Professional Documents
Culture Documents
Introduction
Like other private and public corporations of every country around the globe, the
programs and communicate it to world. It is evident that more and more companies are making
CSR as part in their business strategies on how they could extend their responsibilities to the
economic sphere and the environment (Rimando, 2012). The fact that Maximiano (2005)
affirmed this observation by stating that business executives, regardless of the size of their
company, consider CSR as a fundamental part of their operations. Several CSR categories
emerged in various research studies such as ethics, diversity, environmental, sustainability and
philanthropy (Chandler & Werther 2014) confirmed the continuous evolution in the concept
The growing demand for corporations either government and private to allocate CSR
programs and communicate it to the public has encouraged the public water utilities in the
Philippines to take a huge leap in the challenging and critical waters of CSR despite its primary
focus and function is to deliver a 24/7 potable and safe water supply to its constituents.
The early root of CSR in the Philippines as Sharma (2010) cited was more of charitable
philanthropy and one-time donation as majority of the populace in 1970’s was living in
poverty. Pedrosa (2016), on the other hand, manifested that CSR is now evolving since the
Public Service Corporation focuses more on responsibilities to help develop and protect the
community and environment as well as ensure sustainable services. This defines the core
responsibility to serve the public and what other contribution does it make to the community.
Further, Gachitorena (2011), president of the League for Corporate Foundation and Ayala
Foundation, looked at CSR practices in the Philippines as “doing business in a way that
traditional based on how the companies report, communicate and encourage engagement.
However, Pedrosa (2016) in her study stipulated that the Public Service Corporation
maximizes the use of every communication resources available in the locality from mass media
such as cable tv and radio to its own communication resources such as newsletters, annual
reports and website, employees, and third parties like media and public officials.
the Public Service Corporation prompts the interest of the researcher to investigate the online
CSR communication.
Therefore, this study explores the Online CSR communication and CSR practices of
In the Philippines, the early root of CSR was more of charitable philanthropy and one-time
donation as majority of the populace in 1970’s was living in poverty (Sharma, 2010). The
CSR of the Public Service Corporation is defined as ethical and economic, ethical and legal,
and philanthropic with the specific efforts on poverty, environment, health, education,
technical and resources assistance, and sustainability of the services (Pedrosa, 2016). These
findings are still directed to Caroll’s (1991, 1999) moral perception of companies’ inherent
obligation to do what is right, just and fair, lawful and profitable. Pedrosa’s (2016) conclusion
on Public Service Corporation’s CSR to help develop and protect the community and
environment and ensure sustainable services. This defines its core responsibility to serve the
public and what other contribution does it make to the community. The identified top CSR of
the Public Service Corporation are the watershed management, rehabilitation and protection;
free labor and materials on water installation; and free water usage during fire incident which
The practitioner group, the World Business Council for Sustainable Development (WBCSD,
1998, p.3) affirmed the company’s CSR which has “the continuing commitment to behave
ethically and contribute to economic development while improving the quality of life of the
workforce and their families as well as of the community and society at large”. The European
Commission (2011, p. 6) further expounded that CSR of enterprises has the responsibilities to
give positive and acceptable impacts on society. As corporate citizen both views emphasized
Meanwhile, the Philippines Business for Social Progress (PBSP) and League of Corporate
Foundations, Inc. (LCF) identified CSR as a business principle which proposes the long-term
sustainability of business is best served when profitability and growth are attained alongside
the development of communities, the protection and sustainability of the environment, and the
Thus, the statement Sohn (1982) agreed that corporate social responsibility (CSR) is concerned
with the relationship between a company and a society. He elaborated that CSR should be
based on the question of why companies exist (Sohn, 1982). This simply define CSR as a
These views lead to Porter and Kramer’s (2011, pp. 76) statement that “the purpose of the
corporation must be redefined as creating shared value, not just profit per se”. The said
statements emphasized the necessity to align CSR to the core of the business. Thus, CSR is to
consider all these different stakeholders in the creation of corporate policies as it affects the
Cone (2013), likewise, found that CSR is now considered an expectation of business by the
public, more than a good strategy for business. It is in fact, as Sahlin-Andresson (2006) cited
as an emerging movement that enables corporations to impact more the social and economic
development. The base for responsible business activity is the compliance with the laws
(Steurer 2010). Therefore, governments should have good legislation levels to put standards
for businesses in all three areas of the triple-bottom-line concept: economy, environment and
It is believed that stakeholder support brings justification for a company’s existence and create
value for stakeholders, which means responding to stakeholder expectations (Mason and
Simmons 2014). Therefore, companies should have dialogue with the stakeholders to
understand their expectations and to report to the stakeholders about their CSR activities.
