CRIS MHAR B.

ALEJANDRO, LCB
GOOD GOVERNANCE & CORPORATE SOCIAL RESPONSIBILITY
SECOND TERM A.Y. 2018-2019
MASTER IN BUSINESS ADMINISTRATION
FINAL EXAMINATION

1. State the basic principles and benchmarked of “good corporate governance”?

Good corporate governance has always been about organisations achieving the best possible
results, but the vision of those results has changed since they were first articulated by the UK
Cadbury Commission in 1991. The first principles of corporate governance were largely
concerned with shareholder protection – ensuring that the interests of shareholders could be
aligned as closely as possible with the actions of management. Good corporate governance has
come to have an extended vision of successful results: Today, organisations are expected to
take actions that have a beneficial effect on all stakeholders, and that includes employees,
stakeholders like suppliers, and the community at large. Corporate governance involves a set of
relationships between a company’s management, its board, its shareholders and other
stakeholders. Corporate governance also provides the structure through which the objectives
of the company are set, and the means of attaining those objectives and
monitoring performance are determined. The Principles are developed with an understanding
that corporate governance policies have an important role to play in achieving broader
economic objectives with respect to investor confidence, capital formation and allocation. The
quality of corporate governance affects the cost for corporations to access capital for growth
and the confidence with which those that provide capital – directly or indirectly – can
participate and share in their value-creation on fair and equitable terms. Together, the body of
corporate governance rules and practices, therefore, provides a framework that helps to bridge
the gap between household savings and investment in the real economy. As a consequence,
good corporate governance will reassure shareholders and other stakeholders that their rights
are protected and make it possible for corporations to decrease the cost of capital and to
facilitate their access to the capital market.

The Cadbury Report which was released in the UK in 1991 outlined that "Corporate governance
is the system by which businesses are directed and controlled." Good corporate governance is a
key factor in underpinning the integrity and efficiency of a company. Poor corporate
governance can weaken a company’s potential, can lead to financial difficulties and in some
cases can cause long-term damage to a company’s reputation.

A company which applies the core principles of good corporate governance;

A. Fairness
B. Accountability
C. Responsibility
D. Transparency

These will usually outperform other companies and will be able to attract investors, whose
support can help to finance further growth.

2. What do you mean by business ethics?

Business Ethics refers to the system of moral principles and rules of the conduct applied to
business. Business being a social organ shall not be conducted in a way detrimental to the
interests of the society and the business sector itself. Every profession or group frames certain
do’s and do not’s for its members. The members are given a standard in which they are
supposed to operate. These standards are influenced by the prevailing economic and social
situations. The codes of conduct are periodically reviewed to suit the changing circumstances.

In every society there are three sources of business ethics-Religion, Culture and Law. The HR
manager in every organisation, thus, has to be well versed with the unique system of values
developed by these three sources.

Importance of Business Ethics

A. Corresponds to Basic Human Needs
B. Credibility in Public
C. Credibility with the Employees
D. Better Decision Making
E. Profitability
F. Protection of Society

3. How come CSR has become part of the mainstream business and academic agenda in the
millennial age?

Corporate social responsibility (CSR) is a self-regulating business model that helps a company be
socially accountable — to itself, its stakeholders, and the public. By practicing corporate social
responsibility, also called corporate citizenship, companies can be conscious of the kind of
impact they are having on all aspects of society including economic, social, and environmental.
To engage in CSR means that, in the normal course of business, a company is operating in ways
that enhances society and the environment, instead of contributing negatively to them.

It became a part of the mainstream nowadays because statistics from different studies show
that 90% of all customers expect companies to address social and environmental issues.
Moreover, 84% of consumers globally say that they buy responsible products when possible.

Millennials is already aware that whether in business companies or even in different

universities CSR plays a big role. As a part of being responsible employee or responsible student
we are also put into consideration that we need to be responsible to others.

4. Share your personal views on Gina Lopez and her tiff with the mining companies?

In my personal opinion Ms. Gina Lopez is very firm on what is her position with the mining
companies. As I have the opportunity to communicate with her through email. She said, it was
based on science. The Philippines with its rich bio diversity and amazing beauty - being in a geo
hazard zone is not fit for mining. Building on our bio diversity and beauty we can get the
country out of poverty. Even mining industry is a source of foreign revenue in a fast growing
nation it will results on polluted water, disturbing land and unmanaged wastages. Three times
since 1995 the dams containing big pounds of toxic mine tailings collapsed, pouring millions of
tons of debris into Philippine rivers and forcing the evacuation of thousands of people.
Environmental enforcement has been weakened by endemic payoffs and corruption, according
to government reports.

She gives her firm commitment that she will do everything that she can and it’s not only to
protect the environment but also to eradicate poverty. There are other ways on how our
country will earn without any effects on our environment. I remember the quotes she gives me
that the earth does not belong to us, rather we belong to the earth. A reminder that we should
always remember that every action we do will have a factor that can affect the whole earth.
5. Write a vision and mission statement for your company.

Mission

PMMS mission is to provide world class marine and other related professionals who are highly
discipline, have vast potential to become technically competent, morally upright and most
importantly, fully aware of his/her responsibility towards safety and environmental protection.

Vision

The Philippine Merchant Marine School envisions itself as the premier maritime educational
institution in the Philippines. As one of the pioneers in formal maritime education, PMMS
considers itself as a leader and trendsetter in providing the best preparatory maritime and
other related education for the Filipino seafarers and maritime related professionals.