GOOD GOVERNANCE

BAC108 SECOND SEMESTER REVIEWER MIDTERM

GOVERNANCE meaning the act or manner of

Governance – describes the overall government
management approach through which  mid-16th century: the word government
senior executives direct and control the means “system by which something is
entire organization, using a combination of governed”
management information and hierarchal  18th century: it developed the meaning
management control of government as a governing authority
 It is a good governance that is required of
 It ensures that critical management
a democratic platform to avoid
information reaching the executive team
corruption, offers rights, the ways and
is sufficient, complete, accurate and
the capability to create decisions that
timely to enable appropriate
live every individual and make every
management decision-making
organization accountable for what they
 It typically involves goodhearted
had decided to do
people who bring their ideas,
experience, preferences and other  Good governance is a principle denotes
human strengths and shortcoming to the an approach in administration that could
policy-making table be applied in internal operations of both
public and private organizations
Good Governance – in its generic approach, is
the efficient, transparent, and equitable BASIC ELEMENTS OF GOOD
delivery of goods and services and the GOVERNANCE
Rule of Law – is the efficient, transparent and
policymaking by exercising authority
equitable delivery of goods and services as well
 is an ideal concept that is difficult to as policymaking by means of exercising
achieve in its totality authority
 It is achieved through continuous
 it is the protection of human rights and
discussion so that all the considerations
civil liberties, particularly those of
involved in assuring that stakeholders
minorities by the independent, unbiased
interests are addressed and reflected in
and principled law enforcement agencies
policy initiatives
 It is a normative principle that offers well Transparency – offers a well-managed and
managed and well-allocated well-allocated resources to provide the needs to
resources to provide the needs to the the collective problems of people
collective problems of people
 it is required in good governance in
CONCEPT OF GOOD GOVERNANCE: decision-making process to make
certain that information is easily and
 Both governance and government came
freely obtainable
from the French word “gouvernance”

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GOOD GOVERNANCE
BAC108 SECOND SEMESTER REVIEWER MIDTERM

Responsiveness – any lawful economic activity to the party who provides the trust and has the
concerned with production and distribution of authority to hold such accountability
goods and services with the aim of earning profit
Participation – it consists of the freedom of
 It is the combination of two inseparable association and expression
elements: value and speed
ETHICS, VALUES AND MORAL IN
 Value – is any information in the form of
GOVERNANCE
questions, data, insights, research, Governance requires a highly competent,
context, case studies and so on that a well-informed and concerned administration
company can offer
 Speed – is the time it takes to give the Ethics – is about directing human conduct using
demanded information to a customer the standards of right and wrong that tells
people what must be done based on rights,
Consensus Oriented – it is required in good obligations, benefits to the society, fairness or
governance, it means seeking the many specific virtues
different needs, perspectives and expectations
of a diverse group of people Values – are an individual’s judgement or
standard of behavior. They are another
Equity and Inclusiveness – it is based on the individual factor that affects ethical behavior
idea that all members of an organization or
society must feel a sense of belongingness and Morals – are another individual characteristic
must not have the impression of being excluded that can affect an individual’s ethics.
from the typical group  They are the rules of people develop as
 Inclusivity – individuals are expected to a result of cultural norms and values are
be treated with respect, dignity, traditionally what employees learned
collegiality and kindness from their childhood, culture, education,
religion and other
Effectiveness and Efficiency – it is viral in
good governance; it is developed by making INDIVIDUAL FACTORS AFFECTING
sustainable use of resources to create ETHICAL BEHAVIOR
Stages of Moral Development – it is the
advantageous results to meet the needs of its
process wherein children are able to develop
stakeholders
their right attitudes and behaviors on how to
Accountability – is a type of liability that refers treat other people in the society founded on
to who, for what and what is accountable and is social and cultural norms, rules and laws
understood as the obligation of the trust holder
to provide accountability by presenting and  It refers to the 6 stages of children’s
reporting all activities that are his responsibility moral development according to concept
of Lawrence Kohlberg

