Entrepreneurial Mind

PRINCIPLES OF BUSINESS ETHICS

Corporate Social Responsibility
LEADERSHIP - The conscious effort to adopt, integrate, and emulate
the other 11 principles to guide decisions and behavior in all aspect s Corporate social responsibility, or CSR, is a form of self-regulation
of professional and personal life. that reflects a business’s accountability and commitment to
contributing to the well-being of communities and society through
ACCOUNTABILITY - Holding yourself and others responsible for their various environmental and social measures.
actions. Commitment to following ethical practices and ensuring
others follow ethics guidelines. CSR plays a crucial role in a company’s brand perception;
attractiveness to customers, employees, and investors; talent
INREGRETY - Incorporates other principles—honesty, retention; and overall business success.
trustworthiness, and reliability. Someone with integrity consistently
does the right thing and strives to hold themselves to a higher A company can implement four types of CSR efforts: environmental
standard. initiatives, charity work, ethical labor practices and volunteer
projects.
RESPECT FOR OTHERS - To foster ethical behavior and environment s
in the workplace, respecting other is a critical component. Everyone ‘’Businesses that practice corporate social responsibility aim to
deserves dignity, privacy, equality, opportunity, compassion, and improve their communities, the economy or the environment.’’
empathy. - Nadia Reckmann

HONESTY - Truth in all matter s i s key to fostering an ethical climate. 1. It improves customers’ perception of your
Partial truths, omissions, and under or overstating don't help a brand.
business improve its performance. Bad news should be It’s increasingly important for companies to have a socially conscious
communicated and received in the same manner as good news so image. Consumers, employees, and stakeholders prioritize CSR when
that solutions can be developed. choosing a brand or company, and they hold corporations
accountable for effecting social change with their beliefs, practices,
RESPECT FOR LAWS - Ethical leadership should include enforcing all and profits.
local, state, and federal laws. If
there is a legal grey area, leader s should err on the s ide of legality 2. It attracts and retains employees.
rather than exploiting a gap. Consumers aren’t the only ones drawn to businesses that give back.
Susan Cooney, head of global diversity and inclusion at Symantec,
RESPONSIBILITY - Promote ownership within an organization, allow said that sustainability strategy is a big factor in where today’s top
employees to be talent chooses to work.
responsible for their work, and be accountable for yours
3. It increases your appeal to investors.
TRANSPARENCY - Committing to transparency requires making By demonstrating a developed CSR program and initiatives, your
business information and policies company is bound to become more appealing to both current and
available to appropriate groups, such as financial investor s, future investors. CECP’s influential 2021 Giving in Numbers report
personnel and consumers. It includes, for example, sharing criteria shows that investors play a growing role as key stakeholders in
for price hikes, wages, hiring, granting promotions, addressing corporate social responsibility.
workplace infringement s and firing employees.
4 types of corporate responsibility your business can practice
COMPASSION - Employees, the community surrounding a business, In recognition of how important socially responsible efforts are to
business partners, and their customers, employees and stakeholders, many companies
customer s should all be treated with concern for their well-being. focus on four broad CSR categories.

FAIRNESS - Everyone should have the same opportunities and be Environmental efforts:
treated the same. If a practice or behavior would make you feel One primary focus of CSR is the environment. Businesses have large
uncomfortable or place personal or corporate benefit in front of carbon footprints, regardless of size. Any steps a company can take
equality, common courtesy, and respect, it is likely not fair. to reduce its footprint is considered good for both the company and
society.
LOYALTY - Leader ship should demonstrate confidentially and
commitment to their employees and the company. Inspiring loyalty Philanthropy:
in employees and management ensures that they are committed to Businesses can practice social responsibility by donating money,
best practices. products or services to social causes and nonprofits. Larger
companies tend to have plentiful resources that can benefit charities
CONCERN FOR ENVIRON MENT - In a world where resources are and local community programs; however, even as a small business,
limited, ecosystems have been damaged by past practices, and the your efforts can make a difference.
climate is changing, it is of utmost importance to be aware of and
concerned about the environmental impacts a business has. All If you have a specific charity or program in mind, reach out to the
employees should be encouraged to discover and report solutions organization. Ask them about their specific needs and whether a
for practices that can add to damages already done. donation of money, time or your company’s products would best
help them.

