Ass Sa Good Gevernance.docx

LAGUNA UNIVERSITY Laguna Sports Complex, Brgy. Bubukal, Sta. Cruz, Laguna SY 2018-2019

Good Governance and Social Responsibility (Mgt 5)

Submitted by:

Submitted to:

Odtuhan, Mary Rose M.

Prof. Larsi

BSA 3

Social Responsibility is the thought that a company should build relationships with both the society and the environment where it is located. It means valuing those relationships with society, customers, and employees, and not being totally consumed with only maximizing profits. For Hope, up until she came across this article, she was more driven by profits than anything else. She had totally forgotten about the community that supports and helps provide business.

Four Approaches of Social Responsibility 1. Obstructive A company that takes an obstructive stance toward social responsibility attempts to defend its economic priorities by blocking any attempts to point out the company's lack of social responsibility. An obstructive company does not make social responsibility an effort, instead making profits the most important aspect of its business. Some people view obstructive businesses as immoral since they may exploit their employees, pollute natural lands or deceive customers. When faced with specific social demands, obstructive companies often deny any wrongdoing and may even use obstacles to deliberately delay or divert investigation of their practices. 2. Defensive In most cases, companies that take a defensive stance towards social responsibility are not particularly responsible. These companies may consider themselves neutral, and they make profits a more important motive than performing actions in a socially responsible way. These companies make a point of following the law to ensure that others cannot take legal action against them. For example, a company may create more waste than necessary, but it will remove the waste in a legal method rather than dumping it illegally.

3. Accommodating An

accommodating

stance

signifies

that

a

company

believes

social

responsibility is important -- and perhaps as important as making a profit. These companies satisfy all legal requirements and attempt to meet ethical standards. An accommodating company does not attempt to hide its actions and remains open about why it takes specific actions. For ex ample, it may decrease its creation of waste, source products that are not tested on animals and pay its employees a fair wage. The company would keep its records open to the public. Though these companies are often socially responsible, they may change their policies in response to criticism. 4. Proactive Like an accommodating company, a proactive company makes social responsibility a priority, even if doing so cuts into their profits. Instead of reacting to criticism, a proactive company attempts to remain a head of the curve when it comes to social responsibility. It may make ethics part of its mission statement and attempt to avoid any harm to the environment or its employees. A proactive company may go out of its way to institute new recycling programs, give all of its employees a living wage and benefits, and donate a portion of its profits to charity.

1) A. Ethical and Social Responsible Companies in the Philippines 1. San Miguel Corporation According to Jobstreet.com study, the Filipino-owned business San Miguel Corporation (SMC) topped the list of the most desired companies by Filipino workers for the third straight year. SMC is the Philippines’ largest food, beverage, and packaging company that employs over 15,000 people in Southeast Asia. SMC boasts being one of the most

diversified conglomerates in the region, with a huge portfolio of high performing businesses, brands, and products. The company is guided by its core values of integrity, passion for success, teamwork, innovation, respect, and social responsibility. SMC’s core values, along with great pay and benefits, make it one of the most sought after places of employment for Filipinos. 2. Nestle Philippines Nestle Philippines was able to remain in the number two spot in 2016. The company offers exceptional health benefits that extend to employees’ family members, along with competitive pay and a desirable work environment. The study also revealed that Nestle provides employees with opportunities for career advancement, which is another huge motivational factor for many Filipino workers. 3. Accenture Philippines Accenture Philippines was able to hold onto the number three spot again in 2016. According to the company website, Accenture offers employees what it referred to as a “Total Rewards” package. This package includes competitive compensation, a comprehensive benefits package, professional growth opportunities, and programs to help employees balance work with a healthy family-oriented lifestyle. Accenture also places a huge emphasis on recognizing individual contributions and performance. It’s easy to see why Accenture is in the top three of the most sought after companies in the Philippines. 4. BDO Unibank BDO Unibank jumped up four spots in 2016, knocking Shell Philippines off the list completely. BDO believes that its people are the company’s most important assets, and the company recognizes that the strength of their business relies on healthy and happy employees. BDO provides its employees with a comprehensive benefits plan including group life insurance, medical insurance, as well as accident insurance. Given BDO’s

dedication to its employees, it’s not hard to see why many Filipinos from all career levels aspire to work there. 5. Ayala Corporation Ayala Corporation moved up four spots in 2016, taking over the number five position from Procter & Gamble. Ayala Corporation is one of the largest holding companies in the Philippines, and has been in existence for over 180 years. Ayala corporation has a large portfolio that includes leadership in real estate, telecommunications, water infrastructure, financial services, electronics, automotive, business process outsourcing, power generation, transport infrastructure, and education. At the center of Ayala’s business model are four corporate values: integrity, long-term vision, empowering leadership, and commitment to national development. Many Filipinos desire to work at Ayala is due to the company’s emphasis on innovation, encouragement of continued education, and opportunities for career advancement. 6. Coca-Cola FEMSA Philippines (Up from number nine in 2015) Coca-Cola Philippines is the largest bottler of Coca-Cola products in the world, and is proud to employ over 8,000 Filipinos. Per the company website, Coca-Cola FEMSA aspires to be the best employer in the Philippines, and has made significant investments to its product portfolio as well as its commitment to employees. Those who work here are granted with a comprehensive benefits package as well as very competitive pay and opportunities for career advancement. 7. SM Investments (Down from number six in 2015) SM Investments Corporation (SM), is a top Philippine conglomerate with interests in property development and banking. SM is well-known for its operation in retail through malls all over the country, which includes The SM Store, and various food retail stores. SM prides itself on promoting innovation, and provides employees with many opportunities for career advancement.