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GOOD GOVERNANCE
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Personal Values and Morals – ethical Laws – a person abiding them, are ethically
standards of people are influenced also by their influential, many people do not break the law
individual values and morals because of the fear of being persecuted and
punished
 Locus of Control – is a concept in
psychology that concerns how intensely SITUATIONAL FACTORS AFFECTING
people consider that have control over ETHICAL BEHAVIOR
the situations and experiences that Issue-related – is the importance of the
influences their lives decision to the decision maker

Family Influences – everything starts from the Moral Intensity – is the amount that the people
family. Children’s ethical standards is based on observe an issue as an ethical one
their perception of their parent's behavior INFLUENCES ON MORAL INTENSITY:
Peers Influence – sometimes as individual’s
 Magnitude of Consequences – this is
decisions in life are influence by the behaviors
the sum of the harm or benefits that could
and attitudes of peers
impacted as the consequence of a given
 Peers - are those coworkers who are  Social Consensus – it is the degree that
always around during the conduct of members of a society approve that an act
operations in the workplace is good or bad and the possibility of effect
is the increase and decrease of moral
Life Experiences – it helps them evaluate
intensity based on how likely people
whether their behaviors and attitudes are consider the results are
ethically correct, incorrect or acceptable.
 Temporal Immediacy – it is the distance
Social Norms – ethical behaviors could also be between the time an action happens and
defined through local customs and traditions in the start of consequences or the soonest
a certain culture the results of any effect are likely to take
place
Religious Belief – most faith believes in life
 Proximity – it refers to the emotional
beyond death. The theme of judgement in the
intimacy the decision maker feels to
afterlife is a shared belief among most religions
those disturbed by the decision
Upbringing – it defines our ethical behavior,  Concentration of effect – it is to whether
people who were raised in a loving, non-violent effect is focused on a few people or may
home environment tend to show and act affect a lot of people in a small extent
ethically, people who were raised in an abusive,
MORAL FRAMING
dysfunctional family are likely to demonstrate
Moral Framing – a frame of reference, or point
unethical behavior during their adult years
of view, refers to the way people look at a given
situation

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GOOD GOVERNANCE
BAC108 SECOND SEMESTER REVIEWER MIDTERM

 Big problem in moral framing is the use  Reward

of language in which moral issues may  Authority
be made to appear harmful if described  Bureaucracy
in a certain way  Work roles
 The power of framing is not what is being  Organizational cultures
said but how it is said  National context
 The use of moral words helps in framing
because they lead to ethical decision- CODES OF ETHICS
making Codes of Ethics – it governs decision-making
when confronted with ethical dilemmas or
Moral muteness – hardly make use of moral questionable issues.
words that’s why often ethical decision-making
suffers  It is referred as the value statement of a
company designed to assist
MORAL MUTENESS TAKES PLACE DUE TO professionals in running a business fairly
PERCEIVED THREATS TO: with integrity
 Harmony – this is the belief that moral  Breaking the codes of ethics may be
talk would encourage conflict and resulted to possible termination or
retaliation dismissal from the organization
 Efficiency – it is about the belief that SOME EXAMPLES OF CODE OF ETHICS:
moral talk could cloud issues which leads
to amore time consuming decision-  Employee Code of Conduct
making  Confidentiality and privacy policies
 Image of power and effectiveness –  Professional appearance policies
managers consider that their image will  Promoting green business policies
be hurt if they would be seen as someone  Obeying the law
idealistic or making decisions for ethical  Caring and consideration policies
reasons KEY COMPONENTS OF CODE OF ETHICS:
CONTEXT RELATED  Legal – employees should follow local
Context-Related Situation in Ethical and national laws
Behavior – sometimes ethics take into  Compliance – most industries follow
consideration the particular background of an certain legal requirements. They are
act when evaluating it whether right or wrong, expected to shoulder fines and penalties,
rather than judging it based on absolute moral and face potential legal action once there
standards is failure to conform to the rules
FACTORS OF CONTEXT RELATED:  Value-based Components – the code of
ethics normally embraces the 6 universal

