12

Subject Area
Quarter 4 – Module 3:
The Different Models and Frameworks of Social
Responsibilities

SELF-LEARNING MODULE

DIVISION OF GENERAL SANTOS CITY

Business Ethics and Social Responsibility for Grade 12
Self-Learning Module (SLM)
Quarter 4 – Module 3: The Different Models and Frameworks of Social
Responsibilities
First Edition, 2020

Republic Act 8293, section 176 states that: No copyright shall subsist in
any work of the Government of the Philippines. However, prior approval of the
government agency or office wherein the work is created shall be necessary for
exploitation of such work for profit. Such agency or office may, among other things,
impose as a condition the payment of royalties.

Borrowed materials (i.e., songs, stories, poems, pictures, photos, brand

names, trademarks, etc.) included in this module are owned by their respective
copyright holders. Every effort has been exerted to locate and seek permission to
use these materials from their respective copyright owners. The publisher and
authors do not represent nor claim ownership over them.

Development Team of the Module

Writers: PAUL ANTHONY D. FRUGALIDAD

Editors:
Reviewers: Dr. Lito S. Adanza
Illustrator: Name
Layout Artist: Name
Cover Art Designer: Reggie D. Galindez
Management Team: Romelito G. Flores, CESO V – Schools Division Superintendent
Carlos G. Susarno, PhD. – Asst. Schools Division Superintendent
Juliet F. Lastimosa, CID Chief
Sally A. Palomo, EPS - LRMS
Gregorio O. Ruales, EPS – ADM Coordinator
Dr. Luzviminda R. Loreno – Senior High School Coordinator

Printed in the Philippines by Department of Education – General Santos City

Office Address: Tiongson St., Lagao, General Santos City

Telefax: (083) 552-8909
E-mail Address: depedgensan@deped.gov.ph
 12

Business Ethics
and Social
Responsibility
Quarter 4 – Module 3:
The Different Models and
Frameworks of Social
Responsibilities
SELF-LEARNING MODULE

DIVISION OF GENERAL SANTOS CITY

Introductory Message
For the facilitator:

Welcome to the Business Ethics and Social Responsibility for Grade 12

Self-Learning Module (SLM) on the Different Models and Frameworks of Social
Responsibilities!

This module was collaboratively designed, developed and reviewed by

educators both from public and private institutions to assist you, the teacher or
facilitator in helping the learners meet the standards set by the K to 12 Curriculum
while overcoming their personal, social, and economic constraints in schooling.

This learning resource hopes to engage the learners into guided and
independent learning activities at their own pace and time. Furthermore, this also
aims to help learners acquire the needed 21st century skills while taking into
consideration their needs and circumstances.

In addition to the material in the main text, you will also see this box in the
body of the module:

Notes to the Teacher

This contains helpful tips or strategies
that will help you in guiding the learners.

As a facilitator you are expected to orient the learners on how to use this
module. You also need to keep track of the learners' progress while allowing them
to manage their own learning. Furthermore, you are expected to encourage and
assist the learners as they do the tasks included in the module.

ii
For the learner:

Welcome to the Business Ethics and Social Responsibility for Grade 12

Self-Learning Module (SLM) on the Different Models and Frameworks of Social
Responsibilities!

The hand is one of the most symbolized part of the human body. It is often
used to depict skill, action and purpose. Through our hands we may learn, create
and accomplish. Hence, the hand in this learning resource signifies that you as a
learner is capable and empowered to successfully achieve the relevant
competencies and skills at your own pace and time. Your academic success lies in
your own hands!

This module was designed to provide you with fun and meaningful
opportunities for guided and independent learning at your own pace and time. You
will be enabled to process the contents of the learning resource while being an
active learner.

This module has the following parts and corresponding icons:

What I Need to Know This will give you an idea of the skills or
competencies you are expected to learn in
the module.

