1 Social responsibility is an ethical framework and suggests that

an entity, be it an organization or individual, has an obligation to act for

the benefit of society at large. Social responsibility is a duty every
individual has to perform so as to maintain a balance between the
economy and the ecosystems. A trade-off may exist between economic
development, in the material sense, and the welfare of the society and
environment,[1] though this has been challenged by many reports over
the past decade.[2][3] Social responsibility means sustaining the
equilibrium between the two. It pertains not only to business
organizations but also to everyone whose any action impacts the
environment.[4] This responsibility can be passive, by avoiding engaging
in socially harmful acts, or active, by performing activities that directly
advance social goals.
DEFINITION of 'Social Responsibility'

Social responsibility is the idea that businesses should balance profit-

making activities with activities that benefit society; it involves
developing businesses with a positive relationship to the society in
which they operate. The International Organization for Standardization
(ISO), emphasizes that the relationship to the society and environment
in which businesses operate is "a critical factor in their ability to
continue to operate effectively. It is also increasingly being used as a
measure of their overall performance."

BREAKING DOWN 'Social Responsibility'

Social responsibility means that individuals and companies have a duty

to act in the best interests of their environments and society as a whole.
Social responsibility, as it applies to business, is known as corporate
social responsibility (CSR). Many companies, such as those with
"green" policies, have made social responsibility an integral part of
their business models.

Additionally, some investors use a company's social responsibility, or

lack thereof, as an investment criterion. As such, a dedication to social
responsibility can actually turn into profits, as the idea inspires investors
to invest and consumers to purchase goods and services from the
company. Put simply, social responsibility helps companies develop a
good reputation.

In general, social responsibility is more effective when a company takes

it on voluntarily, as opposed to being required by the government to do
so through regulation. Social responsibility boosts company morale,
and this is especially true when a company is able to get buy-in among
its employees and actively engage them in its social cause.

Social Responsibility and Ethics

Social responsibility is an ethical theory, in which individuals are
accountable for fulfilling their civic duty; the actions of an individual
must benefit the whole of society. In this way, there must be a balance
between economic growth and the welfare of society and the
environment. If this equilibrium is maintained, then social responsibility
is accomplished.

2.Step 1: Define how the business should benefit

When analyzing the case of Pueblo Viejo Dominicana Corporation
(PVDC), I identified three primary benefits to the business that a good
CRS strategy should lead to:

1. Risk mitigation: core business functions are supported or

protected – in this case the construction of the PVDC mine and its
future gold production.
2. Local community development: the communities will be left
better off as a result of the business operations. This is listed as a
benefit to business because I felt there was sufficient evidence that this
is a genuine high-level objective of corporate leadership.
3. Enhanced corporate reputation: the reputation of the company
as a good corporate citizen will be strengthened. This is critical since
future contracts, financing, and the ability to operate without resistance
are at least partially dependent on their local and international
reputation.
Step 2: Define how society should benefit
Regarding benefits to society in this case, by in large I was thinking
about benefits to the local communities in the area directly affected by
the mine operations, although certainly one could make a case for a
good CRS strategy producing benefits to a broader segment of society,
including beyond the Dominican borders. But, since most of the risks of
the mining operation are being born by local communities, I would
expect most of the benefits of a good CRS strategy to target the same.
While conducting field research in preparation for the case study, I
spent several days interviewing representatives from communities near
the mine, and I got a pretty good sense of what benefits mattered most
to them. Based on this field evidence, the relationship between the
communities and PVDC will largely be defined by the degree to which
three aspirations are realized:

1. Economic and social development: Community members

consistently expressed expectations that the mining operation would
bring economic and social development to their communities. The key
driver of this expectation is the stipulation in the Special Lease
Agreement that 5% of the total payments received by the central
government from the mining operation must be distributed back to the
various communities in the vicinity of the project. There are high
expectations that this money will be invested in their communities to
generate both economic growth and social service improvement. But, of
course, the distribution of these benefits is also critical. It is not enough
that a few people in the mine area benefit, the communities must deem
the distribution of benefits to be fair if the corporate-community
relationship is to benefit.
2. Environmental health: Previous mining at Pueblo Viejo led to
severe acid rock drainage, impacting several streams near the mine
site. Although PVDC is already taking steps to clean up the
environmental damage done at the mine site while operated by the
Dominican government, community members continued to express
some concern about the long-term environmental impact on the
productivity of their soil and on the health of their children. But how do
you convince people who have already had a negative experience with
irresponsible mining in their communities that this time it will be
different? They will not be satisfied by mere promises to address future
negative environmental impacts unless PVDC is able to signal early on
its embrace of long-term and broad accountability for a range of
negative side affects.
3. Fair and dignified treatment: Another theme that was repeated in
many interviews was the quality of the personal interactions with
representatives from PVDC. Members of the community, including its
leaders, told several stories of times when they felt respected, listened
to, and “known” and several stories of times when they felt the contrary.
It would be a mistake to underestimate the secondary effects that good
or bad personal relationships between community members of
representatives of the mine can have on corporate-community
relations. When people feel they have been treated poorly by a person
from the business, they often project that experience onto the whole
business. This then affects their level of trust in the business –
something that PVDC cannot afford to lose, since the key to their
operating without resistance from the communities is the widespread
belief that this time it will be different, that PVDC will really leave the
communities better off, where Falconbridge (another local mine not
currently in operation) and Pueblo Viejo under Dominican operation are
seen to have failed.
The aspirations expressed by these communities echo those expressed
by dozens of communities around the world that were interviewed by
the authors of the recently published book, “Getting it Right: Making
Corporate-Community Relations Work.”[2] After nearly a decade of
extensive field research in over a dozen countries, done in collaboration
with a score of corporations, primarily in the international mining and
petroleum industries, including Barrick Gold Corp. (BGC) and Placer
Dome (the previous owners of Pueblo Viejo), the authors of “Getting it
Right” concluded that communities define successful company-
community relations to the degree that their economic prospects and
social services improve, the company takes responsibility for any
negative impacts, and the company approach demonstrates fairness
and respect.
Step 3: Translate shared aspirations into principles
So, the aspirations of both the corporation and the community were
articulated and substantiated. The next step was translating these
aspirations into a set of clear principles by which to critically assess the
CSR strategy being pursued by Barrick and its partners in PVDC.
Since, in theory, all three of the business aspirations could be fulfilled
by ensuring the realization of the aspirations of the local communities, I
directly linked the principles that would define a successful CRS
strategy to their aspirations. “Getting it Right” provided a very useful
principles framework, which I used. Connecting CRS principles to
shared aspirations
Step 4: Define good practice and assess
Once the broad principles are clear, a series of good practices can be
defined that follow from these principles and from the specific context of
the case your analyzing. I used a number of good practices defined in
“Getting it Right” and came up with a few of my own as well. Here is a
list of good practices that were relevant for this case and against which
I assessed the goodness of the CRS strategy of PVDC in both theory
and practice. The first five related to the first community aspiration, 6-8
relate to the second, and 9-14 to the third. To be clear, the list of good
practices should be case specific; this is not a set menu against which
all CRS strategies should be assessed. That would not be appropriate.

1. engage with many people

2. generate widely shared and widely enjoyed benefits
3. agree that the communities own their development process, not
the company
4. leverage resources and share costs
5. reward reasonable and thoughtful interaction, not violence
6. listen to local communities’ concerns regarding side effects
7. discuss a long-term vision with communities
8. help communities to develop their own impact preparedness plan
9. provide support to existing organizations and strengthen local
capacity
10. present a human face to communities and interact with them
11. ask, discuss, and listen – engage openly with communities in
decisions that affect their lives
12. ensure that information is easily accessible to all types and groups
of people
13. be responsive to community inquiries, questions, and letters
14. act, and be seen to act, on requests that go beyond the corporate
interest
Pursuing a strategy of social responsibility and corporate citizenship
helps increase a company's image rating, provided the company
spends a meaningful amount on socially responsible activities and such
spending is sustained over a multi-year period.
enhances the power and effectiveness of a company's advertising
expenditures whenever the company's spending for socially responsible
activities is above the industry average.
helps increase a company's global sales volume and global market
share of branded footwear whenever the company's annual spending
for socially responsible activities is above $10 million.
has the effect of boosting the company's EPS, ROE, and stock price
whenever the company's spending for socially responsible activities is
the highest in the industry.
boosts a company's sales of branded footwear when a company wins
one or more Gold Star Awards for Corporate Citizenship given by the
World Council to Promote Exemplary Corporate Citizenship.

3.