CSR communication
Communication is essential for any company. As Panapannan et al. (2003) pointed out that it
structured efficiently and properly for it to reach the different target groups. This affirms Vurro
and Perrini’s (2011) study that CSR communication is a central element in the relationship
between a company and the society surrounding it. CSR Communication plays an important
part of gaining legitimacy and staying in touch with the surrounding society. The increasing
interest of the society towards the impacts of the companies act to the society serves as
motivation for companies to participate in CSR communication. This means that CSR
Still many companies are facing a choice of whether to communicate their CSR or not because
with the likes of the Scandinavian consumers, they tend to be skeptical towards CSR
communication directly from the companies (Brønn 2013). CSR communication is however
important in building a bond with stakeholders and raising awareness of the company issues.
Thus, it is emphasized that the companies should explain when talking about a social or
minimize skepticism from the public. It is recommended that a company should not only talk
about the issue but also highlight in their communication their commitment to the issue, the
impacts this specific program has, what are the motives to participate in the issue, and how
does it fit to the core business of the company (Du et al. 2010).
The challenge is to make the CSR communication fitting to specific stakeholders’ expectations
and to the core business of a company (Dawkins 2004). In fact, it is recommended that for the
CSR to be credible it needs to make sense in light of the core of the business operations
(Dawkins 2004). This means that there is a need to find creative communication ways that
catch attention and are easily understandable considering not every target group is interested
Companies utilize several different communication channels for their CSR communication.
The communication channels can be divided into those that are in the control of the company
itself such as reporting, website, PR, packaging and advertising, and to those are not directly
controlled by the company such as media, social media, what customers or employees say, and
CSR communication is becoming its own field within corporate communications. It now is the
third largest budget item in corporate communications of large companies (Brønn 2013). All
the traditional communication tools can be used for CSR communication, but the way the
messages are perceived needs to be paid close attention to because perceived insincerity in the
messages is bad for the corporate image (Vidaver-Cohen and Brønn 2015).
Pedrosa (2016) manifested that the Public Service Corporation noticeably tried to maximize
every communication resource available in the locality. Thus, radio and cable tv are the
popular medium in the locality because of the limited access of internet in the locality. This
shows that these two popular channels are the most readily available and accessible to the
of other stakeholders and not by reading the corporate CSR communication. Thus, it is
encouraged that companies need to balance in between the interests of different stakeholder
groups (Strand 2015). There is a need to publish and present the different scenarios on what
the company is doing and how it is affecting its operation, environment and the community.
Different aspects of CSR are important in different industries and the relevance of CSR
2015).
In CSR communication, companies consider Morsing and Schultz’s (2006) three CSR
communication models with stakeholders. The stakeholder information strategy means one-
way communication from the company to the stakeholders (Morsing and Schultz 2006).
Sharing information is done through production of material, news and press releases for the
media.
The stakeholder response strategy consists of two-way communication that aims at changing
the behavior and opinions of the public (Morsing and Schultz 2006). The power of stakeholders
is acknowledged but they are seen as passive in communication. The communication from the
stakeholders is seen more as feedback about the company. The feedback is often assessed
through some sort of surveys. The risk in this communication strategy is that the company will
which both participants are demanding change from each other and both participants also
change in response to the messages (Morsing and Schultz 2006). In addition, the stakeholders
are included actively in the dialogue so that the company can develop its CSR strategy. The
dialogue is maintained systematically, and it needs to be continuous so that the CSR activities
are up to date and that stakeholders can feel that they are truly included in the process. The
goal of this two-way dialogue is to create common census or an agreement that is fitting for
both.
Morsing et al. (2008) identified two CSR processes. One is Expert CSR communication
proficient way to communicate about CSR. It is recommended to let a group of CSR experts
communicating to the consumers and the public indirectly through a certain group that then
forwards a positive message about the organization’s CSR to the other stakeholders. It is
believed that both have to think that the information is interesting enough for them to
Another challenge of CSR communication today is the Internet since communication on the
Internet has created a new freedom for everyone to both share and find information (Scarlat
and Maxim 2009). People are no longer restricted to having access to only to the information
The young consumers of today grew up with the Internet and are used to communicating
constantly to all corners of the world. They know how to use the Internet as an information
source (Schmeltz 2012). Thus, companies should be innovative and learn to take advantage of
online for the CSR communication. Communication on company web sites however works
only if people go there to look for information, and at their current state many of the corporate
Communicating and having an online presence is now a growing importance for companies as
people are getting more and more used to online communication (Scarlat and Maxim 2009).
