on,
monitoring,
and
recogni@on
of
companies
that
adhere
to
their
moral
obliga@on
in
order
that
they
will
have
a
standard
of
corporate
responsibility
to
follow.
Several of these commitments and activities fulfill the
fims’ moral obligation to societal, economic and
environmental concerns. In general, they act in response
to these key elements and issues:
9.1 Stakeholder rights
9.2 Supplier relations
9.3 Human rights
9.4 Human resource management practices
9.5 Consumer rights and protection
9.6 Labor protection and security
9.7 Environmental protection
9.8 Corporate governance
9.9 Community development
9.10 Health and safety
The way businesses engage employees, shareholders,
consumers, suppliers, the government and its agencies, non-
governmental organizations, international organizations, and
other stakeholders form a progressive prospective of corporate
social responsibility of businesses at the present time. Many
of these firms believe that it stimulates corporate innovation
and provides them a clear competitive advantage.
Companies worldwide have been motivated to respond
favorably because many of them have proven that responding
to the call of being responsible businesses has given them
better financial performance and profitability, improved
accountability to and assessments from the investment
community, enhanced employee commitment, decreased
vulnerability through stronger relationships with
communities, and improved reputation and corporate image
building.
