Responsibility

James v. Meow Media and the Role of Responsibility In James v. Meow Media Inc. , Michael Carneal, an avid video-gamer, is responsible for the murder of his high school peers. Research of Carneal’s daily habits showed that the content of his video games was a potential cause of his disastrous behavior. When dealing with a minor, factors of life while approaching the level of maturity must be taken into consideration. This case shows the ease in which fingers are pointed in efforts to protect a child in need of help. Negligence was the common theme for why the affected families felt Meow Media owed a duty of care.

In the case of a 14 year-old minor, the presence and the proactive nature of a parent is vital. Because Carneal’s parents failed to take the action needed to prevent such behavior, is it truly fair to say that the negligence falls on the company? This reaction will discuss the subjectivity of such cases in which responsibility is put into the hands of the undeserving. A certain level of responsibility is expected from parents during a child’s stage of adolescence. As a child matures, various characteristics evolve that affect his or her view on life.

These characteristics may be attributed to the child’s genetic traits, daily environment, or mental/emotional state. It is a parent’s duty to identify unstable features early on in the child’s life in order to protect others from any harm that could be caused. In this case, Carneal’s mental and emotional instability traced back to his kindergarten years. His feeling of alienation began as early as those years. As he recalls wanting to bring a gun to school for show-and-tell, Carneal stated, “Of course, I didn’t have access to a gun, so it was not realistic (“School shooter Michael,” 2010). Such depraved thoughts and hermit behavior can be detected in its premature stages and treated to minimize the risk of violence. Following the shooting, Carneal underwent a series of mental examinations. Psychiatrists and psychologists discovered that he indeed had a schizotypal personality disorder and was in a severe state of depression. Additionally, it was revealed that a history of mental illness was common on his father’s side of the family (Moore, Petrie , Braga & McLaughlin, 2003). The symptoms of Carneal’s illnesses were apparent in his daily interactions.

By being aware of familial disorders and observing his socially dysfunctional behavior, proper precautions could have been taken sooner. Parents observe the behaviors of their children each day and, therefore, owe a duty of care. Meow Media Inc. made and sold their video games with no intention of them falling into the hands of a troubled child. The likelihood of a mentally/emotionally stable individual taking action to endanger innocent lives in order to mimic a game is low. Learning and understanding right from wrong is instilled during an individual’s early youth.

Depending on varying circumstances, the environment that a child is placed in may have an adverse effect on the child’s development. Genetic defects are major circumstances that, if not handled with care and caution, could alter a child’s reaction to his or her environment. In 1978, A Dutch woman took action to stop the vicious cycle that haunted her family. Her family consisted of multiple aggressive men that carried a long history of rape dating back to 1870. When she saw that her son acquired some of these familial traits, she immediately took action (Richardson, 1993).

Geneticists ran a series of tests and found that the personality disorder that cursed these men was a serious and rare genetic debility. Dr. Han Brunner and his colleagues at the Nijmegen hospital said that “some of the men in the woman’s family suffer from a genetic defect on the X chromosome- -a defect that cripples an enzyme that may help regulate aggressive behavior (1993). ” By learning that this disease had been passed down from mother to son, the woman was able to provide her son with the proper support needed to help combat this vicious cycle.

Thousands of video games, ranging from Rated M (mature) to Rated E (everyone), can be found on display for anyone to see at local video stores. Rated M games, usually filled with violence and vulgarity, are generally advertised with guns and women wearing the bare minimum of clothing. Stores have a social responsibility in protecting young children from these games and have taken proper action. Wal-Mart has been an advocate in censoring Rated M games by placing black sleeves over these covers. “It is the responsibility of Wal-Mart to protect our children from potentially damaging content, such as the covers of some video games,” said company spokesperson (Jonathon, 2008). It is also a requirement for minors to have a 17 year-old and older I. D. or a guardian present to purchase these games. When parents purchase these video games for their underage children and fail to supervise or acknowledge behavioral and growth patterns, they increase the likelihood of future violence. This scenario parallels with that of the Bad Frog Brewery Case. In that case, Bad Frog Brewery was forced to sell their beer in restricted areas of supermarkets and bars due to their vulgar label—a label displaying a frog sticking up his middle finger.

Having these labels sold in restricted areas lowers the prospect of children being exposed. This now places the onus of responsibility on the parents. If a negligent parent decides to take a minor child near a bar, he or she runs the risk of that child seeing the beer label and mimicking the vulgar gesture. If that exposed child goes to school the next day and shows this gesture to the other students, they will be affected in some way. Families of the affected children will be infuriated when they find that another student stuck up his/her middle finger in front of their child.

Though the given situation may seem highly exaggerated, it is given to show the effects of negligent behavior. Like the parents of Carneal, this negligent parent breached a duty of care. Alternatively, the line of responsibility to protect minors from environmental influence is blurred when discussing arcade rooms. Arcades are built specifically for kids and are viewed as safe havens of innocent fun. Yet, while taking a deep look into the content of the games, it is apparent that games containing violence are amongst the most popular played in these facilities.

The games usually entail being rewarded for aiming a gun and killing as many people as possible or fighting someone until they bleed to death. There is absolutely no policing of these arcade games, which would more than likely be considered M rated material in video stores. Parents are blind-sided by the harm they are putting their minor children in. Here, it is difficult to rest the blame on the parents as an act of negligence. Every party has a degree of responsibility to consider when handling situations. Rather than placing the immediate blame on what would seem like he obvious, it is best to first analyze and discover the root cause of the issue. In the case of Michael Carneal, although it was initially presented that Meow Media was to blame for Carneal’s wrongful acts, it was later discovered that the issue stemmed much deeper than Carneal’s love for video games. In the event that proper protocol was initially taken by the responsible party, Carneal could have been given the proper treatment needed to prevent unnecessary deaths. References Jonathon. (2008, February 11). Wal-Mart covering up “M” rated games [Web log comment]. Retrieved from http://www. gamefront. om/wal-mart-covering-up-m-rated-games/ Moore, M. , Petrie , C. , Braga, A. , & McLaughlin, B. (2003). Deadly Lessons: Understanding Lethal School Violence. (p. 150). Washington, D. C. : The National Academies Press. Retrieved from http://www. nap. edu/openbook. php? record_id=10370=150 Richardson, S. (1993, October 01). A Violence in the Blood. Discover Magazine, (October 1993), Retrieved from http://discovermagazine. com/1993/oct/aviolenceinthebl293 School Shooter Michael Carneal Recalls Delusions. (2010, October 06). WDRB. Retrieved from http://www. wdrb. com/Global/story. asp? S=13279449

Milton Friedman, “The Social Responsibility of Business is to Increase Profits” In the article, “The Social Responsibility of Business Is to Increase Profits,” Friedman states that “businessmen believe that they are defending free enterprise when they proclaim that business is not concerned merely with profit but also with promoting desirable social ends. ”

This social responsibility is defined as Corporate Social Responsibility (CSR), which is the belief that “corporations owe a greater duty to their communities and stakeholders” by having a “social conscience. This, among other things, includes being environmentally responsible, contributing to non-profit organizations, and eliminating discrimination.

Friedman argues that “only people can have responsibilities” but that “businesses as a whole” cannot, as they are not persons. Since the corporate executive is an employee of the shareholders, and therefore only “responsible to his employers. ” The corporate executive has primary responsibility to his employers to conduct business as they see fit, and manage the business to create the most profit while following the “basic rules of the society”.

It is then seen that the corporate executive is acting as a “public employee,” while serving shareholders and should be directed by those shareholders how to spend their money. However, Friedman acknowledges that managers of corporations, while serving shareholders, are also people in their own right and may have their own social responsibilities that do not always follow those of the owners of the corporation.

In that case, if the manager chooses to act based on his own beliefs instead of the direction of the shareholders, he is not performing in the best interests of the shareholders and is “spending the customers’ money. This has a direct financial impact to both customer and employees. This can lead to the managers’ termination as he has not performed as directed by the shareholders by not making as much money as possible.

It is also discussed that because “society is a collection of individuals,” there are individuals that can coerce others to conform to certain social norms and while others may not agree, they can be overruled and then must conform. This then leads to a “political mechanism” which can regulate how corporations operate and dictate their “social responsibility,” which, in theory, would extend the cope of the political mechanism.

Friedman believes that a political mechanism is not necessary to achieve social responsibility because in a free society, “there is one and only one social responsibility of business—to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engage in open and free competition without deception or fraud. ” One question that can be posed from Friedman’s article is whether shareholders should prioritize the responsibilities that managers have as their agents.

While we can acknowledge that shareholders invest in a corporation to make a profit and that managers are hired to maximize those profits, it is the responsibility of the shareholders to provide guidelines to those managers and prioritize his/her responsibilities. While we can assume that the first priority of the shareholders would be to maximize profits for the corporation, subsequent priorities could fall within the guidelines of community outreach, exceeding legal obligations or being environmentally sensitive.

