San Agustin Diocesan Academy Inc.

Jaen, Nueva Ecija

Senior High School Department

S.Y. 2022-2023
Learning Area: Business Ethics and Social Responsibility
Semester: Second
Quarter: Second
Grade Level: Twelve
Module No. 3
Week & Date: Week 3

Module’s Objectives:

A. Content Standard: The learner will be able to understand the models and frameworks of social
responsibility in the practice of sound business.
B. Performance Standard: The learner will be able to explain the different models and frameworks of social
responsibility.
C. Learning Competencies: At the end of this module, you should be able to:
1. Describe the different models and frameworks of social responsibility
2. Formulate a framework of social responsibility that reflects the practice of sound business
3. Explain the importance of establishing and sustaining business enterprises as a source of job opportunities
and financial freedom
4. Prepare and implement a proposed personal action plan to assist an existing small business enterprise to
practice ethics and social responsibility in their business operation
Focus: Corporate Social Responsibility
 Models of Corporate Social Responsibility
 Duty Not to Cause Harm
 Responsibility to Prevent Harm
 Good Business Sense
 Environmental Issues and Sustainability
 Principles for Business Sustainability

List of References:
Aliza, R. (2017). Business Ethics and Social Responsibility. 1st ed. Rex Printing Company, Inc.
Zation
Chron Contributor (2010). Corporate Social Responsibility and Sustainable Development. Retrieved January 11,
2021 from https://work.chron.com/sustainable-development-corporate-social-responsibility-5749.html
Deepika Jayasurya (2016). Business Sense. Retrieved January 11, 2021 from
https://yourstory.com/2016/07/business-sense-meaning
Jonalyn, C.B. (2017) Business Ethics and Social Responsibility. Diwa Learning System, Inc.
Lisa McQuerrey (2021) Good Business Sense. Retrieved January 11, from
https://smallbusiness.chron.com/develop-good-business-sense-39395.html
Pinterest (2018). Corporate Social Responsibility and Sustainable Development. Retrieved January 11, from
https://www.pinterest.ph/pin/839710292996380792/

Learning Content

Challenge Question: Is the economic model of corporate social responsibility (CSR) important to the society?
Why or why not?

Unlocking of Learning Difficulties:

Avoidable - able to be avoided or prevented.

Delineate - describe or portray (something) precisely
Fret - cause (someone) worry or distress
Hone - refine or perfect (something) over a period of time
Impeccable – (of behavior, performance, or appearance) in accordance with the highest standards of propriety
Imperative - of vital importance; crucial

1
Ken - one's range of knowledge or sight
Kitty - a fund of money for communal use, made up of contributions from a group of people
Prominent - important; famous
Resilience - the capacity to recover quickly from difficulties; toughness
Slum-dweller - a person who lives in a slum

Module’s Lecture:

Earth is the only home we have. It is imperative to take care of it, especially now that we are facing many
environmental problems. There is a call now for international public awareness on environmental sustainability,
and countries in different parts of the world to come up with legislation to protect the environment.

A sustainable economy is a long-term strategy for companies and requires careful planning within the
management.

In this module, we will discuss the models of corporate social responsibility (CSR).

Let us start discussing the overview of Corporate Social Responsibility (CSR).

What is corporate social responsibility or CSR?

Corporate social responsibility (CSR) is a practice of business organizations that accounts for the social and
environmental impacts that the business operation creates. Practicing CSR means that a business organization
commits to developing policies and business practices that ensure sustainability of environmental resources,
ethical treatment of employees, and protection of community welfare, among others.

Companies are accountable for their actions and decisions, and the result of those actions and decisions.
Responsibilities are the things that we ought or should do, even if we prefer not to. For example, if your family
has a dog and you are given the responsibility of feeding it twice a day, you have to do it even if you do not like
the task because the dog will become hungry and possibly destroy the things in the house. Worse, the dog can get
sick and this will definitely cost money to restore its health back. All of these can happen if you fail to do your
responsibility to the dog and to your family.

What is meant by socially responsibility?

Social responsibility means that individuals and companies have a duty to act in the best interests of their
environment and society as a whole. Social responsibility, as it applies to business, is known as corporate social
responsibility (CSR), and is becoming a more prominent area of focus within businesses due to shifting social
norms.

Models of Corporate Social Responsibility

The seven (7) models of corporate social responsibility are the following:

1. Friedman Model (1962-73). In this model, a businessman should perform his duty well; he is performing
a social as well as a moral duty.
2. Ackerman Model (1976). The model has emphasized on the internal policy goals & the relation to the
corporate social responsibility (CSR).