TWO PERSPECTIVES ONCORPORATE SOCIAL

RESPONSIBILITY

by Edward W.Younkins

Should a corporation be socially responsible? The debate over

this question can be simplified once we have reduced the issue to a
pair of foundational but contrary world views – communitarianism
 and individualism. The purpose of this article is to consider the idea
of social responsibility by examining the persuasiveness of these
opposing perspectives.

Communitarianism

According to communitarianism, society is more than the sum of

the individuals in it. The community is organic. Society exists prior to
any particular individual's existence. The corporation, a possession of
the community rather than of individuals, holds a social contract with
society from which it derives its power and, therefore, serves a
constellation of interests. The communitarian ethic is based on the
view that, in a socially interdependent society, no manager can act
ethically without considering the claims of others. While managers
have direct obligations to stockholders and employees, they must also
recognize other claimants (e.g., customers, suppliers, and the
community itself from which the corporation derives its existence).

Communitarians view communities and society as living

organisms existing independently of their individual members and
believe there is a general common will separate from the wills of the
individuals comprising them. For some communitarians, the general
will is the will of the state as Leviathan – the earthly equivalent of God.
Communitarians believe that communities and society have moral
significance and rights that are at least equal to the rights of individuals
and that sometimes and somehow override individual rights. They fail
to realize that a community or a society is not a being, is not capable
of self-directed thought or action, and, therefore, cannot possess
rights.

They often speak of balancing the rights of individuals with the

rights of the community. In addition, they tend to view the state as the
agent of social betterment and support laws that force people to serve
communities and society by taking part in programs that some
intellectuals, speaking for the community, have declared to be for the
common good or in the public interest. Communitarianism stifles the
decision making power of individual persons by subordinating their
preferences to community purposes which tends to be the same as
majority rule. The communitarian vision of self-interest is thus often
defined in terms of community service.

Communitarianism is closely related to social contract theory

and emphasizes the social nature of the corporation which exists as
the result of a highly implicit and flexible contract that determines its
duties and rights. The corporation is portrayed as responsible to and
subject to the will of society (i.e., the people). Both the state and the
law are creatures of society. Since, from the perspective of
communitarians, corporations are created by the government which, in
turn, owes its existence to society, it follows that corporations are
actually made by society and are responsible to the public to serve
whatever is deemed to be in the public interest or for the common
good. Since the corporation only exists because of social permission,
society is said to be able to legitimately demand that a corporation
perform certain activities that the owners and managers do not wish to
perform.

During the 20th century, society has been reassessing its

expectations of corporations and has pressured them to balance profit-
making with social responsibility. Communitarians believe that
corporations should be socially responsible both out of gratitude for
their existence and a moral sense of reciprocation for benefits received
from society, including the purchase of their goods and services and
the access to, and use of, public goods. In essence, the corporation is
viewed as more like common property than as private property. Some
communitarians even propose that the corporation be brought under
government control to assure the common good.
Individualism

Individualism is the more realistic view that each person has

moral significance and certain inviolable natural rights. Each person
exists, perceives, experiences, thinks, and acts in and through his own
body and therefore from unique points in time and space. It is the
individual who thinks and has the capacity for original and creative
rationality. Individuals' minds can interrelate but thinking requires a
specific, unique thinker. The individualist assumes responsibility for
thinking for himself and for acting on his own thought.

« There is no such thing as the general will,

collective reason, or group welfare apart from,
and other than, that possessed by each
individual in a group. A community or a
society is simply the association of persons for
cooperative action. »

Under individualism, knowledge tends to be viewed as

fragmented and widely dispersed. Each person is free to choose
among systemically produced rewards, punishments, and
opportunities arising from other free persons without being subject to
the articulated judgments imposed by the state or other collectivities.
Individualists rely upon the power of historically-evolved, unarticulated
social processes such as free markets, tradition, language, values,
common law, etc., which are evaluated based on their systemic
features such as incentives and methods of interaction. While
exhibiting little faith in social processes intentionally designed by any
one individual or council, individuals do respect the experience of the
ages as embodied in systemic processes.

Assigning primary emphasis to the individual does not devalue

social cooperation. Humans are not only distinct individuals but also
social beings. Cooperative action affords growth possibilities and
brings benefits which otherwise would be unattainable by isolated
individuals. Man's rationality allows him to cooperate and
communicate with others. In a free society, all cooperative social
ventures are entered voluntarily. In fact, individualism provides the
best theoretical basis for a genuine community that is worthy of human
life. The uniqueness and worth of the human person is affirmed when
membership in a community is freely chosen by the individuals that
comprise it.

