Local Studies

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Abstract
With responses from a sample of 166 business executives from a broad mix of companies of various sizes and industries, this 2004 baseline study on corporate social responsibility in the Philippines is the first and the most comprehensive research investigation of the CSR practice in the country in terms of scope and approach to societal impact management (SIM).

Regardless of the size of their company, business executives in the Philippines see corporate citizenship as a fundamental part of business. Most company managers say they view corporate citizenship as central to good business practice. 82 per cent of executives surveyed say that good corporate citizenship helps the bottom line. 59 per cent say these practices improve the image and reputation of the company, while 53 per cent say corporate citizenship is important to their customers. The findings in this report provide a baseline portrait of executives’ perceptions of the state of corporate citizenship in the Philippines in 2004 and a solid basis to track its evolution over time. The author’s intent is to revisit the topic biennially, with scheduled follow-up planned for 2006.

Statement of the problem
The study on the current status of corporate citizenship in the Philippines seeks to establish a baseline of the CSR motivations, extent of implementation, obstacles and expectations among the micro, small, medium and large enterprises in the country. Specifically, the study will seek answers to the following questions: (1) What is the emerging view of CSR among business organisations with regard to: 1. good corporate citizenship

2. business case for CSR
3. public expectations
4. issues where they believe businesses should play an active role? (2) To what extent do the following factors drive the respondents’ CSR efforts: 1. community expectations
2. company traditions and values
3. business strategy Australian Association for Professional and Applied Ethics 12 th
Annual Conference
28–30 September 2005, Adelaide
2
4. recruitment and retention of employees
5. consumer/customer satisfaction
6. laws and political pressures
7. concern for corporate image/reputation?
(3) What are the barriers, both internal and external, that are encountered by the companies in the pursuit of their CSR agenda?
(4) What is the extent of the companies’ involvement along the following CSR areas: 1. social investment
2. corporate–community partnership
3. environmental stewardship
4. managing workplace concerns?
(5) To what extent have companies integrated CSR into their strategic business practice in terms of the following:
1. leadership
2. policy setting
3. program development
4. systems installation
5. monitoring and reporting?
(6) Is there a significant relationship between the extent of CSR involvement among companies and company size and industry classification?
(7) Is there a significant relationship between the extent of CSR integration among companies and company size and industry classification?
Conceptual framework
The study revolves around a baseline approach to the societal impact management of Philippine business or, in other words, an overview of how socially responsible Philippine business is. In the center of this framework is the firm, which has two important and basic components that are tested, namely: (1) the extent of its CSR involvement in areas such as social investment, environmental stewardship, issues in the workplace, and partnership with the community; and (2) the extent of the CSR integration in terms of the following: leadership, policy, programs, systems and reporting.

Significant to the methodical assessment of SIM is an appreciation of four independent variables: (1) drivers or accelerators of CSR; (2) barriers to the practice of CSR; (3) emerging views of CSR; and (4) the profile of the company based on size, industry classification and...
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