Good Governance and Social Responsibility: Theories and Methods PDF

Good Governance and Social Responsibility: Theories and Methods This presentation explores the key theories, frameworks, and practical applications of good governance and social responsibility. We'll delve into the ethical, philosophical, and economic aspects of these concepts and their impact on or...

Good Governance and Social Responsibility: Theories and Methods This presentation explores the key theories, frameworks, and practical applications of good governance and social responsibility. We'll delve into the ethical, philosophical, and economic aspects of these concepts and their impact on organizations and society. By: Dr. Mars Rivera Objectives At the end of the discussion students are able to: 1. Understand the different theories of good governance and social responsibility. 2. Differentiate the methods used in good governance and social responsibility. 3. Distinguish the Ethical Responsibility and Philosophical Approaches 4. Appreciate Environmental, Social, and Governance (ESG) Frameworks 5. Integrating Good Governance and Social Responsibility  Theories of Good Governance Agency Theory Stakeholder Theory ∙ Focuses on the relationship ∙ Emphasizes that organizations between stakeholders (principals) should consider the interests of all and decision-makers (agents). stakeholders, not just shareholders. Institutional Theory Democratic Governance Theory ∙ Explains how governance ∙ Emphasizes participation, rule of law, structures are shaped by social accountability, and transparency in norms, laws, and cultural governance. Public Value Theory Proposes that governments and public institutions should create value for society.  Methods of Good Governance Transparency Accountability ∙ Ensuring access to information ∙ Holding leaders and institutions and openness in decision-making responsible for their actions Rule of the Law Participation and Inclusiveness ∙ Enforcing laws fairly and Encouraging citizen and stakeholder consistently engagement in decision-making. Ethical Leadership Effectiveness and Efficiency Leaders setting an example of ∙ Ensuring that resources are used optimally integrity, honesty, and fairness. to achieve policy and development goals. Corporate Social Responsibility (CSR) Theories refers to the ethical duty of individuals, businesses, and governments to contribute positively to society Corporate Social Shared Value Theory Responsibility (CSR) Theory Suggests businesses have a responsibility beyond ∙ Proposes that businesses can create economic profit-making value while also addressing social issues Corporate Social Responsibility (CSR) Theories refers to the ethical duty of individuals, businesses, and governments to contribute positively to society Carroll’s Pyramid of CSR Triple Bottom Line Theory ∙ Identifies four levels of social responsibility: ∙ Focuses on three key areas: 1. Economic Responsibility (be profitable). 1. People (social impact). 2. Legal Responsibility (obey the law). 2. Planet (environmental impact). 3. Ethical Responsibility (do what is right). 3. Profit (economic sustainability). 4. Philanthropic Responsibility (give back to society). Methods of Social Responsibility Sustainable Community Practices Engagement Reducing environmental Supporting local communities impact through green through projects and initiatives philanthropy Ethical Business Corporate Practices Governance ∙ Fair labor policies and Strengthening board oversight Reforms human rights protection. and stakeholder representation Stakeholder Theory and its Implications Employees Customers Fair wages, safe working High-quality products and conditions, and opportunities for services, ethical sourcing, and development. customer satisfaction. Community Investors Supporting local communities, Transparency, financial investing in infrastructure, and performance, and long-term promoting social good. sustainability. Shareholder Theory and Debates 1 2 Maximizing Profit Social The primary responsibility of a company is The debate Responsibility centers on whether companies to generate profits for its shareholders. should prioritize profits or also address social and environmental issues. 3 Long-Term Value Arguments suggest that social responsibility can enhance long-term shareholder value by fostering trust and reputation. Environmental, Social, and Governance (ESG) Frameworks Environmental: Climate change, resource depletion, and 1 pollution. Social: Labor practices, human rights, and community 2 engagement. Governance: Corporate ethics, board independence, and 3 transparency. Resource-Based View and Competitive Advantage Valuable 1 Resources must be valuable to create value for customers. Rare 2 Resources must be rare and difficult for competitors to obtain. Inimitable 3 Resources must be difficult or costly for competitors to imitate. Non-Substitutable 4 Resources must be difficult to substitute with other resources. Ethical Responsibility and Philosophical Approaches Utilitarianism Deontology Virtue Ethics Focuses on maximizing Emphasizes moral rules and Promotes character development happiness and well-being for the duties, regardless of and ethical behavior based on greatest number of people. consequences. virtues like honesty, integrity, and compassion. Philanthropic Responsibility and Community Engagement Corporate Giving Donating money or resources to charities and non-profit organizations. Volunteerism Encouraging employees to volunteer their time and skills to community projects. Community Partnerships Collaborating with local organizations to address community needs. Integrating Good Governance and Social Responsibility By embracing good governance and social responsibility, organizations can build a sustainable future for themselves and their stakeholders. Integrating these principles into every aspect of business operations is crucial for creating a positive impact on society and the environment.