What I Know This part includes an activity that aims to

check what you already know about the
lesson to take. If you get all the answers
correct (100%), you may decide to skip this
module.

What’s In This is a brief drill or review to help you link

the current lesson with the previous one.

What’s New In this portion, the new lesson will be

introduced to you in various ways such as a
story, a song, a poem, a problem opener, an
activity or a situation.

What is It This section provides a brief discussion of

the lesson. This aims to help you discover
and understand new concepts and skills.

What’s More This comprises activities for independent

practice to solidify your understanding and
skills of the topic. You may check the
answers to the exercises using the Answer
Key at the end of the module.

What I Have Learned This includes questions or blank

sentence/paragraph to be filled in to process
what you learned from the lesson.

iii
 What I Can Do This section provides an activity which will
help you transfer your new knowledge or
skill into real life situations or concerns.

Assessment This is a task which aims to evaluate your

level of mastery in achieving the learning
competency.

Additional Activities In this portion, another activity will be given

to you to enrich your knowledge or skill of
the lesson learned. This also tends retention
of learned concepts.

Answer Key This contains answers to all activities in the

module.

At the end of this module you will also find:

References This is a list of all sources used in

developing this module.

The following are some reminders in using this module:

1. Use the module with care. Do not put unnecessary mark/s on any part of
the module. Use a separate sheet of paper in answering the exercises.
2. Don’t forget to answer What I Know before moving on to the other activities
included in the module.
3. Read the instruction carefully before doing each task.
4. Observe honesty and integrity in doing the tasks and checking your answers.
5. Finish the task at hand before proceeding to the next.
6. Return this module to your teacher/facilitator once you are through with it.
If you encounter any difficulty in answering the tasks in this module, do not
hesitate to consult your teacher or facilitator. Always bear in mind that you are
not alone.

We hope that through this material, you will experience meaningful learning
and gain deep understanding of the relevant competencies. You can do it!

iv
 What I Need to Know

Hello! Welcome to Module 3 in Business Ethics. This module introduces the

basic understanding of the Different Models and Frameworks of Social
Responsibilities.

After going through this module, you are expected to:

Describe the Models and Frameworks of Social Responsibilities (ABM_ESR12-IVI-I-

3.4)

Objectives:

Specifically, you should be able to:

1. Describe the Different Models and Frameworks of Social

Responsibility
2. Identify socially responsible businesses in the Philippines.

This module is self-instructional. You can read, analyse concepts and ideas
presented and reflect on them. The activities will help you assess your progress as
you go through in this module.

What I Know
Before we start with our new lesson, let us first assess your prior knowledge about
responsibility and accountability of an entrepreneur.

REMINDER: DO NOT WRITE ANYTHING ON THIS MODULE. WRITE ALL YOUR

ANSWERS ON SEPARATE SHEET/S OF PAPER.

Instruction: Read each question carefully and choose the best answer. Write only
the letter of your choice.

_____ 1. Which of the following is NOT ethical?

a. Serving an honest day’s work
b. Volunteering in waste management promotion
c. Objectionable shows
d. Uprightness or truth in advertising

1
_____ 2. This refers to the duty or obligation to satisfactorily perform or complete
an assigned task.
a. Responsibility
b. Obligation
c. Accountability
d. Respect of Duty

_____ 3. The following describes an entrepreneur, except?

a. It refers to organization's ethical guidelines and best practices to
follow for honesty, integrity, and professionalism.
b. For members of an organization, violating the code of ethics can result
in sanction including termination.
c. It is a specific laws govern business conduct. In others, a code of
ethics may be voluntarily adopted.
d. It is an act of saying that something is true when some people may
say it is not true.

