The Corporate Social Responsibility of Big Businesses Establishments within

Gerona, Tarlac

A Quantitative Research Presented to

Mr. Gerald C. Presiados

Estipona National High School

Senior Department

Pura, Tarlac

In Partial fulfillment of

The requirements for the subject

Practical Research 2

Accountancy, Business and Management

By

Edmar Marie D. Labarento

 Chapter 1

THE PROBLEM AND ITS BACKGROUND

Introduction
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 businesses’s relationship to it’s society and environment is a critical factor in

operating efficiently and effectuvely.

According to Douglas and Emily (2011), business environment has changed significantly

recently. To survive in this dynamic business environment, businesses have been forced to adapt

various strategies, among them being the integration of corporation social responsibility (CSR)

into their business models.

Bendell (2005) argues that, there is no single definite definition of what CSR is, as various

organizations define this concept in different ways. However, most of these definitions are closely

related in the sense that they relate CSR with how organizations manage their business process to

create a general positive impact on the society. Thus, CSR is universally

defined as the ongoing dedication by organizations to act in an ethical manner as well as to

contribute to economic development, at the same time enhancing the quality of life of their

employees, their families, and the local community and society entirely. From this definition, it is

evident that CSR is all about how organizations relate to the external and internal environment, in

the course of pursuing its business motives.

 We are living in a world surrounded with numerous problems related to environment and

society. CSR (Corporate Social Responsibility) is means to sort out these problems to some extent

because business is a part of society. Earning more and more profits is a natural phenomenon of

every business unit but social responsibility is an obligation to the people living inside and outside

the business organizations. Business comes in contact with various groups of society such as

owners, employees, customers, government, suppliers etc. The responsibility of business, which

includes satisfaction of these parties along with the owner, is called social responsibility of the

business. CSR typically includes issues related to business ethics, community engagement, global

warming, water management, manage the use of natural resources, human rights etc. So, in order

to get sustainable development and to survive in this competitive world, the organizations need to

demonstrate a close and good relationship with society (Steiner)

Social responsibility and business ethics are concepts that go hand in hand for all

companies that transact business. Business ethics are those moral standards a company applies to

make sure that the employees act within the rules and principles of the company while doing the

business functions. The marriage of two are used by large organizations and companies to promote

corporate governance, this in turn creates the framework of procedures, policies and the guidelines

for the individual stakeholder, that is, those who are employed and even those who have invested

in the company (Bendixen & Abratt, 2007).

In this view, the study will know about the social responsibility of big businesses at Gerona,

Tarlac to be aware if there are some social responsibility here and to know if the big businesses of

Gerona, Tarlac are giving their half income to the society.

Statement of the Problem

The study aims to determine the social responsibility of big business of Gerona, Tarlac.

Specifically, this study sought to answer the following questions:

1. How may the managers or owners be described in terms of the following variables:

1.1-gender;

1.2-age;

1.3-social status

1.4-number of years in business;

2. What are the social responsibility of the business?

3. How they can increase and share their half profit for their social responsibilities?

Scope and Delimitation

In this study, the researcher will conduct about social responsibility at Gerona, Tarlac. The

respondents are the three (3) owners or managers.

Significance of the Study

The importance of this research work is carried out as a requirement of all students. This

study will examine the social responsibility of big businesses.

The Municipality of Gerona, the result of this study will serve as guide on how big businesses

shared the half of their profit for the social responsibility.

To the business, to grow and to become a strong one business in the Municipality.

To the manager/owner, to gather more knowledge or information about social responsibility.

To the students, the study will be a guide of the students to know about social responsibility and

how the owners share their half profit.

Definition of Terms

For the clearer understanding of the study, the following terms are conceptually and

operationally defined.

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 (investopedia.com). In this study this is

a responsibility wherein the owners of the companies or big businesses are responsible to give

their half profit to help other people.

Big Business. An economic group consisting of large profit-making corporations especially with

regard to their influence on social or political policy; a very profitable enterprise (Merriam

Webster). In this study, these are the businesses who shared their profit for the social responsibility.

Manager or owner. A person who both owns a business and manages it (dictionary.com). In this

study, these are the people who owns or manage big businesses. They are the respondents.
Profit. A financial gain, especially the difference between the amount earned and the amount spent

in buying, operating, or producing something (dictionary.com). in this study, this is the money

that the business shared for social responsibility.

 Chapter 2

REVIEW OF RELATED LITERATURE AND STUDIES

This chapter presents the related literature and studies that gave foundation in the conduct of the

study.

Related Literature

Windsor (2001), article examined the future of Corporate Social Responsibility or the

relationship between business and society in long run. The researcher try to find out that whether

the organization and society will come closer to each other in future or not and what will be the

changing phase of CSR. With the help of history or past trend of CSR, Caroll’s model analysis and

in global context, the researcher found three emerging alternatives of CSR i.e conception of

responsibility, global corporate citizenship, stake holder management practices. Nigel Sarbutts

(2003), the paper explored the way of doing CSR by small and medium sized companies. The

research depicted that a structured approach to managing corporate reputation and profit

maximization of SME’s through CSR. The societal activities of small and medium sized

companies is based on their cost is Benefit Analysis. Small Corporation always struggle for more

reputation and minimization of risk. In such a situation, CSR comes as hope for these companies.