8. Google Philippines (Not in the top 10 in 2015) It’s hard to imagine a world without Google, so it’s not surprising that many Filipinos aspire to be employed by the tech giant. There are many benefits of working at Google including opportunities for career advancement, an extremely generous benefits plan, some of the best maternity and paternity leave in the world, global tuition reimbursement, and some of the most innovative work environments known to man. 9. Procter & Gamble Philippines (Down from number five in 2015) Procter & Gamble (P&G) employs over 1,300 Filipinos across three work sites: the Philippines Selling and Marketing Organization, the Manila Service Center, and the Cabuyao Plant. P&G boasts providing employees with high compensation, along with medical insurance, life insurance, retirement plans, a great life/work balance, and much more. 10. ABS-CBN Corporation (Down from number seven in 2015) ABS-CBN is the leading media and entertainment company and one of the top radio broadcasters in the Philippines. The company dedicates itself to serving a greater purpose in society by providing exceptional service to Filipinos worldwide. A dedication to the greater good, along with competitive pay and exceptional benefits is what attracts many Filipino workers to ABS-CBN. B. Unethical and Social Irresponsible Companies 1. Pfizer: Pfizer has a bad record on numerous fronts. They've been fined multiple times for environmental violations, most notably for pumping hazardous chemicals into the air in violation of the Clean Air Act and for sales of asbestos-contaminated insulation by one of their subsidiaries. Even worse, Pfizer has committed some horrible human rights violations, testing new drugs on poor, sick Nigerian children (many of whom died or suffered irreparable brain damage) without their or their parents' knowledge and

consent and engaging price gouging on AIDS drugs — even when governments fought tool and nail to get generic licenses to treat the poor in developing nations, where these treatments are needed most! While Pfizer may not be the most socially responsible company, they've at least made some efforts to repay the damages they've done. In 2009, Pfizer gave more than $60 million to charity, amounting to an astounding 24.2% of its total net profits for the year. 2. Wal-Mart: Wal-Mart has become much more than a brand. In many circles, mention the name of this global giant and you'll get a laundry list of its offenses around the world, especially when it comes to treatment of its workers. Employees are often underpaid, overworked and have little recourse, as the bigwigs at the company spend millions each year making ensuring that any attempts to unionize are quickly terminated from employment with the company. The company has also been known to take out life insurance policies on their workers, profiting from their death or misfortune, while their families have little way to pay medical bills or cover funeral costs. And that's not where the bad press ends. The company also has a pretty bad reputation on the environmental front as well, paying fines for infractions all over the United States. While the company is making efforts to improve its environmental record, the low prices of its goods come with a pretty high cost for both humans and the planet.

3. BP: Images of the devastation caused by the recent oil spill in the Gulf of Mexico are hard to forget, notably the miles and miles of ocean coated in a greasy, globular mess, killing off countless numbers of fish, birds and other wildlife that call the area home. While they bill themselves as a business leading the way in green initiatives, BP's careless actions cost lives, damage the environment, and drain thousands upon thousands of jobs, especially in the hardest hit areas like the coast of Louisiana, where residents where already reeling from the effects of Hurricane Katrina. A PR campaign launched to help the company promised that they would take full responsibility for the cleanup and associated costs, yet news reports have shown that they haven't really

fulfilled that promise, with dire consequences for Gulf wildlife and the people who call it home. Failed efforts to stem the spill, misinformation given to federal officials and illadvised attempts at containing the leaked oil (with dispersants the EPA warned against) make this company one of the most socially irresponsible today. 4. ExxonMobil: Of course, BP isn't alone as one of the most socially irresponsible energy companies out there. ExxonMobil also had a pretty epically bad oil spill of its own, tainting miles of Alaskan coastline in a disaster that is still remembered to this day. Yet ExxonMobil's social irresponsibility doesn't end there when it comes to environmental destruction. The company ranks sixth on the list of most toxic air polluters in the US, has been accused time and time again of manipulating and influencing climate change studies, and in the past has actively supported global warming denial organizations — all while a PR program assures consumers that ExxonMobil is investing millions in clean energy. ExxonMobil outdoes BP in social irresponsibility, however, in their blatant disregard for basic human rights. In 2001, the company became the target of a lawsuit alleging that the army they hired to protect their oil fields in Indonesia has committed torture, rape and killings, and that the company was well aware of these violations. They even provided equipment to help commit and cover up these crimes! The case has yet to be settled, and if found guilty the company could be facing big fines and international censure. 5. Dow Chemical: It's hard to put a happy face on a company responsible for the research and development of Agent Orange, a chemical defoliant, and napalm, a thickening agent often mixed with gasoline, used by the U.S. military during Vietnam. These two chemicals alone cost hundreds of thousands of lives, a great deal of them civilian, and caused birth defects in the generations that followed. While they no longer produce either of these chemicals, they do output a number of others that have taken a big toll on the environment, releasing dioxins and chlorinated furans into local waterways– both of which are known to cause cancer and other serious health conditions. Decades of battle with the EPA over these chemicals has resulted in little

