The Social Responsibility of Business 101

It is often said that the social responsibility of business is to make more profit, so it can provide more and better goods and services needed by society, and consequently provide more jobs and more income to more people in a sustainable way.

So businessmen who at one point tell themselves “Now that I have achieved a certain amount of success, it is time for me to think of my social responsibility”  often find that they have been socially responsible from the outset, without even meaning to be.

This implies that a business inherently – just by existing —  provides benefits to society.

On the other hand, there are proponents of more active, more deliberate forms of corporate social responsibility (CSR) programs.

The World Business Council for Sustainable Development proposes a definition for CSR as:  (1) the ethical behavior of a company towards society, that is, management acting responsibly in its relationships with other stakeholders who have a legitimate interest in the business;     and (2) the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large.

Rafael Lopa, executive director of the Philippine Business for Social Progress (PBSP) says that corporate philantrophy is good but it is not enough.  He suggests the development of models for inclusive growth that go beyond corporate philanthropy.

Here are examples of CSR statements from big companies:

  • Johnson & Johnson: “the company’s responsibilities to be fair and honest, trustworthy and respectful, in dealing with all our constituents” (Johnson & Johnson, 2000).
  • Volkswagen (2000): adopt a position which builds both shareholder value and workholder value in order to deliver “sustainable growth for the future”. They define CSR as “the ability of a company to incorporate its responsibility to society to develop solutions for economic and social problems”.
  • Shell: “We all need to assess the impact our business makes on society and ensure that we balance the economic, environmental and social aspects of everything we do” (Moody-Stuart, 1999).

Small enterprises, regardless of the shortage of resources they experience compared with larger counterparts, are not to be outdone.  Here are examples of SMEs who have taken to heart their social responsibility:

  • Salay Handmade Paper Industries, Inc. (SHAPII) – “SHAPII visualizes itself to continue operating as a socially responsible and harmonious business group that produces ecologically friendly and globally competitive handmade paper and related handicrafts. It resolves to continuously pursue efforts for the improvement of the Filipino people within the framework of sustainable development.”
  • Green Gold Gourmet (makers of Suka Pinakurat) –  “Green Gold takes pride in adopting partnerships with underprivileged communities in Iligan City and Kauswagan, Lanao del Norte. It aims to change the lives of the community it deals with by providing sustainable and dignified employment and livelihood opportunities. Green Gold takes pride in providing eco-friendly solutions in its products and manufacture that it not only minimizes its ecological footprint but overall it actually reduces pollution.”
  •  Lamoiyan Corporation (makers of Hapee Toothpaste) – “Making our presence a blessing to society.”
  • Hacienda Crafts, Bacolod City – “Hacienda Crafts offers farmers an alternative way of life, one that provides better economic returns and pride as self-reliant, micro-entrepreneurs.”

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Photo: from the Hacienda Crafts website