MODELS AND FRAMEWORKS

OF SOCIAL RESPONSIBILITY
IN THE PRACTICE OF SOUND
BUSINESS
- DIFFERENT MODELS AND FRAMEWORKS OF
SOCIAL RESPONSIBILITY
 In recent years, there has been a growing
recognition of the importance of corporate social
responsibility (CSR) in the practice of sound
business.
CSR refers to the responsibility of companies to
contribute to sustainable development by
considering the social, environmental, and
economic impacts of their operations and
decisions. There are several models and
frameworks of social responsibility that companies
can use to guide their CSR efforts.
ACTIVITY:
• Create a simple comparison chart to describe and compare the six different
models and frameworks of social responsibility.
• Fill in the chart with the following information for their assigned
model/framework:
- Model/Framework Name: Write the name of the model/framework at the top of the chart.
- Definition/Key Characteristics: Describe the core definition and key characteristics of the
model/framework.
- Purpose/Objectives: Explain the purpose or objectives of the model/framework and what it
aims to achieve.
- Key Principles/Elements: Identify and list the key principles or elements associated with the
model/framework.
- Examples/Applications: Provide one or two real-life examples or applications of the
model/framework in practice.
• Corporate Social Responsibility (CSR) is a
concept that refers to a company’s voluntary
actions and initiatives to address social and
environmental issues beyond its core
business activities.
• It encompasses a range of activities aimed at
creating a positive impact on society while
considering the interests of various
stakeholders, including employees,
customers, communities, and the
environment.
NATURE OF SOCIAL RESPONSIBILITY
• CSR is normative in nature.
• CSR is relative concept.
• CSR may be started as proactive or reactive.
• All firms do not follow the same patterns of CSR.
1. Legal & Socially Responsible
2. Legal but Socially Irresponsible
3. Illegal but Socially Responsible
4. Illegal & Socially Irresponsible
NATURE OF SOCIAL
RESPONSIBILITY
1. NORMATIVE IN NATURE