If we presume that corporations elect to be “socially responsible,” we should expect shareholders to provide policies and procedures to their managers. Without these, what responsibility does the manager have outside of maximizing profits? As Friedman suggests, the manager could be compelled to act on his own beliefs and moral obligations to his community, church or charitable organization. But, since these would be at his discretion, what check and balances would he have with the shareholders? Would he be using money otherwise returned back to the shareholders and supporting organizations that are opposed by the shareholders?

Because corporations are established to profit and shareholders invest money with expectations of a greater return, managers cannot be given a directive to be “socially responsible” without providing specific criteria of checks and balances to which needs to adhere. Therefore, it is imperative to the success of a corporation for managers to not act solely but rather to act within the policies of the shareholders. What Friedman implies is that shareholders should only be concerned with maximizing profits and not be obligated to be “socially responsible.

In that case, the manager would only have one priority, to maximize profits. However, what if that manager determined that social endeavors is the best option to maximize profits? This would make the corporation socially responsible while still maintaining maximum profits. The argument presented by Friedman in this case is that while the manager is performing as expected by maximizing profits, this type of “social responsibility is frequently a cloak for actions that are justified on other grounds rather than a reason for those actions.

This “cloak” refers to corporations acting socially responsible but for the sole purpose of making profits rather than performing such endeavors for the sole purpose of benefiting society. An example would be a solar company providing “free” electricity to a campus in exchange for use land to promote their environmentally aware product. However, what they don’t tell you is that the electricity is being sold back to the power company for a profit. The perception is that the company has a social conscience when in reality it is being done for profits.

While I agree with Friedman’s assessment that managers, as employees of shareholders, are responsible for maximizing profits, I disagree that corporations should only comply with governmental policies and should not adopt policies to be socially responsible. At the time Friedman wrote this article, western democracies and communist countries of Europe were in the middle of the Cold War and the idea of a global economy was not as prevalent in society as it is today.

Consumers in those countries leaned towards buying locally over buying foreign products. Since the end of the Cold War, consumers have changed purchasing habits to buy products from companies, regardless of their country of origin if it were the best product. However, this led to the matter of public opinion towards corporations playing a larger role in how well they integrate themselves into a community or help preserve the environment is a factor in how consumers choose to purchase products.

For instance, if a company is considered “green,” it is determined to the environmentally friendly. This would lead consumers who support environmental protection to lead towards purchasing products from that company. Therefore, I believe that corporations take into account public opinion when deciding on whether to enact “social responsible” measures and that these measures are above and beyond the minimum requirements established by governing agencies.

I am also convinced that shareholders, more today than ever, budget funds to contribute to socially acceptable contributions and directing managers how to spend these. It is my opinion that due to public opinion and global influence on corporations, that a successful free market cannot be judged solely by the financial gain of a corporation, but in conjunction with how these corporations influence positive changes in society.

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The tobacco industry has come under scrutiny regarding their use of corporate responsibility to change an unethical image that has plagued them since the latter half of the 20th century. The purpose of this essay is to evaluate the use of corporate social responsibility using three ethical principles of the global business standards codex and studies reviewing the tobacco industry’s use of corporate social responsibility in relation to the health issues, environmental issues and the social issues concerning the tobacco companies. The tobacco industry’s use of corporate responsibility to change their unethical public image is ineffective and disingenuous, as they are simply using this strategy as a defence against public disparagement.

The farming and production of tobacco carries widespread environmental impacts which are damaging to the surrounding ecosystems and natural processes. British American Tobacco and Phillip Morris had established supply chains in the 1990s as a means of farming tobacco more efficiently aiming to maximise profits (Otanez & Glantz 2010). However these supply chains were damaging to the environment as well as local communities of developing countries as deforestation and the use of child labour on tobacco plantations became widespread throughout these supply chains. In the 2000s these companies addressed the environmental and labour concerns by redefining their tobacco farming procedures and implementing environmentally sustainable practices.

Although it was revealed through the studies undertaken by Otanez & Glantz (2010) that the tobacco farming practices remained the same and this attempt to deceive the public was revealed to be a CSR exploit. The use of corporate social responsibility seeks to minimise risks and adverse effects maximising economic and social benefits establishing relationships based on trust to promote progress in accordance with ethical principles and moral values (Crisan, CM & Borza 2012). In terms of the Business Standards Codex, the tobacco industry violates the citizenship principle which states that “Every employee should act as a responsible citizen in the community. ” (Stanwick & Stanwick 2009).

The principle states that employees must protect and preserve public goods or common grounds including sustainability and other environmental issues in order to conduct business in an ethical manner. The tobacco industry’s attempt to appear ethical was transparent as their business practices remained unchanged despite the illusion of addressing the issues. Furthermore the tobacco industry uses CSR to uphold the wellbeing of society despite continuing to produce lethal products. The health effects which occur as a result of using products manufactured by tobacco companies are widespread and in most cases deadly. The tobacco companies are well aware of their products deadly nature however they continue to manufacture and distribute these products.

In an effort to repair their image, the tobacco companies used public relations exploits and funding youth anti-smoking campaigns which have been proven to be ineffective and in fact a heinous marketing tool directed at underage smokers. (Friedman 2009) Tobacco companies have even gone as far to focus their corporate social responsibility tactics at the education sector in the form of scholarships, grants, professorships and even the creation of an entire school (World Health Organisation 2003). This use of corporate social responsibility however was used as more of a defence against public condemnation due to the unchanged nature of their selling practices.

On August 17, 2006 the United States District Court found the tobacco industry guilty of a number of allegations of fraud and conspiracy (Friedman 2009). The conduct of the tobacco companies in light of this case was highly unethical in terms of the global business standards codex in particular the dignity principle which states “Protecting the dignity of people in society includes ensuring the human rights of health, safety and privacy” (Stanwick & Stanwick 2009). Tobacco companies continue to manufacture and distribute products with full knowledge of the products lethal nature when used as directed, using CSR only as a defence against public scrutiny.

Clement-Jones (2004) states that no company producing weapons or growing tobacco can ever be truly socially responsible due to the harmful effects of their products indicating that corporate social responsibility can merely be used as a tool of deception and hypocrisy. The tobacco industry’s use of CSR is not only a publicity exploit but a means of self regulation to avoid further government legislation on business and manufacturing practices. By implementing CSR practices into the business conduct of tobacco industry, the companies create a false representation of responsibility for their actions. This however has come under scrutiny from NGO’s as calls for “international regulation backed up by national legislation to ensure the enforcement of real social responsibility on the corporate world” (Hirschhorn 2003).

Tobacco companies have been some of the first organisations in the early years of the 1900s to realise the value of public relations and gaining support for their industry (Thomson 1998). The tobacco industry’s use of CSR is nothing more than companies protecting their profits and satisfying their shareholders. Hastings & Liberman (2009) state that CSR is another means of promotion and sponsorship for the tobacco companies, by conducting “socially responsible causes” tobacco companies are able to inadvertently sponsor these causes and promote their products giving further evidence that the tobacco companies have ulterior motives to their use of CSR.

The transparency principle of the global business standards codex states that employees are not to operate in a deceptive manner and that business should be conducted openly and honestly (Stanwick & Stanwick 2009). The tobacco industry fails to follow this principle through their use of CSR as they operate in a deceptive manner. CSR can however be an effective tool for improving an organisations reputation and ethical image such is the case of Alcoa, an Australian based aluminium manufacturing company which improved its standing in the community with effective CSR practices (Black, Sydney-Smith & Zhao 2009). The use of CSR by organisations such as tobacco companies can never truly be an effective strategy as long as the manufacture of harmful products continues under these organisations.

Using three principles of the business standards codex as well as the use of CSR by the tobacco industry to secure public support, it has been shown that these strategies have ulterior motives and are purely marketing tools used by these companies to conceal the promotion of their products which is banned by legislation. CSR however can remain a highly effective tool for public relations as long as the intentions of those organisations are beneficial to society.

References

1. Black, LD, Sydney-Smith, K & Zhao, Y 2009, How Business Behaviour Contributes to Reputation and Perceptions of Performance: A Case Study of Alcoa of Australia, viewed April 2012 .
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3. Crisan, CM & Borza, A 2012, ‘Social Entrepreneurship and Corporate Social Responsibilities’ International Business Research, 2 February, viewed 4 April 2012, http://search. proquest. com. ezproxy. uws. edu. au/docview/963357717/fulltextPDF? accountid=36155;.
4. Friedman, L 2009, ‘Tobacco industry use of corporate social responsibility tactics as a sword and shield on second hand smoke issues’, Journal of Law, Medicine and Ethics, vol. 37, no. 4, pp. 19-827 viewed 11 April 2012, University of Western Sydney Database, DOI: 10. 1111/j. 1748-720X. 2009. 00453. x
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6. Hastings, G, Liberman, J 2009 ‘Tobacco corporate social responsibility and fairy godmothers: the Framework Convention on Tobacco Control slays a modern myth’, Tobacco Control, vol 18 no. 2 pp 73-74, viewed 9 May 2012, University of Western Sydney Library database, DOI 10. 1136/tc. 2008. 029264
7. Otanez, M, Glantz, G 2011 ‘Social responsibility in tobacco production? Tobacco companies’ use of green supply chains to obscure the real costs of tobacco farming’, Tobacco Control, vol 20 no. 6, pp403-411, viewed 5 May 2012, University of Western Sydney Library database, DOI 10. 1136/tc. 2010. 039537
8. Stanwick, P & Stanwick S 2009, ‘The foundation of ethical thought’ , in Campbell, N (ed. ) , Business academic skills, 4th edn, Pearson Australia, Frenchs Forest, NSW
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10. World Health Organiation 2003, Tobacco industry and corporate responsibility… an inherent contradiction view 3 April 2012, .

