NICKA JANE C. SANCHEZ, MBA
Divine Word
College of Laoag
Abstract
This
paper provides a comprehensive overview of Corporate Social Responsibility
(CSR) and its various categories, including environmental responsibility,
philanthropy, ethics, and economic responsibility. A business’s measure of success goes beyond the bottom line.
In today’s world, how a company gives back to its community, positively impacts
the environment, and operates with ethical integrity is critical. This abstract
also underscores that meaningful CSR requires genuine commitment and continuous
adaptation to evolving societal expectations, positioning it as an
indispensable component of sustainable and responsible business operations in
today’s generation.
Keywords: Corporate Social Responsibility, Philanthropic, Environmental, Ethical,
Economic
Introduction
Corporate Social Responsibility,
also known as CSR, is a concept that explores the ethical and social
obligations businesses have towards society, going beyond mere legal compliance.
It encourages firms to evaluate the impact on various stakeholders, including
customers, employees, and most especially the communities, and to act in a way
that contributes positively to social well-being. It involves businesses taking
on responsibilities that exceed what is mandated by the law and regulations. This
includes addressing economic, legal, ethical, and philanthropic concerns. It is
not just about avoiding harm, but also about actively contributing to the
greater good of society. CSR is beneficial in several ways, offering advantages
such as enhancing a business's reputation, fostering customer loyalty, and,
most specifically, creating a competitive advantage.
Categories of corporate
social responsibility.
Environmental
Responsibility
This
means ensuring that organizations operate in an environmentally friendly manner
whenever possible. This can also involve
reducing pollution, recycling materials, replenishing natural resources, and
aligning product lines with sustainable practices. Nowadays, pollution is
everywhere, most especially here in the Philippines. Global pollution is
increasing due to rapid
economic growth, population growth, and
inadequate environmental management. Organizations should have environmental
responsibility because their small actions can have a significant impact. It is
our collective responsibility to start taking action to save our planet. By
doing so, we can make a difference, one step at a time.
One
good example of a Company that I know that has environmental responsibility is
the Nuevo Solar Energy Corporation. It is a corporation that is a responsible
business entity, wherein they commit to embracing and promoting a positive
impact on the community through their CSR. Nuevo Solar Energy Corporation
(NSEC) owns a 68MWac solar plant in Currimao, Ilocos Norte, which commenced
commercial operations in 2023. They support the journey towards a balanced,
low-carbon energy mix by utilizing clean and sustainable energy sources.
Although the various renewable energy projects in the province have no direct
impact on reducing electricity rates for households, host communities
acknowledge that they continue to benefit from the company's corporate social
responsibility projects.
One
CSR that NSEC provides is its partnership with the Provincial Government of
Ilocos Norte through the Provincial Nutrition Action Office. They provide a
trust fund for training or supplementary feeding, which directly addresses a
vital community need, especially for vulnerable groups such as undernourished
children and pregnant and lactating moms, ensuring better nutrition outcomes.
This kind of initiative can have a lasting positive impact on the community,
demonstrating how renewable energy projects can contribute not only to
environmental sustainability but also to social well-being.
Philanthropic
Responsibility
Philanthropic responsibility
refers to a corporation's aims, goals, and objectives for actively bettering
society as a whole. One huge aspect of corporate philanthropy is donating money
from company earnings to worthy causes within the local community, often in the
form of a trust or foundation. These kinds of philanthropic efforts speak
volumes to the public image as a business leader, which is crucial in today's
world.
This also means aiming to make the world
better and improve society through charitable activities. It also refers to
businesses' aims to make the world better and improve society. This also means
sharing with those who have less or have not. The
Nuevo Solar Energy Corporation is indeed commendable because it also
demonstrates a commitment to philanthropic responsibility. Nuevo Solar Energy
Corporation provides scholarships to four students in the province of Ilocos
Norte through the Provincial Education Office, which significantly amplifies
the positive impact of their corporate social responsibility. Their initiative
in providing scholarships has a direct investment in human capital, as
scholarships directly support the education and future of individuals. This
empowers them to pursue higher education and ultimately contribute more
effectively to their communities. As we all know, scholarships are a
significant help and can be particularly impactful in helping students from
underprivileged backgrounds overcome financial barriers to education.
