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Corporate Governance and Corporate Social Responsibility - Coggle Diagram
Corporate Governance and Corporate Social Responsibility
Corporate Social Responsibility
EU Commission (2002) CSR is a concept that companies integrate social and even evironmental concerns into their business operations and voluntarily interact with the stakeholders.
Lord Holme & Richard Watts (2004) CSR is the continues commitment by businesses to behave ethically and contribute to economic development while also improving the quality of life of workforce and families.
CSR from a Historical Perspective
The 1800s and the Birth of Responsible Organizations
The Catalyst for Modern Corporate Social Responsibility
Universal Acceptance of Corporate Social Responsibility
Historical Phases of CSR
Phase 1: Profit Maximizing Management (the 1800s to early 1900s)
Phase 2: Trusteeship Management (the 1930s)
Phase 3: Quality of Life Management
Perspective on CSR
Classical View
Managerial View
Public View
Religious View
The Four Corporate Social Responsibilities
Economic Responsibility
Legal responsibility
Ethical Responsibility
Philanthropic Responsibility
Contrast profit maximization
Suggest a set of actions beneficial for external stakeholder
Based on self governance external legal and regulatory mechanisms
Corporate Governance
Adrian Cadbury (1992)
CG is the system by which companies are directed and controlled. Concern on balancing the economic and social goals and between individual and communal goals.
Internationa Finance Corporation (2018)
CG is the structures and processes for direction and control of companies. Concerns about the relationship with the management, board of directors, controlling shareholders, minority shareholder, and other stakeholders.
Corporate Governance in Philippines
Make the corporate more accountable and auditors more rigorous.
The Philippine Securities and Exchange Commission (SEC)
A pricipal player in matters of CG, Memorandum Circular 2, Series of 2002, also known as
"Code of Corporate Governance"
under resolution no. 135, April 4, 2002
Elements of Corporate Governance
Good board practices
Appropriate control and processes
A stable regime of disclosure and transparency
Protection of (minority) shareowner rights
Strong commitment to corporate governance reforms
Agency Theory
Stewardship Theory
Stakeholder Theory
Potential Problems in Corporate Governance
Conflicts of interest
Oversight issues
Accountability issues
Transparency
Ethics Violations
Approaches to Corporate Governance
Rule-Based Approach (Adopted in the USA)
Principle-Based Approach (Adopted in the UK)
Related to profit
maximization
Protection for the provided capital to the firm
The broadest control mechanism within which a company