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Rogelio G.

Julian
MAS073 (MM-EM)

June 30, 2016


Prof. Lorenzo D. Isla

CORPORATE SOCIAL RESPONSIBILITY & GOOD GOVERNANCE


1st Trimester 2016 2017

MIDTERM EXAM:
Three Approaches of CSR:
1. CSR Approach - is a specific theory of business ethics, a package of four obligations the
corporation holds as an independent ethical actor in society; the responsibilities are:
a. The economic responsibility to make
money. Required by simple economics,
this obligation is the business version of
the human survival instinct. Companies
that dont make profits arein a modern
market economydoomed to perish.
b. The legal responsibility to adhere to rules
and regulations. Like the previous, this
responsibility is not controversial. What
proponents of CSR argue, however, is
that this obligation must be understood
as a proactive duty.
c. The ethical responsibility to do whats right even when not required by the letter or
spirit of the law. This is the theorys keystone obligation, and it depends on a coherent
corporate culture that views the business itself as a citizen in society, with the kind of
obligations that citizenship normally entails.
d. The philanthropic responsibility to contribute to societys projects even when theyre
independent of the particular business. A lawyer driving home from work may spot the
local children gathered around a makeshift lemonade stand and sense an obligation to
buy a drink to contribute to the neighborhood project.
2. Triple Bottom Line is a form of corporate social responsibility dictating that corporate leaders
tabulate bottom-line results not only in economic terms (costs versus revenue) but also in terms
of company effects in the social realm, and with respect to the environment. There are two keys
to this idea. First, the three columns of reponsibility must be kept separate, with results reported
independently for each. Second, in all three of these areas, the company should obtain
sustainable results.
a. Economic sustainability values long-term financial solidity over more volatile, short-term
profits, no matter how high. According to the triple-bottom-line model, large
corporations have a responsibility to create business plans allowing stable and prolonged
action.

b. Social sustainability values balance in peoples


lives and the way we live. A world in which a
few Fortune 500 executives are hauling down
millions a year, while millions of people
elsewhere in the world are living on pennies a
day cant go on forever.
c. Environmental sustainability begins from the
affirmation that natural resourcesespecially
the oil fueling our engines, the clean air we
breathe, and the water we drinkare limited.
If those things deteriorate significantly, our
children wont be able to enjoy the same
quality of life most of us experience.
3. Stakeholder Theory described by Edward Freeman and others, is the mirror image of corporate
social responsibility. Instead of starting with a business and looking out into the world to see what
ethical obligations are there, stakeholder theory starts in the world. Who are the stakeholders
surrounding companies? The answer depends on the particular business but the list can be quite
extensive but he five cardinal stakeholders may be listed as follows:
a. Company owners, whether a private
individual or shareholders
b. Company workers
c. Customers and potential customers
of the company
d. Suppliers and potential suppliers to
the company
e. Everyone living in the town who
may be affected by contamination
from workplace operations

CASE STUDY: CSR at Amkor Technology Philippines, Inc.

1. Background
Amkor is one of the worlds largest providers of contract semiconductor assembly and test
services. Founded in 1968, Amkor pioneered the outsourcing of IC assembly and test and is now a strategic
manufacturing partner for more than 300 of the worlds leading semiconductor companies and electronics
OEMs. Amkors Philippines factories contain over 1.3 million square feet of manufacturing space and
provide a full range of assembly and test services. In addition, Amkor Philippines manufacturing location
in Cupang, Muntinlupa and Technopark, Binan, Laguna are certified to TS-16949, ISO-9001, ISO-9002,
OHSAS-18001, ISO-14001, SONY Green Partner and DSCC / QML certified.

2. CSR Programs
Amkor has a highly engaged and multi-awarded CSR program that plan and implement multiple
regular and special case programs. Primary drivers of the companys CSR programs are the Human
Resources Department and the Environmental Safety and Health. Following are the companys
Community Engagement (CE) vision and mission:
Vision A cooperative effort between Amkor Technology Philippines and its stakeholders in the
development of the community, affirming the values embraced by the Founder Practice, Tenacity,
Reliability, Perseverance and Harmony.
Mission Amkor Technology Philippines promotes community relations and development that
enable partnership with its stakeholders in addressing relevant community concerns and issues.
Although most of Amkors CE projects are funded by the company, there are instances where the
donations are pooled from the employees as in the case of their Christmas gift giving program Paskong
Paslit. Quarterly blood donation are scheduled. These are activities that focuses on the encouragement
of the employees volunteerism and participation. Further scrutiny of Amkors organization and activities
would reveal that CSR programs covers more than just community engagement. Being a former Amkor
employee, I have had the first-hand experience of receiving Amkors employee benefits program, which
goes beyond standard compensation and statutory requirements of the law. From meal subsidies, health
insurance to performance bonuses, etc. Technical trainings are mandatory and peer mentoring programs
are available for those who choose to enhance their professional skillset. This shows that due
consideration is being given to the internal stakeholders as well as the external ones.
3. Conclusion
Amkors HRD-CE Manager pointed out that the company does not in a strict sense exclusively
adhere to any of the three CSR approaches, but rather use a combination of the three approaches. In
reality, most of the activities being undertaken by Amkor can be fitted to any of the three approaches due
to the overlap in most of the primary elements of the approaches.
Despite the commonalities, it can still be argued that the Stakeholder Theory is a better fit for the
CSR programs being implemented at Amkor.

Sources:
Brusseau, J. (2011). Business Ethics v.1.0 , Flat World Knowledge. Retreived from:
http://2012books.lardbucket.org/pdfs/business-ethics.pdf
Unknown Author (). Image retrieved from:
http://www.24point0.com/ppt-shop/corporate-social-responsibility-editable-template
http://newleaf-llc.com/2013/07/defining-sustainability-triple-bottom-line/
https://en.wikipedia.org/wiki/Stakeholder_theory#/media/File:Stakeholder_(en).svg