Using the theoretical framework of “business, society, state and non-state” relations in the backdrop of the declining role of the state, challenges of globalization, changing face of development and complex governance, CSR has proven its efficacy both as a management process and social equity catalyst. This article exemplified how the two countries of the Philippines and Taiwan, manage the tension brought about, in one hand, by the ethical arguments about the necessary role for business in dealing with the broad array of stakeholders and acting as corporate citizen in a larger society to deal with social problems effectively. On the other hand, the economic arguments about the need for businesses, especially the public corporations, to focus on enhancing “shareholder value” and the economic interests of the firm. Obviously, the latter is consistent with Milton Friedman’s assertion that corporate executives have the responsibility to make as much money as possible while conforming to the rules of the society, both those embodied by law and those embodied in ethical customs.
