Edmar Marie Labarento.docx

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 profitmaking 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.