A. Social Responsibility Framework Flashcards
established by law to allow different parties to contribute to capital, expertise, and labour or the maximum benefit of all of them.
corporation as a structure
a legal entity created by an individual or group of shareholders who have ownership of the corporation (through shares of stocks issued by the corporation)
Corporation
Their ownership of the corporation is generally represented by their __________
holding of common stock (one share - one vote)
Four appealing attributes of corporation
(1) Limited Liability
(2) Transferability of ownership
(3) Legal personality
(4) Centralized management
In case of ________ owners of corporations may protect their assets from being foreclosed or confiscated and creditors can only recover debts incurred by the company through liquidation of remaining assets owned by the company.
bankruptcy
allows a shareholder to sell his shares of stocks in the stock market freely should he/she decide to let go a part or all of his shares unless explicitly stated in the corporate laws.
Transferability
Corporations have legal entities and are sometimes defined as _____
legal persons
True or False: Corporations are allowed to perform functions that humans make such as buying and selling of properties, owning copyrights, patents, trademarks, and engaging in any other business activities.
True
True or False: Corporations have definite life span that can survive from generation to generation.
false; indefinite
Corporations have the benefit of ____________ .
Centralized Management
True or False: Corporations has executive managers and the board of directors to govern the corporation. This allows company to operate efficiently without the interference of individual shareholders.
True
Shareholders would look at the stock price as a ________
performance metric
it is stated that there is no minimum number of incorporators (directors) but shall not have more than 20. Each incorporators (directors) must own at least one share of stock.
2019 Revised Corporation Code
True or False: Today, a corporation is granted a perpetual corporate term (in lieu of the previous 30-year term)
False ; 50-year term
True or False: In RCC, there is also the removal of the required subscribed/paid-up capital, and residency of incorporators was made to keep up with global standards.
True
True or False: The most significant change done was the introduction of the One Person Corporation (OPC)
True
RCC focuses on four reforms:
(1) enhancement of ease of doing business in the Philippines
(2) fortified stockholder protection and institutionalized corporate governance provisions
(3) emphasis on corporate social responsibility
(4) improved policies and regulatory corporate framework
True or False: The way a corporation conducts its business had profound effects on individuals in the societies they operate.
True
Corporations continue to grow and can sometimes influence government policy through _______
political lobbying
True or False. CSR is a manifestation of good corporate governance.
True
is the responsibility of companies to act and behave ethically to satisfy their various stakeholder’s needs.
CSR
It is an ongoing commitment of organizations to ensure accountability to the stakeholders their existence impacts.
CSR
CSR is viewed from four different perspectives by _____
Prof Achie Caroll
Four dimensions that characterizes companies’ responsibilities within societies.
(1) Economic
(2) Legal
(3) Ethical
(4) Philanthropic
the lowest layer of the pyramid suggests that companies must first be profitable after they have paid their obligations to employees and supplies and conform to consumers’ needs and demands.
This is the very foundation are required of all corporations.
Economic
a corporation is created through law and as such must abide by the rules and regulations imposed for fairness and justice.
It is required of companies to be legally compliant as well.
Legal
Doing what is right for stakeholders.
Societies expects companies to take on this responsibility beyond what is required of them legally.
Ethical
issues that pertain to the improvement of human lives must be addressed without compromise.
This responsibility however is not required nor expected but rather desired by companies.
Philanthropic
True or False:
1. Can be traced back to the industrial revolution when there was a growing concern for the well-being of workers and its effect on their productivity.
- CSR started as a/an ethical endeavour of successful businessmen who wanted to do good through their donations to help the underprivileged.
- CSR was officially introduced in the early 1950s through American economist and educator Howard Bowen’s work on corporate responsibility.
- In the 1980s and 1990s, more companies became more responsive to the various stakeholders due to social activism.
- At the turn of the 20th century, CSR has become an integral part of corporate strategy.
- In the Philippines, CSR started as donations from various businesses in the 1960s, where activities were organized and sporadic.
- The end of the Marcos regime in 1980s and its adverse effects on the economy lead to a closer collaboration between donors and donees.
8.CSR flourished in the 1990s as companies acknowledge their role as social capitalists.
- From 2000s onward, CSR has become an essential part of a company’s integrity.
- Top companies started to approach CSR as an integrative strategic management tool/ CSR is now universally accepted norm of good corporate governance.
- True
- False ; Philanthropic
- False ; Social Responsibility
- True
- False ; Organizational Strategy
- False ; unorganized
- True
- False ; Social Catalysts
- False ; Company’s identity
- True
Five Drivers of CSR
(1) Regulation
(2) Market Behaviour
(3) Social Activism
(4) Culture
(5) Strategy
provides a framework that companies must comply with
regulation
Benchmarks have been established because of companies’ best practices that use CSR as a builder of reputation; how the market behaves and influences and how companies engage in their respective CSR initiatives and have become source of competitive advantage.
market behaviour
How stakeholders in society react and voice out their concerns to corporations publicly through various means (social media, demonstrations, lawsuits) have impacted how organizations behave.
It can be internally or externally driven meaning companies do not necessarily have to respond to public clamour but internally drive change from within the organization.
social activism
is a mixture of beliefs, norms, symbols, and the heritage that a particular country shares and practices.
This is built overtime and becomes part of its normative values.
culture
For CSR and governance to thrive, a culture of _________ and _________ must be ingrained in an organization.
benevolence ; philanthropy
the most significant driver of CSR.
strategy
True or False: Integrating CSR in its planning from the different functional area of a company fortifies the relationship and becomes a creator of value that benefits the corporation in the long term.
True
True or False: It is also important that the focus and objectives of the company’s desired CSR initiatives must be clearly articulated to its internal (management) and external partners (beneficiaries/intermediaries)
True
Barriers of CSR
(1) Limited Financial Resources
(2) Profit Maximization
(3) Availability of human resources
A company needs to be profitable and take care of its own needs before it has the ability and resources to engage effectively in social responsibility.
Limited Financial Resources
a company that single-mindedly focuses on operational efficiency is usually driven by
profit maximization
No matter how good the intentions are in promoting CSR in organizations, it will need mobilization through employee involvement and engagement in its programs.
availability of human resources
provides several benefits such as helping organizations make better decisions on allocating resources with the greatest impact, improving processes that will make CSR initiatives more efficient, and providing more support for the business case.
measuring CSR
is an example of an integrated strategic measurement system. It uses four dimensions – financial, customer, processes and learning and growth.
Kapalan and Norton’s Balanced Scorecard
(also commonly called the three Ps – people planet and profit) is an accounting framework that describes three evaluation perspectives that contribute to creating greater value for the organization.
Triple Bottom Line
The increasing pressure from the government and society to manage and assess the results of their operations gave way to scrutinizing companies from their:
economic (profit), social (people) and environmental (planet) impact.
has a key role in influencing CSR. Both CSR and leadership are founded on concepts of service, integrity and inspiration to others.
leadership
provide evidence regarding their CSR attitude and acts of the leaders can trickle down to affect employees’ subsequent attitude, behavior and actual engagement through volunteerism.
leader perceptions
True or False: A leader must be able to communicate their CSR stories internally and externally effectively through internal memos, press releases, social media, and others contribute to companies’ reputation.
True
The Filipino concept of _______ (fellowship) is considered to be an essential component of leadership.
is defined as shared identity with others.
Kapwa
The future of CSR in the Philippines is promising and continually evolving. The main driver of this evolution is _________ of the individual that his/her contribution to society is ever-increasingly important
awareness