Individualism denies that a community or a society has an

existence apart from the individuals that make up that community or
society. A community or society is a collection of individuals – it is not
some concrete thing or living organism distinct from its members. To
use an abstract term such as community or society is to refer to certain
persons sharing particular characteristics and related in specifiable
ways. There is no such thing as the general will, collective reason, or
group welfare apart from, and other than, that possessed by each
individual in a group. A community or a society is simply the
association of persons for cooperative action. Coordinated group
action is a function of the self-directed and self-initiated efforts of each
person within the group.

Individualism involves the idea that society is no more than the

sum of individuals comprising it. Created by the interaction of
individuals, society is what individuals make it. The social contract is a
fiction. Corporations are viewed as expressions of individual freedom,
do not derive their power from society, owe nothing to the community,
and need only pay taxes and adhere to government regulations.
Closely related to individualism are the ideas of equal opportunity and
contract.

True social reponsability: Respect for individual rights

 It follows that the social responsibility of the corporation, through
its directors, managers, and other employees, is simply to respect the
natural rights of individuals. Individuals in a corporation have the
legally enforceable responsibility or duty to respect the moral agency,
space, or autonomy of persons. This involves the basic principle of the
noninitiation of physical force and includes: the obligation to honor a
corporation's contracts with its managers, employees, customers,
suppliers, and others; duties not to engage in deception, fraud, force,
threats, theft, or coercion against others; and the responsibility to
honor representations made to the local community.

In an individualistic society all contracts are entered into

voluntarily. Each person is free to associate with others for their own
mutually agreeable purposes. The corporation is a form of property
created by individuals in the exercise of their natural rights. The
corporation is thus the result of a contract between individuals who
wish to combine their resources and, if desired, delegate a portion of
the authority and responsibility for managing and using these
resources. Managers therefore have the obligation to use the
shareholders' money for specifically authorized shareholder purposes
which can range from the pursuit of profit to the expenditure of funds
for social purposes. If managers use this money for activities not
authorized by the shareholders, they would be guilty of spending
others' money without their consent, failing in their contractual
obligation to the owners, and, therefore, violating the rights of the
shareholders. Owners have a property right in the corporation and a
correlative right to engage in profit-making, if so desired. It follows that
those who act in their behalf (i.e., the managers) have a duty to carry
out the wishes of the owners, who usually invest to make a profit.

Customers, employers, suppliers, and others autonomously

negotiate for and agree to contract with the corporation. If managers
were to break an agreement with the shareholders to maximize profits
in order to give one or more groups more benefits than they freely
agreed upon, they would not only be violating the rights of the owners,
but also would not be respecting the autonomy of individuals within
other groups. Corporations and their managers are obligated to
respect the rights of individuals within each group but the rights are
limited to the rights of parties in market transactions. The social
responsibility of corporations is limited to respecting the natural rights
of all individual parties.

4. What is 'Corporate Social Responsibility'

Corporate social responsibility, often abbreviated "CSR," is

a corporation's initiatives to assess and take responsibility for the
company's effects on environmental and social wellbeing. The term
generally applies to efforts that go beyond what may be required by
regulators or environmental protection groups.

CSR may also be referred to as "corporate citizenship" and can involve

incurring short-term costs that do not provide an immediate financial
benefit to the company, but instead promote positive social and
environmental change.

5, Direct Regulation

government's attempt to influence business by establishing laws and

rules that dictate what businesses can and cannot do

ex: EPA, FTC, FDA, EEOC; legislation, Acts

Indirect Regulation
- government providing greater/lesser tax incentives; tax codes

ex: government wanting organizations to spend more on training the

hard-core unemployed; Congress passes tax incentives to companies
for new training facilities
Personal Contacts
corporate executives and political leaders travel in the same social
circles; these offer one method of influence
Lobbying
use of persons or groups to formally represent an organization or group
before political bodies to influence the government

ex: National Rifle Association; gun control

Political Action Committees (PACs)
specialized organizations created to solicit money and then distribute it
to political candidates

ex: FedExpac makes regular contributions to campaign funds of

political candidates for the firm's best interests
Favors
gaining support through through favors; legal but not always ethical

6. The concept of "governance" is not new. However, it means different things

to different people, therefore we have to get our focus right. The actual
meaning of the concept depends on the level of governance we are talking
about, the goals to be achieved and the approach being followed.
The concept has been around in both political and academic discourse for a
long time, referring in a generic sense to the task of running a government, or
any other appropriate entity for that matter. In this regard the general definition
provided by Webster's Third New International Dictionary (1986:982) is of
some assistance, indicating only that governance is a synonym for government,
or "the act or process of governing, specifically authoritative direction and
control". This interpretation specifically focuses on the effectiveness of the
executive branch of government.

