An In-Depth Analysis of Corporate Social Responsibility (CSR) Initiatives of ABS-CBN

Lingkod Kapamilya Foundation

 

 

 

Submitted to:  

Ms. Jennifer Bedore  

Political Science Department  

De La Salle University  

 

Submitted by:  

Garcia, Chaia  

Payumo, Lea  

Quiambao, Dana  

Velasco, Xyla  

SUSDEVT A51  

 

 

I. Introduction

 

A. Worldview on Corporate Social Responsibility (CSR)  

Many businesses use world resources which is harmful to the environment and the people

with that, according to Ebner and Baumgartner (2008), Corporate Social Responsibility focuses

on “value creation, environmental management, and human capital management. It addresses

sustainable development issues, specifically social issues like education through values

formation, environmental issues like pollution and depletion of natural resources through CSR

activities related to environmental management, and economic issues like unemployment and

poverty by human capital management.  

With that, different international organizations, initially Organization for Economic Co-

operation and Development (OECD), in year 1960, came up with a solution to address the on-

going extraction of our resources to stabilize it and to promote sustainable development. In the

OECD convention, the organization came up with policies that will promote sustainable

economic growth. However, the UN Conference in year 1972 gave emphasis on finding a shared

value between businesses and their community (CSR Centre Navigation, 2014).  

With that, Corporate Social Responsibility (CSR) was introduced which was formerly

and well-known to be just “Social Responsibility” during years 1950s’-1960s. CSR has been

similarly defined by many international institution which includes World Bank, United Nations,

European Commission, etc. For instance World Bank defines CSR as a “commitment of business

to contribute to sustainable economic development, working with employees, their families, the

local community and society at large to improve quality of life, in ways that are both good for

business and good for development” (World Bank, 2003).  

Further, United Nations Industrial Development Organization (UNIDO) defined CSR as

a form of managing companies that integrate social and environmental concerns that are affected

due to their business operations and interactions with their stakeholders (UNIDO, n.d.).  

To simplify the definition of World Bank and UNIDO, European Commission (2011)

defined it as a responsibility of enterprises for their impacts to the society.  

 

a.1 Best Practices  

 

According to Lu (n.d), enterprises that are engaged in CSR and incorporated the

utilization of green policies. Green policies are similar to environmental policy which is defined

by Green Grants Machine Corporation (n.d) as “a written statement outlining an organization’s

mission in relation to managing the environmental effects and aspects”. An example of green

policy according to California Recycle (2014) is the “In-house waste reduction and recycled

content product procurement of 1999, wherein this policy aims to provide strategies and model

for waste prevention. By utilizing green policies, companies are more likely to get the

consumer’s attention. Based on the survey of the Cone Inc,, 83% of the consumers trust a

company more if it is socially/environmentally responsible.  

Further, Lu (n.d.) listed seven characteristics of best CSR practices which includes the

following: a) set measurable goals, b) stakeholder engagement, c) sustainability issues mapping,

d) sustainability management systems, e) life cycle assessment, f) sustainability/CSR Reporting,

and g) sustainability branding.  

It is important for a CSR Effort to have a measurable goal so that the stakeholders can

evaluate whether the effort done has been beneficial to them. For the stakeholder management, it

would be essential in a CSR activity that all of the stakeholders are included in every decision

making regarding the sustainable development challenges and its solution so that there would

different perspective in analyzing the issue. The following characteristics gave importance on the

capability of the company to have a sustainable management of their activities which includes

anticipation of problems and monitoring the activity.  

According to Porter and Kramer (2014), the contemporary business world still lacks a

framework for creating shared value between a company and a community. As described in the

article, many companies nowadays still focus on short-term goals that are more oriented to

increase financial performance and not for long-term “customer needs”.  

 

Shared Value is a concept that is highly associated with the“ intersection of communities

and corporate performance. The goal is to attain mutual growth between the company and the

community. The stability of the company will determine the sustainability of a certain CSR

project. Thus, it is important to ensure that giving back to the communities is also beneficial as

for the context of the company’s financial, social and environmental performance (Porter and

Kramer, 2014).  

 

To elaborate more, the article emphasizes that shared value should be concerned in

allowing the communities to advance in different aspects without compromising the name,

reputation and stability of the company. Through CSV, businesses can manage more effectively

and efficiently the benefits and costs of CSR projects.  