AN ANALYSIS OF CORPORATE SOCIAL RESPONSIBILITY (CSR) VIEWS FROM MALAYSIAN COMPANIES ABSTRACTS Purpose – The aim of this paper is to explore the views of managers among Malaysian companies towards corporate social responsibility and how it influences business ethics. Design/methodology/approach – This paper analyses the views of Malaysian managers regarding corporate social responsibility. Interviews were conducted to 12 organizations in Malaysia comprising of major corporations as well as Small Medium Enterprises (SMEs).

Findings – The findings reveal that out of 12 companies selected across the Klang Valley, Malaysia, seven companies execute corporate social responsibility for the sake of its brand image and good reputation. Majority of the managers interviewed agreed that corporate social responsibility should be implemented in order to contribute to the society. Originality – The literature review is expected to provide the link between conventional CSR concept with Islamic values and principles.

This paper recommends companies especially in Malaysia to adopt corporate social responsibility as an ethical motivation rather than instrumental means. Keywords – Business, Ethics, Corporate Social Responsibility, Organization, Malaysia INTRODUCTION Over the last recent years, Corporate Social Responsibility (CSR) has been termed to be a significant issue within global business organisations. The core purpose of CSR is to fulfil a company’s responsibility towards its stakeholders in terms of economic, social and environment (Siwar & Md Tareq, 2009).

However, the fundamental basis act of selfless contribution for the public has been tarnished and downgraded by huge corporate businesses when CSR began to be treated as a means to gain profit maximization which is driven by self-interest by enlarge. There are several meanings to define the concept of corporate social responsibility. First, CSR are the obligations entrusted upon business organisations to utilise its resources efficiently in order to bring benefits to the stakeholders by fulfilling its duties as a member of the society itself (Kok et al, 2001; Adam & Zutshi, 2004).

The conventional definition of CSR is derived from the concept of vicegerency in Islam according to Surah Al-Baqarah, verse 31. Albeit the concept of CSR is defined in positive aspects, it does not disregard the possibility of being carried out and practiced in an unethical paradoxical manner. Business ethics is understood to be what is acceptable and not acceptable that can be conducted in the business based on stakeholders. The main objective of this article is to focus on the perspective of Malaysian managers towards the and how it is implemented in the organization.

LITERATURE REVIEW Based on the study of our articles, CSR manifests several business benefits, namely, good image and reputation, building a positive relationship with the customers, a better recruitment and retention of talented employees, positive motivation in better working environment, improving financial returns and reducing CSR related risks. These benefits are measured based on the preference of (a) consumers, (b) employees, and (c) upholding the organization’s reputable name. Firstly, consumers are one of the most important stakeholders of an organization.

Firms, which are socially responsible, transparent, and trustworthy, are at a better position of gaining consumer preferences (Willmott, 2001 & Mitchell, 2001; Knox & Maklan, 2004). The higher the awareness of social contribution, the more enhanced positive effects are on consumer purchase intention (Lee & Shin, 2009). The organization can also improve their consumption experience with customers by conducting CSR activities. Customers are commonly in favour to buy products from well-established companies that practice CSR activities, giving these organizations a good marketing strategy by word-of-mouth (Knox & Maklan, 2004).

They believe that the company will be ethically responsible to the product and services that they produce. Thus, this increases brand loyalty from the customers. Secondly, stakeholders of an organization also consist of its employees. When a company is known for its responsible background, people will be more attracted to be given a position in that particular organization. The ethically defined practice assists the organization in attracting and retaining talented employees in order to improve organization performance Adams & Zutshi, 2004; Knox & Maklan, 2004). Besides that, Weber, (2008) agreed that CSR can also directly motivate its employees. This shows that the practise of CSR by the company enhances an ethical working environment, which will influences the motivation level of the companies employees. Moreover, CSR will diminish employee turnover. In exploring the relationship between CSR and employee turnover, Galbreath, (2010) relies on the employee justice perceptions theory. The key mechanism for this theory measures an organization’s level of fairness.

The firms exhibit fairness in their actions, if the firms show concern for both internal and external stakeholders through social contribution. Thus, the employees evaluate the firm as one that is just and fair. Both directly and indirectly, employees are influenced to stay and continue to contribute to the company in reaching its main goal. Following (Reich, 2007; Devinney, 2009), an organization that practices CSR would have more satisfied customers, employees, and owners, which would contribute to long-term sustainable development.

Lastly, maintaining an organization’s respectable name is just as important as preserving the welfare of its stakeholders. Performing CSR in an organization helps in building a positive image and reputation (Weber, 2008; Galbreath, 2010). A good image and reputation will help the organization to gain and retain customers easily. Furthermore, CSR can also be treated as a means to manage and minimize CSR risks of powerful consumer boycott by external parties (Weber, 2008) as well as loss of corporate reputation (Knox & Maklan, 2004).

CSR can also increase corporate revenue through higher sales and market shares (Weber, 2008). These financial returns can be achieved directly by CSR-driven products or market development or even indirectly through an improved brand image and reputation. This is however, seen from a different point of view by Friedman, (1970). He argues that CSR should not be a part of an organization’s social responsibility. This was preceded by an elaboration of focusing on profit maximization as the only importance of an organization. It is rational to oppose this theory as businesses should not lace profit maximization as its only main goal, but instead take time to satisfy the stakeholders and be socially responsible (Samy, Odemilin & Bampton, 2010). From a strategic point of view, the fact that CSR benefits the firm and stakeholders will only be true if the firms conduct it efficiently. There is a difference between doing the right thing and doing things right. Conducting CSR is doing the right thing and to conduct it efficiently means doing it right. Thus, firms must ensure that they conduct strategic CSR as it brings significant business related benefits to the firm.

It supports core business activities, which contributes to the firm’s effectiveness towards achieving its mission (Burke & Logsdon, 1996). The obligations of organizations regarding the practice of CSR are not extended beyond their most valuable stakeholders. Organizations are less able to set priorities among the rest, as there is no constant approach to placing importance on their secondary stakeholders (Knox and Maklan, 2004). The downside of most organizations is that they will only take notice of current social situations when there is a possibility of gaining economic returns.

Devinney (2009) has discovered five points of natural vices, which draw attention to the major philosophical problems with CSR. Firstly, the role of corporation is only for generating profit not to solve the problems of society. This is in line with Friedman (1970), which claimed that the only responsibility of a corporation is to maximize economic returns. Next, corporation alter the societal standards based on their own demands. Although corporations have a much better understanding of the benefits and cost of practising CSR, this gives them the advantage to make sure that the most valuable constituencies are in their favour.

Besides, corporations are not representing the society as a whole. Major corporations are considered to be among the urban upper middle class, which inevitably does not cater for the poor and less fortunate ones of the society. Above and beyond of that, most of corporations are socially conservative as they resist making changes towards their organization practices unless the changes will produce profit to them. Lastly, CSR allows government to forgo some of their responsibilities, thus making social services provided by private companies more distinct in the eyes of the society.

CSR does not ensure the ethical behavior of the company (Mostovicz, Kakabadse & Kakabadse, 2009). Instead, the common major benefits recognized by corporate management are what distinguish between an ethical or non-ethical company as organizations are forced to be at a decision point of balancing the incurring costs of CSR activities and the impact of their ethical operations for the society. From the statement underlined, we have focused our findings on the purpose of these organizations conducting CSR and their opinions on the basis of CSR being implanted in all organizations nationwide.

METHODOLOGY We chose to conduct an interview in order to collect data for our study. We posed three open ended questions with 12 companies around Kuala Lumpur and the Klang Valley area because our study is to explore the view of Malaysian managers towards corporate social responsibility and the influence of business ethics. We designed our interview questions based on the literature review in order to suit the Malaysian context. The questions we used for our personal interviews were; Question 1: Does your organization practice corporate social responsibility? Question 2:

What motivates your organization to execute corporate social responsibility? Question 3: Do you agree that Corporate Social Responsibility should be implemented in all organizations in the country? State your reasons why? According to the 15 articles we used, we identified that the previous studies used various methods in examining significant issues on CSR. Majority of the previous studies adopted surveying method and used literature in conducting their studies. Above and beyond, there are a few authors used other distinguished methods. First of all four authors used survey as their method of studies.