_____ 4. An enterprise has its own responsibility to the following, except?

a. Investor and owner, for fair returns on their investments
b. Customers, for safe products / suppliers, for fair deals
c. Employees, for decent wages
d. Rivals in the market

_____ 5. The observance of business ethics, where business and industry look out
for their stakeholders, assures this advancement except?
a. Safe and affordable products and services for customers
b. Honest wages for employees
c. Reasonable returns for investors and owners
d. Loyalty

_____ 6. Which of the following is not a feature the economic development of the
country?
A. optimistic economy
b. creation of jobs
c. poverty alleviation
d. economic change

_____ 7. This refers to the obligation of an individual or a organization to account

for its activities, accept responsibility for them, and to disclose the
results in a transparent manner.
a. Accountability
b. Responsibility
c. Mastery
d. Proactivity

_____ 8. Which of the following statements is NOT correct about responsibility and
accountability of the entrepreneur?
a. Responsibility and accountability should not work together.
b. Manager tells you to be responsible and accountable at work.
c. Your ability to be responsible and accountable is a direct result of the
tasks you are assigned.

2
 d. Your ability to be responsible and accountable is a direct result of
your personal work ethic when you take ownership of your work
product.

_____ 9. When you are hired for a job, your manager provides you a list of your
duties, also known as,
a. Responsibilities
b. Accountabilities
c. Work Assignments
d. Work schedules

_____ 10. Which is correct when your manager had provided you the list of your
duties at work?
a. She'll tell you that it is your job to ensure the tasks on the list are
completed when due.
b. Leave you at your post
c. You can be assigned a variety of responsibilities
d. You'll place the blame on someone else for the project's failure.

_____ 11. The following are essential laws that explain legal responsibilities
of the Philippine enterprise, except?
a. Minimum Wage Law
b. Environmental legislation
c. Consumer Act of the Philippines (R.A. 7894)
d. People’s Republic

_____ 12. While you can be assigned a variety of responsibilities, whether or

not you are accountable depends on you character. What value
does the statement implies?
a. Value of responsibilities
b. Value of accountabilities
c. Value of responsiveness
d. Value of character
_____ 13. When you refuse to be accountable, you'll place the blame on
someone else for the project’s failure. What does the foregoing
statement describe for?
a. Accountability
b. Responsibility
c. Connectivity
d. Profitability

_____ 14. Which of the following statements is NOT correct about accountability?
a. When you refuse to be accountable, you'll place the blame on
someone else for the project's failure.
b. A person who demonstrates accountability takes the hit if she
doesn't complete the task on schedule.
c. While you can be assigned a variety of responsibilities, whether or
not you are accountable depends on your character.
d. Habitually non-compliant on the task assigned.

_____ 15. The following does not constitute legal responsibilities?

a. obedience to local laws
b. obedience to national laws
c. obedience to relevant international law

3
d. obedience to irrelevant essential laws

4
Lesson The Different Models and
2 Frameworks of Social
Responsibility

Corporate Social Responsibility (CSR) is a term used to describe a company’s

obligation to be sensitive to the needs of all the stakeholders in its business
operations. These includes the following; owners, investors, suppliers, customers,
employees and community. The “community” stakeholder may include the
government and environment that the companies operate in. For companies with
business investments in different countries, the “communities” take account of a
variety of governments and environments.

One of the leading organizations promoting corporate responsibility is

Business for Social Responsibility: www.bsr.org. says that Corporate social
responsibility – emphasizes obligation and accountability to society.

A GEVA (2008) according to the good management theory, well-matched

attention to CSR domains can increase the efficiency of the company’s adaptation
to internal and external demands. Resulting benefits such a employees’
productivity, reputation for product quality, and consumer satisfaction lead to
better financial performance.

What’s In

Well, since we already know the salient character of the term responsibility, I
would say that having a mind-set and clear understanding of its principle is
essential. By the way, a person or an entity regardless of its status with high
regards to its core principle is a representation of character. Person or entity
should behave responsibly.
We will be unlocking ideas what assumed as your responsibilities as a
business individual should you have your own business in the future. It is very
clear that anyone who wish to put up business especially entrepreneurs should
follow the laws and other business’s undertakings.
Let’s perform the following activity for you to know more about business
undertakings. �

Activity 1. Create your own simple Business Perspective (BP outline). You
as the owner – an entrepreneur, simply think of your business name, product/s,

5
business size, workers (qualification requirements), salaries and benefit, technology,
marketing, financial status, government compliance and others.

