BUS560M – La Sallian Business Leadership Through Ethics and Corporate Social Responsibility

 

BUS560M – La Sallian Business Leadership Through Ethics and Corporate Social Responsibility

 

 

Perhaps if there’s an MBA subject that is considered a neutralizer to all other subjects, it will be this subject BUS560M – La Sallian Business Leadership Through Ethics and Corporate Social Responsibility. Unlike in other subjects where the emphasis is only how to make profits or minimize costs for the companies, here, the emphasis is placed on how to think about other people and the environment more than obtaining personal gain/profit. The subject offers a different kind of perspective since it teaches us to put our feet on the shoes of other stakeholders, such customers, employees, community and the environment by analyzing the consequences of our decisions and actions. As shown in the diagram below, a company’s decision and action will always have an impact on the whole society.

 

The subject is also packed with complete set of topics, ranging from Businessman’s Vocation (Divine), Work-Life Balance (Personal), Family, Philippine Constitution (Country) all the way up to Corporate Social Responsibility (CSR) (Community) that is really a holistic approach.

 

 

Aside from lecture discussions, the cases presented in the class are very relevant and realistic. They are very practical, and yet what’s good about this subject is that we learn each and every Ethical and CSR framework, and we had the chance to apply all those frameworks to formulate our own alternative courses of actions and solve the problems in the cases.

 

 

Learning is fun. Learning without actual experience seems to be an incomplete learning. The best thing in this subject is that we have learned not only the Ethical and CSR theories, but we also had the chance to personally experience giving actual service to others through our community service initiatives.

 

Finally, the most important lesson that we learned, perhaps, would be that economic profit is the least important among Carroll’s hierarchy of CSR. Contributing resources to the community that improve quality of life is the most supreme of all. It even surpasses obedience to the law and merely doing what is right and just without doing harm to others. This framework is very much applicable even in our personal lives. Quite noble, indeed.

References:

 

1.       Text

 

        All BUS560M SESSION slides - De La Salle University-Manila

2.       Images

BUS560M SESSION 1.ppt - De La Salle University-Manila

BUS560M SESSION 5.ppt - De La Salle University-Manila

BUS560M SESSION 10.ppt - De La Salle University-Manila

Kate, Albert Ten. Royal Dutch Shell and Its Sustainability Troubles. Milieudefensie-Friends of the Earth Netherlands. May 2011



 



Sustainable Development

Sustainable Development 

According to World Commission on Environment and Development (Brundtland Report 1987), development is sustainable where it meets the needs of the present without compromising the ability of future generations to meet their own needs.

Companies must be responsible enough to achieve economic growth in a manner that pursues the protection of both social and environmental systems. This concept of sustainability is called the Triple Bottom Line.

For me, the 3 pillars (Economic Prosperity, Environmental Quality and Social Equity) of the Triple Bottom Line are all equally important. Based on our lecture topic “Sustainable Development” Session 11 of our subject, Lasallian Business Leadership Through Ethics and Corporate Social Responsibilities, environmental sustainability without human development is also unsustainable. There are obstacles in the sustainable development, however they can be overcome through the following:

1.       Paradigm shifting

2.       Thinking holistically

3.       Respecting the natural world

4.       Valuing People

5.       New perspective on the Economy

In the Book of Genesis of the Bible, it was stated that God created man to have dominion over all the creatures of the earth. God gave man life, food and everything that he needs to survive. But in return, God gave man the duty to cultivate and care the earth. Therefore, we owe our master, God, the obligation of taking good care of the nature and all natural resources. But instead, people destroy the environment by polluting the air, water and soil. In short, people exploit and take for granted what has been freely given by God. Some cases were caused by human culture, while most are caused by the desire for higher personal gain/profits. An infamous case of a well-known large petroleum company in Nigeria and the case of the largest copper mining company in the Philippines in the 90s are just 2 examples of numerous companies around the world which constantly destroy the natural environment for the sake of personal profits. As a result, tons of greenhouse gases are released into the air that cause global warming and severe climate change. The garbage that humans throw also comes back as garbage containing more harmful effects to humans.

 

So goes the so-called “Environmental Ethics”. Environment Ethics deals with the approach to the environment that ought to be taken as well as the approach that is taken. On the point of view of Utilitarianism, total social cost of production equals the private costs plus external costs not being borne by the producers. On the point of view of Rights, people have the right to a healthy environment. Future generations, unborn humans and nature have the right for access to clean and healthy natural environment. Justice requires that we hand over to the next generation the world’s condition that is not worse than the one we received from our ancestors. Care demands humans to see matters from the perspective of those with whom we are thus directly related and care for their specific needs.

 On the point of view of the companies, it seems that going “Green” means getting less competitive. But in fact, on the contrary, companies who go “Green” enjoys the following advantages:

1.       Generate cost savings

2.       Promote innovation

3.       Command premium pricing

4.       Enhance the brand image

5.       Differentiate from competitors

Perhaps, starting now, at my own capacity, I will be more selective in choosing the products that I use, making sure that they are environmental friendly, and dispose them properly. If possible to recycle, then I shall recycle. That way, even in simple ways, I can minimize harm to the environment, therefore, practicing sustainable development.