Large companies have so many resources for implementing CSR activities but SME’s have less

resources. It can be a barrier for them to stay in the market. So, in that situation by imparting much

information, proper utilization of resources, doing well for businesses, SME’s can minimize their

risk and manage CSR.

 Idowu (2007), with their study of twenty companies in U.K., propounded that the U.K.

companies has now become ethical in the content of social responsibility as companies disclose

its CSR with a view of public benefits, government request and issue information to stakeholders

because the companies think that stakeholders of twenty first century are better educated than past.

Vaaland, Heidi (2008), paper based on a case study methodology. The paper purpose was

to handle the CSR critical incidents and utilize this experience in enforcing the CSR activities. The

study concluded that CSR should be managed by handling unexpected incidents, long term

reduction of gap between stakeholders and their expectations and company performance and

finally maintaining relationship with society through interplay between actor, resources and

activites.

Gond, Crane (2008) made an analysis on the distortion of corporate social performance

concept. The research analysed that the past researches and found some reason of emerging fall in

the interest of corporate social performance research among the scholars. The paper also suggested

models on the basis of which the researcher explained that why the CSP concept has lost its

importance and development. Further, the researcher depicted some model which the researcher

can used in their research related to corporate social performance. The paper argued that tensions

and contradictions are the starting point to develop the CSP concept. CSP has an umbrella of

activities which need to measure differently in order to move the researches from a simple concept

to development.
 Hartman (2011), article “Corporate Social Responsibility in the food sector” in European

review of agriculture economist journal, analysed the importance of CSR in food sector,

particularly those companies which have high brand. CSR is an important part of these companies.

But SME’s are less capable in discharging their obligation towards society. Further, the research

found that food sector always tries to improve the controlling and discharging its services towards

consumers. Consumers also prefer those brands or food firms which give preference to CSR

activities and provide good product and services.

Related Studies

Foreign

According to Steiner “social responsibility implies recognition and understanding of the

aspirations of society and determination to contribute towards their achievements”. In spite of its

current popularity, there are several issues which remained pending and corporate need to be aware

about them. CSR has become one of the catchphrases of new millennium across the world and the

corporate as well as government must take care of it. Today, government has also come as an

initiative to control those business activities which makes a harmful effect on the society.

According to Wiley Periodicals, Inc. (2012), the results show that while the CSR decisions

of foreign firms are mainly guided by legal prescriptions, those of their local counterparts are

guided mostly by discretionary and social considerations. The socially oriented CSR practices of

the local firms are consistent with cultural expectations in Ghana that those with extra resources

should support the less privileged members of the society. But the difference in the degree of
importance that the two groups of firms attach to discretionary motives for their CSR practices is

not statistically significant. The article also discusses the policy, strategy, and research

implications of the findings.

Robbins (2011) argues that, CSR also promotes profitability, through its linkage with

sustainability. For instance, through focusing on CSR, especially those that are intended to

promote sustainability objectives, a firm is likely to reduce costs in addition to enhancing

efficiencies. For public companies, CSR creates an opportunity of these companies being included

in the Dow Jones Sustainability Indexes, or FTSE4Good list. In turn, this is likely to promote the

stock price of the companies, making the stock options more profitable for the shareholders.

Despite the above arguments on the effectiveness of CSR in enhancing a firm’s profitability, other

scholars have given different opinion regarding the issue of how CSR is related to profitability.

Perhaps, the economists are the leading grouping with differing opinions. Their argument is based

on the core function of a firm, in relation to its shareholders. For instance, Milton Friedman was

of the opinion that CSR is a socially desirable undertaking.

Local

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 percent of executives surveyed say that good corporate

citizenship helps the bottom line. 59 percent say these practices improve the image and reputation

of the company, while 53 percent 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.
 Chapter 3

Methods of Study and Sources of Data

This chapter presents the methods and procedures which were utilized in this study. In

particular, this chapter talks over the research design, the respondents, the research instruments

and the statistical treatment of data used in this study.

Research Design

The researcher used the phenomenological method of research since it determined the

social responsibility of big businesses within Gerona, Tarlac. This method was used because this

was the most appropriate in the attainment of the purposes of this study.

Data Gathering Instruments

In the line with the purpose of the study, the researcher used the instruments that are hereby

described briefly for better appreciation of the investigation undertaken.

Questionnaire-checklist was prepared based on the researcher’s readings and with

additional information coming from the internet. The researcher designed the checklist with a

provision for other answers not mentioned in the list. It was checked, reviewed and amended by

her subject teacher and some academic authorities before floating the sets of questionnaires.
Research Locale and Respondents of the Study

This study was conducted at some places of Gerona, Tarlac.

There are three (3) managers or owners who served as respondents. Majority of the

respondents were male with 68%, while 32% of female.

Sampling Design

Three (3) managers or owners are selected in Gerona, Tarlac.

Data Gathering Procedure

The researcher sought permission to the manager of the big businesses to conduct study.

The manager of every big businesses were not cooperative so that I’m not able to continue my

research because my respondents didn’t cooperate, they don’t want to interview.