Lesson 3.
Social Responsibility
Frameworks and
Practices
Business Ethics and Social Responsibility
Accountancy, Business, and Management
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Everyone is expected to be socially responsible, that is,
to act in a manner that benefits society.
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However, each individual
understands and expresses
social responsibility in their
own way.
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Following the law and
Being productive
obeying authorities
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Helping others
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Similar to individuals,
businesses also have
varying views of their
social responsibility.
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Quick Look
Weighing the Cost and Benefits
There have been debates on whether business and social responsibility
blend well together. For some people, the challenge is to strike a balance
between these two. For others, they simply can not be made to agree
with each other. Consider the following questions and discuss your views
with your classmates.
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Quick Look
Weighing the Cost and Benefits
Question 1: Should companies be expected to donate to charitable
institutions and causes? Are there better ways to use their
profits?
Question 2: Is corporate social responsibility a genuine or frontal act of
companies?
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Quick Look
Questions to Ponder
1. What have you learned about people's views on corporate social
responsibility?
2. After the activity, what are your personal insights about these issues on
corporate social responsibility?
3. If you were given a chance to propose a CSR activity, what kind of CSR
program would you present? Why?
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Learning Competency
Cite examples of companies that practice social
responsibility in the conduct of their business (ABM_ESR12-
IVi-l-3.4.).
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Learning Objectives
In this lesson, you should be able to do the following:
● Explain corporate social responsibility and its elements.
● Compare the different models of corporate social
responsibility.
● Analyze the corporate social responsibility programs of
Philippine companies.
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Do social responsibilities have hierarchies?
Is one more important or more fundamental
than the others?
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Social Responsibility Frameworks and Practices
Does business responsibility end with providing society’s
needs? Does gaining profit go well with social responsibility?
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● to guide businesses in
understanding their role
Corporate Social in society
Responsibility (CSR) ● to refer to a business's
more extensive
obligations to society
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Social Responsibility Frameworks and Practices
Legal
Economic
Responsibilities of
Businesses
Philanthropic Ethical
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Matter
Corporate Social Responsibility
"the continuing commitment by businesses to behave
ethically and contribute to economic development while
improving the quality of life of the workforce and their
families as well as of the local community and society at large”
- World Business Council for Sustainable Development (WBCSD)
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Social Responsibility Frameworks and Practices
CSR Models
Caroll’s Pyramid The Intersecting The Concentric
Model Circles Model Circles Model
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Caroll’s Pyramid Model
● presented society’s
expectations using a
pyramid with four levels
● shows the different
responsibilities
arranged hierarchically
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Caroll’s Pyramid Model
Economic
Responsibility
● The base and
foundation of social
responsibility
● Ex. goods and services,
dividend policies,
payment of salaries, etc.
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Caroll’s Pyramid Model
Legal Responsibility
● Obey laws and
regulations
● Ex. labor law, tax
regulation, quality
assurance, rights of
workers, etc.
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Caroll’s Pyramid Model
Ethical Responsibility
● Do what is right, just,
and fair
● Going beyond the
minimum
● Ex. Fair treatment of
customers, suppliers,
employees, etc.
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Caroll’s Pyramid Model
Philanthropic
● discretionary and
voluntary
● represents the
company’s goodwill to
society
● Ex. feeding program,
housing projects,
humanitarian aid, etc.
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Establishing a Philanthropic Foundation
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Many successful companies establish foundations where a
portion of their business’s profit goes to philanthropic
activities. Some of these activities include funding research to
treat certain illnesses, advocating a hunger-free community,
providing scholarships for children, and establishing shelters
for older persons, among others.
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Check Your Progress
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Compare and contrast the pyramid model and the
concentric circles model.
Answer area
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The Intersecting Circles Model
● presents the interconnection
among the four domains
● rejects the hierarchical
arrangement
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The Intersecting Circles Model
● a CSR program can fall under
two or more domains
● the goal is to cater to
multiple domains
simultaneously
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Check Your Progress
2
What is the main difference between the pyramid and
intersecting circles models?
Answer area
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The Concentric Circles Model
● views economic responsibility as the core social responsibility
● the various components of CSR are interconnected with each
other
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The Concentric Circles Model
● corporate social responsibility is not a system of mutually
exclusive elements; it is a system of inclusion
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A CSR Program Following the Concentric Circle Model
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One of the major companies in the Philippines exercises
corporate social responsibility. Their CSR program focuses on
empowering communities and reaching out to underprivileged
sectors of society.
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A CSR Program Following the Concentric Circle Model
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They included in their market research the areas where
business operations would be profitable but at the same time
beneficial to nearby communities. They start by establishing
their base of operations, hiring and training local workers.