 

References:

 

1.       Text

BUS560M SESSION 11.ppt - De La Salle University-Manila

BUS560M SESSION 12.ppt - De La Salle University-Manila

 

2.       Images

BUS560M SESSION 11.ppt - De La Salle University-Manila

http://florida.sierraclub.org/miami/images/greenhouse_effect2.jpg



Human Rights

Human Rights

Every human being must have equal rights and opportunities because we are all created under God’s own image, and everyone of us, regardless of age, gender and race, has equal share in God’s blessing of life. By definition, human rights are rights inherent to all human beings, whatever our nationality, place of residence, sex, national or ethnic origin, colour, religion, language, or any other status. (United Nations Office of the High Commissioner for Human Rights)

(http://www.ohchr.org/en/issues/pages/whatarehumanrights.aspx)

 

In the business workplace, there are a lot of issues on human rights. But the common ones are the following which result to job discrimination:

1.       Gender Inequality and Inequity

·         The mentality that men are superior than women.

·         Women have less power and access to assets.

·         Women are not being involved in the decision-making process nor heard in consultations.

·         Women have limited choices.

·         Women are blocked from handling senior executive management positions (also called Glass Ceiling), instead they are blocked in the rank and file positions that hinder their promotions (also called Sticky Floors).

·         Violence and sexual harassment against women caused by the mentality of women are weak and fragile

 

2.       Unequal Opportunity in the Workplace

·         Employers hire only applicants who graduated from certain schools.

·         Managers promote subordinates who have been personally close to them.

·         Promotions are based on seniority regardless of competency or qualifications.

·         Job discrimination against senior citizens.

·         Job discrimination against people with disabilities.

Fortunately, a local company, Lamoiyan Corporation, founded by Mr. Cecilio K. Pedro, which manufactures toothpaste with brand name of Hapee, was able to deviate from the usual practice of modern companies of job discrimination by employing hearing impaired regardless of age and gender. By hiring hearing impaired, Lamoiyan is successful in proving the society that everyone, even if he/she has physical limitations, still has a worth and dignity at work and capability to produce output, therefore, he/she also has the right to receive equal job opportunity and just compensation, same as hearing workers. Hopefully, Lamoiyan will be able to sustain its advocacy and even spread it despite of threats of business process outsourcing to remain global competitive.

 

References:

 1.       Text

BUS560M SESSION 11.ppt - De La Salle University-Manila

2.       Images

http://www.ohchr.org/en/issues/pages/whatarehumanrights.aspx

 

Corporate Social Responsibilities

Corporate Social Responsibility

 

                  A fundamental question to this topic is why should corporations be socially responsible?           

Corporate Social Responsibility (CSR) is the impact of a company’s action on society. Companies do not operate just for personal gain. Every decision and action of companies has impact to stakeholders and wider society, that is why managers are required to consider their acts in terms of a whole social system and anywhere in that system.

The concept of CSR has evolved from simple responsibility of increasing a company’s profits to complex responsibility of considering the impact of company’s action on the whole society.

Here are some of the views on CSR:

1.       As stated by Davis and Blomstrom, CSR requires decision makers to make actions that protect and improve the welfare of society as a whole along with their own interests.

2.       For McGuire, CSR mandates that the corporation has not only economic and legal responsibilities to society that extend beyond these obligations.

3.       According to Epstein, CSR relates primarily to achieving outcomes from organizational decisions concerning specific issues or problems, which by some normative standard have beneficial rather than adverse effects upon pertinent corporate stakeholders. The normative correctness of the products of corporate action have been the main focus of CSR.

At the same time, private corporations should not be merely established for the purpose of private gain, but effective partners of the National Government in spreading the benefits of capitalism for the social and economic development of the nation. (Explanatory note to the Corporation Code of 1980)

According to Archie B. Carroll, a professor and a researcher on the subject of CSR for decades, CSR can be categorized into a pyramid as follows:

 

If put into an equation, CSR is the sum of 4 responsibilities in Carroll’s CSR pyramid.

So what’s the need for being socially responsible?

As identified by our 10^th lecture notes entitled “Introduction to CSR” of our subject, La Sallian Business Leadership in Ethics and CSR, there is a need to be socially responsible given the following reasons:

1.       Self defense – if business is not proactive, the public or government will press for more regulations.

2.       Obligation – Business exists due to being sanctioned by society – owing debt to the society.

3.       Self-interest – Being socially responsible is good for the business in the long run.

Conflict between CSR activities and Business Profit?

I don’t think so. In contrast, CSR activities lead to greater business profit since:

1.       CSR activities are important to and even expected by the public;

2.       CSR activities help organizations hire and retain the people they want; and

3.       CSR activities contribute to business performance.

           

References:

 1.       Text

       https://www.conference-board.org/bio/index.cfm?bioid=1323

Explanatory Note to the Corporation Code of 1980

BUS560M SESSION 10.ppt - De La Salle University-Manila

 

2.       Images

 BUS560M SESSION 10.ppt - De La Salle University-Manila