What’s New

Today’s topic embodies essential knowledge that should allow you to think
what it takes to be a responsible business, not just by doing simple business but it
takes more, its responsibilities and accountabilities towards its stakeholders.
(Allow the learners to see themselves in a business perspective)

Activity 2: (Social Responsibilities) in connection to activity 1, enumerate your

social responsibilities
Activity Sheet

Responsibilities Stakeholder (concerned person)

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.

What Is It

There are 4 models of Corporate Social Responsibility

I. Economic Model
Profit-Based Social Responsibility aka Economic Model: Milton Friedman's 1970
New York Times article "The Social Responsibility of Business Is to Increase Its
Profits" is perhaps best known as an argument for this profit-based social
responsibility of business.
Economically a business is an institution that exists to produce goods and
services demanded by society and by doing this business creates jobs and wealth
that benefit society further.
The law created corporations because it was thought that business firms could
be more efficient in raising the capital necessary for producing goods services jobs
and wealth by legally limiting the liability of those individuals engaged in the
creation of corporations.

6
 Economic Model of CSR: holds that business' sole duty is simply to fulfill the
economic functions businesses were designed to serve.

II. Philanthropic Model

Philanthropic Model: like individuals, business is free to contribute to social
causes as a matter of philanthropy.
Business has no strict obligation to contribute to social causes but it can be a
good thing when they do so. But just as charity is a good thing and something that
we all want to encourage business should be encouraged to contribute to society in
ways that go beyond the narrow obligations of law and economics.
1. This approach is especially common in small locally-owned business where the
owners also often play a prominent leadership role within their local community.
There are occasions in which charity work is done because it brings the firm
good public relations, provides a helpful tax deduction, and builds good will and a
good reputation within a community.
1. Peruse the program at a local art gallery museum theater school event and you
will likely see a list of local businesses as donors or sponsors who have contributed
to the event.
2. The social contribution is as much an investment as it is a contribution.
But there are also cases in which business contributes to social causes without
seeking any reputational benefits.
1. Many firms contribute to charities anonymously.
2. Support for a social cause is done simply because it is the right thing to do.
From the perspective of the narrow view of CSR only philanthropy done for
reputational reasons and financial ends is ethically responsible.
1. Because business managers are the agents of owners they have no right to use
corporate resources except to earn owners greater returns on their investment.
2. From the perspective of others philanthropy done for financial reasons is not
fully ethical and not truly an act of social responsibility.

III. Social Web Model

Social Web Model: views business as a citizen of the society in which it operates
and like all members of a society business must conform to the normal ethical
duties and obligations that we all face.
Philosopher Norman Bowie has defended one version of CSR that would fall
within this social web model.
1. Bowie argues that beyond the economic view's duty to obey the law business has
an equally important ethical duty to respect human rights. Respecting human
rights is the "moral minimum" that we expect of every person whether they are
acting as individuals or within corporate institutions.
2. Bowie identifies his approach as a "Kantian" theory of business ethics. In simple
terms he begins with the distinction between the ethical imperatives to cause no
harm, to prevent harm, and to do good.
3. According to Bowie as long as managers comply with the moral minimum and
cause no harm they have a responsibility to maximize profits.
4. Thus Bowie would argue that business has a social responsibility to respect the
rights of its employees even when not specified or required by law. Such rights
might include the right to safe and healthy workplaces rights to privacy and rights
to due process.
5. But the contractual duty that managers have to stockholder-owners over-rides
the responsibility to prevent harm or to do (philanthropic) good.