Four stages involved in CSR:

 Managers of the company get to know the most common social problem and then express a
willingness to take a particular project which will solve some social problems.
 Intensive study of the problem by hiring experts and getting their suggestions to make it
operational.
 Managers take up the project actively and work hard.
 Evaluating of the project by addressing the issues.
3. Caroll Model (1991). Carroll’s four-part definition of CSR was originally stated as follows: “Corporate
social responsibility encompasses the economic, legal, ethical, and discretionary (philanthropic)
expectations that society has of organizations at a given point in time” This set of four responsibilities
creates a foundation or infrastructure that helps to delineate in some detail and to frame or characterize
the nature of businesses’ responsibilities to the society of which it is a part.

2
 4. Environmental Integrity & Community Health Model . Outreach programs in environmental health
associated with research projects in corporate ethics are suggested to develop the corporate conscience
for preserving environmental integrity through corporate responsibility.
5. Corporate Citizenship Model. Corporate citizenship involves the social responsibility of businesses and
the extent to which they meet legal, ethical, and economic responsibilities, as established by
shareholders.
6. Stockholders and Stakeholders Model. The shareholder model consists of the business being the
property of its owners. The main purpose of this business is to maximize the value within the market.
This also leads to the business making the most money for its respective shareholders. In addition,
managers within this business are under no obligation to listen or adhere to the people around them.
Therefore, they are solely focused on maximizing profit and making the most money that they can. On
the other hand, there is the stakeholder model of corporate governance. In the stakeholder model,
corporations serve to create and add value to current society, all while trying to make a profit. For
example, they have the ability to improve society through the creation of new goods or services, and they
can offer professional development for employees.

Duty Not to Cause Harm

A business organization has a duty to not cause harm, even if an action that may result in avoidable harm is not
explicit prohibited by law. If a company caused harm to a property or a person, and if it could have been avoided
by exercising due care or proper planning, then both the law and ethics will be determined that the business
organization should held liable for violating its responsibilities.

Responsibility to Prevent Harm

There are instances when a company does not cause harm but has the potential or the capability to prevent harm
from occurring. For example, one of the biggest and oldest pharmaceutical companies in the Philippines created a
subsidiary company in 2002 to market and to distribute generic medicines that are sold at cheaper prices to cater
the poor. Because of the lower cost involved in producing the medicines, the company able to sell generic
medicines at 20-75 percent cheaper than their branded counterparts. The main benefits of the people from this
initiative are the availability of cheaper medicine especially for the poor who cannot afford to buy expensive
branded medicines.

Good Business Sense

There is no doubt that the society benefits from business organizations that do good and practice their social
responsibility. These organizations in return, also benefit from their corporate social responsibility (CSR)
activities.
Developing good business sense is about developing a continually evolving understanding of the ever-changing
dynamics of the local, national and international business climate. Good business sense often develops through
hands-on experience and trial and error in the business world, although it can also be fostered through education,
research and mentoring.

You could be a storekeeper or tech entrepreneur, having a keen business mindset is an essential trait for the
success of your business. There is a lot of talk over having the right ‘business sense’. But what are the individual
components that make up this collective term? Some of these skills can be innate, and others can be developed
over time.

1. Interpersonal skills

As an entrepreneur, you will have to meet a lot of people on a daily basis. They may be your clients, customers,
workforce, investors or even your shareholders. How you deal with these individuals can make or break your
business. So, it is important that you build a great relationship with everyone. Some people are naturally gifted
with good interpersonal skills. But if you are not one of them, do not fret. These skills can be learned. Having
impeccable communication skills is essential if you want to sell your vision to everyone. But it is not enough to
simply talk, you need to make sense. It is important to hone up your listening skills as well. Being a good listener
can provide you with many insights that could help you run your business better.

2. Organizational skills

You need to be obsessive about keeping things organized. It could be the number and kind of people you are
hiring, target setting for your employees, goal setting for the company or even simply ensuring that all your in-

3
house meetings are pre-planned and efficient. Given the dynamic state of the startup ecosystem, there can be
change of plans and goals everyday – but you need to bring about a structure and balance which is going to hold
the business and all the employees together.

3. Critical and Creative Thinking

If you are someone who always has fresh ideas and thinks of creative ways to push your business forward, you are
one step ahead of the others already. Many people think that creativity is something you are born with. But, like
French artist Henry Matisse once said, “Creativity takes courage.” If you are looking for inspiration, you can
attend online and offline courses and read books and articles on creativity and its impact. Along with creative
thinking, you must also be prepared to face the worst. Problem-solving skills are a must-have in a new
entrepreneur’s kitty. Always answer the question - ‘what can go wrong?’ before you take any step, this is going to
give you a good understanding of what the risks are, and how to prepare for them.