Corporate communication needs to respond to the communication trends in the society. The
According to Hootsuite, US-based social media management platform, in the Digital 2018
Further, according to to mobile network research firm OpenSignal, CNN Philippines (2018)
the Philippines performed poorly on the speed and availability of long-term evolution (LTE)
connection in the country. The firm's "State of the LTE Report" for November 2017 revealed
the country ranked 74th out of 77 countries in terms of 4G speed. 4G, or fourth generation
mobile internet technology, is the current standard for mobile network connectivity, offering
speeds ten times faster than its predecessor. This simply manifests that not all localities in the
For companies the company website is the main communication tool over which they have
complete control (Lee et al. 2013). The company websites are also an official look at a
This research did not analyze the contents of the sustainability reports available on the websites
or contents on the websites. It provides a case study of communication ways on these corporate
websites.
Methodology
This chapter explains the research methods used in this thesis and gives justifications for the
choice of these methods considering the research objective and the phenomena under study.
The chapter also describes how the data was collected and analyzed.
The research objective of this study is to get better understanding through qualitative case
study of how the Philippine Water Utilities view CSR communication and its challenges.
This case study is not a comparative study but rather investigates the perspectives on CSR and
2. What are the CSR activities of the Philippine Water Utilities as communicated in their
websites?
Research design
The researcher is the primary instrument of data collection and analysis of the results and the
The data are gathered through the online website of the different Philippine Water Utilities
from Luzon, Visayas and Mindanao. Two water districts were selected from the three areas
Category A-Visayas: Metro Cebu Water District, Bacolod City Water District
Category A-Mindanao: Cagayan de Oro City Water District, Davao City Water District
The different categories are the classification of water districts as established by the Local
Water Utilities Administration. The criteria of each category of the water districts are based on
net income before interest and depreciation, and staff productivity index. The category A water
districts belonged to a bigger and economically progressive cities followed by the category B
while categories C and D water districts are small once and less economic activities compared
The data gathered were coded by identifying CSR communication themes gathered in the
The results were analyzed within the same themes in which the results were presented in terms
Case study is a method used to investigate in depth one, or in this case small number of
companies (Easterby-Smith et al. 2012). The drawback with case study is that it does not
usually provide generalizations to any larger group. The same limitation is present in this
research.
The addition of multiple cases instead of one provides a bit broader overview and can possible
show also deviation within the context of the case study (Easterby-Smith et al. 2012). Multiple
cases were also used in this research to gain a bit broader perspective than from just one case,
Data collection
The cases of the research consist of eight water utilities chosen based on certain criteria, so the
sampling strategy was purposeful. These companies were chosen for the case study because
the researcher is an employee of one of the water utilities. Further, choosing the water utilities
gives the opportunity to explore with the CSR communication through the website of the water
utilities in this time of growing Internet usage in the Philippines. Therefore, the Philippines
Water Utilities were chosen for the case study. The corporate websites were used for the
Limitations
Limitations to this study come from the uniqueness of the different water utilities. The
companies studied are from the same industry but in different categories, locations and
environment which does not make the results generalizable to any larger group. The results are
Therefore, it is important to include different types of information in reports, not just numbers.
But the reports easily become too big when too many groups are targeted. There needs to be
The reported CSR programs in the official website of the water utilities focused on the
medical outreach for both young and old; and clean and safe water supply in schools and
indigenous families.
These programs clearly manifested the wholistic concern on the development and quality life
of the people and the community. These, therefore, remarkably brings Carroll’s CSR Pyramid
to the fore: philanthropic, ethical, legal and economic responsibilities, which capitulates the
World Business Council for Sustainable Development (WBCSD, 1998, p.3) that company’s
CSR has “the continuing commitment to behave ethically and contribute to economic
development while improving the quality of life of the workforce and their failies as well as of
There is a deep emphasis on the CSR of the water utilities that is beneficial to the stakeholders
and the long tern sustainability of the operation. As the Philippines Business for Social
Progress (PBSP) and League of Corporate Foundations, Inc. (LCF) identified CSR as a
business principle which proposes the long-term sustainability of business is best served when
profitability and growth are attained alongside the development of communities, the protection
and sustainability of the environment, and the improvement of the people’s quality of life
(Sharma, 2010).
