Corporate Social Responsibility and Stakeholder Capital

6173 WordsFeb 27, 201325 Pages
Corporate Social Responsibility and Emergent Models in Management of Stakeholder Capital in Philippine Conglomerates Serafin D. Talisayon Fifth International Research Workshop on Asian Business Singapore Management University, Singapore 13 April 2009 Abstract The paper adopts a social benefit-cost analysis framework to look at three stages in the historical development of management of stakeholder capital of corporations in the Philippines. The first two stages were government-driven. Stage One is internalization and moderation of some social costs starting with the Environmental Impact Statement System adopted by the Philippine government under President Marcos in 1981. Stage Two consists of reforms in the political economy started in…show more content…
3 2 In end-2007, intangible assets contributed to 79.4% of market value of corporations. In end-2008, the contribution was down to 75.4%. Because of the global financial crisis, as of April 5, 2009, this figure was down to 70.9%. The nearly 10% drop is largely due to loss of stakeholder capital, i.e. business confidence and trust. Source: data from 215 industry sectors from Yahoo Finance: 4 This school of thought is represented by the following authors: (a) Sullivan, Patrick H. Value Driven Intellectual Capital: How to Convert Intangible Corporate Assets into Market Value. Wiley, 2000. (b) Stewart, Thomas A. Intellectual Capital: The New Wealth of Organizations. Doubleday Business, 1998. (c) Sveiby, Karl Erik. The New Organizational Wealth: Managing and Measuring Knowledge-Based Assets. Berrett-Koehler Publishers, 1997. This is also referred to as extended benefit-cost analysis or simply as cost-benefit analysis. 5 Diagram 1: Social Benefit-Cost Framework C. Historical Pattern of Managing Stakeholder Capital in the Philippines Stage 1: Regulation to avert or moderate social costs The global environmental movement which grew from the U.S. in the late 1960’s and early 1970’s and domestic pressures from failed development projects such as the Chico River Dam project led the Philippine government under President Ferdinand Marcos to adopt a law in 1978 requiring project proponents to
Open Document