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GOOD GOVERNANCE
BAC108 SECOND SEMESTER REVIEWER MIDTERM

moral values that companies expect of  Using the code of ethics properly builds
their employees. These values consist of: aa professional, ethical workplace
 Trustworthy  Abusing it builds distrust that can
 Respectful contradict everything it stands for
 Responsible Personal Values vs. The Code:
 Fair
 Caring  Personal values and integrity should
 Good citizen augment and build upon the code, not
 Violation of the Codes of Ethics – it is stand apart from it
important to address the code of ethics,  Training and awareness programs
the action to take in cases of violation should make it clear that questions
should be brought to management or
CATEGORIES OF CODES OF ETHICS: human resources representatives if code
 Compliance-Based Code of Ethics – it of ethics in unclear with regard to specific
is based on specific rules and distinct situations
consequences instead of individual Local vs. Global Code:
observing of personal behavior
 It increases regulation and  A code of ethics that does not provide
punishes offenders by giving standards for doing business outside the
explicit examples of what is US could allow for unethical business
expected and articulates to practices to occur during global projects
 For companies that already have a global
employees what behavior is standard
and what is not footprint, the same code must apply to all
 Value-based Code of Ethics – locations, worldwide
addresses a company’s core value CODE OF CONDUCT
system. Code of Conduct – it governs actions, it defines
how a company’s employees should act on an
PROS AND CONS TO HAVING A
WRITTEN CODE OF ETHICS everyday basis
Writing vs. Living the Code:  It reflects the organization’s day-to-day
 Writing a code of ethics does not basis, core values and the general
automatically mean employees will company culture
adhere to it  It is often referred to as the meat and
 Employees need to be aware it's out potatoes in the code of ethics
there, they need to read it, understand it  It may offer a list of some definite laws
and follow it relevant to diverse areas of
organizational operations or industry that
Using vs. Abusing the Code: employees must follow

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GOOD GOVERNANCE
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 A well-written code of conduct explains  Use of company assets

an organization’s mission, values and  Use of social media
principles  Communication rules
 Disciplinary process
CHARACTERISTIC OF GREAT CODE OF
CONDUCT: Internal Practices – refer to defined rules
related to day-to-day business practices that are
 Written for the reader
easy to explain
 Comprehensive
 Supported by leadership  Dress code
 Accessible  Annual leave/holiday time
 Visually appealing  Break policy
HOW TO ENFORCE CODE OF CONDUCT:  Chain of command

 Disseminating a code of conduct External Policies – finally a code of conduct,

 Communication channels should define the expectations for employees.
 Responding to a violation This could be a relation to confidential company
material or a level of courtesy and respect when
WHAT TO WRITE IN A CODE OF dealing with customers
CONDUCT
Company Values – details and topic related to  Confidentiality
the values the company holds itself to. This  Privacy
could include:  Intellectual property policies
 Customer communication requirements
 Business ethics  Conflict of interests
 Social responsibility
 Environmental responsibility
 Employee rights CORPORATE GOVERNANCE
 Commitment and responsibility Corporate Governance – is a system of
 Diversity and inclusion processes, policies and rules that direct and
Employee Behavior – leadership must explain control an organization’s conduct for the good
to all employees what is expected of them in management of companies
terms of behavior and performance. This could  consists of the relationships between
be related to how they treat people around them the numerous stakeholders involved
and communicate or specifics related to they and the goals for which the corporation is
perform their role directed.
 Standards of professionalism  It is a process that aims to apportion
 Discrimination and sexual harassment corporate resources in a way that
policies enhances value for all stakeholders

