LAGUNA COLLEGE OF BUSINESS AND
ARTS
COLLEGE DEPARTMENT
Bachelor of Science in Accountancy
E- Learning
Portfolio S.Y. 2021-2022
Presented to the
Faculty
of
Laguna College of Business and Arts
In partial Fulfillment of the Requirements
for the subject
BUSINESS ETHICS
Presented by:
Almonia, Ahzelle P.
Canicosa Janine
Gonzales, Sheila Mae
Osma, Camille Jade
Tugot, Luciana Andrea E.
BSA 2021
INTRODUCTION
Companies have believed for years that their only responsibility was a financial one---
maximizing value for shareholders. Corporate social responsibility (CSR) is a new idea, one
in which the corporate sector incorporates social and environmental concerns in its strategies
and plays a more responsible role in the world. This paper will argue that with some effort
and foresight, corporate social responsibility can be integrated seamlessly into the goals of
almost all organizations. Furthermore, it is not necessarily the chief executives who must
always initiate and implement CSR. Project managers have the ability to introduce CSR in
their work and promote social good within the firm. If properly understood and executed,
CSR is a win-win strategy that benefits the company, as well as society.
Corporate Social Responsibility (CSR) is an organization’s obligation to consider the
interests of their customers, employees, shareholders, communities, and the ecology and to
consider the social and environmental consequences of their business activities. By
integrating CSR into core business processes and stakeholder management, organizations can
achieve the ultimate goal of creating both social value and corporate value. (Stanford
University’s Graduate School of business).
So, what is Strategic Corporate Social Responsibility? By taking a strategic approach,
companies can determine what activities they have the resources to devote to being socially
responsible and can choose that which will strengthen their competitive advantage. By
planning out CSR as part of a company’s overall plan, organizations can ensure that profits
and increasing shareholder value don’t overshadow the need to behave ethically to their
stakeholders.
TABLE OF CONTENTS
TOPIC DISCUSSION
“Most companies feel compelled to give to charity. Few have figured out how to do it well”
(Porter & Kramer, 2002).
With the changing expectations of consumers, employees and regulators, being best in the
world is no longer enough. Nowadays businesses are also expected to be best for the world:
to be socially and environmentally responsible, sustainable and ethical. Most no longer agree
with Milton Friedman (whose article in the New York Times from 1970 stated that the only
social responsibility of a business is to maximize profit) and therefore increase the levels of
their corporate social responsibility (CSR), but not enough companies are strategic about it.
So, what does it mean to be strategic about your CSR? Werther and Chandler explain that:
“Strategic CSR is the incorporation of a holistic CSR perspective within a firm’s strategic
planning and core operations so that the firm is managed in the interest of a broad set of
stakeholders to achieve maximum economic and social value over the medium to long term”.
As you can see from this long and complicated description, strategic CSR is significantly
more difficult than simply donating money to charity. It is, however, easier in certain aspects.
It's about connecting your knowledge and skills to a good impact on society and the
environment. And you're the only one who knows how to do it right. Having a holistic
approach, in my opinion, is an important part of strategic CSR.
Examples of Corporate Social Responsibility in Action
Corporate social responsibility comes in many forms. Even the smallest company can impact
social change by making a simple donation to a local food bank. Some of the most common
examples of CSR include:
Reducing carbon footprints
Improving labor policies
Participating in Fairtrade
Diversity, equity, and inclusion
Charitable global giving
Community and virtual volunteering
Corporate policies that benefit the environment
Socially and environmentally conscious investments
Millennials Want to See More Corporate Social Responsibility
To millennials and Generation Z, socially responsible companies are even more important.
They believe companies should invest in improving society and look for solutions that assist
in those improvements.
Companies should share how they are trying to make a positive impact on the world, so the
public can see their pro-social initiatives. Showcasing efforts is key so it’s important to learn
how to market to millennials because these efforts will sway the choices they make as
consumers.
Millennials also like to take part in initiatives such as volunteer work or making donations.
As ever more companies begin to see the impact their socially and environmentally conscious
efforts have on a consumer’s perception, the more chance there is that they will begin
initiatives of their own.