The working definition used by the British Council, however, emphasises that
"governance" is a broader notion than government (and for that matter also
related concepts like the state, good government and regime), and goes on to
state: "Governance involves interaction between the formal institutions and
those in civil society. Governance refers to a process whereby elements in
society wield power, authority and influence and enact policies and decisions
concerning public life and social upliftment."

"Governance", therefore, not only encompasses but transcends the collective

meaning of related concepts like the state, government, regime and good
government. Many of the elements and principles underlying "good
government" have become an integral part of the meaning of "governance".
John Healey and Mark Robinson1 define "good government" as follows: "It
implies a high level of organisational effectiveness in relation to policy-
formulation and the policies actually pursued, especially in the conduct of
economic policy and its contribution to growth, stability and popular welfare.
Good government also implies accountability, transparency, participation,
openness and the rule of law. It does not necessarily presuppose a value
judgement, for example, a healthy respect for civil and political liberties,
although good government tends to be a prerequisite for political legitimacy".

We can apply our minds to the definition of governance provided by the World
Bank in Governance: The World Banks Experience, as it has special relevance
for the developing world:

"Good governance is epitomized by predictable, open and enlightened policy-

making, a bureaucracy imbued with a professional ethos acting in furtherance
of the public good, the rule of law, transparent processes, and a strong civil
society participating in public affairs. Poor governance (on the other hand) is
characterized by arbitrary policy making, unaccountable bureaucracies,
unenforced or unjust legal systems, the abuse of executive power, a civil
society unengaged in public life, and widespread corruption."

The World Bank's focus on governance reflects the worldwide thrust toward
political and economic liberalisation. Such a governance approach highlights
issues of greater state responsiveness and accountability, and the impact of
these factors on political stability and economic development. In its 1989
report, From Crisis to Sustainable Growth, the World Bank expressed this
notion as follows:

"Efforts to create an enabling environment and to build capacities will be

wasted if the political context is not favourable. Ultimately, better governance
requires political renewal. This means a concerted attack on corruption from
the highest to lowest level. This can be done by setting a good example, by
strengthening accountability, by encouraging public debate, and by nurturing a
free press. It also means ... fostering grassroots and non-governmental
organisations such as farmers' associations, co-operatives, and women's
groups".

Apart from the World Bank's emphasis on governance, it is also necessary to

refer to academic literature on governance, which mostly originates from
scholars working with international development and donor agencies. The
majority of these scholars has concentrated almost exclusively on the issue of
political legitimacy, which is the dependent variable produced by effective
governance. Governance, as defined here, is "the conscious management of
regime structures, with a view to enhancing the public realm".

The contribution of Goran Hyden to bring greater clarity to the concept of

governance needs special attention. He elevates governance to an "umbrella
concept to define an approach to comparative politics", an approach that fills
analytical gaps left by others. Using a governance approach, he emphasises
"the creative potential of politics, especially with the ability of leaders to rise
above the existing structure of the ordinary, to change the rules of the game
and to inspire others to partake in efforts to move society forward in new and
productive directions".

His views boil down to the following:

 Governance is a conceptual approach that, when fully elaborated, can

frame a comparative analysis of macro-politics.
 Governance concerns "big" questions of a "constitutional" nature that
establish the rules of political conduct.
 Governance involves creative intervention by political actors to change
structures that inhibit the expression of human potential.
 Governance is a rational concept, emphasising the nature of interactions
between state and social actors, and among social actors themselves.
 Governance refers to particular types of relationships among political
actors: that is, those which are socially sanctioned rather than arbitrary.

To conclude, it is clear that the concept of governance has over the years
gained momentum and a wider meaning. Apart from being an instrument of
public affairs management, or a gauge of political development, governance
has become a useful mechanism to enhance the legitimacy of the public realm.
It has also become an analytical framework or approach to comparative
politics.