7
IV. Integrative Model

Integrative Model: firms bring social goals into the core of their business model
and fully integrate economic and social goals. There is a growing recognition that
some for-profit organizations also have social goals as a central part of the strategic
mission of the organization.
In two areas in particular social entrepreneurship and sustainability we find for-
profit firms that do not assume a tension between profit and social responsibility.
Firms that make environmental sustainability as central to their mission such
as Interface Corporation are an example of sustainability.
Even defenders of the narrow economic model of CSR such as Milton Friedman
would agree that owners of a firm are free to make the pursuit of social goals a part
of their business model. They would just disagree that these social goals should be
part of every business's mission.
It certainly would be too much to expect every business to adopt the principles of
social entrepreneurs and devote all their activities to service of social goals. At best
social entrepreneurs demonstrate that profit is not incompatible with doing good
and that one can do good profitably. But there are some who would argue that the
ethical responsibilities associated with sustainability are relevant to every business
concern.

What’s More

Models and Framework of Social Responsibility in the Practice of Sound Business

Models of Socially Responsible Business

Accessibility Partners Gift of Happiness Pedigree Whole
Foods
Altered Seasons Google People Water Xerox
Ben & Jerry’s Headbands of Rainbow Light
Hope
Burt’s Bees Juntos Shoes Starbucks
Coffee
Children Inspire Kenneth Cole Target
Design
Do Good Buy Us Krochet Kids The Body Shop
Fashion Project Method Toms Shoes
General Electric Out of Africa Twillory

Activity 3. Research for a brief background (in your goggle app)

Choose only 5 models of Socially Responsible Businesses. In a separate clean

paper, describe and discuss why these models became socially responsible
business.

To deepen your understanding on the topics, read the following;

8
Framework of Socially Responsible Businesses
1. Top 100 Socially Responsible Businesses

Reputation Institute (RI) has announced the company’s annual Global

RepTrak® 100 rankings. Based on over 170,000 ratings collected in the first
quarter of 2017, the survey by the provider of stakeholder measurement,
membership, and management services is the largest corporate reputation
study of its kind. It includes comparative ratings, trends by demographic cuts,
and unique insights into which companies are best regarded by stakeholders as
well as what drives trust and supportive behaviors such as willingness to
purchase a company’s products recommends the brand, invests in or even work
for the company.

The top 10 companies in RI’s 2017 Global RepTrak® 100 are

1. Rolex
2. LEGO Group
3. The Walt Disney Company
4. Canon
5. Google
6. Bosch
7. Sony
8. Intel
9. Rolls-Royce
10. Adidas

“The annual Global RepTrak® 100 spotlights the companies that truly
understand what they stand for and how to reinforce the emotional bond with
their stakeholders across all the markets they serve”, said Michele Tesoro-Tess,
RI executive partner. “This year’s Top 10 companies come from different sectors:
reputation is a cross-industry asset and companies continuously invest on it
because their leadership finally recognized its impact on business
performance.”

Key trends by industry

In terms of trends, 2017 saw the rise of heritage luxury brands like Rolex
and Rolls-Royce, while consumer products took seven of the top ten spots in
this year’s survey, with LEGO Group jumping four spots to 2nd, and Adidas
moving into the top 10.

“For brands looking to benchmark how their reputation compares to

industry peers, our Global RepTrak® 100 is the place to start”, said Allen Bonde,
RI chief marketing officer.

“Looking at top performers, it’s clear that offering high-quality products,

standing behind them, and meeting customer needs is foundational to
delivering on the brand promise. But our data also shows that companies with a
strong sense of purpose who are committed to improving on all dimensions of
reputation – especially governance and citizenship – tend to be the most highly
regarded.