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GOOD GOVERNANCE
BAC108 SECOND SEMESTER REVIEWER MIDTERM

such as the shareholders, investors, encouraging full disclosure of

employees, customers, suppliers, transactions in the company accounts
environment and the community in  Encourage accountability of the
general management to the company
 Chief external stakeholder groups: directors and the accountability of the
shareholders, debt holders, trade directors to the shareholders
creditors, suppliers and communities  Ensure equitable treatment of all the
affected by the corporation’s activities shareholders of the company
 Internal stakeholders: board of  Allow firms to evaluate their behavior
directors, executives and other before they are scrutinized by regulatory
employees bodies
 According to Sir Adrian Cadbury: it is  Protect the long-term interests of the
concerned with holding the balance shareholders
between economic and social goals
and between individual and communal ELEMENTS OF GOOD GOVERNANCE:
goals  Direction – making strategic decisions
 According to the World Bank: and discussing current and future
governance is the exercise of political concerns of the company are tactics of
authority and the use of institutional this element
resources to manage society’s problems  Oversight – corporate governance role
and affairs also provides some level of leadership
 OBJECTIVE: to put an end to abusive oversight in companies where leaders
and somehow unlawful and improper act in the best interest of shareholders
activities of some entrepreneurs and and other stakeholders
business owners  Stakeholder Relations – corporate
GOOD CORPORATE GOVERNANCE IS governance encompasses a business
GOOD FOR THE BUSINESS BEACUSE: accountability to each of its stakeholder
groups. There is more emphasis on
 It encourages good decision making balancing investor interests with concern
 It helps manage risk for other stakeholders, such as
 It encourages management to seek customers, employees and business
advice partners
 Corporate Citizenship – good
STRATEGIC AIMS OF CORPORATE
governance includes an awareness that
GOVERNANCE:
companies should balance profit-
 Ensure a higher degree of generating activities with responsible
transparency in an organization by policies and practices

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GOOD GOVERNANCE
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 Independence of Directors – having a leadership to put those strategies into effect and
majority of non-executive independents supervise the management of the company
directors will help avoid prejudice and
Shareholders – must actively participate in
conflicts of interest between the board
corporate governance by appointing the right
and the management. Independent
directors and approve major decisions such
judgement is almost always in the best
as mergers and buyouts.
interest of the company
 Effective Risk Management –  They have the collective power to take
companies cannot avoid risk, so it is vital legal action against a company that does
to implement effective strategic risk not exercise good governance
management like diversify operations to
Securities and Exchange Commission –
the business can count on revenue from
regulates the corporate governance based
several different markets rather than
on the Securities Regulation Code and the
depend on just one
Corporation Code
 Solid Structure and Organizations –
companies will need to be able to monitor CHALLENGES IN CORPORATE
of all their dealings, interactions, and GOVERNANCE
transactions effectively by developing Conflict of Interest – it occurs when an officer
more transparent business practices, or other controlling member of a corporation has
meaning a rigidly structured framework other financial interest that directly conflict with
through which to trace all such activity the objectives of the corporation
efficiently Oversight Issues – it is a broad term that
 Transparency – it is important to the encompasses the executive staff reporting to
public, who tend not to trust secretive the brand and the board’s awareness of the
corporations daily operations of the company and the way in
 Self-evaluation – the key is to perform which its objectives are being achieved
regular self-evaluations, to identify and
mitigate brewing problems. Employees Accountability Issues – without accountability,
and customer surveys can supply vital one division of the corporations might endanger
feedback about the effectiveness of the the success of the entire company or cause
company policies stockholders to lose the desire to continue their
investment
RESPONSIBLE FOR CORPORATE
GOVERNANCE Transparency – a lack of transparency can
Board of Directors – is pivotal for the expose the company to fitness from regulatory
governance of its company. They set the agencies
company’s strategic direction, provide Ethics Violations – minimizing pollution and
avoiding manufacturing in countries that do not