Galbreath (2009) examined three potential benefits of demonstrating CSR; reduced employee turnover, increased customer satisfaction, and improved reputation through a survey of chief executive officers in Australia. Likewise, Lee & Shin (2009) used questionnaire survey involving Korean customers to examine the positive of CSR on customer behaviour. Further, Ditlev-Simonsen & Midttun (2010) conducted a survey with three panels: a corporate leaders’ panel, a business students’ panel and an NGO panel to clarify and compare what motivates managers to pursue corporate responsibility from positive and normative perspectives.

Lastly, Siwar & Md Tareq (2009) conducted a study on relationship between concepts of Islam with the Malaysian managers’ opinion regarding CSR. They used open and close-ended questionnaire to 50 listed organizations in Malaysia including multinational, government, and nongovernment and SME companies. Secondly, using literature is one of the methods that have been used by in following studies. Abul & Hjh Salma (2009) conducted a study on the current practices of CSR of the business organization as well as Islamic Financial Institutions (IFIs).

Next, Mostovicz, Kakabadse & Kakabadse (2009) explained the reason why CSR policy has failed to render organization more ethical and to purpose the concept of using CSR for improving the ethics of organization. Besides that, Devinney (2009) argued that the notion of socially responsible corporation is potentially an oxymoron because of the naturally conflicted nature of the corporation. Further, Burke & Logsdon (1996) examined social responsibility programs which create strategic benefits for firms. Lastly, Adam & Zutshi (2004) identified drivers which are forcing organization to adopt CSR and produces corporate social reports.

Finally, the other remaining authors exercised distinguished methods between each other. Drews (2010) used two step approaches to measure and evaluate the benefits of CSR. First, a measurement model is developed based on theoretical analysis. It is then applied in an in-depth case study. Next, Samy, Odemilin & Bampton (2010) adopted a quantitative analysis and exploratory approach to prove that CSR will maximize profit while satisfying the demand from multiple stakeholders. They study on CSR practices of 20 selected United Kingdom’s companies.

Besides, Knox & Maklan (2004) used empirical study of CSR policy and practices across a number of multinational companies to examine the reasons why CSR reporting has a low impact on business decision making. Moreover, Holme (2010) used a representative selection of recently published articles to study deeply on practitioner review on the concept of CSR. In addition, Weber (2008) adopted a study which focuses on the question on how to measure the business impact of CSR activities from company perspectives using theoretical approach and literature as references.

Friedman (1970) argued on the only social responsibility of business is to increase its profits using his own views or reasoning. FINDINGS We have successfully conducted the interviews through three medium of communications; Personal interview, telephone call and email. This interview was conducted in the period between 3rd June 2011 and 10th June 2011. We have interviewed 12 managers around Kuala Lumpur and Klang Valley. Based on the questions posed, we succeeded in 5 companies providing substantial answers personally, 3 companies responded based on phone calls, and 4 companies offered feedback through email.

The table below provides the profiles of the 12 managers that we have interviewed that comprises of major corporations and SMEs. Table 1: Summary of the profiles of the 12 managers interviewed. Manager 1 (M. 1)| MPH Bookstore| Manager 2 (M. 2)| Signature Kitchen| Manager 3 (M. 3)| Toy R Us| Manager 4 (M. 4)| Kimberly-Clark Malaysia (Kotex)| Manager 5 (M. 5)| MediBiz| Manager 6 (M. 6)| Petronas Gas Berhad| Manager 7 (M. 7)| Skrine| Manager 8 (M. 8)| SME Bank| Manager 9 (M. 9)| Bank Islam Malaysia Berhad| Manager 10 (M. 0)| Petronas Gas Berhad (KLCC)| Manager 11 (M. 11)| TM Berhad| Manager 12 (M. 12)| Rush Hati SdnBhd| For the first part of the interview, we examined which of the following managers practiced CSR in their respectable organizations. Based on their response, M. 1, M. 4, M. 6, M. 7, M. 8, M. 9, M10, and M. 11 proceeded with a positive feedback while M. 2, M. 3, M. 5, and M. 12 answered otherwise. Question 1: Does your organization practice corporate social responsibility? Table 2: The summary the respective answers from the 12 managers on question 1.

Manager 1| Yes| Manager 7| Yes| Manager 2| No| Manager 8| Yes| Manager 3| No| Manager 9| Yes| Manager 4| Yes| Manager 10| Yes| Manager 5| No| Manager 11| Yes| Manager 6| Yes| Manager 12| No| The pattern of this question is that most of the Malaysian companies practice CSR in their organizations. The second question was posed for among the 12 managers who performed CSR in their organizations. The question asked was to investigate the motive of their companies in executing CSR, providing with them several choices of answers for this question.

M. 1 claimed that the motive of his/her company conducting CSR is solely for the benefit of the society while M. 4 stated a different answer in which the company adopts CSR in order to create a long term value for stakeholders and to build a positive reputation and brand image. M. 5 also gave the same answer on building a positive reputation and branding image. In addition to that, M. 5 also stated other two motives of his/her company executing CSR which is to do the right thing and to contribute to long term sustainable development. Next, M. sincerely admitted that his/her company conducts CSR solely for profit maximization. Subsequently, M. 7 said that the reason of his/her company implementing CSR is to build a positive reputation and brand image while M. 8 claimed that his/her company’s motive is to create long term value for stakeholder. Then, M. 9 chose two answers from the choices which includes building a positive reputation and brand image and to do the right thing. Next, M. 10 claimed that his/her company has five motives in carrying out CSR which are; profit maximization, creating long term value for stakeholders, building a ositive reputation and brand image, doing the right thing, and contributing to long term sustainable development. M. 11 then chose five motives of his/her company conducting CSR which are; profit maximization, creating long term value for stakeholder, building a positive reputation and brand image, doing the right thing and contributing to long term sustainable development. Lastly, M. 12 said that all the choices given by us are relevant motives of conducting CSR. Question 2: What motivates your organization to execute corporate social responsibility?

Table 3: The summary the respective answers from the 12 managers on question 2. Manager 1| Solely for the benefit of the society| Manager 2| -| Manager 3| -| Manager 4| To create long term value for stakeholder To build positive reputation and brand image| Manager 5| To build positive reputation and brand image To do the right thingTo contribute to long term sustainable development| Manager 6| Profit maximization| Manager 7| To build positive reputation and brand image| Manager 8| To create long term value for stakeholder|

Manager 9| To build positive reputation and brand image to do the right things| Manager 10| To create long term value for stakeholderTo build positive reputation and brand imageTo do the right thingTo contribute to long term sustainable development | Manager 11| Profit maximizationto create long term value for stakeholderTo build positive reputation and brand imageTo do the right thingsTo contribute to long term sustainable development | Manager 12| All Business organizations worldwide would have their own business strategies and their strategies must not get strayed or derailed from their business principles or motives that is financial leverage or pecuniary advantage so all the facts which are given as options are significant for business strategies. |

To conclude, building a positive reputation and brand image is the main motive that motivates the companies to implement CSR while there are no companies that conducted CSR to resemble others. Our last question was to examine the managers’ personal views whether CSR should be implemented by all organizations in Malaysia and if yes, why it should be implemented. All the managers agreed that CSR should be implemented by all organizations in Malaysia. Above and beyond, some of the managers gave common views on the reason why CSR should be carried out. M. 1, M. 4, M. 5, M. 6, M. 8, and M. 10 have the same opinion that CSR should be executed for the sake of giving back to the society. Next, M. 2, M. 3, and M. 1 proposed that organizations should conduct CSR in order to gain good reputation and brand image. In addition, M. 7 suggested that CSR is a means for major corporations to work together towards a better future for society. Plus, M. 9 gave opinion that CSR should not only be practiced by the organizations that work in line with the Islamic principles but also conventional organizations. Moreover, M. 10 claimed that the concept of CSR is quite similar with the concept of zakat. Next, M. 11 also gave four other relevant reasons; to be a GLC’s CSR, to create long term value for the stakeholders, indirectly boost revenue and to be a par ahead of other corporations. Finally, M. 2 recommended that the act of CSR should be treated as a voluntary action and government plays a significant role in ensuring the prosperity of the public. Question 3: Do you agree that Corporate Social Responsibility should be implemented in all organizations in the country? State your reasons why? Table 4: The summary the respective answers from the 12 managers on question 3. Manager 1| Yes, definitely. It’s every organization’s responsibility to give back to the less fortunate. | Manager 2| Yes, for the good reputation| Manager 3| Yes, for the trust and the good reputation for the company. Customer will have the positive view towards the company. | Manager 4| Yes, because it is every organization’s duty to give back to the society.

It is much more than just taking part in a long term relationship with end users but to actually contribute back to its loyal customers. | Manager 5| Yes, because organizations should give back to the society especially for those profit making ones. It also builds a sense of belonging and responsibility towards the people and the environment where the organization is established. | Manager 6| Yes. All organizations should give back to the society especially in the area that they operate. They will then get the support and acceptance of the community around them. | Manager 7| Yes, because all major corporations must work together towards a better future for the society. | Manager 8| Yes, because it’s good to give back to the society. | Manager 9| Yes.