2. Google’s CSR Framework

Google’s stakeholders are diverse because of the company’s wide array of

9
products. The company’s diversification includes its original products, such as
Google Search, as well as recent products like Google Glass and Google Fiber
Internet and cable television service. The firm’s stakeholders come from different
groups impacted through these varied businesses. To maintain its leadership as
an innovative technology firm, Google must address the interests of its
stakeholders through suitable corporate social responsibility (CSR) policies. The
company’s current CSR efforts are comprehensive and satisfactory, based on
international standards and expectations. Still, there is room to improve these
CSR efforts to make Google a stronger contender in the international arena.

Google’s Stakeholder Groups

Google has many stakeholders, but they can be grouped based on shared
interests. Many of the company’s CSR programs are directed toward these
stakeholder groups. Google considers the following as the most significant
stakeholders:

1. Users
2. Employees
3. Advertisers and other customers
4. Investors
5. Governments
6. 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 products. In
general, these stakeholders do not necessarily pay the company. For example,
users include people who use Google’s search engine and Chrome. This
stakeholder group is interested in the usefulness of the company’s products.
These stakeholders are important because their behaviors define the company’s
popularity. Google’s popularity corresponds to the firm’s business value.
In Google’s business philosophy, users are the top priority in its CSR efforts. The
company’s philosophy states: Focus on the user and all else will follow. Thus,
users are the core stakeholders in Google’s business. Every product is developed
with the users’ needs in mind. In this way, the firm’s CSR efforts effectively
address the stakeholder group of users.

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. For example, many workers want to work for Google because the
company is perceived as one of the best firms to work for. This stakeholder
group is important because they define the company’s capabilities, such as the
capability to innovate rapidly.
Google’s CSR efforts address the interests of its employees as a major
stakeholder group through competitive compensation and a fun workplace
design. The company’s compensation strategy includes high salaries and various
incentives and benefits, such as free meals and flexible workflows. Google’s

10
facilities are also fun workplaces where workers can exercise, play games and
enjoy sharing ideas with each other. Also, the company indirectly addresses the
working conditions of suppliers’ employees through the Google Supplier Code of
Conduct, which covers concerns on employment practices and occupational
health and safety. Thus, Google’s CSR efforts effectively satisfy the interests of
employees as stakeholders in the business.

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.
Google’s CSR efforts address the interests of advertisers and customers based on
the firm’s popularity. As noted, the prioritization of the stakeholder group of
users makes the company popular. In turn, this popularity increases the firm’s
market reach and effectiveness. Thus, advertisers and other customers benefit
more from the firm’s services. Google’s holistic CSR efforts satisfy the interests of
the stakeholder group of advertisers and other customers.

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.
Google’s CSR efforts generally focus on providing useful products. While
these efforts satisfy stakeholders like users and advertisers or customers, they
also satisfy Google’s investors. The usefulness of these products makes them
popular, widely used, and profitable. In addition, Google’s research and
development strategies can be considered as part of the firm’s holistic approach
to its corporate social responsibilities. These R&D strategies aim to provide
useful products that are profitable.

E. Governments
Governments are a major stakeholder group. They affect Google through
regulations. The company deals with many governments because its business is
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.
Google’s holistic CSR approach involves an emphasis on following the law. The
company’s business philosophy states: You can make money without doing evil.
To follow this philosophy, the firm ensures that all of its business activities
comply with regulatory requirements. Thus, Google’s CSR policies satisfy the
interests of governments as stakeholders.

F. Communities
Communities are also stakeholders in Google’s business. Communities 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 customers’ perception and response to Google’s products.
Google’s CSR efforts include charity programs through Google.org, which has

11
already provided more than $100 million in grants and investments. Google.org
aims to address climate change, global public health, and global poverty. In
addition, to address the stakeholder group of communities, Google also includes
international environmental standards and ethics in its Supplier Code of
Conduct. These efforts also relate to the firm’s philosophy: You can make money
without doing evil. Thus, the company’s CSR efforts have considerable
effectiveness in satisfying the interests of the stakeholder group of communities.

3. Total Corporate Social Responsibility Framework

Here is a model for evaluating an organization’s social performance. The
model indicates that total corporate social responsibility can be subdivided into
four criteria economic, legal, ethical, and discretionary responsibilities.

