CORPORATE SOCIAL RESPONSIBILITY AND GOOD • is the process of measuring hoe public institutions

GOVERNANCE in the Millennial Age (Introduction) conduct public affairs and manage public
resources and guarantee the realization of human
rights in a manner essentially free of abuse and
corruption and with due regard for the rule of law.
What is Corporate Social Responsibility?
IMPORTANCE OF GOOD GOVERNANCE
• Corporate – relating to a corporation, especially a
large company or group. • More specifically, it can improve the performance
• Social – relating to society or its organizations. of your business, help it become more stable and
• Responsibility – the state or fact of being productive, and unlock new opportunities. It can
responsible, answerable, or accountable for reduce risks, and enable faster and safer growth.
something within one’s power, control, or It can also improve reputation and foster trust.
management.
• Corporate social responsibility (CSR) is a business CHAPTER 1: ETHICS AND BUSINESS
model that helps a company be socially
Introduction:
accountable to itself, its stakeholders, and the
public. • All business organizations and the entire society
• Corporate social responsibility (CSR) is the idea need ethics and ethics is a must to be
that a business has a responsibility to the society implemented. Ethics is very beneficial to business
that exists around it. organizations if properly implemented. With
• Corporate social responsibility (CSR) is a successful execution of ethics, organizations are
management concept whereby companies able to attain better quality performance. This is
integrate social and environmental concerns in the result of attracting and retaining highly
their business operations and interactions with qualified employees and satisfying stakeholders
their stakeholders. such as customers, suppliers, and investors.
• However, it is quite a regret that numerous
FOUR MAIN TYPES OF CORPORATE SOCIAL RESPONSIBILITY
organizations are not able to execute ethics due
1. Environmental – refers to the organization’s to the very of human beings as not morally
commitment to sustainability and environmentally faultless, so this could not be achieved
friendly operations. It is the belief that automatically.
organizations should behave in as
DEFINITION OF TERMS
environmentally friendly a way as possible.
2. Ethical – self-enforced initiatives that a company • Ethics – is defined as the moral principles that
puts in place because they believe it is the morally govern a person’s behavior or the conduction of
correct thing to do rather than out of any an activity. It reflects on human beings and their
obligation. It is concerned with ensuring an interaction with nature and with other humans, on
organization is operating in a fair and ethical freedom, on responsibility and on justice.
manner. • Business – an organization or enterprising entity
3. Philanthropic – refers to a corporation’s aims, engaged in any lawful commercial, industrial, or
goals, and objectives for actively bettering society professional activities. Any enterprise which
as a whole. It refers to a business’s aim to actively makes, distributes, or provides any service which
make the world and society a better place. other members of the community need and are
4. Economic – refers to the practice of making willing to pay for it.
financial decisions based on a commitment to • Business Ethics – refers to the standards for morally
doing good. It is the practice of a firm backing all right or wrong conduct in business.
of its financial decisions in its commitment to do
good in the areas listed above. NATURE OF BUSINESS

What is governance? • By its nature, man has unappeasable and

innumerous wants. In order to satisfy his
• The system by which entities are directed and unquenchable needs, he works harder to
controlled. It is concerned with structure and maximize the use of limited resources around him.
processes for decision-making, accountability, Making full use of his meager resources to the best
control and behavior at the top of an entity. satisfaction of human wants is known as economic
activity.
GOOD GOVERNANCE
• Economic activities are those undertaken by man
• Openness, transparency, and integrity. to earn income, money and wealth for his life and
• Performance orientation secure the greatest satisfaction of wants. For this
• Effective collaboration intention, a person may pursue an activity based
on his interest, capacity, knowledge and training.
CLASSIFICATION OF ECONOMIC ACTIVITIES business practices could be the outcomes of
good and valuable ethical practices.
1. Profession – occupation carried on by • Ethics should be part of the management
professionals like doctors, engineers, lawyers, structure of any businesses from the start or
teachers and the like. beginning of the venture. For instance, an
2. Employment – type of occupation under which a employer must have its moral obligation to his
person provides services, physical or mental to employees in the form of respect, loyalty, just and
someone else in return he gets salary or wage. fair wage and good working condition.
3. Business – any lawful economic activity • There must always be a motive contribute some
concerned with production and distribution of social benefits and not just profit-oriented. A
goods and services with the aim of earning profit. business must be able to satisfy a need or want to
Examples of business activities are: Production, its customers.
Marketing, Advertising, Warehousing, Insurance,
Banking. EXAMPLES OF BAD BUSINESS PRACTICES

