BA 503

Social Responsibility
and Good Governance

HISTORY OF
Corporate Social Responsibility

Caringal, Kathleen Rose

De Chavez, Jeanilen
Guce, John Karl Ian
Masters in Business Administration
 Topic Outcome
This topic aims to achieve the following objectives:
To explain the nature and historic background of
Corporate Social Responsibility
To understand and know the importance of having
corporate social responsibility.
To know how CSR works in Philippine businesses and
its national policy in the country.
To understand the evolution and different types of
corporate social responsibility.
To know and understand the different benefits in
conducting CSR.
What is Corporate Social
Responsibility (CSR)?
A management concept that emphasizes how a
company assists communities and society by
implementing environmental and social activities.
It evolved from voluntary decisions made by
individual enterprises to mandated rules at the
regional, national, and international levels.
 EVOLUTION OF CORPORATE SOCIAL RESPONSIBILITY

Early 20th century 1970s and 1980s

businesses first began to engage in corporate citizenship
philanthropy and charitable giving

1950s and 1960s 1990s and 2000s

concept of responsibility began to emerge focus on sustainability and creating shared
value for all stakeholders
 Early 20th Century
EARLY PHILANTHROPY

Andrew Carnegie and John D. Rockefeller Sr.

Used their fortunes to fund a range of charitable causes, including

education, healthcare, and the arts.
 JOHN D. ROCKFELLER Sr.

Rockefeller Foundation in 1913

funding research into diseases such as

yellow fever and malaria

supports the development of public

health programs across the world
 ANDREW CARNEGIE
Establishment of Carnegie libraries

free access to books and other

educational resources for the public

Carnegie died in 1919

construction of over 2,500 libraries

across the world
 1950s and 1960s
SOCIAL RESPONSIBILITY EMERGES

Ralph Nader and Rachel Carson

Emergence of several influential authors and activists who called for

greater corporate responsibility
RALPH NADER
“Unsafe at Any Speed” in 1965

National Traffic and Motor Vehicle Safety Act

in 1966

safety standards for vehicles and

estabilshed a regulatory agency to oversee
the industry

accountability - key role in shaping the idea

of corporate responsibility
RACHEL CARSON
“Silent Spring” in 1962

Environmental impact of pesticides and

other chemicals

Businesses take responsibility for their

impact on the environment
 1970s and 1980s
CORPORATE CITIZENSHIP

Ben & Jerry’s and The Body Shop

Influential business leaders emerged who championed the idea of

corporate citizenship
 BEN & JERRY’S

Ice cream company in 1978

By Ben Chen and Jerry Greenfield

Businesses had a responsibility to

create a positive impact on SOCIETY
 THE BODY SHOP
Cosmetics & skincare company in 1976

By Anita Roddick

Businesses had a responsibility to

create a positive impact on SOCIETY
AND THE ENVIRONMENT
 1990s and 2000s
SUSTAINABILITY AND SHARED VALUE

Patagonia and Unilever

It is possible to be financially successful while also creating shared value

for all stakeholders and promoting sustainability
PATAGONIA

Outdoor clothing company

reduce environmental impact

vocal advocate for environmental protection

climate change and public lands

UNILEVER

Consumer goods company

Reducing environmental impact

Zero-deforestation; 100% - agri raw materials

sustainability

Concentrated laundry detergent - less water

and packaging traditional detergents
IMPORTANCE OF CORPORATE SOCIAL
RESPONSIBILITY IN THE PHILIPPINES

Decreased Poverty

Increasing Job Creation

Allows businesses to interact with

clients

Contributes to society’s well being

 Favorable enabling
environment

Philanthropic

HOW CORPORATE
SOCIAL RESPONSIBILITY
WORKS IN THE Event-driven

PHILIPPINES BUSINESSES
Results Evaluation

Goodwill
 HOUSE BILL 6137
CORPORATE SOCIAL RESPONSIBILITY ACT

Seeks to foster sustainable economic development and environmental

protection by encouraging corporations to inculcate the value of social
responsibility in community development in their organization’s
operations and activities.
EVOLUTION OF CORPORATE SOCIAL RESPONSIBILITY
IN THE PHILIPPINES