CSR does not only limit itself to organizations that work in line with the teachings of Islam, but to all corporations which include the conventional ones. | Manager 10| In general, yes. Where possible, organization should implement CSR. For all the positive values that it created, is it to the company, employee, and community or to the receiver. CSR is about giving back to the community and contribute to the development of others. Most of organization existences depend on the surrounding community and resources e. g. oil and gas company – base on the local resources, consumers or stakeholders. A better surroundings/resources, either physically or emotionally will contribute in strengthening ones position.

In line with the “Energy Received, Energy Return” value. Spiritually, CSR practices are quite similar to the zakat concept. The more you received, the more you should return. More profit you make, bigger CSR it should be. | Manager 11| Fully Agreed. Reasons as follow: a) To build positive reputation and brand image b) Being GLC’s CSR is part of our culture c) To create long term value for stakeholder d) Indirectly to boost revenue and gain customer support e) To be at par or ahead of other corporate entity| Manager 12| All Yes.

Corporate social responsibility must be classified as voluntary any attempt to make it compulsory is inappropriate. The government is to be held the sole responsible for the prosperity of the public citizen of this country. | In short, all the managers agreed that CSR should be implemented into their organization and also into the other organizations worldwide. DISCUSSION Multiple organizations from various kinds of background industries differ from its perspective on the implementation of CSR as its ethical duty towards the community. From the data collected, we have studied rigorously the outcome of interviewing 12 managers and were able to identify companies practicing CSR as opposed to non-practicing ones.

Based on empirical performance, eight managers stated that its organization successfully conducts CSR (Manager 1, Manager 4, Manager 6, Manager 7, Manager 8, Manager 9, Manager 10, and Manager 11) while the remaining four (Manager 2, Manager 3, Manager 5, and Manager 12) have not had the opportunity to perform beneficial impacts toward the society. Although the results were in favour of CSR practicing organizations, it should be highlighted that these corporations are consisted of major branded companies where as the latter comprised of Small Medium Enterprise (SMEs) corporations. Based on our research, we have discovered that non practicing CSR companies (SME’s) justifies the study conducted by Siwar & Md Tareq (2009).

They uphold the theory of SME’s to be underdeveloped and still in the working progress to grasp the meaning of CSR and of its importance to the society today. Most of the SME’s among Malaysian organizations have no solid plan and structure of performing CSR as companies’ managers are still lacking in consciousness regarding the concept of CSR. On top of that, SME’s are in doubt of how big of an impact can its organization bring to the society as they are not likely to claim themselves as “corporate” (Holme, 2010). The third and final question posed to all respective managers resulted in a unanimous response that CSR should indeed be restored and carried out in all organizations throughout the country.

Among the reasons stated by all following managers, we can part the answers based on two ethical conflicting views; stressing on the importance of giving back to the community for common basic social needs versus CSR motivated organizations’ with uplifting its brand image and reputation. Results illustrate that Manager 1, Manager 4, Manager 5, Manager 6, Manager 8, and Manager 10 agree that CSR ought to be conducted for the benefit of the society where as Manager 2, Manager 3 and Manager 11 gave answers subjected to the positive aspects of gaining customer’s trust and loyalty when an organization withstands by a good reputation. According to the latter opinion, these managers believe that customer’s brand loyalty by enlarge relies on the ethical activities performed commercially by reputable named major companies.

However, the concept of contributing back to the social, economic and environment by ethical responsible corporate management contrasts the view of Friedman (1970), who claims that the only social responsibility held by a certain organization is limited to using the resources efficiently and effectively for profit maximization. Many viewpoints exist in this study, including the conceptualization of the responsibilities of firms by Carroll (1979). Among the four social responsibilities brought forward by Carroll (1979), this conceptualization includes the economic responsibility of an organization to generate profits, provide jobs, and create products that consumers want (Galbreath, 2010).

Indirectly, this substantiates Friedman’s (1970) theory that an organization’s interest of profit maximization does not necessarily disregard their responsibility as a firm in economic terms. In comparison to corporations which utilizes CSR as a means for gaining economic returns, organizations who are opinionated to provide beneficial impact to the society are at an ethical based level because its CSR activities are solely based on doing the right thing and enhancing the well-being of a society. Relating back to Carroll’s (1979) conceptualization of the responsibilities of firms, placing importance towards the social needs of the community is the ethical responsibility to meet other social expectations, such as respecting people’s moral rights and doing what is right and just (Galbreath, 2010).

Through our findings, we were able to recognize the evident relationship between the main priorities of the organizations purpose in the performance of CSR and the sole personal views from the managers themselves regarding the influence of CSR in today’s corporate management. We extracted that Manager 4, Manager 5, and Manager 10 shared views that did not entirely coincide with its own corporation’s perspective pertaining to the importance of CSR. They firmly deem CSR to be a social obligation for all organizations in order to contribute back to the society in spite of its own corporate motive which states gaining a positive image and reputation as its main concern.

With much relevance to our research, there are ways for us to extend our studies based on an Islamic perspective. In Islam, our actions are judged by our sincere motives (niyyah). It is narrated on the authority of Amirul Mu’minin, Abu Hafs ‘Umar bin al-Khattab, radiyallahu ‘anhu, who said: I heard the Messenger of Allah, sallallahu ‘alayhi wasallam, say: “Actions are (judged) by motives (niyyah), so each man will have what he intended.. ” [Al-Bukhari & Muslim] Based on the hadith, it is compulsory to conduct our daily activities in this world for the sake of Allah S. W. T. which includes our responsibility as a vicegerent in economic terms. CSR is a manifestation of Tawhidic paradigm, serving Allah through our Fardh’ Kifayah obligations.

The shahadah shows us the conditions for accepting a deed or performing an action; one, it should be for the sake of Allah because He is the only One we worship, and two, it should be in accordance with the Shariah. Employees with authority in decision making must be honest and sincere as well as ethical in their motives especially when it concerns the well being of others. According to Imam al-Harawi, there are seven types of self-desires, one of which includes seeking the wealth of others. To abstain ourselves from this selfish nafs’, it is in our power to do righteous deeds as the more good deeds we do and hence get closer to Allah, the more sincere we will be. The implementation of CSR in business organizations gives us the chance to ensure that our responsibility as a khalifah in this world is performed in an ethical manner. Limitation

We recognized three limitations throughout the process of conducting this project paper. The first limitation is the number of managers to be interviewed. We intended to interview 15 managers but unfortunately we just managed to interview 12 managers. This is due to the second limitation which is time constraint. The process of searching the contacts of the managers to be interviewed and the procedures of making appointments with major companies’ managers required a lot of time. In addition, we took quite a lot of time to get the response from the managers which we interviewed through email. Lastly, we were limited by the poor response from the managers especially from the major companies. Some of them claimed they could not espond to our interview questions because the information is confidential to their company and most of the managers we interviewed through email failed to reply our email. Implications for Practice We propose that the practice of CSR by Malaysian companies should be in line with the CSR policy in which it is supposed to only focus on encouraging the positive impact towards the stakeholders and not for benefits to the company itself. Apart from that, Malaysia as a Muslim country, we recommend the Malaysian companies to revise the Tawhidic Paradigm concept which claims man as a vicegerent. Hence, the companies should treat act of CSR as part of their responsibility as vicegerent.

Moreover, there is supposed to be government intervention in order to encourage the practice of CSR by SMEs. Implication for Theory Our study examines the practice of CSR in Malaysian companies. We come into the theory that most of the Malaysian companies execute CSR because of their concern to contribute back to society and for the sake of their reputation and branding. Plus, this study adds on a new idea on the theory of CSR from the Islamic perspective. In short, CSR is already part of the basic Islamic concept; vicegerency. The foundations of the CSR’s notion from conventional theories came from the values and principles that have been central to Islam since the times of the Holy Prophet Muhammad S. W. T. Future Research

We advocate those who desire to do the similar studies to adopt the couple of methods below to conduct this study. * Interview on the managers from each company. * Survey on customers regarding their perspectives on CSR CONCLUSION Our study concerned on business ethics and corporate social responsibility. After pursuing through this study, we discovered mixed views on CSR concept. To conclude, there are generally two basic motives of CSR; ethical motivation and instrumental motivation. Ethical motivation is to achieve the right thing to do. If the company treats CSR as a voluntary act rather than just a compliance based act and they conduct it for the sake of creating good society, it is considered as ethical motivation.

In contrast, companies which consider CSR as an instrumental motivation tend to just to achieve an economic goal. They treat CSR as a means for profit maximization. According to our findings, most of the Malaysian companies take CSR as an instrumental motivation as their core motive in executing CSR to gain good reputation and branding image. Nevertheless, from the views of the managers of the companies, CSR should be done to give back to society. We desire this project paper to end as an article for IIUM journal. REFERENCES Adam, C. , & Zutshi, A. (2004). Corporates Social Responsibility:Why business should act responsible and be accountable.