change, with Dow refusing to clean them up or even warn citizens of the potential dangers they may pose. According to the EPA, Dow has some responsibility for 96 of the United States' Superfund toxic waste sites, placing it in tenth place by number. And their harmful toxic waste isn't just doing damage at home. Union Carbide, purchased by Dow in 2001, was responsible for a toxic leak of methyl iso-cyanide in Bhopal, India that killed over 20,000 people. The company has not helped to clean up nor taken responsibility for any aspect of this leak, and civil and criminal charges against Dow are still underway. 6. Chevron: Google this company and you're likely to find many times more articles about how evil it is than about its virtues. Committing violations in human rights and environmental issues, this corporate giant wreaks havoc around the world. Perhaps one of its most unforgivable and well-known offences took place in between 1964 and 1992. The company left over 600 unlined oil pits in the Amazon rainforest and dumped 18 billion gallons of toxic oil production water into the local rivers. The effect has been devastating, with locals suffering serious health effects ranging from cancer to skin lesions to birth defects. Unfortunately, the toxic effects of their business are felt elsewhere too, with refineries in Richmond, California causing serious health problems to residents there as well. Chevron is a hard corporation to stand up to, as protestors in Nigeria discovered. The company hired military personnel to open fire on a peaceful protest to the construction of oil fields in the area, and it was forced to pay a large settlement for their support of a regime that committed numerous human rights violations in Burmaincluding torture, rape and forced labor. 7. Coca-Cola: It's likely that the products produced by this multi-national, multi-billion dollar company have crossed your lips at one point or another, yet there is a dark history behind the company that many aren't aware exists. Between 1989 and 2002, eight union leaders from bottling plants in Colombia were killed after they raised concerns about labor practices, and many members of the union and workforce there have been kidnapped and tortured to prevent them from supporting it. And that bottled

water you drink? You might think twice before taking a sip when you learn where it comes from. Coca-Cola's plant in Kerala, India, gets that water from deep wells in the area, which is great for them – but not so great for residents who are left with little to drink or use for agriculture. While Coca-Cola's worst infractions occurred overseas, they aren't saints at home either, with over 2,000 African-American employees suing and winning a case against the company for race discrimination. 8. Nestle: The products Nestle sells may be sweet, but many of their business practices aren't — and you may find that you don't care to indulge in what they sell when you know how it got onto your grocery store shelves. Much of the cocoa used in Nestle's products comes from the Ivory Coast, a country known for using illegal and forced child labor in the production of this commodity. Nestle is and has been well aware of this fact, and agreed to stop doing business with farms that use this type of labor by 2005. Yet the company has still yet to make good on this promise. Nestle also comes under fire for their aggressive marketing campaigns for their baby formula in developing and poor nations. Why is this a big deal? Because the company markets its formula under false pretenses (making mothers believe it is more healthy than their own [free] breast milk) and millions of liters of the substance were found to be contaminated with harmful chemicals. And let's not forget their labor violations, in nations like Columbia. When workers protest absurdly low wages and unsafe working conditions, they're simply fired and replaced with new workers, often at an even lower wage than before. 2.) Compare and Contrast their Behaviour and Actions A. Ethical and Social Responsible Companies 

The companies take responsibility for the impact of their business activities on society. Their not only strive for profit, but their also take into account the consequences of their activities for the environment (planet) and the people inside and outside their company.

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The companies project a positive image, so that their company can make a name for itself not only being financially profitable, but also socially conscious as well.

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The company is guided by its core values of integrity, passion for success, teamwork, innovation, respect, and social responsibility.

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They believe that people are the company’s most important assets, and the company recognizes that the strength of their business relies on healthy and happy employees.

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The company dedicates itself to serving a greater purpose in society by providing exceptional service to people worldwide.

B. Unethical and Social Irresponsible Companies 

Employees feel pressure to meet certain deadlines and beat competitors, so they behave unethically to reach such goals.

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The companies are not responsible for the impact of their business activities on society.

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Committing violations in human rights and environmental issues.

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The company markets its formula under false pretenses.

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Employees are often underpaid, overworked and have little recourse, as the bigwigs at the company spend millions each year making ensuring that any attempts to unionize are quickly terminated from employment with the company.

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The company also has a pretty bad reputation on the environmental front as well as paying fines for infractions.