1960s A DECADE LATER IN RECENT YEARS

Corporate Social Many corporations An increasing number
Responsibility practice began to launch of businesses have
in the Philippines is Corporate Social responded to the need
traced back to the Responsibility to make more
1960s operations significant interventions
 TYPES OF CORPORATE SOCIAL
RESPONSIBILITY

Environmental Responsibility Ethical Responsibility

Anchored in the preservation of Based on fair and ethical behavior
mother nature

Financial Responsibility
Philanthropic Responsibility This connects the three categories mentioned
above. A firm may set intentions to be more
Challenges how a corporation acts
environmentally, ethically, and philanthropically
and contributes to society focused; but, these objectives must be
supported financially by program investments
 TYPES OF CORPORATE SOCIAL
RESPONSIBILITY
Environmental Responsibility
Anchored in the preservation of mother nature
 TYPES OF CORPORATE SOCIAL
RESPONSIBILITY

Fair Treatment

Ethical Responsibility Positive Treatment of all

Based on fair and ethical behavior employees

Expansion of Vendor

On-time and respectful disclosure of

operational concerns to investors
 TYPES OF CORPORATE SOCIAL
RESPONSIBILITY
Whether or not a firm distributes
profits to charity

Whether a corporation exclusively

Philanthropic Responsibility
conducts business with suppliers Challenges how a corporation acts
and contributes to society

Whether a corporation provides

employee charitable opportunities

Whether a corporation sponsors

fundraising activities
 Product
TYPES OF CORPORATE SOCIAL
development for
innovative items RESPONSIBILITY
Recruiting many
types of talent

employees
te
Educa

Financial Responsibility
This connects the three categories mentioned
above. A firm may set intentions to be more
environmentally, ethically, and philanthropically
focused; but, these objectives must be
supported financially by program investments

Ensure timely and

transparent
Expensive yet produce financial resporting
better corporate social
responsibility results
 September 2023

Presented by : John Karl Ian Guce

The Present and Future

of CSR: Innovation and Trend
A REPORT ABSTRACT ON THE EMERGING INNOVATION AND TRENDS OF
CONTEMPORARY CORPORATE SOCIAL RESPONSIBITIES HIGHLIGHTING
ITS BENEFITS ON BUSINESSES, SOCIETY, AND THE ENVIRONMENT

SOCIAL RESPONSIBILITY AND GOOD GOVERNANCE (BA 503)

 Present CSR
Initiatives CSR has evolved significantly over the years, transcending its
initial perception as a philanthropic activity to become an
integral part of modern business strategies.

The following are some of the most common examples of CSR today and the brands that are doing it right.

1 Renewable innovation: Johnson & Johnson 6 Access to healthcare: Pfizer

2 Social issues: Google 7 Philanthropic Donations: Wells Fargo

3 Sustainability: Coca-Cola 8 Grassroots campaigns: TOMS

4 Carbon neutral and pay equity: Ford Motor Company 9 Climate neutral: Bosch

5 Employee rights: Netflix & Spotify 10 Workplace diversity & inclusion: Starbucks
Renewable Innovation:
Johnson & Johnson
Their initiatives range from leveraging the
power of the wind to providing safe water to
communities around the world.

Purchased a privately-owned energy supplier

in the Texas Panhandle and allowed the
company to reduce pollution while providing a
renewable, economical alternative to
electricity.
Social issues: Google

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.
Sustainability: Coca-Cola
‘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%.
Carbon neutral & pay equity:
Ford Motor Company
Their mission is to ‘build a better world, where
everyone is free to move and pursue their
dreams’

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 to level the playing
field for all employees.
Employee rights: Netflix
& Spotify
Netflix offers 52 weeks of paid parental leave
to the birth parent and non-birth parent which
includes adopted children.
Spotify offers a similar program, although for a
shorter duration of 24 weeks of paid leave.
When it comes to social causes, Netflix and
Spotify use their social media platforms to
show support for movements such as Pride
month, environmental sustainability, and Black
Lives Matter.
Access to healthcare:
Pfizer
Pfizer has a three-pronged approach; product
donations, grants and solutions to access

During the COVID-19 pandemic, through its

Global Medical Grants program, Pfizer
provided $5 million to help improve the
recognition, diagnosis, treatment and
management of patients.
In 2022, Pfizer was named one of the most
ethical companies in the world by Ethisphere
Philanthropic Donations:
Wells Fargo
Wells Fargo donates up to 1.5% of its revenue
to charitable causes each year to more than
14,500 nonprofits through philanthropy such
as food banks and incubators.

