The document outlines the characteristics and legal framework of corporations, particularly focusing on the Revised Corporation Code (RCC) in the Philippines, which enhances ease of doing business and emphasizes corporate social responsibility (CSR). It discusses the importance of CSR and good governance, identifying their roles in improving societal trust, environmental protection, and long-term profitability. Additionally, it highlights the evolving landscape of CSR, barriers to its implementation, and a case study illustrating a CEO's journey in developing meaningful CSR initiatives.

1. SLIDESMANIA.
SLIDESMANIA.
SOCIAL
RESPONSIBILITY
FRAMEWORK

2. SLIDESMANIA.
SLIDESMANIA.
IS A LEGAL ENTITY CREATED BY AN
INDIVIDUAL OR GROUP OF SHAREHOLDERS
WHO HAVE OWNERSHIP OF THE
CORPORATION (THROUGH SHARES OF
STOCKS ISSUED BY THE CORPORATION) TO
ENGAGE IN BUSINESS ACTIVITIES.
MONK AND MINOW (2011) DEFINES
CORPORATION AS A STRUCTURE ESTABLISH
BY LAW TO ALLOW DIFFERENT PARTIES TO
CONTRIBUTE TO CAPITAL EXPERTISE, AND
LABOR OR THE MAXIMUM BENEFIT OF THEM.
THE
CORPORATION

3. SLIDESMANIA.
SLIDESMANIA.
THE FOUR
APPEALING
ATTRIBUTES
• LIMITED LIABILITY:
THIS MEANS THAT IF CORPORATION GOES
BANKRUPT, THE OWNERS PERSONAL ASSETS ARE
NOT AT RISK. ONLY THE CORPORATION ASSERTS
CAN BE USED TO PAY OFF DEBTS.
• TRANSFERABILITY OF OWNERSHIP:
OWNERSHIP OF A CORPORATION CAN BE EASILY
BOUGHT AND SOLD BY SHAREHOLDERS.
• LEGAL PERSONALITY:
CORPORATION IS CONSIDERED TO BE LEGAL
ENTITIES IN THEIR OWN RIGHT.
• CENTRALIZED MANAGEMENT:
CORPORATION HAVE A CLEAR HIERARCHY OF
AUTHORITY, WITH A BOARD OF DIRECTORS AND A
MANAGEMENT TEAM RESPONSIBLE FOR MAKING
DECISIONS.

4. SLIDESMANIA.
SLIDESMANIA.
THE PHILIPPINE
CORPORATION
The 2019 RCC made significant
changes to the Philippine
corporation law, making it
easier to do business in the
Philippines and providing
greater protection for
stockholders. The RCC also
introduced new provisions on
corporate social responsibility
and improved the regulatory
framework for corporations.

5. SLIDESMANIA.
SLIDESMANIA.
Corporate Term
through perpetual
(50 years term)
The Philippine Corporation Under the 2019
Revised Corporation Code (RCC)
CHANGES
• Removal of the required
subscribed/paid-up
capital
• Residency of
incorporators is no longer
required
• Introduction of the One
Person Corporation (OPC)
Incorporation
• Minimum number of
incorporators: 1
• Maximum number of
incorporators: 20
• Each incorporator must own at
least one share of stock

6. SLIDESMANIA.
SLIDESMANIA.
FOCUS AREAS OF THE RCC
• Enhancement of ease of doing business in the Philippines
• Fortified stockholder protection and institutionalized corporate
governance provisions
• Emphasis on corporate social responsibility
• Improved policies and regulatory corporate framework.

7. SLIDESMANIA.
SLIDESMANIA.
THE IMPORTANCE OF SOCIAL RESPONSIBILITY AND GOOD
GOVERNANCE
• In today's world, corporations have a growing
impact on society. The way they conduct their
business can have a profound effect on
individuals, communities, and the environment.
As a result, it is more important than ever for
corporations to be socially responsible and to
practice good governance.

8. SLIDESMANIA.
SLIDESMANIA.
What is social
responsibility?
Social responsibility
is the idea that
corporations have a
responsibility to do
more than just make
a profit.
Protecting the environment
Treating employees fairly
Supporting the community
Being transparent about their operations.

9. SLIDESMANIA.
SLIDESMANIA.
What is Good
Governance?
Good governance is the idea that corporations should be
run in a way that is fair, transparent, and accountable.
This means things like:
• Having a strong board
directors
• Following ethical business
practices
• Complying with all laws and
regulations
• Communicating openly with
stakeholders

10. SLIDESMANIA.
SLIDESMANIA.
Importance Of Social
Responsibility And Good
Governance?
 THEY CAN HELP TO IMPROVE THE
LIVES OF INDIVIDUALS AND
COMMUNITIES
 THEY CAN HELP TO PROTECT THE
ENVIRONMENT.
 THEY CAN HELP TO BUILD TRUST
BETWEEN CORPORATIONS AND
SOCIETY.
 THEY CAN HELP TO MAKE
CORPORATIONS MORE PROFITABLE IN
THE LONG RUN.

11. SLIDESMANIA.
SLIDESMANIA.
CSR
• is the responsibility
of companies to act
and behave ethically
to satisfy their
various stakeholders
needs.

12. SLIDESMANIA.
SLIDESMANIA.
Economic (make a profit)
Legal (follow rules)
Ethical (do what is right)
PHILANTHROPICAL
(ABOVE AND BEYOND
COMPLIANCE)
Economic - An
expectation of
profit is natural
when
shareholders
form
corporations.
Legal - A
corporation is
created through
law and, as such,
must abide by the
rules and
regulations
imposed for
fairness and
justice.
Ethical - Doing
what is right for
stakeholders is
what ethical
companies
should aim for.
Philanthropic- To fulfill
this responsibility,
companies need to
truly embrace
philanthropy, meaning,
issues that pertain to
the improvement of
human lives must be
addressed without
compromise.