THE BEST EXAMPLE OF CSR
1. Innovation: Johnson & Johnson
An excellent example of CSR on the frontline is big pharma pioneer Johnson &
Johnson. They have focused on reducing their impact on the planet for three decades.
Their initiatives range from leveraging the power of the wind to providing safe water
to communities around the world. Their purchase of a privately-owned energy
supplier in the Texas Panhandle allowed the company to reduce pollution while
providing a renewable, economical alternative to electricity. The company continues
to seek out renewable energy options with the goal of having 100% of its energy
needs from renewable sources by 2025.
2. Google
Google is trusted not only for its environmentally friendly initiatives but also due to
its outspoken CEO, Sundar Pichai. He stands up against social issues including
President Donald Trump’s anti-Muslim comments. Google also earned the Reputation
Institute’s highest CSR 2018 score much in part due to their data centers using 50%
less energy than others in the world. They also have committed over $1 billion to
renewable energy projects and enable other businesses to reduce their environmental
impact through services such as Gmail.
3. Coca-Cola
As a brand, Coca-Cola is putting a huge focus on sustainability. The key areas are
climate, packaging and agriculture along with water stewardship and product quality.
Their message is ‘a world without waste’, with the aim of collecting and recycling
every bottle, making their packaging 100% recyclable and replacing all water used in
creating their drinks back to the environment to ensure water security. They aim that
by 2030, they will have reduced their carbon footprint by 25%.
4. Ford Motor Company
Ford has huge plans in the area of CSR. Their mission is to ‘build a better world,
where everyone is free to move and pursue their dreams’. They have increased
investment in electrification to $22Bn (from an original $11Bn) and aim for their
vehicles to be carbon neutral by 2050.
Interestingly, the company is also focusing on pay equity. They are conducting a
diversity, equity and inclusion audit while introducing a global salaried pay ratio
(including gender) to level the playing field for all employees.
5 & 6. Netflix & Spotify
From a social perspective, companies such as Netflix and Spotify offer benefits to
support their employees and families.
Netflix offers 52 weeks of paid parental leave to the birth parent and non-birth parent
(which includes adopted children). This can be taken at any time whether it is the first
year of the child's life or another time that suits their needs. This compares to a
median of 18 weeks at other major tech companies.
Spotify offers a similar program, although for a shorter duration of 24 weeks of paid
leave. The company believes the launch of this initiative resulted in a spike in external
job applications which has never abated.
7. Pfizer
When disaster strikes, emergency assistance in healthcare is crucial. To aid in these
circumstances, Pfizer has a three-pronged approach, product donations, grants and
solutions to access.
Grants have been provided to countries such as Haiti in the aftermath of Hurricane
Matthew and the global refugee crisis in Europe and the Middle East. This money is
provided in cooperation with NGOs to reach as many people as possible.
8. The Walt Disney Company
Disney committed to reducing their carbon footprint in their 2020 CSR report with
goals for zero net greenhouse gas emissions, zero waste, and a commitment to
conserve water. They are actively ensuring strict international labor policies to protect
the safety and rights of their employees.
They are also active in the community and encourage employees to do the same.
When their parks closed due to the COVID-19 pandemic, Disney focused their CSR
efforts on local communities. They provided $27 million towards food donation and
PPE from closed parks and production sets and encouraged employees to participate
in virtual volunteering.
THE PYRAMID OF CSR
General Description
A leading model of CSR is Carroll's four-part pyramid. The CSR pyramid was framed
to embrace the entire spectrum of society's expectations of business responsibilities
and define them in terms of categories.
Theoretical Assumptions
The central assumptions underlying the CSR pyramid are presented below, followed
by a discussion of their theoretical implications.
Nature of CSR Taking a managerial approach, the four-part pyramid defines CSR in
terms of social expectations that responsible corporations should strive to meet.
Prevailing social norms and expectations provide external criteria against which
corporate performance can be measured.
Scope of responsibilities Understanding CSR as an array of separate domains
naturally leads to narrow definitions of the different responsibilities. Thus, the
economic role of the corporation is reduced in the pyramid model to the narrow
emphasis on profit making of neoclassical economics.
