Good Governance and Social Responsibility

• Presentation explores good governance and social responsibility concepts, theories, frameworks and applications.
• It delves into the ethical, philosophical, and economic aspects.
• It highlights impacts on organizations and society.
• By: Dr. Mars Rivera

Objectives

• Students will learn the theories of good governance and social responsibility.
• Students will learn about methods used in good governance and social responsibility.
• Students will learn ethical responsibilities and philosophical approaches.
• Students will learn about Environmental, Social, and Governance (ESG) Frameworks.
• Students will learn how to integrate good governance and social responsibility.

Theories of Good Governance

• Agency Theory focuses on the relationship between stakeholders (principals) and decision-makers (agents).
• Institutional Theory explains how governance structures are shaped by social norms, laws, and cultural influences.
• Stakeholder Theory emphasizes that organizations should consider the interests of all stakeholders, not just shareholders.
• Democratic Governance Theory emphasizes participation, rule of law, accountability, and transparency in governance.
• Public Value Theory says that governments and public institutions should create value for society.

Methods of Good Governance

• Transparency involves ensuring access to information and openness in decision-making.
• Rule of Law means enforcing laws fairly and consistently.
• Ethical Leadership involves leaders setting an example of integrity, honesty, and fairness.
• Accountability involves holding leaders and institutions responsible for their actions.
• Participation and Inclusiveness involves encouraging citizen and stakeholder engagement in decision-making.
• Effectiveness and Efficiency means ensuring resources are used optimally to achieve policy and development goals.

Corporate Social Responsibility (CSR)

• CSR is the ethical duty of individuals, businesses, and governments to contribute positively to society.
• Corporate Social Responsibility (CSR) Theory suggests businesses have a responsibility beyond profit-making.
• Shared Value Theory proposes that businesses can create economic value while also addressing social issues.
• Carroll's Pyramid of CSR identifies four levels of social responsibility: economic, legal, ethical, and philanthropic.
• The Triple Bottom Line Theory focuses on three key areas: people (social impact), planet (environmental impact), and profit (economic sustainability).

Methods of Social Responsibility

• Sustainable Practices helps to reduce environmental impact through green initiatives.
• Community Engagement helps in supporting local communities through projects and philanthropy.
• Ethical Business Practices helps maintain fair labor policies and human rights protection.
• Corporate Governance helps with strengthening board oversight and stakeholder representation.

Stakeholder Theory

• Stakeholder Theory implications involves the following entities
• Employees: Fair wages, safe working conditions, and opportunities for development.
• Customers: High-quality products and services, ethical sourcing, and customer satisfaction.
• Community: Supporting local communities, investing in infrastructure, and promoting social good.
• Investors: Transparency, financial performance, and long-term sustainability.

Shareholder Theory

• Maximizing Profit: The primary responsibility of a company is to generate profits for its shareholders.
• Social Responsibility: There is a debate if companies should prioritize profits or also address social and environmental issues.
• Long-Term Value: Arguments suggests that social responsibility can enhance long-term shareholder value by fostering trust and reputation.

ESG Frameworks

• Environmental: Climate change, resource depletion, and pollution
• Social: Labor practices, human rights, and community engagement.
• Governance: Corporate ethics, board independence, and transparency.

Resource based view

• Valuable Resources must be valuable to create value for customers.
• Rare Resources must be rare and difficult for competitors to obtain.
• Inimitable Resources must be difficult or costly for competitors to imitate.
• Non-Substitutable Resources must be difficult to substitute with other resources.

Ethical Responsibility and Philosophical Approaches

• Utilitarianism focuses on maximizing happiness and well-being for the greatest number of people.
• Deontology emphasizes moral rules and duties, regardless of consequences.
• Virtue Ethics promotes character development and ethical behavior based on virtues like honesty, integrity, and compassion.

Philanthropic Responsibility and Community

• Philanthropic responsibility helps by donating money or resources to charities and non-profit organizations.
• Volunteerism helps by encouraging employees to volunteer their time and skills to community projects.
• Community Partnerships helps by partnering with local organizations to address community needs.

Integrating Good Governance and Social Responsibility

• Organizations can build a sustainable future by embracing good governance and social responsibility.
• Integrating these principles into every aspect of business operations creates a positive impact on society and the environment.

Explore good governance and social responsibility concepts. Delve into ethical, philosophical, and economic aspects. Highlight the impacts on organizations and society, including Environmental, Social, and Governance frameworks.