In response to the COVID-19 pandemic, the

company donated $6.25 million to support a
domestic and global response
Grassroots campaigns:
TOMS
TOMS's mission is to donate a pair of shoes
for every pair they sell and this has resulted in
the donation of over 100 million pairs of shoes
to children in need.
The company came under criticism from
NGOs for creating a dependency on free
shoes and collapsing local shoe-making
industries. Instead of focusing on free shoes,
the company now donates one-third of its
profits to grassroots campaigns.
Climate neutral: Bosch
Bosch set itself ambitious goals for protecting
the environment, with an aim to reduce their
ecological footprint through climate action,
water usage, and a circular economy.

It seems this ambition has paid off and paved

the way for other global companies, as 400 of
its locations are now climate neutral.
Workplace diversity &
inclusion: Starbucks
With an eye to hiring, Starbucks wanted to
diversify its workforce and provide
opportunities for specific cohorts.
To tackle racial and social equity, Starbucks
announced a mentorship program to connect
black, indigenous, and people of color
(BIPOC) to senior leaders and invest in
partnerships.
Benefits of Corporate social responsibility has many
advantages that can apply to any

CSR business, regardless of its size or sector.

Enhanced Reputation Customer Loyalty Increased Sales and

Market Share
Benefits of CSR

Improved Employee Attracting Top Talent Cost Savings

Engagement
Benefits of CSR

Risk Management Access to Capital Innovation and Long-

Term Sustainability
Benefits of CSR

Community Benefits Legal and Regulatory Global Expansion

Compliance
The Future of CSR:
Innovation and Trends
Corporations embrace corporate social responsibility (CSR) initiatives to improve
employee retention, customer loyalty, and brand image as well as attract
investments.

Digital Inclusion Blockchain

Renewable Energy Impact Investing

CSR Reporting Employee

Solutions Engagement
Digital Inclusion

Startups develop digital skills training and

education programs that help people acquire
digital skills and increase employability

Community Wi-Fi initiatives in underserved

areas and incorporating accessibility features
into product offerings for the physically
challenged are examples of digital inclusion
CSR Reporting Solutions

CSR reporting quantifies a company’s social

and environmental performance to its
stakeholders.
Innovations in CSR reporting enhance
transparency, accountability, and stakeholder
engagement. Companies use an integrated
reporting approach, which combines financial
and non-financial information, to provide a
comprehensive view of their overall
performance.
Blockchain

Blockchain increases transparency,

accountability, and efficiency in social and
environmental impact reporting

Blockchain enables corporations to redirect

funding to projects in rural areas that generate
their own renewable energy. Startups leverage
the immutability of blockchain for secure and
verifiable impact reporting, thereby increasing
the accountability of CSR efforts.
Employee Engagement
Employee engagement and involvement
enable companies to build a strong culture of
sustainability, facilitate innovation, and attract
and retain top talent

Startups develop creative platforms to make

CSR initiatives more immersive for employees.
Impact Investing
Companies invest in socially and
environmentally responsible initiatives that
generate both financial returns and positive
social or environmental impact.

Corporations do this through impact investing

instruments such as social impact and green
bonds.
Renewable Energy
Solutions for energy saving and consumption
monitoring enable companies to reduce their
carbon footprint and energy bills as well as
incorporate sustainability into their operations.

These clean energy parameters now form a

major part of CSR goals and performance
measures.
The nature of Corporate Social Responsibility
is dynamic and transformative, reflecting the
evolving relationship between businesses,
society, and the environment. CSR has
transcended its traditional role as a
philanthropic addendum to become an
integral part of contemporary business
strategies.
BA 503
Social Responsibility
and Good Governance

Thank You

Caringal, Kathleen Rose

De Chavez, Jeanilen
Guce, John Karl Ian
Masters in Business Administration