FEATURES AND CHARACTERISTICS OF A BUSINESS • defective or faulty products

• invalidated firing of employees
1. Production and acquisition of goods. • misrepresentation of products to consumers
2. Generates employment • false/misleading advertising
3. Continuous process • false free prize or gift offers
4. Profit is the basic motive • deceptive pricing
5. Risk or uncertainty of future • non-compliance with manufacturing standards
6. Creative and dynamic
7. Customer satisfaction TWO VITAL ASSETS OF A COMPANY
8. Social activity
9. Government control 1. Employees
10. Optimum utilization of resources 2. Good Reputation

IMPORTANCE OF ETHICS IN BUSINESS THE MORALITY OF PROFIT

Ethics tries to form logic of right and wrong in the Every individual lives with double purpose intentions,
organizations. Ethics needs to be practiced as such which are survival and flourishing.
everyone wants businesses that are fair, clean, and • Survival – the goal of perpetuating one’s
beneficial to society. Businesses must follow rules while biological being and averting to experience
engaging in competition for the benefit of the consumer, poverty, downfall and death.
the society and organization itself. • Flourishing – is being able to control and manage
1. Satisfying basic needs material reality and take advantage or more
2. Building credibility elements for the sense of self-love so as to unstick
3. Connecting leaders and employees oneself from a present situation and make start to
4. Enhancing decision-making grow as a human being.
5. Continuing gains For a person to act in the ways he desires, there will be
6. Protecting the society expenses that he needs to spend. When a man’s gains are
RELATIONSHIP BETWEEN ETHICS AND BUSINESS equal to his expenses, that means a break-even for him
and he survived.
• Trust and confidence from the consumers can
serve a lot of economic benefits to the business. A When a man wants to flourish, his gains should be
business will become popular if it must establish a greater than his expenses. Hence, it necessitates for him to
strong reputation of honesty and integrity. produce a profit.
• A positive image of the company would mean The only way to flourish is to gain profit. In order to
higher profits and a lot of better services intended control and manage material reality, a person must not
to its customers. In order for the company to be lose any assets or just have a break-even.
effective, ethics and business should not be
separated. Each person values these types of profits in a different
• In these days of highly competitive business degree depending on the ways in which that individual
environment, the best way to promote success on desires to flourish.
all levels is integrating ethics within the business
operations. Ironically, however the type of profit that draws the
• Ethics has a big role in the operations of a business. greatest criticism is monetary profit. Money being a
A bad business could be the consequence of medium of exchange is always use in trading a broad
unethical business practices. While an effective variety of goods and services very conveniently. Certainly,
money cannot buy absolutely everything, yet it can help • Using the principle of good stewardship, the idea
in fulfilling one’s life objectives. of profit is indispensable. It is actually a reward for
doing something that is helping and extending
Money indeed performs a big role in attaining the assistance to other people by practicing charity
flourishing goal in life. Money as expressed in profit that is who are in need.
used to flourish and elevate one’s life from poverty is moral. • Meeting the basic needs and wants prompts
A man may basically generate profits in two ways: business people to provide answers with profit as
the vital motivation. Say for instance, a drug
1. Take an action beneficial to himself but is company generates profit as the vital motivation.
immaterial to others Say for instance, a drug company generates profit
from providing medicine to reduce pain or curing
2. Secure participation and team up with other illness, a construction firm to build houses and
people other concerns on housing problems, schools that
Man needs to be free in obtaining profit, must rely on offer courses to increase the knowledge of
his own reasoning to make a choice on what he thinks is students, etc.
profitable for him and decide on how he does it. He can’t • Making profit is not a sin. It becomes a sin through
act in his best interest or flourish up to his ceiling if he would dishonest means makes it immoral. In fact, profit is
be restricted to follow his choice or someone shall enforce necessary in support to Christian stewardship.
unbeneficial strategy on him. WHAT MAKES PROFIT UNETHICAL?
Hence, he needs Laissez-faire capitalism to let him • Note that profit motive is indispensable to a
flourish freely. LFC is a political, social and economic business as it is its primary goal. But business has the
system which allows everyone to do profit seeking option to grow and maximize profits either
activities without any complications or government ethically or unethically. Any form of deception
interventions. and dishonesty may result to tarnish brand
In order for the businessman to gain profit on the free reputation, company’s image and disloyalty
market, he must monitor and remove arbitrage among customers.
opportunities which come from extensive inaccuracies of MOST COMMON UNETHICAL PRACTICES IN COMAPANIES
opinion. Arbitrage opportunity is an investment strategy
that gives way to a positive profit with positive likelihood • Employees
but without any risk disadvantage. Reducing or not providing the required benefits in
terms of salary and wage, allowances, overtime
A businessman may attempt to discover a better way pay, health and insurance benefits. Cutting costs
to distribute or allocate resources at hand which is different at the expense of employees is unethical.
from what he had done before. Through removing • Marketing
arbitrage opportunities, businessmen are able to correct Although it is a big help in increasing branch
market flaws and balance supply & demand to fully satisfy awareness and generating profit but some
human needs, thus people around are agreeable to pay businesses oftentimes lead to ethical dilemma of
them more than previously because of this new allocation choosing the right form wrong decision like an
of resources. Further, mandatory economic rules would advertisement featuring sexy models to attract
stop every individual in discovering how to flourish in his customers in liquor or wine products.
own approach. • Quality
If flourishing is moral and improving oneself is moral, Producing goods and providing services
then the pursuit of profit is the same. If pursuing profit is especially ones are costly that’s why companies
moral, then men could do economic activities freely. resort to trimming down the quality of goods by
using substandard materials but still selling at the
PROFITS MAY COME IN DIFFERENT SHAPES same price compared to other sellers to gain
more profits.
• Intellectual – gains of knowledge • Environmental
• Technical – gains of skill Often, companies wanted to generate profits to
• Material – gains of property the detriment of the environment such unethical
• Physiological – gains in health and fitness environmental practices increasing pollutants,
• Social – gains in valuable relationship contamination and deforestation.
• Monetary – gains in money
ENVIRONMENTAL POLLUTION
PROFIT FOR CHRISTIANS
Types:
• The bible is the base ethics of all Christians. Profit is
a very difficult issue and the word of God says any • Air – alteration of the physical, chemical and
point it is unethical. biological properties of the atmospheric air.
 • Water – alteration of the physical, chemical,
biological, and radiological properties of a body
of water resulting in the impairment of its impurity
or quality.
• Noise – is the excessive sound that causes hearing
loss, stress, fatigue, irritability, tension, headaches
and high blood pressure.
• Soil – it is chiefly caused by chemicals in pesticides
such as poison that are used to kill agricultural
pests like insects and likewise herbicides that are
used to get rid of weeds.