These responsibilities are ordered from bottom to top in the following

illustration.

a. Economic responsibilities:
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 to
maximize profit for its owners and shareholders. Economic responsibilities,
carried to the extreme, are called profit maximizing 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 stay within the rule of the game.
b. Legal responsibilities
All modem societies lay down ground rules, laws and regulations that
businesses are expected to follow. A 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
Ethical responsibility includes behavior that is not necessarily codified into

12
 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 goals and
tasks. Unethical behavior occurs when decisions enable an individual or
organization to gain expense of society.

d. Discretionary responsibilities
Discretionary responsibility 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 soda' responsibility
because it goes beyond societal expectations to contribute to the community’s
welfare.

What I Have Learned

Now that you’ve learned a lot from our lesson, let’s assess your understanding of
our topic by filling in the blanks with the appropriate word or phrase.
______________________________ 1. This is purely voluntary and guided by an
organization's desire to make social contributions
not mandated economics, laws, or ethics.
______________________________ 2. This includes behavior that is not necessarily
codified into law and may not serve the
organization's direct economic interests.
______________________________ 3. It defines what society deems as important with
respect to appropriate corporate behavior.
_____________________________ 4. Carried to the extreme, this is called profit
maximizing view.
______________________________ 5. Interested in direct or indirect benefits that they
get from the company.
______________________________ 6. The company deals with many governments
because its business is global.
______________________________ 7. Interested in ensuring that Google grows its
profits.
______________________________ 8. Are the main source of the company’s revenues.
______________________________9. Interested in proper compensation and a
rewarding experience in working for the company.
______________________________10. These stakeholders do not necessarily pay the
company.

13
 What I Can Do

Activity 4. Give five (5) locally established business entities that practice social
responsibilities.
Name their major stakeholders that play important roles in business
operations.

Assessment
Good job! Let's test what you've learned from our lesson. Now, Read carefully and
answer the questions below.

_____1. Which of the following is NOT-TRUE about Economic Model?

a. Serving an honest day’s work among the employees
b. to produce goods and services demanded by society
c. by doing this business creates jobs
d. create wealth that benefit society further

_____ 2. What is meant by quality products and services?

a. provide the best care and never lie to get a sale
b. offer buy 1 take 1
c. price is right
d. ads and promo

_____ 3. A good entrepreneur is

a. honest and gives a good price/ benefit c. dynamic
b. smart d. Good seller

14
_____ 4. The following are correct statements about Philanthropic Model except?
a. Environmental Legislation
b. business is free to contribute to social causes
c. local businesses as donors or sponsors
d. charity is a good thing to encourage business to contribute to society

_____ 5. Business has no strict obligation to contribute to social causes but it

can be a good thing when they do so.
a. matter of philanthropy
b. Basic Fairness
c. Minimum Wage Law
d. Ethics

_____ 6. All members of a society business must conform to the normal ethical
duties and obligations.
a. Social Web Model
b. communities
c. investors
d. governments

_____ 7. Integrative Model firms bring social goals into the core of their business
model and fully integrate economic and social goals.
a. some for-profit organizations also have social goals
b. Economic and society
c. Employees safety
d. Employees and investors

_____ 8. Top 10 companies come from different sectors based on?

a. membership
b. ranking
c. brand
d. ratings collected by Reputation Institute

_____ 9. For brands looking to benchmark how their reputation compares to

industry peers
a. luxury brand
b. Trademark
c. reputation
d. Key trends by industry

_____ 10. In general, these stakeholders do not necessarily pay the company.
a. Business and industry
b. Government
c. investors
d. users

____ 11. Are interested in proper compensation and a rewarding experience in

working for the company.
a. regular workers
b. labors
e. Piece raters
f. Employees