Source
"Governance Barometer: Policy guidelines for good governance" Website of
South Africa's National Party

7. Governance and corruption

"The issue of good governance and capacity-building is what we
believe lies at the core of all Africa's problems" - Commission for
Africa, 2005
Governance is the set of processes, policies, laws and institutions
affecting the way a country, institution, society, etc., is directed,
administered or controlled. Good or fair governance implies that
mechanisms function in a way that respects the rights and interests of
the stakeholders in a spirit of democracy. It promotes accountability
and strengthens confidence in government/ management
administration.
There is growing recognition of the link between good governance and
successful development/ poverty reduction which has stimulated
demand for monitoring the quality of governance across countries and
within individual countries over time.
Good governance is, in short, anti-corruption whereby authority and its
institutions are accountable, effective and efficient, participatory,
transparent, responsive and equitable. Governments should ensure that
a comprehensive and credible budget exists, linked to sectoral priorities
and policies, for consistent and efficient management of resources. In
promoting good governance, it is vital to tackle the abuse of power. The
views of all oppressed groups, including women, youth and poor, must
be heard & considered by governing bodies because they will be most
negatively affected if good governance is not achieved.
Improving local governance implies the strengthening of capacities for
decision-making, resource management, implementing developmental
initiatives, and delivering basic services among a variety of local
participatory institutions including local governments.
Governance publications
 A Decade of Measuring the Quality of Governance (2006): This
Publication describes the Worldwide Governance Indicators which
measure the quality of governance in well over 200 countries. The
political, economic and institutional dimensions of governance are
captured by six indicators and are published annually. Users can
compare the six dimensions of governance within a country over time
or compare each dimension of governance across several countries.
 The Ibrahim Index of African Governance: The Ibrahim Index of
African Governance is a comprehensive ranking of sub-Saharan African
nations according to governance quality. The Ibrahim Index assesses
national governance against 57 criteria. The criteria capture the quality
of services provided to citizens by governments. The focus is on the
results that the people of a country experience.
 OECD Principles of Corporate Governance: These provide
guidance for legislative and regulatory initiatives and are recognised
internationally as key standards for sound financial systems. They
underpin the corporate governance component of World Bank/ IMF
Reports on the Observance of Standards and Codes (ROSC).
 Good governance, aid modalities and poverty reduction (2008):
This research is aimed at clarifying the relations between governance
and poverty reduction and within this context to explore the
contributions and risks associated with new aid modalities (sector
programmes and budget support). It paid special attention to Irish Aid
programme countries in sub-Saharan Africa.
 Commission for Africa (2005): The importance of good
governance is stressed, with the caveat that "outside prescriptions only
succeed where they work with the grain of African ways of doing
things".
 Going with the Grain in African Development? (ODI, June 2008)
explores why the Governance Agenda, based much on Western
institutions, beliefs and values, has not taken off in Africa as it has in
other parts of the world.