ETHICS AND MORALITY IN BUSINESS

• Ethics – decides whether certain actions,

conducts and behavior are right or wrong, good
or bad, moral or immoral and just or unjust. Ethics
creates morality.
• Morality – are judgement, standards, rules and
standards that direct the proper or right conduct
of behavior of both individuals and groups in the
society.

EIGHT FEATURES OF BUSINESS ETHICS

1. Code of Conduct
2. Based on Moral and Social Values
3. Gives protection to social groups
4. Provides basic framework
5. Voluntary acceptance for enforcement
6. Requires education and guidance
7. Relative term
8. Not against profit making

SOURCES OF BUSINESS ETHICS

1. Religion – it is the oldest foundations of ethical

standards. Each religion gives an expression of
what is right and wrong. The principle of
reciprocity towards one’s fellow beings is found in
all the religions. It stresses upon social responsibility
with an objective to contribute to the general
welfare. Each religion generates its own code of
conduct.
2. Culture – it is the set of significant understanding
that members of a community share in common
that are transferred from one generation to
another. It is a pattern of development reflected
in a society’s pattern of knowledge, ideology,
values, laws, social norms and everyday rituals
differ from society to society.
3. Law – procedures and code of conduct that are
laid down by the legal system of the state. It
guides the human behavior in the society, to
adhere to the rules and regulations.