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I. PROFILE OF THE CORPORATION HISTORY Sometime in March 1992, a very young but energetic ABM Rogelio Y. Bangsil was sent to Fort Ilocandia Resort and Hotel to start the renovation for the future site of Casino Filipino-Laoag. Hand in hand with the construction, a massive promotional campaign was launched by his so-called “advance-party” composed of a handful of employees Casino Filipino -Laoag, which emerges as a world-class gaming destination with first-class service, is a favorite of tourists from Hongkong & Taiwan.

It truly lives up to its reputation as the “Jewel of the North”. When CF-Laoag opened towards the end of April 1992, ABM Bangsil was promoted as Branch Manager. He was joined by a newlypromoted COM in the person of Melquiades Parungao, Jr. , two newly promoted Gaming Area Managers,two Asst. Gaming Area Managers,a few Table Supervisors and a handful of support staff and office personnel. The branch operated on a single 6pm-2am shift with ten gaming tables and fifty (50) slot machines.

An extensive marketing strategy was launched extending as far as Baguio City to invite players to Laoag. For a newly-opened branch, the initial stage of operation entailed a lot of efforts on the part of both management and staff. Income from local players was not really significant. The opening of the Laoag City International Airport with flights from Taiwan gave a new ray of hope to CF-Laoag. These weekend flights brought in players who were ready to wager in US Dollars.

During its second year of operation, the branch suffered a major blow in its junket operation. This pulled down the operational status of the branch. This condition resulted to the closure of the casino in September 1993 only to reopen ten days later. Since then, the branch managed to survive and enjoy relatively modest net income. This spectacular feat gradually simmered down due to factors in the economic and political systems. A possible closure was again hovering over CF-Laoag.

In the early part of year 2000, the Waterfront Promotions Limited (WPL) came to the rescue for some time but later transferred to the Fort Ilocandia Promotions, Limited (FIPL). Towards the middle of 2003, the existence of CF-Laoag was threatened anew. This was because of the SARS (Severe Acute Respiratory Syndrome) scare that affected most Asian countries. Flights from China, Taiwan and Hong Kong, where most of the junket players come from, were restricted.

Due to the drastic reduction in the number of playing customers, FIPL proposed to downsize the casino operations for about two months, from June to July 2003 until such time that the SARS scare and the influx of junket players would normalize. CF-Laoag made a major turnaround towards the end of 2003. A total facelifting and renovation of the gaming areas had to be undertaken by the FIPL. In August of that year, the gaming tables were temporarily relocated to the Sierra Madre ballroom while the slot machines were lined upalong the corridors of the hotel.

Carpenters, masons, painters and technicians worked round-the-clock to finish the project before the end of the year. CF-Laoag transferred to the newly transformed venue on December 25, 2003, just in time for the arrival of players from China, Taiwan and Hong Kong. Everyone was impressed by the chandeliers that hang over the main gaming area, the colorful mini bulbs that twinkled on the outer panels of the ceiling and the congregations of angels that adorned the mini domes above the gaming tables.

Six VIP areas depicting American, British, French, Egyptian and Chinese settings were also impressive. Players and guests, even PAGCOR officers, who have seen other casinos abroad commented that the VIP rooms are even cozier than those in the US, Macau, Australia and elsewhere. At present times, Philippine Amusement and Gaming Corporation (PAGCOR) is the Philippines third largest contributor of revenue after the Tax and Customs Authority.

It is a government owned and controlled corporation first established in by Presidential Decree 1067 and entered itself in a contract with Philippine Casino Operators Corporation (PCOC) in operating the floating casino in the Manila Bay in 1977. However, gutted by fire in 1979, for which reason, PAGCOR shifted its operations to land-based casinos and entered into another contract with PCOC for the management of a casino at the Provident International Resources Corporation (PIRC) building on Imelda Avenue, Paranaque City, Metro Manila, Philippines.

Then under the Presidential Decree 1869 in 1983, it was mandated as the sole government corporation to conduct and establish gaming pools and casinos. In 1986 it was reestablished by H. E. then Pres. Corazon Aquino’s government with New PAGCOR as its short name to help raise the government funds; appointing Norberto Quisumbing as its first Chairman and later on the former Development Bank of the Philippines chair Alicia LL. Reyes as its Chair and CEO. She was succeeded by Ephraim Genuino under the appointment by H. E. Pres. Gloria Macapagal-Arroyo in 2001.

The firm operates 13 Casinos and several VIP slot clubs in major cities across the country. It also sees and regulates more than 180 bingo parlors as well as e-games cafes across the country. The company employs more than 11000 employees. In June, 2007 PAGCOR had its most significant piece of legislation with the passage of Republic Act 9487 granting the state-run gaming firm another 25 years to regulate and operate games of chance, to issue licenses, and to enter into joint venture, management, or investment agreements with private entities.

PAGCOR is under the Office of the President of the Philippines. As of December, 31, 2009, the Pagcor Board is composed of Chairman/CEO – Efraim C. Genuino, President/COO – Rafael Butch Francisco, Directors – Imelda Dimaporo, Philip G. Lo, Manuel C. Roxas and Susana Vargas (ex-officio) and Corporate Secretary – Carlos R. Bautista. On July 02, 2010, Cristino L. Naguiat, Jr. was sworn in as its new Chairman. On July 19, 2010, Jorge Sarmiento was named as its new President & COO along with other new members to the Board, namely: Enriquito M.

Nuguid, Eugene D. Manalastas and Jose S. Tanjua. Vision We will captivate our customers with a world-class gaming and entertainment experience, improved infrastructure, more competitive facilities, and a highly professionalized manpower; We will showcase to the world the exceptional Filipino way of serving customers; We will be a pillar for national progress by instilling integrity as the backbone of our regulatory duties, investing in the education of Filipinos, and promoting Philippine tourism, culture and arts.

Mission ? ? To achieve operational excellence, revenue growth and competitive advantage. To attain and enforce a regulatory framework that preserves the integrity and propels the development of the Philippine gaming industry. ? To continue being a responsible and responsive partner of the Philippine government in its nation-building programs. ? To actively participate in fforts of the tourism sector to transform the Philippines into an exciting R and entertainment haven for local and foreign travelers alike. Nature of Business PAGCOR is a hundred percent government-owned and controlled corporation created to regulate, authorize and license all games of chance authorized by law in the Philippines, generate revenues for the Philippine Government’s socio-civic and national development programs, and help promote the Philippine tourism industry.

According to Sec 10 of Presidential Decree no. 1869 known as the PAGCOR Charter, the said corporation has the rights, privileges authority to operate and license gambling casinos, gaming clubs and other similar recreation or amusement places, gaming pools, i. e. basketball, football, bingo, etc. except jai-alai, whether on land or sea, within the territorial jurisdiction of the Republic of the Philippines.

Provided, that the corporation shall obtain the consent of the local government unit that has territorial jurisdiction over the area chosen as the site for any of its operations. Furthermore, the operation of slot machines and other gambling paraphernalia and equipment, shall not be allowed in establishments open or accessible to the general public unless the site of these operations are three-star hotels and resorts accredited by the Department of Tourism (DOT) authorized by the corporation and by the local government unit concerned.

There are also restrictions on the operations of the corporation. Their power and authority to authorize, license and regulate games shall not extend to the ff. : ? Games of chance authorized, licensed and regulated or to be authorized, licensed and regulated by, in, and under existing franchises or other regulatory bodies; ? Games of chance, games of cards and games of numbers authorized, licensed, regulated by, in, and under special laws such as Republic Act No. 922. ? Games of chance, games of cards and games of numbers like cockfighting, authorized, licensed and regulated by local government units. The conduct of such games of chance, games of cards and games of numbers covered by existing franchises, regulatory bodies or special laws, to the extent of the jurisdiction and powers granted under such franchises and special laws, shall be outside the licensing authority and regulatory powers of the PAGCOR.

PAGCOR’s Income PAGCOR derives its income from the winnings of table games, slot machines and in-house bingo operation of the agency’s different gaming properties. The corporation also gets substantial income from other sources from its regulated gaming activities such as the private licensed casinos, poker operations, commercial bingo operations, E-games and others. In 2011, PAGCOR’s total revenue reached P36. 65 billion, which is greater by P5. 19 billion or 16. 52% to its total income of P31. 46 billion in 2010.

In accordance with its Charter and other governing laws, PAGCOR earnings are distributed as follows: 5 percent of winnings goes to the BIR as franchise tax; 50 percent of the 95 percent balance goes to the National Treasury as the National Government’s mandated income share; 5 percent of the balance after the franchise tax and the National Government’s mandated income share goes to the Philippine Sports Commission for financing of the country’s sports development programs; 1 percent of the net income goes to the Board of Claims, an agency under the Department of Justice, which compensates victims of wrongful detention and prosecution; Cities hosting PAGCOR casinos are given fixed amount for their respective community development projects; Funds for implementation of vital laws such as the Early Childhood Care and Development Program and Sports Incentives and Benefits Act; Remittance to President’s Social Fund Remaining balance of income goes to the projects related to the upliftment of the quality of education through the construction of classrooms and school buildings, assistance for the promotion of the country’s health programs, and the Pasig River Rehabilitation project II.