15
_____ 12. These stakeholders are interested in getting effective services, such as
effective online advertising campaigns.
a. investors
b. users
c. governments
d. Advertisers and Other Customers

_____ 13. Are important stakeholders because they determine the availability of
capital that the company uses in its business.

a. users
b. governments
c. customers
d. investors

_____ 14. Which is FALSE about investors as stakeholder of Goggle CSR

Framework?
a. interested in ensuring that Google grows its profits
b. they determine the availability of capital
c. makes them popular, widely used, and profitable
d. Consumers preferences

_____ 15. Which is TRUE about Governments are a major stakeholder of Goggle
CSR Framework ?
a. interested in ensuring that Google grows its profits
b. they determine the availability of capital
c. makes them popular, widely used, and profitable
d. The company deals with many governments because its business is
global.

Additional Activities

Congratulations! You've come this far. I know that you've learned a lot from
this module. But wait, here’s more! For your additional activity, you are going to
make a Reflection Paper.
Looking at the different models and theories of Corporate Social Responsibility
discussed in the Module, discuss which one you think is best. Will your answer be
different if a company operates or uses suppliers outside the country? Explain your
answer.

16
 Assessment
1. A 17
2. A
3. A
4. A
5. A
6. A
7. A
8. D
9. D
10.D
11.D
12.D
13.D
14.D
15.D
What I Have Learned What’s More What I Know
1. Discretionary 1. 1. C
responsibilities 2. 2. A
2. Ethical responsibilities
3. Legal responsibilities 3. 3. D
4. Economic 4. 4. D
responsibilities 5. 5. D
5. communities 6. D
6. governments
7. investors
7. A
8. advertisers and other 8. A
customers 9. A
9. employees 10.A
10. users 11.D
12.B
13.A
14.D
15.D
Answer Key
References
Text Book:

Orjalo V.G, Frias S.A, Pefianco E.C (2016) Chapter 2, page 17-36, Business Ethics
byPhoenix Publishing House

Online Sources:
Abughosh, S. (2015) Certified Financial Risk Professional (CFRP®),
https://www.linkedin.com/pulse/responsibility-accountability-should-work-
together-really-abu-ghosh-5993785093456408576

Jerusalem, V., Palencia M, & Palencia J. (2017). Business ethics and social responsibility:
concepts, principles, & practices of ethical standards. Manila, Philippines:
FASTBOOKS Educational Supply, Inc.
Orjalo, V. & Frias S. (2016). Business ethics and social responsibility: principles, policies,
programs, and practices. Quezon City, Philippines: The Phoenix Publishing House,
Inc.
Cortez, F. (2016). Business ethics and social responsibility. Quezon City, Philippines:
Vibal Group, Inc.

A GEVA (2008) onlinelibrary.wiley.com, three models of corporate social responsibility:

interrelationship

www.bsr.org. Search the Web, Corporate Citizenship, Social Responsibility,

Responsiveness, and Performance

Milton Hershey, Search the Web http://www.miltonhershey.com/, Corporate

Social Responsibility

Milton Friedman's (1970), Profit-Based Social Responsibility aka Economic Model

https://www.chegg.com/homework-help/questions-and-answers/4-models-
corporate-social-responsibility

18
19
 DISCLAIMER
This Self-learning Module (SLM) was developed by DepEd – Division of
General Santos City with the primary objective of preparing for and
addressing the new normal. Contents of this module were based on DepEd’s
Most Essential Learning Competencies (MELC). This is a supplementary
material to be used by all learners in General Santos City in all public
schools beginning SY 2020-2021. The process of LR development was
observed in the production of this module. This is version 1.0. We highly
encourage feedback, comments, and recommendations.

For inquiries or feedback, please write or call:

Department of Education – Division of General Santos City

Learning Resource Management System (LRMS)

Tiongson Street, Brgy. Lagao, General Santos City

Telefax No.: (083) 552-8909

Email Address: depedgensan@deped.gov.ph

20
21