Ethical labor practices:

Companies can demonstrate CSR by treating employees fairly and
ethically.

Volunteering:
Participating in local causes or volunteering your time (and your
staff’s time) to community events says a lot about your company’s
sincerity. When your company does good deeds without expecting
 Entrepreneurial Mind
anything in return, you express concern (and support) for specific issues and social causes.

4 WAYS TO SUPPORT CAUSES IN YOUR TOMS

LOCAL COMMUNITY ‘’shoe tomorrow project’’

1. DONATE TO LOCAL CHARITIES TOMS donates one-third of its net profits to charities that support
2. PROMOTE OR SHOP IN LOCAL BUSINESSES physical and mental health as well as educational opportunities.
3. START OR PARTICIPATE IN FUNDRAISING EVENTS During the pandemic, the brand directed all charitable donations to
4. MAKE TIME TO VOLUNTEER the TOMS COVID-19 Global Giving Fund.

Tip: Johnson & Johnson

Make your employees and team part of the decision-making
process for your social responsibility efforts. The brand Johnson & Johnson focuses on reducing its environmental
impact by investing in alternative energy sources. Globally, Johnson
& Johnson also works to provide clean, safe water to communities.
What to avoid when creating a socially
responsible business model Starbucks

1. Don’t choose unrelated initiatives. The global coffee chain has implemented a socially responsible hiring
2. Don’t use CSR as a marketing scheme. process to diversify its workforce. Its efforts are focused on hiring
3. Don’t wait for the industry to catch more veterans, young people looking to start their careers, and
up. refugees.

1. Don’t choose unrelated initiatives. Google

Avoid participating in charitable efforts that are not related to your Google has demonstrated its commitment to the environment by
core business focus or that violate your company’s ethical standards investing in renewable energy sources and sustainable offices. CEO
in any way. Instead of blindly sending money to a completely Sundar Pichai is also known to take stands on certain social issues.
unrelated organization, find a nonprofit that your company believes
in or invest in a project in your community. PFIZER
Biopharmaceutical Company
2. Don’t use CSR as a marketing
scheme. The pharmaceutical company’s focus on corporate citizenship is
reflected in its healthcare initiatives, which include spreading
Don’t use CSR opportunities solely for marketing awareness about non-infectious diseases and providing accessible
purposes. Running a corporate responsibility health services to women and children in need.
campaign as a quick marketing scheme can
backfire if your business doesn’t follow through. Financial Intermediaries
Instead of trying a one-time stunt, adopt socially
responsible business practices over time. List of Stock Market in the Phillippines
Employees and consumers react positively to
companies that embrace long-term social SM Investments Corp. (SM)
responsibility.
SM Investments (Stock Code: SM) comprises all the business
3. Don’t wait for the industry to catch up. segments of SM group of companies providing retail, property,
banking, and equity investments.
If you are considering sustainable activities that
aren’t legally required yet, don’t wait. By Ayala Corporation (AC)
adopting socially responsible norms early on, you
set the bar for your industry and refine your Ayala Corporation (Stock Code: AC) is one of the biggest
process. conglomerates in the Philippines. This giant firm is the parent
company of well-known Philippine businesses, including BPI, Globe
Undertaking CSR initiatives is a win for everyone Telecom, Ayala Land, and AC Energy and Infrastructure.
involved. The impact of your actions will not only
appeal to socially conscious consumers and SM Prime Holdings (SMPH)
employees, but can also make a real difference in
the world. SMPH is the property developer arm of SM Group. It is one of the
largest integrated property developers in South East Asia.
Examples of CSR companies
Jollibee Foods Corporation (JFC)
LEGO:
Jollibee Foods Corporation (Stock code: JFC) is the largest food chain
The toy company has invested millions of dollars into addressing in the Philippines. It is now expanding its food franchise businesses
climate change and reducing waste. LEGO’s around the world.
environmentally conscious efforts include reduced packaging,
sustainable materials, and investments in alternative energy. BDO Unibank (BDO)

BDO is the number one bank in the Philippines in terms of assets,

capital, deposits, loans, and receivables.