• CSR is normative because it is based on a set of ethical

norms and values that go beyond legal requirements.
It is driven by the belief that businesses should
contribute positively to society and act responsibly
towards their stakeholders. These norms vary across
different societies, cultures, and industries, and thus
the expectations of CSR differ as well.
NATURE OF SOCIAL
RESPONSIBILITY
2. RELATIVE CONCEPT
• CSR is a relative concept because it varies depending on the
context, industry, and stakeholder expectations. What is
considered socially responsible for one company may not be the
same for another.
• For example, a manufacturing company's CSR priorities might
include reducing emissions and improving worker safety, while a
software company's CSR efforts may focus on data privacy and
digital inclusion. The relative nature of CSR allows businesses to
tailor their initiatives to their specific circumstances and
stakeholder needs.
 NATURE OF SOCIAL RESPONSIBILITY
3. Proactive or Reactive: CSR can be proactive or reactive, depending
on the approach adopted by a company.
• Proactive CSR refers to a company • Reactive CSR, on the other hand,
taking voluntary actions to address occurs when a company responds
social and environmental issues to societal pressure, stakeholder
before they become major demands, or legal requirements
concerns or legal obligations. after an issue arises.
• It involves actively identifying and • It involves mitigating negative
addressing potential impacts and impacts or addressing existing
pursuing long-term sustainability problems.
goals.
Both proactive and reactive CSR approaches are important for companies to effectively
manage their social and environmental responsibilities.
NATURE OF SOCIAL RESPONSIBILITY
4. Different forms of CSR: The forms of CSR do not follow the same
patterns as different combinations of legality and social responsibility
are possible: B. Legal but socially irresponsible: In
this case, a company complies with legal
A. Legal and socially responsible: This requirements but fails to address social
form of CSR represents the ideal and environmental concerns
scenario where a company operates adequately. It may prioritize short-term
within the boundaries of the law and profits over long-term sustainability or
also takes additional voluntary actions
disregard the interests of certain
to contribute positively to society. It
demonstrates a commitment to
stakeholders. While the company may
ethical conduct, sustainability, and not be violating any laws, its actions
stakeholder engagement. may be perceived as socially
irresponsible.
NATURE OF SOCIAL RESPONSIBILITY
• Illegal but socially responsible: • Illegal and socially irresponsible:
This form of CSR occurs when a This represents a situation where
company engages in activities that a company disregards legal
are technically illegal but are done obligations and fails to address
to address pressing social or
social and environmental
environmental issues.
concerns. It involves both legal
• For example, a company may
violations and a lack of social
violate certain regulations to
responsibility. Such behavior can
provide humanitarian aid in a crisis
situation. Although the actions are have severe negative
illegal, they can be seen as socially consequences for society, the
responsible under exceptional environment, and the company's
circumstances. reputation.
 • Company XYZ, a clothing manufacturer, complies
ACTIVITY: IDENTIFY with all labor laws and regulations, ensuring fair
WHETHER ITS
a. Legal & Socially
wages and safe working conditions for its
Responsible employees. Additionally, the company
b. Legal but Socially
Irresponsible
implements sustainability initiatives, such as using
c. Illegal but Socially eco-friendly materials and reducing waste in its
Responsible
d. Illegal & Socially
production processes. Company A also engages in
Irresponsible philanthropic activities by donating a portion of
its profits to local community organizations.
Legal and socially responsible
 • Company ABC, a mining corporation,
ACTIVITY: IDENTIFY
consistently violates labor and
WHETHER ITS environmental laws by exploiting
a. Legal & Socially
Responsible workers, causing severe pollution, and
b. Legal but Socially
Irresponsible destroying ecosystems. The company
c. Illegal but Socially
Responsible
prioritizes profit maximization at the
d. Illegal & Socially expense of human rights, community
Irresponsible
well-being, and environmental
preservation.
COMPANY ABC, A MINING CORPORATION, CONSISTENTLY VIOLATES LABOR AND
ENVIRONMENTAL LAWS BY EXPLOITING WORKERS, CAUSING SEVERE POLLUTION, AND
DESTROYING ECOSYSTEMS. THE COMPANY PRIORITIZES PROFIT MAXIMIZATION AT THE EXPENSE
OF HUMAN RIGHTS, COMMUNITY WELL-BEING, AND ENVIRONMENTAL PRESERVATION.

• Its actions are both illegal and socially

irresponsible, as it fails to address the negative
impacts of its operations.
 • Company X, a pharmaceutical company,
ACTIVITY: IDENTIFY
produces life-saving drugs that are needed
WHETHER ITS
a. Legal & Socially
in a humanitarian crisis. Due to regulatory
Responsible barriers and logistical challenges, the
b. Legal but Socially
Irresponsible company decides to temporarily bypass
c. Illegal but Socially
Responsible certain legal requirements to expedite the
d. Illegal & Socially
Irresponsible
distribution of medicines to affected
regions. Although their actions may be
considered illegal, the company is
motivated by a social responsibility to save
lives in an emergency situation.
COMPANY X, A PHARMACEUTICAL COMPANY, PRODUCES LIFE-SAVING DRUGS THAT ARE NEEDED IN A HUMANITARIAN
CRISIS. DUE TO REGULATORY BARRIERS AND LOGISTICAL CHALLENGES, THE COMPANY DECIDES TO TEMPORARILY BYPASS
CERTAIN LEGAL REQUIREMENTS TO EXPEDITE THE DISTRIBUTION OF MEDICINES TO AFFECTED REGIONS. ALTHOUGH THEIR
ACTIONS MAY BE CONSIDERED ILLEGAL, THE COMPANY IS MOTIVATED BY A SOCIAL RESPONSIBILITY TO SAVE LIVES IN AN
EMERGENCY SITUATION.