Organizational Chart How does PAGCOR’s organization works? All policies for implementation and general directions to be taken by PAGCOR are under the responsibility of a five-man Board of Directors duly appointed by the President of the Philippines. Following are the Board Members chosen by President Benigno Simeon Aquino III to ensure that PAGCOR’s administration during his term will subscribe to his commitment to transparency, integrity and good governance: Hon. Cristino L. Naguiat, Jr. Chairman & Chief Executive Officer Jorge V. Sarmiento President & Chief Operating Officer Eugene D. Manalastas Director Enriquito M. Nuguid Director Jose S. Tanjuatco Director

The day-to-day operations of PAGCOR in its Corporate Offices and Casino Filipino Branches are manned by 11,369 employees (data as of January 31, 2011). Aside from having its internal auditing group, PAGCOR’s operations are also subject to the scrutiny of the government’s watchdog, the Commission on Audit (COA), which ensures – among others – that every centavo earned and spent by the corporation are fully accounted for. III. Socioeconomic Aspect Government PAGCOR (Philippine Amusement and Gaming Corporation) in line with their “corporate social responsibility” has been doing different projects raising the concern of the public, of the government as well as promoting their name too.

The said corporation has done a project in cooperation with the Department of Education (DepED) allocating a fund of Php 1 billion for the construction of 1,000 classrooms nationwide. This has been the first time that PAGCOR has set aside such huge fund for a single project intended to help a government sector. This project “Matuwid Na Daan Sa Silid- Aralan” was intended to help the government address the perennial problem of classroom shortage. PAGCOR has come up with this project for this problem of the education sector currently stands at 70 582 nationwide. The said project was PAGCOR’s way of helping the Philippine government in its campaign to improve the quality of education in the country.

Also, this is not just a big help in the part of the government but in the part of the poor families and students dreaming for a good education too. Included in the Php 1 billion fund is PAGCOR’s Php 65 million funding assistance to DepED and Gawad Kalinga Foundation, Inc. for the construction of 100 learning centers in different communities nationwide. This is to help communities with no learning centers of their own and to help parents who can’t send their children to school. Under the said project, Gawad Kalinga will handle the construction of the classrooms while the Department of Education will manage the facilities once the classrooms are done. DepED will manage the said facilities in cooperation of the local government unit.

PAGCOR has also partnered with TESDA and allotted an initial of Php 100 million funds for the retrofitting of TESDA’s existing wood working facilities. Included in their projects in helping the government,PAGCOR and Travellers International fund the construction of a new public school in Mandaluyong. Due to this project,PUBLIC elementary and high school students of Barangay Addition Hills in Mandaluyong City will have a better chance of finishing their basic education after the Philippine Amusement and Gaming Corporation (PAGCOR) and Travellers International Hotel Group, Inc. (operator of Resorts World Manila) committed to fund the construction of an integrated public school there.

Travellers, as part of its Entertainment City investment obligation, has also allocated approximately P60 to P80 million for the construction of the Mandaluyong Addition Hills Elementary School in Mandaluyong City’s most populated barangay. The new school will have 2 four-storey buildings with 40 classrooms and 16 comfort rooms. It can accommodate up to 2,000 elementary and high school students. Associated with PAGCOR’s mission on their corporate social responsibility,the state-owned corporation developed the “PAGCOR Feeding Program”. This project was made possible in coordination with the Department of Social Welfare and Development (DSWD) and the Department of Education (DepED), together with partner schoolbeneficiaries. This program provided balanced meals to undernourished children from targeted day-care centers and public elementary schools in selected areas.

The said project aimed to supplement existing government feeding programs and to help address the malnutrition situation in the country. These are some ways on how PAGCOR stretched their helping hand to help the Filipinos and the Philippine government itself. These are also the corporation’s ways to ease the burdens of our government. Community “To continue being a responsible and responsive partner of the Philippine government in its nation-building programs. ” This is one of the missions of PAGCOR. As stated in its mission, PAGCOR is one with the Filipino in this journey. PAGCOR hopes to be a dynamic partner of our government in changing the course of Philippine history towards national development and progress.

The corporation facilitates programs for the progression of the Filipino Community. In order to attain its mission, PAGCOR, held the following projects: PAGCOR distributes relief goods to 10,000 families affected by Habagat flooding, align with this project, PAGCOR distributed relief packs to 2,000 families in Barangay Baseco, Tondo. The said state-owned gaming agency also gave relief goods to 3,000 families badly hit by the flooding in Tumana and Nangka, Marikina City, Sta. Ana, Manila and Malabon City. In the provinces, PAGCOR also conducted relief operations for a total of 5,000 families in Concepcion, Tarlac, Guiguinto, Bulacan,Rosario, Cavite, Taytay, Rizal and San Isidro, Tanay, Rizal.

PAGCOR Chairman and CEO Cristino Naguiat, Jr. said this is only the first tranche of the agency’s Habagat relief operations. “We have allocated a total budget of P8. 14 million for our relief operations. We hope to be able to give help to at least 20,000 families. There were so many of our countrymen who were badly affected by this recent flooding. Itong aming relief operations ang paraan ng PAGCOR para matulungan ang ating mga kababayan na labis na naapektuhan ng kalamidad na ito. ” PAGCOR, in its mission of reaching out the Filipino community,also reached out to the indigent and impoverished by providing free medical and dental services via its medical missions.

These missions, which were mostly conducted in depressed areas and those battered by calamities, aim to bring government and the company closer to its constituents by providing basic health services. Furthermore, PAGCOR, in coordination with the Department of Social Welfare and Development (DSWD) and the Department of Education (DepED), developed the “PAGCOR Feeding Program” to supplement existing government feeding programs and to help address the worsening malnutrition situation in the country. This project was made possible with partner school-beneficiaries, which provided balanced meals to undernourished children from targeted day-care centers and public elementary schools in selected areas. PAGCOR has been implementing projects that are very helpful in our very own Philippine community.

PAGCOR is doing their best in reaching out the depressed areas and the indigenous to let feel that PAGCOR isn’t all about gambling, but also ready to stretch their hand to those communities in need. Employees More health benefits for PAGCOR employees. Philippine Amusement and Gaming Corporation (PAGCOR) Chairman Efraim Genuino announced yesterday that the agency’s 10,000 employees would soon be receiving a “bigger and better health care benefits package” following a very productive year. Genuino noted that PAGCOR’s profits rose 21 percent in October despite the economic slump caused by the Sept. 11 terrorist attacks in New York and Washington. This is my way of thanking, on behalf of President Arroyo, the 10,000-strong PAGCOR workforce which worked doubly hard to break revenue records this year despite the debilitating effects of a worldwide economic crisis,” Genuino said. It will be recalled that one of Genuino’s first acts as Pagcor chief was to increase the salaries of all personnel. Prior to his appointment by the President, employees lamented that their salaries “had remained stagnant for 15 years. ” The new health care program will “substantially increase the present hospitalization budget which employees and officers can avail of. It will also provide generous subsidies for maternity cases and ensure a faster processing system of all health claims”, Genuino said.

Furthermore, Genuino has ordered the setting up of a state-of-the art health infrastructure program through the establishment of modern outpatient clinics complete with a laboratory, an x-ray room and pharmacy. Dental clinics will also be put up at all casino branches and at the PAGCOR corporate office. Mentioned above are the PAGCOR’s ways of returning the favor to their employees. These are also the corporation’s way of somehow thanking their beloved employees. However, these are not just programs for the employees but for the corporation itself too. Due to these projects, PAGCOR can be assured that their employees will be satisfied from their benefits. Environment PAGCOR takes its corporate social responsibility to another level as it goes green and supports projects about environmental protection.

In tandem with the National Convergence Initiative (NCI) Project, PAGCOR is funding and actively undertaking reforestation and related activities not only in our remaining forests but also in various locales under threat of erosion and degradation. It also supports the “E-Kawayan” project which aims to regenerate bamboo plantations nationwide and exploit the many uses of bamboo for industrial purposes. Just recently, PAGCOR turned over P31million in financial support for Hi-e-Kawayan project of Alaminos, Pangasinan. This will help in reviving bamboo culture, reforest bamboo growing regions for environmental protection. The said project complements the Department of Environment and Natural Resource’s (DENR’s) National Greening Project (NGP) since it is set to reforest 322 hectares of land with bamboo plants which would lead to erosion prevention and slope protection in the area.

The said corporation also provides funds for turning illegally cut logs from areas in Mindanao that had been pummeled by the recent Typhoon Sendong into chairs, tables and blackboards that will be given to public schools. Also, PAGCOR was into recycling as it launched a project converting used slot machine stands into school desks which are donated to six public schools. Lastly, PAGCOR expressed support to the Kapit Bisig Para sa Ilog Pasig (KBPIP), a project spearheaded by the ABS-CBN Foundation, together with the Pasig River Rehabilitation Commission and Department of Environment and Natural Resources. This project aims to rehabilitate and clean the Pasig River from 2009-2015 with the Estero de Paco as its pilot site.