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adhere to similar labor standards are both  Similar rules apply to all, whatsoever
examples of a way in which corporate their sizes are
governance, ethics ans social welfare interlink
ADVANTAGES OF RULE-BASED
Governance Standards – there are some hard- APPROACH:
headed managers that may sabotage good
 Companies do not have a choice of
corporation governance at the unprotected
ignoring rules
against law violations and damage to
 All companies are required to meet the
stakeholders' reputation
same minimum standards of corporate
Short-termism – the short tenures could governance
deprive the board of long-term oversight and  Investor confidence in the stock market
vital expertise might be improved if all the stock
Diversity – based on good judgement and market companies are required to
practicality, boards should possess a good comply with recognized corporate
combination of skills and perspectives to ensure governance rules
of any organization DISADVANTAGES OF RULE-BASED
APPROACH:
DISTINCT APPROACHES TO
CORPORATE GOVERNANCE  the same rules might not be suitable for
1. Rule-based Approach – all provisions are every company, because the
legal rules, supported by law which attracts circumstances of each company are
punishment from the law, if there is failure to different
comply by any business organization  There are some aspects of corporate
CHARACTERISTICS OF A RULE-BASED governance that cannot be regulated
APPROACH: easily, such as negotiating the
remuneration of directors, deciding the
 Approved set of requirements most suitable range of skills and
 Fast approach of ensuring conformity experience for the board of directors and
 Implements a checklist method assessing the performance of the board
 Clear difference between conformity and and its directives
non-conformity
 Easy to observe that entity is conforming 2. Principles-based Approach – is grounded
 Lessening of flexibility on the part of on the outlook that a distinct set of rules is
management and auditors unfitting for every company
 Challenging to set rules entirely for all CHARACTERISTICS OF A PRINCIPAL-
situations BASED APPROACH:
 Likely to misunderstand rules

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GOOD GOVERNANCE
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 Activities of entities must address major  Professionals such as economists,

principles set out in codes of best financiers, accountants or legal
practice practitioners are now trying to gain wider
 Not merely a box-ticking application knowledge in corporate governance to
 More demanding to avoid than arule- contribute to the good performance of the
based approach company
 Easy to observe that entity is complying  It is becoming more and more forceful for
 Directors are necessary to work in the practicality and ethical reasons
entity’s best interest
STEWARDSHIP THEORY
 More stretchy, and therefore better able Steward – is defined a someone who protects
to cope with different situations and takes care of the needs of others
 Easier defense for obvioys breach of
principles Stewardship Theory – company top
 But principles maybe construed in executives protect the interests of the
different ways owners or shareholders and make decisions
on their behalf

 The theory holds that ownership does not

AGENCY THEORY actually own a company but simply hold
Agent Theory – the relationship of the agent it in trust
and principal is being examined wherein the
agent represents the principal in a particular James H. Davis – author of Stewardship
business transaction and takes decisions on Theory, stated that managers innately seek to
behalf of the principal in an agency relationship do a good job, maximize company profits and
bring good returns to stockholders because they
 By using agent theory, incentives could feel a strong duty to the company
be designed appropriately by identifying
what best motives agent to act MODELS OF STEWARDSHIP THEORY:

Agency Relationship – exists between the  Operating with as little negative impacts
shareholders and the top executives who should as possible against the environment or
act for the best interests of these owners the earth
 Supporting human and animal right
AGENCY THEORY IN CORPORATE  abstaining from using products made in
GOVERNANCE: sweatshops
 It tells about the definite type of the  Renouncing product testing on living
agency relationship that happens subjects
between the shareholders and top  Honoring the belief of servant leadership
management of a company

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GOOD GOVERNANCE
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STEWARDSHIP THEORY IN CORPORATE which are required to be pleased to