They generate jobs and increase the income of community
members. They earn profit from the company’s production
following the guidelines and regulations of the government.
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A CSR Program Following the Concentric Circle Model
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They launched a program aimed at preserving the environment
and advocating the responsible use of natural resources from
the profit they earned. Part of the project is providing residents
with one million coconut, coffee, and cacao seedlings. They
also have education, health and nutrition programs, housing,
and rehabilitation.
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Framework for Assessing CSR
Social Benefit-Cost Framework
● deviates from the four elements that constitute CSR
● weighs the benefits and cost of a CSR program to the
business owner and the society
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Additional Framework of CSR
To the business To the society
Benefits Creation of the market
Social benefits
(Opportunities) value
Environmental and social
Cost (Risks)
costs
Table 1. Social Benefit-Cost Framework
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Costs and Benefits of CSR Programs
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Last May 2020, one national agency responsible for Covid-19 aids
received a bio-molecular laboratory and PPEs to be used for Covid-
19 efforts as donated by tobacco companies. These donations are
beneficial in fighting against the virus.
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Costs and Benefits of CSR Programs
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This CSR can be assessed using Social Benefit-Cost Framework.
Tobacco companies' market value will increase once they know
about their overwhelming donations to help the Philippines fight
Covid-19. Meanwhile, society will also benefit from these donations,
especially those who need the donated materials. But, there is a
troubling concern in accepting these donations from the tobacco
companies.
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Costs and Benefits of CSR Programs
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While tobacco companies help the Philippines alleviate the effects
of Covid-19, they continue producing toxic products that, according
to some research, tobacco contribute to severe Covid-19 outcomes
and death. This issue concerns the health risk of the community.
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Keep in Mind
● Businesses are expected to act in a manner that benefits society.
Aside from their natural economic functions, they are required by
society to perform their social responsibilities.
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Keep in Mind
● Corporate social responsibility (CSR) refers to a business’s more
extensive obligations to society. These obligations are economic
objectives, legal responsibility, ethical practice, and philanthropic
expectations.
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Keep in Mind
● Various models of corporate social responsibility differ in
understanding the importance and interconnectedness of the four
elements of CSR.
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Keep in Mind
● The effectiveness of CSR programs can be assessed by weighing the
costs and benefits it brings to the company and the society.
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Practice Your Skills
Search the internet for Philippine companies and their corporate social
responsibility programs. Analyze how the company’s program fulfills the
four social responsibilities of businesses. Answer the questions that
follow.
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Practice Your Skills
Name of Company: _____________________________________________________________________________
Corporate Social Responsibility Program: ______________________________________________________
Reference: ______________________________________________________________________________________
Economic
Legal
Ethical
Philanthropic
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Challenge Yourself
Answer the following questions.
If you are going to design a CSR program, which of the different
models of CSR would you use? Explain your answer.
Answer area
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Challenge Yourself
Answer the following questions.
As a customer, what is your insight about a business that is not
practicing corporate social responsibility?
Answer area
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Photo Credits
Slide 1: Man and woman holding hands, by Remi Walle is free to use under the Unsplash license via Unsplash.
Slide 3: Painted Red, by Tim Marshall
Slide 4: File:Khamla Panyasouk of Big Brother Mouse reads to children.jpg, by Blue Plover is licensed under CC BY-SA
via Wikimedia Commons.
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Bibliography
Aviva Geva, “Three Models of Corporate Social Responsibility: Interrelationships between Theory, Research, and
Practice”, (February 28, 2008), https://onlinelibrary.wiley.com/doi/full/10.1111/j.1467-
8594.2008.00311.x#:~:text=According%20to%20the%20model%20(Figure,a%20good%20corporate%20citizen
%E2%80%9D) last accessed on December 1, 2021.
Henry Thacker, “Understanding the Four Levels of CSR”, (November 12, 2019),
https://thecsrjournal.in/understanding-the-four-levels-of-csr/, last accessed on December 1, 2021.
Serafin Talisayon, “Corporate Social Responsibility and Emergent Models in Management of Stakeholders Capital in
Philippine Conglomerate”, Journal of Asian Business Volume 4, Numbers 1 & 2, pp. 67-68, University of
Michigan, 2010
Stella, M. (2019). 352791041 corporate social responsibility of top 10 corporations in the Philippines - corporate.
StuDocu. Retrieved January 13, 2022, from
https://www.studocu.com/en-gb/document/bath-spa-university/governance-ethics-risk-management/35279104
1-corporate-social-responsibility-of-top-10-corporations-in-the-philippines/598954
3.
Walia, A. and Chetty, P. (2020), Review of different CSR models and their advantages. [online] Project Guru. Available at:
https://www.projectguru.in/corporate-social-responsibility-models/, last accessed on December 1, 2021. 48