Corruption
The dictionary definition of corruption is defined as the "Impairment of
integrity, virtue or moral principle; depravity, decay, and/or an
inducement to wrong by improper or unlawful means….".
Corruption is a universal, historic issue which occurs in both developed
and developing countries and in public and private sectors as well as
non profit sectors. Corruption, from petty bribery, nepotism to large-
scale larceny, can have a devastating impact, undermining
development, destroying public trust and burdening the lives of many,
in particular the poor, corruption's reach is insidious and its effect
destructive
The leading causes of corruption are:
 abundant natural resources
 autocratic and unaccountable government
 unevenly provided and poor quality public services
 low salary of civil servants
 under-resourced/ lack of independence for institutions/structures
intended to provide checks and balances.
Ways of combating corruption and improving governance can be
through the following:
 establishment of economic/ administrative/ market reforms
 update of mandatory accounting, audit, procurement regulations
 involvement of civil society groups
 strengthening capacities for decision-making and delivery of basic
services
 implementation of developmental initiatives.
Corruption in IFAD projects and programmes
IFAD has adopted a policy of zero tolerance against fraud, corruption
and misconduct. Most, if not all of the countries in which we operate
have poor governance and/ corruption records. IFAD promotes
awareness of governance and corruption issues through its discussions
on fiduciary responsibilities with borrowers, grantees and through its
projects, programmes and grants. Furthermore, on an operational level,
in cases of suspected fraud or corruption, IFAD declares mis-
procurement and/ or disallows the relating expenditures as ineligible
for financing. Staff members engaged in IFAD's operations, as other
IFAD staff, have a responsibility to report suspected fraud and
corruption within 3 working days to the Office of Audit and Oversight,
which may carry out further investigation as deemed relevant.
Each year, Transparency International (TI), the global coalition against
corruption, releases the Corruption Perceptions Index (CPI) which
measures the perceived level of public-sector corruption in a given
country.
Following recommendations and reviews in relation to Quality
Assurance in IFAD projects, IFAD management introduced
stronger governance and anti-corruption (GAC) measures from the
design stage of projects in countries with a low CPI score. The new GAC
measures are aimed primarily at involving beneficiaries, NGOs and civil
society at large in overseeing the contract award process and making
sure that all proceedings are open and transparent. For future
projects, a paragraph should be included in the design report
describing the proposed GAC to be implemented or why they are not
needed. Where the projects are for countries with a CPI
below 3.0, they should include specific mitigating measures to be
carried out in the first year of implementation as part of the project
design.
Although the CPI is indicative of the level of corruption in a country, TI
recommends that it should not be used to determine which countries
receive aid and which do not. Rather, it should be used as an additional
source of information to highlight which countries need assistance to
combat the existing corruption in that country. It also highlights which
countries require additional control measures from donors planning to
provide aid.
Corruption Publications
 Report on the Transparency International Global Corruption
Barometer 2010/2011: The Global Corruption Barometer is a survey
that assesses general public attitudes toward and experience of
corruption in dozens of countries around the world.
 Report on the Transparency International Global Corruption
Barometer 2009: The Global Corruption Barometer is a survey that
assesses general public attitudes toward and experience of corruption in
dozens of countries around the world.
 Bribery in Public Procurement: Methods, Actors and Counter-
Measures: Given the growing complexity of bribe schemes in today's
globalised markets, the problem is how to identify corruption in public
procurement so governments can work toward effective prevention and
apply sanctions if necessary. This report provides insights on all three
fronts.
8.A political institution is a system of politics and government. It is
usually compared to the law system, economic system, cultural system,
and other social systems. It is different from them, and can be generally
defined on a spectrum from left, i.e. communism and socialism to the
right, i.e. fascism. Linz’s argument is on the description of Totalitarian
and Authoritarian Regimes, which brings the main and important
argument of explaining both Presidential and Parliamentary systems.
Another important author whose thoughts were referred to political
institutions is Seymour Martin Lipset. His argument emphasizes on
political cultural-cultural factors rather than political systems. The last
individual whose main arguments refer to politics and political
institutions is Donald Horowitz. He describes that Linz claims are not
sustainable because it is regionally skewed and highly selective
sample.

9. Political culture is the set of attitudes, beliefs, and sentiments which

give order and meaning to a political process and which provide the
underlying assumptions and rules that govern behavior in the political
system. It encompasses both the political ideals and the operating
norms of a polity. Political culture is thus the manifestation in aggregate
form of the psychological and subjective dimensions of politics. A
political culture is the product of both the collective history of a political
system and the life histories of the members of that system, and thus it
is rooted equally in public events and private experiences.
Political culture is a recent term which seeks to make more explicit and
systematic much of the understanding associated with such long-
standing concepts as political ideology, national ethos and spirit,
national political psychology, and the fundamental values of a people.
Political culture, by embracing the political orientations of both leaders
and citizens, is more inclusive than such terms as political style or
operational code, which focus on elite behavior. On the other hand, the
term is more explicitly political and hence more restrictive than such
concepts as public opinion and national character.

The concept of political culture can be seen as a natural evolution in the

growth of the behavioral approach in political analysis, for it represents
an attempt to apply to problems of aggregate or systemic analysis the
kinds of insights and knowledge which were developed initially by
studying the political behavior of individuals and small groups.
[SeePolitical behavior.]

More specifically, the concept of political culture was developed in

response to the need to bridge a growing gap in the behavioral
approach between the level of microanalysis, based on the
psychological interpretations of the individual’s political behavior, and
the level of macroanalysis, based on the variables common to political
sociology. In this sense the concept constitutes an attempt to integrate
psychology and sociology so as to be able to apply to dynamic political
analysis both the revolutionary findings of modern depth psychology
and recent advances in sociological techniques for measuring attitudes
in mass societies. Within the discipline of political science, the
emphasis on political culture signals an effort to apply an essentially
behavioral form of analysis to the study of such traditional problems
as political ideology, legitimacy, sovereignty, nationhood, and the rule
of law. (For a theoretical analysis of the concept see Verba in Pye &
Verba 1965, pp. 512–560.)