These projects only proved that PAGCOR is not just a corporation but a environment-concerned one. These are the ways on how they promote the preservation and restoration of our environment. Economy Philippine Amusement and Gaming Corporation or PAGCOR, with its chain of casinos and other businesses, contributes much to the Philippine economy. From their large income, the tourists they attract, the jobs they give to a number of Filipinos and up to the investors they bring into the country, they only prove that they are not just about gambling but an asset to the country’s economy. Casino is one of the places where tourists go here in the Philippines whether they came in on purpose of doing so or to just explore what the country can offer.

Large number of customers and gamers, both foreigners and Filipinos, also means large amount of income not just for the corporation itself but also to the country. Just last year, 2011, PAGCOR reported whooping P36. 65 billion total revenue, which is P5. 19 billion more than its income the year before, 2010. Tourist dollars are also coming into the country together with these visitors from different places. PAGCOR currently operates 13 casinos in different places all over the country like Metro Manila, Tagaytay City, Pampanga, Cebu, and others. With this, they already gave about 12,000 jobs to the Filipinos which will soon be increased with the upcoming projects of the company. This, already, is a big help to the country’s worsening problem on employment.

They are also bringing foreign investors in the country together with the rise of the “Entertainment City Manila” or simply “PAGCOR City” in the year 2016. It is Asia’s Las Vegas-like gaming and entertainment complex that PAGCOR proposed way back in April 2008 to offer on 8 km? of land on the reclamation area of Manila Bay, Philippines. The objective is to capture at least 10 percent of the annual $115-billion gaming revenue in the world. According to vice president Jejomar Binay, “The project will be a big boost to the economy. It will bring investors and visitors and this will provide employment and livelihood opportunities for thousands of Filipinos. ” noting that the project will provide millions of Filipinos with high-paying jobs without leaving for work abroad.

It is also believed that this project will bring even more tourist in the country as it will not cater only the gaming aficionados but other facilities will also offer other forms of wholesome family entertainment which will encourage tourists to go together with their families. PAGCOR helps the economy more than we give them credit for. Because of the common connotation that comes with their name like ‘gambling’, ‘1-billion coffee expenditure’ and the different cases filed against the officials of the corporation we failed to see the benefits they brought to the country. IV. Pictures “MATUWID NA DAAN SA SILID PAARALAN” PROJECT PAGCOR, in cooperation with the Department of Education (DepED), has allocated a P1 billion funding for the construction of 1,000 classrooms nationwide. PAGCOR distributes relief goods to 10,000 families affected by Habagat flooding Reaching places like Tondo and Sta.

Ana, Manila; Marikina City; Malabon City; Concepcion,Tarlac; Guiguinto, Bulacan; Rosario, Cavite; Taytay, Rizal; and San Isidro, Tanay, Rizal. MEDICAL / DENTAL MISSIONS PAGCOR reaches out to the indigent and impoverished by providing free medical and dental services via its medical missions. PAGCOR FEEDING PROGRAM PAGCOR, in coordination with the Department of Social Welfare and Development and the Department of Education, developed the PAGCOR Feeding Program to supplement existing government feeding programs and help address the worsening malnutrition situation in the country. PAMASKONG HANDOG PROJECT The Pamaskong Handog project is an annual Christmas gift-giving project of PAGCOR which is intended to bring joy to the less fortunate at Christmas time. PNOY BAYANIHAN” PROJECT PAGCOR has partnered with the DepED, Department of Environment and Natural Resources (DENR) and the Technical Education and Skills Development Authority (TESDA) for the Pnoy Bayanihan project which aims to convert confiscated logs from illegal logging into school chairs. CONVERSION OF USED SLOT MACHINE STANDS TO SCHOOL DESKS PAGCOR also converts hundreds of its used slot machine stands into school desks which are being donated to different public schools that are in need of school chairs. V. References More health benefits for Pagcor Employees. (2011, November 24). The Philippine Star, p. 3. Cruz, J. D. (2012, June 24). Pagcor goes green. Business Mirror, p. 5. Cruz, J. D. (2012, June 24). Pagcor goes green. Business Mirror, p. 3. http://pcij. org/blog/wp-docs/RA9487. pdf http://www. pagcor. ph/social-responsibility. php http://www. blog. pagcor. ph/ http://www. pagcor. ph

“while working to enhance shareholder wealth , Maruti Suzuki will regularly engage with all stakeholders to assess their needs and through its products, services , conduct and management initiatives , promote their sustained growth and well being Policy Guidelines Company will follow responsible business practices in all its function and operations and will strive to implement them at its suppliers, dealers and other business partners.

Company will continue to remain ahead of law in pursuit of environment protection and energy conservation at its manufacturing facilities, and in development of products that use fewer natural resources and are environment friendly Company will deeply committed towards the welfare of its employees, their families and communities around its operations to improve quality of life as whole.

Company will develop products and services that fulfill the aspirations of customer,delight them with after sales services and availability of spares, build a strong and lasting bond with them and proactively support them during natural calamities Company will continue to provide technological and managerial support to its suppliers and dealers to further their profitable and sustainable growth.

As an expression of thanks to the local community and the people of the country, company will undertake initiatives that might not be directly linked to its business Company will partner with government, NGOs, business partners to contribute positively towards economic and human development of the society especially underprivileged people.

Company will encourage and recognize its employees for volunteering in the community in the sprit of serving and sharing their expertise and skills Company will strive to constantly build organizational capabilities, like any other competency, position suitable people and have a proper organizational structure to ensure implementation of CSR policy, guidelines and programs.

Company will engage with reputed external agencies for audit of its CSR activities for the purpose of identifying areas of improvemet , authenticity of data reporting Company will monitor the progress on various CSR programs in a structured manner, document the performance against the set targets and publish a report every year on its CSR performance and share it wits its key stake-holders.

The ultimate word in life is “responsibility”. What is responsibility you ask? Responsibility is “doing the right thing”. Doing the right thing means living a life where every move or decision you make is all your own and you do things that will not harm others. It is a moral belief that as individuals we must behave ethical and be accountable for our actions, and be conscious of our decisions and the impact it has on society. In today’s world I believe we have even more responsibilities then our ancestors. If we do not take responsibility for our actions innocent people can be hurt.

You will be frowned upon and will lose the trust of others. Behaving in a responsible way can improve our quality of living. In life we all want freedom and with freedom comes responsibility. So many people today do not want to take responsibility for their actions and the impact it has on others. I know as a child, my mother, repeatedly told me that I must take responsibility for my actions, which I should always think twice before I do something, because my actions could result in a negative outcome. As human beings we are given by God free will.

If we make certain choices based on our free will, we must be willing to take responsibility for the effects our decisions may have on the people around us, as well as ourselves. So many people think that if you are a responsible person, you may be a boring person. That is just not true. Just because you choose to be a responsible person, you can still have fun and contribute interesting things to the world. I remember another famous quote by Abraham Lincoln, he stated, “One cannot escape the responsibility of tomorrow by evading it today”.

I remember a famous quote from Albert Einstein that states “Man must cease his problems to the environment, and learn again to exercise his will – his personal responsibility”. Sometimes freedom can be dangerous and could destroy our society. So many people believe freedom means you have the right to do as you please, however, that is not 100% true. As soon as you stop taking responsibility for what you do in life, it is almost certain you will be doing things that will be harmful to others. This is why it is so important to have laws that society must abide by.

As an example, let’s say you are having a get together and you have you stereo on a little too loud. To you and the people attending your party the music is just fine, but to your neighbors it is entirely too loud and disruptive. Wouldn’t you be a responsible person if you made sure that the music was loud enough for you and your guests to enjoy, but not too loud that it would annoy your neighbors? When one recognizes that they are 100% responsible for their life, they will soon see the great achievements that come with being a responsible person.

Responsibility is a very valuable trait in all that we do. Taking responsibility for one’s self leads to a more optimistic life and one is able to accomplish all that they want. Sometimes taking responsibility can be a very difficult thing, but in the end one is usually happy that they did. If one chose’s to lead an irresponsible life, they will soon see that they will be living a much uncontrolled life and therefore grow to be very pessimistic. One’s health is also affected by the choices one makes.

When we choose to blame others for the wrong doings in our life, we soon see that we have no control. Everyone wants to be in control of their own lives. One must remember that when we are responsible we are willing to accept the outcome be it good or bad. People who take responsibility in life are confident and will have a very high self esteem. The thing we have to remember is what happens to you in your life, or where you may end up at in your life is a result of either taking responsibility or not taking responsibility of one’s actions in the past.

We all have the right to choose our own destiny. Another great example is what if we didn’t have laws that we had to abide by and everyone was a loud to just do as they wanted and when we committed crimes, no one would be held accountable. Can you imagine the amount of destruction that would be taking place in this world? So as you can see from my examples, it is very important to be a responsible person.