GOVERNANCE: sustain the healthy and success of the
company in the long-term
 Clearly the main purpose of the
stewardship theory of governance is to Edward Freeman – he coined the stakeholder
satisfy shareholders theory, as he recognized such as an important
 It is the requisite that stewardship element of corporate social responsibility
governance takes a chief executive
PRINCIPLES OF STAKEHOLDER THEORY:
officer who is dependable and prepared
to set his personal interests only  Principle of Entry and Exit – based on
secondary for the interests of the this principle, there must be clear-cut
company and transparent rules and policies
 It recognizes the needs of every segment such as hiring employees and
that compromises the company which terminating their employment
consists of but not limited to the  Principle of Governance – this principle
employees, suppliers and business considers the manner of modifying the
partners with equal importance rules about the relationship between
the stakeholders and the company
SIGNIFICANT APPLICATIONS OF
 Principle of Externalities – this is about
STEWARDSHIP THEORY:
how a group that does not gain from
 On Business: company's dedication to a actions of the company has to undergo
higher purpose to attract customers who some problems because of the said
believe in similar purpose actions
 On Employees: employees may  Principle of Contract Costs – each
possibly have higher expectations when group to a contract should either endure
a company operates with profitability as identical amounts when it comes to cost
the motive or the cost, they endure should be
 On customers: when customers sense proportionate to the benefits they have
that they are part of something greater, earned in the company
they may likely to stay connected with the  Agency Principle – this principle reflects
business that are stewardship-driven on the manager of a company as its
agent and hence has responsibilities to
STAKEHOLDER THEORY the stakeholders and also the
Stakeholder Theory – states that the purpose shareholders
of a business is to create value for wider group  Principle of Limited Immortality – this
stakeholders other than just shareholders
principle ensures for success of the
 Considers the corporate environment as company and its owners similarly for a
a network interconnected group, all of longer time period

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CATEGORIES OF STAKEHOLDERS: CERTAIN PRINCIPLES WHICH BUSINESS

SHOULD OPERATE:
 Organizational Stakeholders – these
are people that are present inside the  Rights and equitable treatment of
company. They have a direct interest on shareholders
how the company is doing  Interests of other stakeholders
 Economic Stakeholders – in this group,  Role and responsibilities of the board
the customers in addition to bankers,  Integrity and ethical behavior
creditors, and suppliers are the most  Disclosure and transparency
important stakeholders.
 Customers are regarded as very CONCEPT OF CORPORATE SOCIAL
important because without their loyal RESPONSIBILITY
Milton Friedman & Edward Freeman – they
customers, a company may not even
gave rise to the concept of CSR
exist
 Societal Stakeholders – these  Friedman stated that social
stakeholders regulate the business responsibility of business is to
setting under which the companies increase its profits, and the business
function of business is business
STAKEHOLDER THEORY IN CORPORATE KEY COMPONENTS OF CSR:
GOVERNANCE:
 Corporate governances – major issues
 It centers on the effects of corporate under this are accountability,
activities on all recognizable transparency and conformance with the
stakeholders of the company laws
 It suggests that corporate officers and  Business ethics – it is the inclusion of
directors must consider the interest of the core values such as honesty, trust,
every stakeholder in its governance respect and fairness into the policies,
practice practices and decision making of a
 It is highly essential that a company company
must communicate its corporate  Workplace and labor relations –
governance to make sure that there is a human resources are the asset of a
strong relationship between the company and thus play the most
community and the investor important and critical roles
 It is the board of directors who could  Positive action – some of the good
either be appointed but mostly are practices which reflect CSR practices of
elected that makes important decisions the company are inclusion of people with
disability and people form the local
community in the diversity of workforce