13. SLIDESMANIA.
SLIDESMANIA.
Brief history of CSR
• INDUSTRIAL REVOLUTION
• FORMALIZATION OF CSR
• IN THE 1980’S-90’S - CSR BECAME
MORE ABOUT STAKEHOLDERS
MANAGEMENT
• IN 2000 AND BEYOND - CSR HAS
CONTINUED TO GROW IN
IMPORTANCE IN THE 21ST
CENTURY.

14. SLIDESMANIA.
SLIDESMANIA.
In the Philippines
• 1960’S - CSR STARTED DONATIONS.
• 1970’S - SAW MORE COORDINATED EFFORTS BETWEEN
COMPANIES AND INTERMEDIARIES .
• 1980’S - CLOSER COLLABORATION BETWEEN DONORS AND
DONEES.
• 1990’S - COMPANIES ACKNOWLEDGE THEIR ROLE AS SOCIAL
CATALYST.
• 2000 ONWARDS - CSR BECOME ESSENTIAL PART OF
COMPANY IDENTITY.

15. SLIDESMANIA.
SLIDESMANIA.
Business Case
• Economist Milton Friedman
(1970) argued that the sole
responsibility of corporations is
to generate profit for the
shareholders and that it is the
government's responsibility to
provide for society's needs.
Studies show that companies doing good often
do well too. Here’s why
• HAPPY CUSTOMERS
• MORE EFFICIENT OPERATIONS
• ATTRACT AND RETAIN TALENT
• REDUCE RISK

16. SLIDESMANIA.
SLIDESMANIA.
C
S
R
DRIVERS BARRIERS
REGULATION LIMITED
FINANCIAL
RESOURCE
MARKET BEHAVIOR
SOCIAL ACTIVISM
CULTURE
STRATEGY
PROFIT
MAXIMIZATION
AVAILABILITY
OF HUMAN
RESOURCES
Below is an illustration of the opposing forces of CSR:
Drivers and Barriers of CSR
How can one strengthen the propagation of CSR? And what are some of
the barriers it needs to contend with for companies to embrace it fully?

17. SLIDESMANIA.
SLIDESMANIA.
Drivers:
• REGULATION
• MARKET BEHAVIOR
• SOCIAL ACTIVISM
• CULTURE
• STRATEGY

18. SLIDESMANIA.
SLIDESMANIA.
Barriers:
• LIMITED FINANCIAL
RESOURCES
• PROFIT MAXIMIZATION
• AVAILABILITY OF
HUMAN RESOURCES

19. SLIDESMANIA.
SLIDESMANIA.
Measuring CSR
The purpose of measurement is
to understand what is being
measured better and lay the
groundwork for improvement.
CSR is a management concept
that is not easy to measure.

20. SLIDESMANIA.
SLIDESMANIA.
Triple Bottom Line

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SLIDESMANIA.
Leadership
• Leadership has a key role in influencing CSR.
• Leader perceptions provide evidence regarding
their CSR attitude and ACTS OF THE LEADERS.
• A leader must also be able to communicate their
CSR stories internally and externally effectively.
• The Filipino concept of "kapwa" (fellowship) is
considered to be an essential component of
effective leadership.

22. SLIDESMANIA.
SLIDESMANIA.
Future of Philippine CSR
• Corporate Social Responsibility has become
integral for most companies as it becomes an
opportunity to wholly and directly engage
stakeholders.
• The future of CSR in the Philippines is promising
and continually evolving.
• Volunteerism and activism will be one of the key
drivers in furthering the progress of CSR.

23. SLIDESMANIA.
SLIDESMANIA.
Mini Case Study
"Starting right...where and how do I give back to society?"

24. SLIDESMANIA.
SLIDESMANIA.
Mrs. Caroline Caballes-
Suntay, CEO of Storage
Solutions Philippines,
started her business a
decade ago. She
entered into this
business after gaining
valuable experience
from her professional
retail work here and
abroad. Her business
steadily grew and one
day she came to the
realization: What is
next? She spoke to her
former
superior/mentor and
asked how she can give
back to society.
She thought of:
1. improving further the live of her employees with
emphasis on empowering women
2. providing more support and commitment to local
manufacturers that she uses in producing her
merchandise: and
3. contributing to the care of the environment given
the nature of her business (storage items, such as
travel kits, wallets, organizers, and the like, made of
plastic, fabric, leatherette and other natural and
synthetic materials).
She is aware of the concept of CSR, and has a general
idea of how it works but needs guidance on how to
start on her CSR journey in a meaningful and
sustainable manner. Mrs. Suntay also specifically wants
to strategically approach her engagement as she
wants her company to continue to grow and help in
national economic development.

25. SLIDESMANIA.
SLIDESMANIA.
What is the
problem
of this case?
What is the
solution
of this case?

26. SLIDESMANIA.
SLIDESMANIA.
Questions for discussion:
1. What do you think were the reasons Mrs. Suntay is
interested in participating in CSR? Relate Carroll's
framework and/or leadership in your response.
2. Where should the CEO focus her CSR efforts? How should
she prioritize her desired engagements?
3. Does the TBL concept apply in the case of Storage
Solutions? Why or why not?

27. SLIDESMANIA.
SLIDESMANIA.
God Bless!