Further, majority of the CSR programs of the water utilities are in partnership with other
government and private entities, and individuals. This shows that the CSR of the water utilities
as Sohn (1982) stated corporate social responsibility (CSR) is concerned with the relationship
between a company and a society. It simply explains that both companies and society are
working together.
The active involvement of the water utilities in the watersheds protection rehabilitation and
development manifested the dependency of its water supply or services to the concessionaires.
The core of the business is public service. This further shows the significant role of the
watersheds to the existence of the water utilities, which points the company of producing goods
or services for the society while making a profit. This simply defines CSR as a company’s
While Porter and Kramer (2011, pp. 76) supported CSR by saying that “the purpose of the
corporation must be redefined as creating shared value, not just profit per se”, it is, indeed, the
direction of the CSR of the water utilities as reflected in their websites. Thus, this manifest that
the companies dialogue with the stakeholders to understand their expectations and to report to
Communication on the Internet has created a new freedom for everyone to both share and find
information (Scarlat and Maxim 2009). People are no longer restricted to having access to only
to the information that communication experts find important to publish. However, out of the
24 water districts, only five water districts placed a CSR page on their website, eight water
districts reported their CSR activities under the news articles or updates, and others did not
post any information about their CSR. They only post information about their water districts.
These outcome manifest that the water utilities are unable to maximize their websites and
Further, the CSR communication through the websites of the water utilities is affected as what
the OpenSignal stipulated that the internet speed and availability performed poorly. The
Philippines ranked 74th out of the 77. This poor speed and availability do not interest the
This result affirms communication on company web sites works only if people go there to look
for information, and at their current state many of the corporate websites are not very
The CSR programs of the Philippine Public Water Utilities focused on the people and
environment; education of the young people, medical outreach for both young and old; and
clean and safe water supply in schools and indigenous families.These affirm Carroll’s CSR
Pyramid to the fore: philanthropic, ethical, legal and economic responsibilities as well as
captures the World Business Council for Sustainable Development (WBCSD, 1998, p.3)
development while improving the quality of life of the workforce and their families as well as
There is an adamant emphasis on the CSR which is beneficial to the stakeholders and the
sustainability of the water utilities’ operation. As the Philippines Business for Social Progress
(PBSP) and League of Corporate Foundations, Inc. (LCF) identified CSR as a business
principle which proposes the long-term sustainability of business is best served when
profitability and growth are attained alongside the development of communities, the protection
and sustainability of the environment, and the improvement of the people’s quality of life
(Sharma, 2010).
Further, majority of the CSR programs of the water districts are in partnership with other
government and private entities, and individuals. This shows that the CSR of the water districts
as Sohn (1982) stated corporate social responsibility (CSR) is concerned with the relationship
between a company and a society. It simply explains that both companies and society are
working together.
The active involvement and partnership of the government and private entities, and individuals
together with the water utilities specifically in the protection, rehabilitation and development
of the environment manifests the significance of the latter for the water supply. This further
shows the significant role of the watersheds to the existence of the water utilities, which points
that the company should be producing goods or services for the society while making a profit.
Thus, this simply define CSR as a company’s justification for existence (Eberle et al. 2013;
Sohn 1982).
While communication on the Internet has created a new freedom for everyone to both share
and find information (Scarlat and Maxim 2009), but only five water utilities placed a CSR page
on their website, eight reported their CSR activities under the news articles or updates, and
eleven did not post any information on their CSR. They only post information about their water
districts. These outcomes manifest that the water utilities are unable to maximize their web
sites in providing information to the public and online updates are inactive because of the poor
internet speed and availability. This result affirms CSR communication on company web sites
works only if people go there to look for information, and at their current state many of the
corporate websites are not very interactive as they should be (Schmeltz 2012).
Recommendation
Based on the results and findings of the study, the following recommendations are therefore
presented.
Maximize the use of the Water Utilities’ website. Communicating the CSR programs
through the water districts website should be maximized and given emphasis since creating a
website is for the sole purpose of transparency and easy access and dissemination of
information. rts.
Campaign the Public Water Utilities website. With the growth in communication
technology, the Water Utilities should campaign its website as an online source of CSR
Conduct another research study. Conduct another study that takes into the cultural context
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