Chapter 2 : The Principles of Corporate Social Responsibility (CSR)

1. Poor business behavior towards customers

2. Treating employees unfairly.

3. Ignoring the environment and the consequences of organizational action.

THREE ISSUES IN SOCIETY

However, there are times when the need for a CSR program stems from inside a business organization. organizatioBelow are a few of these factors

POOR BUSINESS BEHAVIOR TOWARDS CUSTOMERS

Customers are one of the lifelines of a business. The main issue that customers often face is bad customer service:

1. rude attitude from employees

2. low responses to questions

3. not being given any attention at all

1. Ignoring customers

2. Non-responsive employees

3. Acting uninterested or complaining

4. Making little effort in meeting the customers’ requests

5. Putting customers last

examples of poor business behavior towards customers

Treating Employees Unfairly

Discrimination is one of the workplace issues that are still in the scope of CSR. Treating someone unfairly within an organization can led to the feeling of upset, shame, and even scared. MANPOWER is one of the most important resources of an organization, therefore they deserve to feel protected and feel secured. They are the profit makers of the company and should then be included in the sustainability programs of the organization. When employees receive unfair treatment from their employers, their morale and their productivity levels can be affected

1. Irresponsible restructuring

2. Non-commitment of the company's management

3. Non-disclosure of public information

4. Unfair payment and settlements

5. Bad working conditions

examples of unfair treatment at work

Ignoring the Environment and Consequences of Organizational Action

More business organizations in the Philippines are expressing concern over the sustainability of the environment. New CSR programs are mainly focusing on how the organization can be a great catalyst of environmental change. One reason why organizations are focusing on this area more and more is that the country is currently experiencing serious and alarming environmental problems.

Environmental issues

1. Over Population

2. Climate Change

3. Loss of Biodiversity

4. Phosphorus and Nitrogen Cycle

5. Water Supply

6. Ocean acidification

7. Pollution

8. Ozone Layer Depletion

9. Overfishing

10. Deforestation

Greenwashing

• is the practice of making an unsubstantiated or misleading claim about the environmental benefits of a product, services, and technology or company practice

• is the process of conveying a false impression or misleading information about how a company’s products are environmentally sound.

1. Sustainability

2. Accountability

3. Transparency

THE THREE PRINCIPLES OF CORPORATE SOCIAL RESPONSIBILITY

SUSTAINABILITY

• is concerned with the effect of which an action taken in the present can be sustained and utilized even in the future.

• is also used to describe all CSR programs as it is one of the primary objective of any CSR program

• means reducing our harm to the environment and ultimately reversing the harm we have already caused

• means living within the resources of the planet without damaging the environment now or in the future

WHAT ARE PILLARS

a supporting, integral, or upstanding member or part

ENVIRONMENTAL SUSTAINABILITY

• is when ecological integrity is maintained and all of the earth’s environmental systems are kept in balance while natural resources within them are consumed by humans at a rate where they are to replenish what was consumed by themselves

• is also defined as the responsible interaction with the environment to avoid reduction or dreadful condition of natural resources and allow for long-term environmental quality. It ensures that the needs of today’s population will be met without compromising the future generation’s needs.

ECONOMIC SUSTAINABILITY

• is the ability of an economy to support a defined level of economic production indefinitely.

• refers to practices that support long-term economic growth without negatively impacting social, environmental, and cultural aspect soft the community.

SOCIAL SUSTAINABILITY

• is based on the concept that a company’s decision must be for the betterment of society.

• problems like war, endemic poverty, widespread injustice, and low education rates are symptoms of a system that is socially unsustainable.

• it's the weakest pillar of them all

Accountability

• describes the organization’s practice that for every decision or project to be implemented, the corresponding responsibility needs to be assumed, whatever the effect of it on the internal and external environment may be. This concept implies a quantification of the effects of action taken, both inside and outside the organization.

• is the obligation of an organization or individual to account for activities and accept blame for failures.

Corporate accountability

is defined as the ability of those affected by a corporation to hold corporations to account for their operations.

Responsibility

is embracing your obligations, commitments, choices, and attitude

Four Pillars of Accountability

1. Responsibility - a duty that binds to the course of action

2. Answerability - being called to account

3. Trustworthiness - a trait of being worthy of trust and confidence

4. liability being legally bound to a debt or obligation.

Accountability in Reporting

• Business organizations can be accountable in terms of providing information to their stakeholders.

• an organization’s performance is associated with great responsibility

Report characteristics

• UNDERSTANDABILITY - of all parties concerned.

• RELEVANCE - to the users of the information provided

• RELIABILITY - in terms of accuracy of measurement, representation of impact and freedom

• COMPARABILITY - implies consistency, both overtime and between different organizations

Transparency

• is an individual being honest with himself.

• this refers to the company’s ability to report all the pertinent facts about the business operations, including the result of an action or its corporate social responsibility

• is the practice of openly and honestly disclosing information to stakeholders in an organization such as the public, investors, employees, and customers.

• allocative efficiency

• dynamic efficiency

Advantages of Transparency

Business transparency

is the process of being open, honest, and straightforward about various company operations. Transparent companies share information relating to performance, small business revenue, internal processes, sourcing, pricing, and business values.

1. Transparency establishes trust

2. Transparency strengthens relationships

3. Transparency fosters a healthier work culture

3 advantages of transparency in business