 

a.2 Emerging Challenges of Implemented CSR Efforts  

 

Considering that CSR aim to solve the problem of businesses and their impact to their

society, there are still remaining and emerging sustainable development challenges. Some of this

issues include the conflict between the purpose of the business and the concept of social

responsibility. It has always been an issue since the main goal of businesses is to earn profit and

sustain stability of their business. However, engaging themselves in social activities will hinder

them to do so since they budget their money to CSR activities. With that, there is a conflict of

interest between the two parties as businesses need to ensure that their CSR activities will be

mutually beneficial for them, through earning profit, and their respective communities. In return,

the communities are encouraged to give back to the businesses by supporting them.  

Another challenge is that CSR programs fail to give their communities an actual benefit

as they are considered to be negligible and non-existent. Usually, the CSR initiatives are just

activities that are good for a day or week each year which make it negligible to the recipients.

The challenge is to come up with activities that will have a long-term benefits to the community

as well as the business.  

Similarly, some CSR activities are said to be disposable or reversible which means that

whenever the company decided to pull out the activities they can do so without hesitation. With

that, it is easily disregarded as a responsibility. The company is just concerned in coming up with

CSR activities just for the sake of giving back to the community. After providing the community

with activities, some companies don’t have a measurement on whether it has been effective in

attaining sustainable development.  

 

B. Best CSR Practices in the Philippines  

 

The above timeline is taken from Velasco (1996). The figure presents a timeline of

Corporate Social Responsibility Networks in the Philippines starting in the 1960s. We see the

evolution of CSR efforts in the Philippines from them being a mere form of charity and public

relations done by companies to a form of contribution to the country’s development by uplifting

citizens’ well-being and eradicating poverty by providing more opportunities. With the

adaptation of this shift, more and more companies that invest in the Philippines emphasize and

give huge value and effort to their CSR sector – embracing CSR into their business strategies

(Rimando, 2012). The following statement from the German embassy emphasizes this:  

“Corporate social engagement is very important in the Philippines. Many Philippine

companies, particularly large ones, are involved in projects related to education, the

environment, poverty, health and disaster aid. Most of the country’s leading corporations

have increased their relevant activities in recent years, and many of them have

established foundations.” (German Embassy, Manila via CSR Weltweit)

Sustainable development follows the “triple bottom line” which is the incorporation of

economic, social and environmental development. Development is now seen not only by means

of achieving economic growth but also by the development of patterns in society (like poverty

and discrimination) and in the environment (like global warming and pollution). Industries like

the mining sector require 1.5% of companies’ total operating cost to be dedicated to their CSR

projects. Corporations have started taking on the initiatives themselves in order to receive local

government permits and tax incentives as granted by the national government. The concept of

profitability is also what has greatly attracted companies to give back to communities. In a 2006

survey, results showed that a huge factor that consumers consider is the success of the

company’s social programs (Talisayon, 2009).

A report by the Philippine Business for Social Progress or PBSP (established in the 1970s

as the business community’s response to the level of poverty at that time) shows that the

education sector is the largest recipient with disaster relief and rehabilitation, health, livelihood

and economic development following right behind (PBSP, 1995). By 2001, the education sector

still holds the top spot however AIM-RVR (2001) projected then that the environment sector

would soon have more projects in the future. In 2011, Rep. Diosdado Arroyo and Rep. Gloria

Macapagal-Arroyo crafted a bill named Corporate Social Responsibility Act of 2011 which

encourages companies in the Philippines to foster CSR in their frameworks to foster sustainable

economic development and environment protection. Along with this bill is the deduction of the

amount of CSR efforts done by such companies from their taxable income – an incentive given

by the National Government (Philippine Congress, 2011). This gives companies a national

framework or guide to follow for the establishment of their CSR efforts.

Renowned companies such as Shell Philippines (Movement Against Malaria project,

Tabangao Refinery Rehabilitation), Nestle Philippines (Greening the Supply Chain project) and

Smart Communications Inc. (Alternative Power for Cell Sites program) – which are definitely

just a few among the list- have received outstanding awards for categories like poverty

alleviation and environmental excellence by awarding bodies such as the Asian CSR Awards and

Recognition Awards for Outstanding Practices and Initiatives in Sustainable Development by the

Federation of Philippine Industries. CSR efforts in the Philippines are widely recognized both

locally and in Asia. Therefore, CSR in the Philippines has already been successfully established

as a practice done by companies in the country. A survey of 166 business executives in 2004

revealed that 82% view good CSR as contributing to corporate bottom line (Maximiano, 2005).

