GOOD GOV Notes 2
GOOD GOV Notes 2
b) Deontology 4. Metaethics
— emphasizing the importance of following moral rules and — focuses on the methods of moral argumentation and the
laws when making ethical decisions (Alexander & applicability of ethical theories
Moore, 2007 — the study of how we engage in ethics
— the metaethicist might comment on the meaning and 2. Legal responsibility
appropriateness of ethical language — furthermore, the society demands that companies do not
use illegal means in their endeavors for value creation
Metaethical positions may be divided according to how they — the business organizations, like all other members of the
respond to questions such as the following: society, are subject to the laws and official regulations
— some recent incidents (example: diesel scandal of
a) What exactly are people doing when they use moral words such Volkswagen, where the German automaker was caught
as “good” and “right”? by the US Environmental Protection Agency for
b) What precisely is a moral value in the first place, and are such manipulating the emission tests from 2009 through 2015
values similar to other familiar sorts of entities, such as objects to forge low pollution level of their diesel vehicles)
and properties? highlight the necessity for continuous monitoring by the
c) Where do moral values come from—what is their source and society
foundation?
d) Are some things morally right or wrong for all people at all times, 3. Ethical responsibility
or does morality instead vary from person to person, context to — the contribution beyond legal standards that is expected
context, or culture to culture? by the society
— a company is considered to assume its ethical
responsibility when it e.g. implements environment-
Module 6: Corporate Social Responsibility (CSR) And Ethical friendly technologies in the production process or
Management ensures decent working conditions and fair pay for
employees in foreign production sites
1. Economic responsibility
— the society demands from the companies to be
profitable over time
— only when a company is economically successful, will it
be able to offer useful products and services to the
market, to provide secure jobs and to contribute to the
society with tax payments
— economic responsibility forms the basis for corporate
social responsibility
1. Classic view Environment and Development (WCED) “Our common
— the company has a narrow understanding of social future” as a “strategy of social development that meets the
responsibility, while the costs outweigh the benefits of needs of the present without compromising the ability of
CSR activities in the strategic assessment future generations to meet their own needs” (United Nations,
— the focus is on the economic considerations 1987).
— the concept of sustainability intertwines with Corporate
2. Socio-economic view Social Responsibility (CSR)
— the company has a narrow understanding of social — the three-pillar model (triple bottom line) coined by Elkington
responsibility, while the benefits of CSR activities represents a common understanding of the sustainability
outweigh the costs in the strategic assessment concept
— economic benefits are expected from the CSR activities — it depicts the optimal sustainability approach as a healthy
balance between environmental, economic and social goals
3. Modern view — in practice, the business strategies may be classified in
— the company has a wide understanding of social seven categories based on their focus on the three
responsibility while the benefits of CSR activities constituent aspects
outweigh the costs in the strategic assessment
— the economic impact of the CSR activities on the
shareholders are taken into account when defining the
strategy
4. Philanthropical view
— the company has a wide understanding of social
responsibility, while the costs outweigh the benefits of
CSR activities in the strategic assessment
— the overall impact of the CSR activities on the
shareholders are taken into account when defining the
strategy
Political rights — the right to vote, the right to hold public office or in
general, the right to participate in the civil political process
ESG Standards
E Standard
— are addressed through legislation that aims to control
pollution – namely the Philippine Clean Air Act, 1999, and
Philippine Clean Water Act, 2004 – and promote the proper
disposal of solid waste, such as the Ecological Solid Waste
Management Act, 2000, and other toxic and hazardous
waste, in the Toxic Substances and Hazardous and Nuclear
ISO 14001:2015 Environmental management systems – Requirements with guidance Wastes Control Act, 1990
for use — in 2019, the Philippines enacted the Energy Efficiency and
Conservation Act, providing fiscal and non-fiscal incentives
ISO 50001:2018 Energy management systems – Requirements with guidance for use
to energy efficiency projects, and mandating establishments
ISO 45001:2018 Occupational health and safety management systems – to develop and design measures for energy efficiency,
Requirements with guidance for use conservation and sufficiency, including installation of
renewable energy technologies
ISO 26000:2010 Guidance on social responsibility
— to offset carbon emissions, the government encourages the
ISO 22000:2018 Food safety management systems – Requirements for any private sector to participate and invest in reforestation
organization in the food chain programmes under the National Greening Programme of the
Department of Environment and Natural Resources
ISO 37001:2016 Anti-bribery management systems – Requirements with guidance for
use — additionally, the Extended Producer Responsibility Act, 2022
requires large companies to adopt and implement policies
ISO 9001:2015 Quality management systems – Requirements for the proper management of plastic packaging waste
— the Philippines is also gradually upholding ESG criteria
ISO 19600:2014 Compliance management systems – Guidelines
through corporate reporting obligations. The SEC issued
ISO/IEC 27001:2013 Information technology – Security techniques – Information Memorandum Circulars (MCs) 19-16 and 24-19, which
security management systems – Requirements respectively created the Code of Corporate Governance for
Publicly Listed Companies and the Code of Corporate
ISO 56002:2019 Innovation management – Innovation management system –
Guidance Governance for Public Companies and Registered Issuers
— these codes require companies to disclose their ESG
ISO/TC 322 Sustainable finance performances and practices in their annual corporate
governance reports
ISO 14007:2019 Environmental management – Guidelines for determining
environmental costs and benefits
— similarly, SEC MC 04-19 provides for the Sustainability
Reporting Guidelines for Publicly-Listed Companies – a
voluntary framework for companies to report on their ESG
impacts and initiatives using internationally recognised
standards such as the Global Reporting Initiative and UN
Sustainable Development Goals
S Standard
— take the shape of labour standards, privacy and data
protection measures, as well as human rights standards
— the Expanded Anti-Trafficking in Persons Act, 2022, for
example, punishes corporations that engage in forced
labour, child abuse and involuntary servitude
G Standard
— find support in the Revised Corporation Code, which
empowers the Securities and Exchange Commission (SEC)
to promote corporate governance and dissolve or impose
sanctions on corporations that engage in graft and corrupt
practices