Personal Traits

Optimism is one of the most important traits of a good businessman. It will keep you level-headed and positive
and can help you get through tough times. Optimistic people are also perceived as approachable. Besides having
an optimistic approach, you must also be lit with a burning desire to get things done. Let us be honest, the only
way to know whether your business is a success or a failure is by getting things done. This will also help you
focus better and motivate people around you. Resilience, or the ability to pick yourself up and get back quickly in
the game, is one of the most important traits of a successful individual.

Some businesses find it hard to justify any type of corporate giving, but this approach is wrong. If you are
avoiding philanthropy completely or going through the motions with the wrong motives, it is time for you to get a
fresh perspective.

When done right, corporate social responsibility is a win-win for the business and its community. Being generous
with business resources (money, time, & talent) places a company in a better position to attract strategic partners,
employees, and customers. It makes good business sense to create a program of focused, intentional giving.

Environmental Issues and Sustainability

There is now call for international public awareness on environmental sustainability, and countries in different
parts of the world come up with the legislations to protect the environment. Business organizations and
individuals alike are called to take part in addressing the pressing environmental issues. One of the environmental
issues directly concerns business organization is the depletion of natural resources.

The six (6) pervasive factors that contribute to the depletion of resources are the following:

1. Consumer affluence – the increase of wealth of individual income has led to increased and discriminate
spending and consumption, which produce waste. For example, affluent consumers perceive themselves
as important, valuable customers, and they expect to be recognized and treated as such at every point in
the customer lifecycle. They also demand products and services that fit their lifestyle needs and live up to
(or even exceed) their extremely high expectations.
2. Materialistic cultural values – most people have acquired the mentality of consumption over
conversation. With access to retail stores everywhere, acquiring goods has never been easier. This
promotes practice of overconsumption and excessive production of disposable or short-lived items. For
example, the “instant” product displayed on grocery shelves. Imagine the packaging that goes with them,
which contributes to the wastes that are generated every day.
3. Urbanization – the concentration of people in the cities increase pollution. More people in the cities need
more cars to transport people around more energy to sustain daily activities at home and in office. More
people mean more demand of houses, which pushes the developers the use lands.
4. Population explosion – population growth means more industrialization, product consumption, waste
and pollution. This means that more natural resources are required to meet the growing demands of the
population, and that more people will contribute to environmental pollution.
5. New and uncontrolled technologies – some companies that prioritize profits, convenience, and
consumption over environmental protection disregard the impacts of the technologies they used and
developed.
6. Industrialization – industrial activities deplete natural resources and the destructive use of the
environment for economic reasons causes environmental decay. Air and water pollution due to

4
 manufacturing activities, improper waste management, use of improper disposal of toxic chemicals, and
other activities are associated with the manufacturing sector.

In addition, targeting environmental sustainability in the Philippines was formulated in the United Nation’s
Millennium Development Goals (MDGs), which covered the following goals.
1. integrate the principles of sustainable development into country policies and programs (including reverse
loss of environmental resources);
2. reduce by half the proportion of people without sustainable access to safe drinking water; and
3. achieve significant improvement in the lives of slum-dwellers.

Principles for Business Sustainability

The sustainable models provide a general picture of how business organizations should conduct their business in
consideration of their environmental responsibility.

Eco-efficiency is particularly “doing more with less,” and has been and environmental guideline for decades. For
example, riding a bike is better that riding a bus. Business organization can improve energy efficiency in their
offices through energy-saving lighting, better building design, more environmentally product design, and more
efficient distribution channels.

Biomimicry is the second principle where, ideally, the waste materials of one company are turned into resource
by another firm. The ultimate goal of this principle is to eliminate waste instead of just reducing it. One example
or strategy that follows this principle is closed-loop production, a manufacturing or production that seeks to
integrate what is presently waste back into production.

Service-based economy – interprets consumer demand as a demand for services transportation, laundry, and
maintenance of cars, and appliances, among others. For example, consumer may choose to have their clothes
cleaned by a laundry service company instead of buying their own washing machines.

Traditionally, businesses have always looked at environmental concern’s burdens and barriers to economic
growth. But sustainable business economic development seeks to create new ways in order to do business where
the success is measured based on the triple bottom line (TBL) approach: economic, ethical and environmental
sustainability.

Brain Teaser: According to The Business Case for Purpose (2020), Companies with a clearly defined sense of
purpose are up to 50% more likely to successfully expand into a new market.
Prepared by: Checked by: Noted by:

Mrs. May Ann S. Nuestro Mr. John Patrick G. Malang Mr. Nathaniell C. Capinpin
Subject Teacher Subject Area Coordinator Academic Supervisor

Joanne Mae J. Bondoc, MAEd

SHS Academic Coordinator

5
6