INTRODUCTION

With the continuous changes that are happening in the business world, we

cannot ignore the fact that every corporation has a different style and approach on how

to safeguard their business in an industry full of competition and competitors. Are there

different tools and models that help the business with their everyday operation? How do

these tools and models affect the business?

Friedman Model

What is social responsibility? According to Friedman, a corporate’s responsibility

is to make as much profit for the stockholders as much as possible (Coleman, 2013).

Milton Friedman argued that there is one and only social responsibility of business and

that is to use its resources and engage in different activities that will increase its profits

while conforming to the rules of the society, both in law and in ethical customs

(Friedman, 1962; Zimmerli, 2007).

Ackerman Model

More than a model, Ackerman’s model was a strategy that guided the

implementation of CSR activities, but not their formulation (Kanji & Agrawal, 2016). It

was laid down in three phases. The first phase was about top managers recognizing the

most common problem (Kanji & Agrawal, 2016). The second was an intensive study of

the problem by hiring and getting their suggestions (Ramaswaamy, 2013). And the last

phase was the implementation of the proposed solutions (Kanji & Agrawal, 2016).

Elkington’s Triple Bottom Line Model

 Businesses should make a difference to the world in which we live (Fisk, 2010).

The “triple bottom line” term was first coined by John Elkington in 1994 and eventually

take off in mid 1990s (Elkington, 1997). It has become modus operandi for businesses

whether large or small that want to do more than just making profits (Cote, 2016). Triple

bottom line is an accounting framework with three dimensions of performance namely

social, environmental and financial (Slaper & Hall, 2011).

Carroll Model

According to Carroll (1991), social responsibility can only become reality if more

managers become moral instead of amoral or immoral. And for this, Carroll organized

different corporate social responsibilities as a four-layered pyramid model which is

known as the pyramid of responsibilities (Guliyev, 2014). Economic responsibilities

pertain to the maximization of the stakeholders’ wealth and/or value (Carroll, 2012).

Legal responsibilities mean abiding by all laws or government regulations (Carroll,

2012). Ethical responsibilities, on the other hand, mean following the standards of

acceptable behavior as judged by stakeholders (Carroll, 2012). And lastly, Philanthropic

responsibilities pertain to giving back to the society (Carroll, 2012).

Environment, Integrity and Community Model

Environment, integrity and community health model was developed by Redman

(Ramaswaamy, 2013). This model was adopted by different corporations in the United

States (Ramaswaamy, 2013). This model argues that corporate contribution towards

environmental integrity will create greater expansion opportunities for the firm

(Ramaswaamy, 2013).
Corporate Citizenship Model

Corporate citizenship means the social role of the business (Matten & Crane,

2003). Mirvis and Googins have identified five stages of corporate citizenship namely

elementary, engaged, innovative, integrated and transforming which represents distinct

patterns of activity at different points of development (Basu, 2017).

Stockholders and Stakeholders Model

Stockholders theory was originally proposed by Milton Freidman and it states that

the sole responsibility of business is to increase profits (Friedman, 1962). Meanwhile,

stakeholders model states that a company owes a responsibility to a wider group of

stakeholders, other than stockholders (Admin, 2013).

New Models of CSR and Company Models

With the continuous growth of CSR nowadays, there are also lots of people who

research about new models of CSR for the improvement of the company. One example

is the Catch-22 described by Morsing, Schultz and Nielsen in 2008 in which they

describe the expert and endorsed communication processes of CSR (Spoeltra, 2015).

CONCLUSION

To cope up with the ever changing business world, businesses have been relying

on different tools and models to safeguard their position in the industry. These tools and

models act as guidelines to help the business in achieving its objectives, goals, mission

and vision. And due to the fact that change is a constant thing, a lot of groups are still

devising new models that will aid to the betterment of the business.
 References

Books

Carroll, A. (2012). Corporate Social Responsibility: The American Experience.

Cambridge: Cambridge University Press.

Elkington, J. (1997). Cannibals with forks – The triple bottom line of 21st century
business. Oxford: Capstone Publishing Ltd.

Fisk, P. (2010). People Planet Profit: How to Embrace Sustainability for Innovation and
Business Growth. London: Kogan Page.

Friedman, M. (1962). Capitalism and Freedom. Chicago: The University of Chicago

Press.

Zimmerli, W. (2007). Corporate Ethics and Corporate Governance. Berlin: Springer

Science+Business Media.

Journals

Carroll, A. (1991). The Pyramid of Corporate Social Responsibility: Toward the Moral
Management of Organizational Stakeholders. Business Horizons, 39-41.

Kanji, R. & Agrawal, R. (2016). Models of Corporate Social Responsibility: Comparison,

Evolution and Convergence. Indian Institute of Management Kozhikode, 143.

Matten, D. & Crane, A. (2003). Corporate Citizenship: Towards an extended theoretical

conceptualization. Nottingham University Business School, 1.

Online

Admin, C. (2013). Shareholder & Stakeholder Theories of Corporate Governance.

Retrieved on May 12, 2018. Retrieved from http://www.corplaw.ie.

Basu, C. (2017). Stages of Corporate Citizenship. Retrieved on May 12, 2018.

Retrieved from https://bizfluent.com.

Coleman, T. (2013). Corporate Social Responsibility: Friedman’s View. Retrieved on

May 12, 2018. Retrieved from https://bfi.uchicago.edu.

Cote, J. (2016). People, Planet, Profit: Satisfying the Triple Bottom Line. Retrieved on
May 12, 2018. Retrieved from https://www.snhu.edu.

Guliyev, S. (2014). Carroll’s Pyramid of Corporate Social Responsibility. Retrieved on

May 12, 2018. Retrieved from https://www.linkedin.com.
Ramaswaamy, M. (2013). Corporate Social Responsibility. Retrieved on May 12, 2018.
Retrieved from https://www.slideshare.net/madangkiramaswaamy/bgs-7.

Slaper, T. & Hall, T. (2011). The Triple Bottom Line: What is it and How does it work?
Retrieved on May 12, 2018. Retrieved from http://www.ibrc.indiana.edu.
A Research on Good Governance and Corporate Social Responsibility

A Written Output
Presented to the
College of Accountancy
Polytechnic University of the Philippines – Taguig
Taguig City, Metro Manila

In Partial Fulfillment
of the Requirements for the Degree of
Accountancy

AQUINO, MAE ANGELINE E.

May 2018