Total CSR The pyramid is a conjunction of separate domains of responsibility. In
contrast to the ordinary view, the so-called separation thesis, that businesses can focus
either on profits or social concerns but not on both, the CSR pyramid “sought to argue
that businesses can not only be profitable and ethical, but they should fulfill these
obligations simultaneously.
The role of philanthropy the role of philanthropy has been discussed in the context of
the CSR pyramid from two perspectives: inwards—as compared to other components
of CSR, and outwards—as compared to other notions of CSR. Inwards, the question
arises whether the philanthropic category can be correctly considered a responsibility.
Research Implications
The pyramid model of CSR has served as a platform for some of the major research
developments in the field. As Clarkson claimed, “the strength of its influence can best
be judged by its longevity and that of its progeny.”38 A considerable number of
empirical studies published in recent years have focused first on operationalizing the
framework, and then on developing and testing a set of hypotheses regarding the
determinants and consequences of CSR.
Managerial Implications
In recent years, the friendship model of the relationship between financial and social
interests has gained growing acceptance premised on management's belief that “ethics
pays.” The CSR pyramid dovetails well with this current trend among corporate
managements. While attempting to extend the neoclassical economic paradigm to
accommodate societal expectations and the effects of business operations, the
pyramid does emphasize that the fundamental responsibility of business is economic.
It suggests that it is in the financial interest of businesses to comply with the law, to
engage in ethical behavior, and to exercise philanthropy. Stated differently, social
responsibilities are accepted to the extent that they can serve a part of the firm's
competitive strategy.
Corporate Social Responsibility: Concept and Rationale
With CSR, organizations take responsibility for the impact of their activities on
customers, employees, shareholders, communities, and the environment in all aspects
of operations. This effort extends beyond simply obeying local laws, as organizations
voluntarily take steps to improve the quality of life for employees and their families,
as well as society at large. CSR is sometimes called “corporate citizenship,” meaning
that a company should be a good neighbor to the communities that are affected by its
presence (Rionda, 2002).
There are compelling reasons why companies should engage in some form of effort
aimed primarily at social welfare. Proponents of CSR have used four arguments to
make their case: moral obligation, sustainability, license to operate, and reputation.
Moral obligation means that stakeholders of a growing number of companies are
satisfied only when the company balances the impact of its business with socially
responsible practices.
Sustainability involves meeting the needs of the present without compromising the
capability for future generations. Substantial progress can be made by investing in
solutions that are socially, environmentally, and financially sustainable (Arena, 2006,
p. 9).
Moreover, the very license to operate and crucial contracts themselves, with
governments and other entities, might be conditional upon such obligation.
Finally, CSR initiatives may be supported due to reputation impact, on the grounds
that they will improve a company's image and even raise the value of its stock (Porter
& Kramer, 2006).
Examples of such reputation benefits include a greater clientele, the ability to charge
premium prices, and the retention of more productive workers. Companies tend to
manage risks to their reputation and brand in a reactive mode, only dealing with crisis
events after they happen. Companies confronted with boycott threats, as Nike was in
the 1990s, or with the threat of high-profile lawsuits, as in the case of McDonald's
over obesity concerns, may also see CSR as a strategy for presenting a friendlier face
to the public (Doane, 2005).
Self- Assessments
“While we were putting together our portfolio, I realized how essential CSR is to
some businesses. Because CSR contributes in the recruitment and retention of
personnel. Employees benefit from CSR efforts since they help to create a more
productive and positive work environment. Although it is not required by law, it is
considered good practice to address social and environmental concerns.”
(Tugot, 2021)
Self- Evaluations
1. How big is the CSR team?
- CSR is important for small and medium-sized enterprises as well SMEs are
organizations of up to 1,000 employees.
2. What kind of professional development opportunities are there?
- A fantastic approach to give millennials and early-career employees a boost in
the skills they need to excel in their jobs Companies can support employees in
doing good in the community while also creating opportunity for them to learn
and grow by providing volunteer opportunities that rely on organizational
expertise and resources.
