SRGG Chapter 8

ETHICS AND CORPORATE
SOCIAL
RESPONSIBILITY
The Concept of Corporate

Social Responsibility
The fundamental reason for examining the activities of

business from the moral perspective is for the promotion
of the common good, protection of the individuals
interests and the preservation of the human society in
general.
Without
ethics,
business
will
be
chaotic
because there will be no understanding and agreement

about what is wrong and right in the human conduct.
There are several definitions of Corporate Social

Responsibility. Some of these are:
Corporate Social Responsibility means seriously
considering the impact of the companys actions on
society.-Bauer
The obligation of decision makers to take actions which
protect and improve the welfare of the society as a whole
along with their own interests.-Davis and Blomstrom
The response of the corporation to issues

beyond its narrow economic, technical and legal
requirements. It is the obligation to the
corporation to evaluate the effects of its decisions
on the external social system.-Professor Keith
Davis of Arizona State University
Corporate Social
Responsibility
from a Historical Perspective
2.1 The Ancient and Medieval

Period
During the ancient times, people believed 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 activity greatly despised.
Criticisms against the evil of business came far
and wide during the medieval period when the
Catholic Church became the most powerful
institution in Europe.
2.2 Period of Mercantilism

The power of the Catholic Church as the most
influential institution in Europe diminished at the
onset
of
mercantilism,
politico-economic
philosophy. To them, the main source of power

and prestige among nations is the acquisition of
gold and silver through trade.
2.3 The Industrial Revolution

This is the time when machines were introduced,
thus contributing to improved production and
business growth. Along with these improvements
was the change in the businessmans attitude
and values towards business.
The capitalists in England were the ones who
thoroughly enjoyed this prerogative.
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
regulations and compliance with administrative and
legal standards. But on the rise across the globe is
the
mandate
to
create
more
competitive,
productive and knowledge-based economy.
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. Some of
these activities involve the ff:
Establishment of certifying bodies to develop

standards, programs and to train and certify
employees, managers and businesses with quality
programs, certifications and accreditations.
Training their employees for customer care and

people skills with the application of Customer
Relationship Management standards.
Improvement
of
compensation
and
benefits
packages for employees.

Establishment of programs for protection and
preservation of the environment.
Active
participation
in
socio
civic
and
charitable
activities, adopt-a-community programs.

Development of customer complaint desks or hotlines.
Recruitment of competent and technical employees.
Training quality people that will handle all aspects of
the business processes.
Application of good manufacturing practices and

advance assurance standards for safe and good
quality products.
Strengthening of ties with agencies and creating
organizing bodies that aim at the promotion.
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; and
9.10 Health and safety

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ETHICS AND CORPORATE

The Concept of Corporate

The fundamental reason for examining the activities of

because there will be no understanding and agreement

There are several definitions of Corporate Social

The response of the corporation to issues

2.1 The Ancient and Medieval

2.2 Period of Mercantilism

philosophy. To them, the main source of power

2.3 The Industrial Revolution

2.4 After the Period of Depression

productive and knowledge-based economy.

Current Activities Related

The response of the business industry to the call to

Establishment of certifying bodies to develop

Training their employees for customer care and

packages for employees.

activities, adopt-a-community programs.

Application of good manufacturing practices and

They act in response to these key elements and issues:

9.3 Human Rights;

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