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 Supply chain – the business processes concept of social responsibility of

of any company are not limited to the management
internal operations but includes the
DIFFERENT VIEWS OF CSR
whole supply chain involved in producing
Socioeconomic View:
goods and services
 Customers – the cost and quality of  It says that a business is a portion of the
products and services are possibly the larger society and thus, a social
greatest but definitely not the only responsibility that goes beyond making
aspects of concern to the customers and maximizing profits
 Environment – it is the role of the  First priority: depending and refining
company to further deliver environmental society’s welfare
benefits besides mandatory  Second priority: maximizing profit
requirements
Classical View:
 Community – the community where the
company does its business is another  It says that the primary role of business
important stakeholder is to provide goods and services to
maximize profits for the benefits and
HISTORICAL PHASE OF CSR satisfaction of shareholders’ interest in an
Phase 1: Profit Maximization Management
open and free competition and
(1880s – early 1990s)
obedience to laws
 Management must maximize profit COMMON CHARACTERISTICS OF
 Individual drive for profit maximization CLASSICAL VIEW OF CSR:
would ultimately create wealth for the
nation  Profit maximization
 Government concern
Phase 2: Trusteeship Management (Early
 Aggressive competitive strategies
1990s)
 Utilization of resources
 Management was considered both as an  Unachieved business objective
instrument bof stockholders and as a
trustee for all groups who contribute to RECOGNIZABLE COMMON POINTS IN
SOCIALLY RESPONSIBLE BUSINESSES
the business enterprise
Public Image – businesses are taking their
Phase 3: Quality of Life Management (1930s) efforts to enhance their public reputation in order
to increase their sales, access to financing
 Security of basic goods and services was
better employees and the rest of the
no longer a principal problem
stakeholders
 Social and economic problems brought
about by economic growth expanded the

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Better Environment – as part of the society, Philanthropic Responsibilities – known also

businesses can help in providing solution to as discretionary responsibility, it is best
problematic social problems described by the resources donated by
companies toward social, educational,
Public Expectation – the public supposes that
recreational and/or cultural intentions
businesses are not only after attaining economic
goals but also social ones  Donated resources: time or money
Long-run Profit – those businesses that are Ethical Responsibilities - It is to do what is
socially responsible have the highest likelihoof right even when businesses are not obligated to
to earn more secure long-term profits do so by law
Balance Responsibility and Power – Legal Responsibilities – businesses have an
businesses are said to be the most influential obligation to follow all written and codified laws
organizations in the society. However, having that concern its existence
this kind of power, it is expected that they must
 The government acts as regulators of
also be responsible
businesses so that the integrity of
Stockholders Interest – when a business is businesses practices is maintained, and
socially responsible, it would result in its stock the interest of the public is protected
price increase
Environmental Responsibilities – among the
Possession of Resources – almost all initiatives in sustaining the environmental
companies that are socially responsible have endorsed by businesses are limiting pollution
ample if not more financial resources, technical and reducing greenhouse gases
experts and managerial talents
Economic Responsibilities – the focus here is
PYRAMID OF CSR on the different practices that would lead to the
long-term growth of the business

SOCIAL RESPONSIBILITY TO
STAKEHOLDERS
CSR Towards Consumers:

 Quality
 Fair prices
 Truthful advertising
 After sales service
 Research and development
 Consumer's safety
 Regular supply

† In Loving Memory of Samantha Simbe †

GOOD GOVERNANCE
BAC108 SECOND SEMESTER REVIEWER MIDTERM

 Attend complaints  Power off computers

 Avoid monopolistic competition  Set-up recycling bins in common areas
 Training  Reduce travel
 Give filtered water
CSR Towards Employees:

 Meaningful work and job satisfaction

 Fair returns
 Best physical and mental atmosphere
 Participation in the management
 Training, promotion and welfare
schemes
 Recognition of unions
 Proper personnel policies
 Health and safety measures
 Grievance procedure
CSR Towards Government:

 Pay taxes
 Follow environmental regulations
 Abide by labor laws
 Avoid restrictive trade practices
 Financial disclosure
 Avoid corruption
CSR Towards Local Community

 In the field of industry

 In the field of agriculture
 Housing facilities
 Transportation
 Health and education
 Industrial aid to education in urban areas
CSR Towards Environment:

 Reduce paper waste

 Use LED light bulbs
 Allow telecommuting
 Improve air quality with indoor plants

† In Loving Memory of Samantha Simbe †