10. what is human being A man, woman, or child of the species "Homo
sapiens" , distinguished from other animals by superior mental
development, power of articulate speech, and upright stance.

11. human development

Definition
Popular Terms
A measurement of achievements by humans through advancement of
knowledge, biological changes, habit formation or other criteria that
displays changes over time. Understanding human development can
help a company to manage personnel, market and sell products, or
negotiate international trade.

CASES:

Tañada vs. Tuvera 136 SCRA 27 (April 24, 1985) 146

SCRA 446 (December 29, 1986)
TAÑADA VS. TUVERA

136 SCRA 27 (April 24, 1985)

FACTS:
Invoking the right of the people to be informed on matters of public concern as well as the principle
that laws to be valid and enforceable must be published in the Official Gazette, petitioners filed for
writ of mandamus to compel respondent public officials to publish and/or cause to publish various
presidential decrees, letters of instructions, general orders, proclamations, executive orders, letters
of implementations and administrative orders.

The Solicitor General, representing the respondents, moved for the dismissal of the case,
contending that petitioners have no legal personality to bring the instant petition.

ISSUE:

Whether or not publication in the Official Gazette is required before any law or statute becomes
valid and enforceable.

HELD:

Art. 2 of the Civil Code does not preclude the requirement of publication in the Official Gazette,
even if the law itself provides for the date of its effectivity. The clear object of this provision is to give
the general public adequate notice of the various laws which are to regulate their actions and
conduct as citizens. Without such notice and publication, there would be no basis for the application
of the maxim ignoratia legis nominem excusat. It would be the height of injustive to punish or
otherwise burden a citizen for the transgression of a law which he had no notice whatsoever, not
even a constructive one.

The very first clause of Section 1 of CA 638 reads: there shall be published in the Official
Gazette…. The word “shall” therein imposes upon respondent officials an imperative duty. That duty
must be enforced if the constitutional right of the people to be informed on matter of public concern
is to be given substance and validity.

The publication of presidential issuances of public nature or of general applicability is a requirement

of due process. It is a rule of law that before a person may be bound by law, he must first be
officially and specifically informed of its contents. The Court declared that presidential issuances of
general application which have not been published have no force and effect.

TAÑADA VS. TUVERA

146 SCRA 446 (December 29, 1986)

FACTS:
This is a motion for reconsideration of the decision promulgated on April 24, 1985. Respondent
argued that while publication was necessary as a rule, it was not so when it was “otherwise” as
when the decrees themselves declared that they were to become effective immediately upon their
approval.

ISSUES:

1. Whether or not a distinction be made between laws of general applicability and laws which are
not as to their publication;
2. Whether or not a publication shall be made in publications of general circulation.

HELD:

The clause “unless it is otherwise provided” refers to the date of effectivity and not to the
requirement of publication itself, which cannot in any event be omitted. This clause does not mean
that the legislature may make the law effective immediately upon approval, or in any other date,
without its previous publication.

“Laws” should refer to all laws and not only to those of general application, for strictly speaking, all
laws relate to the people in general albeit there are some that do not apply to them directly. A law
without any bearing on the public would be invalid as an intrusion of privacy or as class legislation
or as an ultra vires act of the legislature. To be valid, the law must invariably affect the public
interest eve if it might be directly applicable only to one individual, or some of the people only, and
not to the public as a whole.

All statutes, including those of local application and private laws, shall be published as a condition
for their effectivity, which shall begin 15 days after publication unless a different effectivity date is
fixed by the legislature.

Publication must be in full or it is no publication at all, since its purpose is to inform the public of the
content of the law.

Article 2 of the Civil Code provides that publication of laws must be made in the Official Gazette,
and not elsewhere, as a requirement for their effectivity. The Supreme Court is not called upon to
rule upon the wisdom of a law or to repeal or modify it if it finds it impractical.

The publication must be made forthwith, or at least as soon as possible.

J. Cruz:

Laws must come out in the open in the clear light of the sun instead of skulking in the shadows with
their dark, deep secrets. Mysterious pronouncements and rumored rules cannot be recognized as
binding unless their existence and contents are confirmed by a valid publication intended to make
full disclosure and give proper notice to the people. The furtive law is like a scabbarded saber that
cannot faint, parry or cut unless the naked blade is drawn.