Ethical Responsibility
It
is concerned with ensuring companies operate fairly and ensuring ethical
practices within the organization. This means that an organization or business
is doing the right thing, even if no one is watching. One example of this is
that workers within that business are paid fairly and treated well. This is
about a company doing what is morally right and fair, even if there isn't a
specific law requiring them to. It simply means that a particular company is
operating with integrity.
The concept of
ethical responsibility encourages proactive behavior, urging individuals to
consider the potential impact of their actions on stakeholders and society as a
whole. Organizations can promote ethical responsibility by establishing clear
codes of conduct that outline expected behaviors and clearly define their moral
standards. Providing regular training on ethics and creating an environment
where employees feel safe to voice concerns can reinforce this commitment.
Additionally, leadership should model ethical behavior and recognize employees
who demonstrate strong ethical responsibility, thereby cultivating a workplace
culture centered around integrity and accountability.
Economic Responsibility
This
means making financial decisions that contribute to the greater good of society
while maintaining personal responsibility. It is also the practice of a firm
rooted in its financial choices and a commitment to do good. In other words,
economic responsibility means the company needs to be smart about how it makes
and spends money so it can continue to make a profit and pay its workers. And
have enough money left over to do all the environmental work, giving, and
conduct ethical activities.
Economic responsibility requires a company to create and sustain
jobs in the community and offer beneficial (and non-harmful) products or
services. It's not solely about profit; businesses must also consider the
broader impacts of their decisions. Economic responsibility encompasses ethical
considerations in business decisions, ensuring that these decisions make
positive contributions to society.
When a business acts with economic responsibility
in mind, it makes financial decisions that prioritize the greater good over
maximizing profit. This means that corporate economic responsibility is
intertwined with the other types above. For example, companies with social
responsibility sign a contract with a supplier that uses sustainable materials,
even if it comes with a higher cost to them. Another example of corporate
economic responsibility is when a company commits to a transparent salary
system that fairly compensates all employees and actively addresses historical
pay disparities based on gender or race.
Conclusion
Corporate Social Responsibility is a commitment to managing the social, environmental, and economic effects of its operations, in line with public expectations. It is both a practical and ethical approach to business that seeks to balance profitability with societal contributions. It helps companies to build trust, maintain legitimacy, and create long-term value for their stakeholders. It also remains a crucial framework for integrating ethical considerations into modern business practices. Ultimately, CSR is not merely an option or a benevolent gesture; it is a fundamental obligation and strategic imperative. Corporations or companies exist because of the communities in which they operate; they owe their existence to the communities they serve. Thus, Corporate Social Responsibility serves as an essential mechanism through which businesses genuinely give back. As businesses continue to evolve, companies or organizations' commitment to ethical conduct and societal contribution through their CSR will lead them to foster, grow, and have a positive impact on society.
References
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The four main types of corporate social responsibility your business should
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Fiveable Inc.
(2025). Key term- Ethical responsibility. Retrieved from https://library.fiveable.me/key-terms/ethics/ethical-responsibility
Kara A. (2024,
June 21). Carroll’s CSR Pyramid: Principles and Examples. Retrieved from https://greenly.earth/en-gb/blog/company-guide/carolls-csr-pyramid-principles-and-examples
Leilanie A. (2023,
March 30). 83.3-MW Currimao-2 solar project boosts PH renewable energy share.
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Pacific Oaks CollegeBreaking Down the 4 Types
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https://budgeencodeunions.com/q9h97sj5?key=23b279e99ed6a529a30f577cdce2aeb9
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