• Illegal but socially responsible

 COMPANY B, A MULTINATIONAL
CORPORATION, OPERATES WITHIN THE LEGAL
ACTIVITY: IDENTIFY
WHETHER ITS FRAMEWORK BUT NEGLECTS ITS
a. Legal & Socially ENVIRONMENTAL IMPACT. THE COMPANY
Responsible
b. Legal but Socially FAILS TO IMPLEMENT SUSTAINABLE
Irresponsible PRACTICES, RESULTING IN EXCESSIVE
c. Illegal but Socially
Responsible POLLUTION AND RESOURCE DEPLETION.
d. Illegal & Socially DESPITE COMPLYING WITH LAWS, COMPANY
Irresponsible
B'S PRACTICES ARE SEEN AS SOCIALLY
IRRESPONSIBLE AS IT DISREGARDS ITS
ENVIRONMENTAL RESPONSIBILITIES AND THE
LONG-TERM CONSEQUENCES OF ITS ACTIONS.
COMPANY B, A MULTINATIONAL CORPORATION, OPERATES WITHIN THE LEGAL FRAMEWORK BUT
NEGLECTS ITS ENVIRONMENTAL IMPACT. THE COMPANY FAILS TO IMPLEMENT SUSTAINABLE PRACTICES,
RESULTING IN EXCESSIVE POLLUTION AND RESOURCE DEPLETION. DESPITE COMPLYING WITH LAWS,
COMPANY B'S PRACTICES ARE SEEN AS SOCIALLY IRRESPONSIBLE AS IT DISREGARDS ITS ENVIRONMENTAL
RESPONSIBILITIES AND THE LONG-TERM CONSEQUENCES OF ITS ACTIONS.

Legal but socially irresponsible

ACTIVITY: IDENTIFY
WHETHER ITS
a. Legal & Socially
Responsible
b. Legal but Socially
• Investing in research and development
Irresponsible
c. Illegal but Socially
to find innovative solutions for
Responsible
d. Illegal & Socially
pressing societal challenges, even if it
Irresponsible
involves regulatory uncertainties.
• Illegal but socially responsible
ACTIVITY: IDENTIFY
WHETHER ITS
a. Legal & Socially
Responsible
• Establishing community engagement
b. Legal but Socially
Irresponsible
initiatives, such as volunteering
c. Illegal but Socially
Responsible
programs or partnership with local
d. Illegal & Socially
Irresponsible
nonprofit organization.
• Legal and Socially Responsible
SUMMARY

• In summary, CSR is normative in nature as it is based on

ethical norms, it is a relative concept that varies across
contexts, it can be proactive or reactive depending on
the company's approach, and the different forms of CSR
do not follow the same patterns due to variations in
legality and social responsibility.
 MODELS AND
FRAMEWORKS OF
SOCIAL
RESPONSIBILITY
Social responsibility is a broad concept that encompasses various
models and frameworks aimed at promoting ethical behavior and
sustainable practices within organizations and society as a whole.
These models and frameworks provide guidelines and principles
for businesses to follow in order to operate in a socially
responsible manner.

These models and frameworks provide organizations with

guidance on how to integrate social responsibility into their core
strategies and operations. By adopting these principles,
businesses can make a positive impact on society, enhance their
reputation, and contribute to long-term sustainable development.
 These examples showcase how organizations from various
sectors incorporate different models and frameworks of
social responsibility into their operations, thereby
contributing to sustainable development and positive social
impact.
MODELS AND FRAMEWORKS OF SOCIAL
RESPONSIBILITY
1. Corporate Social Responsibility (CSR):
CSR is a widely recognized framework that focuses on the responsibility of
businesses to positively impact society and the environment. It involves integrating
social and environmental concerns into business operations and decision-making
processes. CSR initiatives often encompass areas such as philanthropy,
environmental sustainability, employee well-being, and ethical business practices.
Examples:
- Patagonia, an outdoor clothing company, is well-known for its commitment to
environmental sustainability. It invests in renewable energy, reduces its carbon footprint,
and promotes fair labor practices in its supply chain.
- Unilever, a multinational consumer goods company, has a Sustainable Living Plan that
focuses on enhancing livelihoods, reducing environmental impact, and promoting hygiene
and sanitation.
2. Triple Bottom Line (TBL):
The TBL framework emphasizes three interconnected dimensions of
sustainability: social, environmental, and economic. It goes beyond
traditional financial reporting and urges organizations to evaluate their
performance based on not only profitability but also their impact on
people (social) and the planet (environment). The TBL approach
recognizes that sustainable business practices should consider the well-
being of all stakeholders, including employees, communities, and the
environment.
Example:
- Interface, a global carpet manufacturer, implemented its Mission Zero strategy to
eliminate its negative impact on the environment. They strive for zero waste, reduced
greenhouse gas emissions, and the use of renewable materials.
- Danone, a food and beverage company, incorporates the TBL approach by focusing on
social equity, environmental conservation, and economic growth in its business practices.
3. Shared Value:
The concept of shared value, popularized by Michael Porter and Mark Kramer,
suggests that businesses can create economic value while simultaneously
addressing societal issues. Shared value encourages organizations to identify
and capitalize on business opportunities that also generate positive social
outcomes. By aligning business strategies with societal needs, companies
can enhance their competitiveness and contribute to social progress.
Example:
• - Nestlé's Creating Shared Value (CSV) approach aims to create long-term value
for both the company and society. One example is their partnership with local
farmers to improve agricultural practices, enhance the quality of their products,
and support rural development.
• - Grameen Bank, founded by Nobel laureate Muhammad Yunus, provides
microcredit to help alleviate poverty and empower individuals, particularly
women, to start their own businesses and improve their livelihoods.
4. Stakeholder Theory: Stakeholder theory asserts that businesses should
consider the interests and well-being of all stakeholders, including
employees, customers, suppliers, communities, and shareholders. It
emphasizes the importance of managing relationships with stakeholders
to achieve long-term sustainable success. According to this theory,
organizations should make decisions that balance the interests of various
stakeholders rather than prioritizing shareholder value alone.
Example:
- Starbucks considers the interests of various stakeholders, including coffee
farmers, employees, and local communities. The company implements fair
trade practices, offers employee benefits and advancement opportunities, and
engages in community development projects.
- The Body Shop, a cosmetics retailer, actively involves its customers,
employees, and suppliers in decision-making processes. They prioritize ethical
sourcing, promote fair trade, and advocate for animal rights.
5. Sustainable Development Goals (SDGs):
The SDGs, adopted by the United Nations, provide a comprehensive
framework for global development and sustainability. There are 17
interconnected goals that address various social, economic, and
environmental challenges, such as poverty eradication, gender equality,
clean energy, and responsible consumption. Businesses are encouraged to
align their strategies and operations with the SDGs to contribute to their
achievement.
Example:
- IKEA, the furniture retailer, has aligned its sustainability strategy with the SDGs.
They aim to use 100% renewable energy, promote gender equality, and support
responsible consumption and production practices.
- Google launched the Google Impact Challenge to address the SDGs. They
provide funding and support to organizations working on issues such as
education, economic opportunity, and climate action.
6. Environmental, Social, and Governance (ESG) Framework:
The ESG framework evaluates a company's performance and practices in terms
of environmental impact, social responsibility, and corporate governance. ESG
factors have gained significant attention from investors, who consider them
crucial for assessing the long-term sustainability and risk profile of companies.
ESG criteria include aspects such as climate change, diversity and inclusion,
labor practices, executive compensation, and board independence.

Example:
- Apple has made significant efforts to reduce its environmental impact by transitioning
to renewable energy sources, designing energy-efficient products, and improving supply
chain labor practices.
- Microsoft has implemented diversity and inclusion initiatives, commits to carbon
neutrality, and discloses information on its governance practices to ensure transparency
and accountability.
• Instruct the groups to fill in the chart with the following information for
their assigned model/framework:
- Model/Framework Name: Write the name of the
model/framework at the top of the chart.
- Definition/Key Characteristics: Describe the core definition and
key characteristics of the model/framework.
- Purpose/Objectives: Explain the purpose or objectives of the
model/framework and what it aims to achieve.
- Key Principles/Elements: Identify and list the key principles or
elements associated with the model/framework.
- Examples/Applications: Provide one or two real-life examples or
applications of the model/framework in practice.