A study by the Asia-Pacific Economic Cooperation (n.d.) on the current status and implications

of CSR in the Philippines concludes that the concept of “bayanihan” is truly deep within the

Filipino culture and the country’s poor economic conditions acts as the motivational force of

such companies to initiate and develop their CSR programs.  

C. Issues on Sustainable Development in the Philippines

In the Philippines, there are also emerging and issues and challenges that places

sustainable development on a crucial standpoint. According to Philippine Council for Sustainable

Development [PCSD] , (2012), there has been issues in the Philippine sustainable development

due to the rise of industrialization and modernization. Business industries that are basically

composed of companies and corporations tend to contribute to threats in environmental

degradation, social exclusion, and economic inequality.  

As emphasized, there are also underlying issues behind sustainable development. Aside

from looking at the environmental perspective, one of the points that needs to be cited is the

prevailing inequality in the country. This major problem in the philippines affects sustainable

development due to the inequitable distribution of economic benefits (PCSD, 2012).  

II. Objectives

The primary objective of the report is to analyze the Corporate Social Responsibility

(CSR) initiatives of ABS-CBN Foundation in the context of sustainable development. The group

will look into the different projects and programs of ABS-CBN Foundation. These projects will

be then analyzed through the analysis of international and philippine case studies, policies and

laws.  

 

III. Profile of ABS-CBN Lingkod Kapamilya Foundation

A. About AFI  

The ABS-CBN Lingkod Kapamilya Foundation Inc., is an organization under the

management of ABS-CBN, one of the largest television networks in the Philippines that aims to

uplift the “bayanihan” spirit of the Filipino people through the implementation of different

people-centered development projects and programs. The foundation has different key priority

areas for their projects such as community development, environmental protection, child

protection, humanitarian assistance, etc. (ABS-CBN Foundation, 2014)  

B. Different CSR Initiatives - segregate into environmental, social and economic activity  

Social Initiatives  

b.1 Bayanijuan (Sustainable Community Development)  

One of the initiatives of AFI that can be highly related to sustainable development is the

Bayanijuan project. Throughout the years, many cities in the Philippines particularly in the

National Capital Region encountered development challenges due to the proliferation of informal

settlements. To respond to the underlying problems in the cities, AFI initiated the Bayanijuan

project to assist the informal settlers in Metro Manila in relocating their homes to nearby sub-

urban places such as in Calauan, Laguna and Legazpi, Bicol. (ABS-CBN Foundation, 2014)  

 

The project focuses on four main areas of concern namely infrastructure, livelihood,

health and education and youth development. As of now, AFI serves as the leading private sector

who implements Public-Private Partnership (PPP) projects. With regards to the relocation of

beneficiaries, AFI taps different government agencies such as National Housing Authority

(NHA), Department of Energy (DOE), Department of Education (DepEd), TESDA, DOST and

concerned Local Government Units (LGUs) (ABS-CBN Foundation, 2014)  

 

b. 2 Programa Eugenio  

The Programa Eugenio project of AFI aims to provide educational opportunities for

Filipino children in Bayanijuan villages. As of now, the foundation also established public

school Calauan, Laguna to cater those students who were relocated to Bayanijuan village.  

 

b.3 Sagip Kapamilya (Emergency Humanitarian Assistance)  

Sagip Kapamilya is a branch of AFI that is oriented in assisting our Filipino fellowmen

who suffered from natural disasters and calamities. The main purpose of this branch is to

provide emergency and humanitarian help such as relief goods and rehabilitation services. Sagip

Kapamilya classifies its assistance into two categories namely food and non-food. Under the

food category is usually the canned goods, cooked foods and rice given to the victims right after

the proliferation of a certain calamity. On the other hand, the non-food category is composed of

the sanitary and hygiene goods, housing facilities, health and educational facilities provided to

the victims.  

 

Looking at its historical context, Sagip Kapamilya was established 10 years ago, year

2004, wherein the branch focuses on Disaster Relief and Rehabilitation Operation (DRRO).

According to the information presented in the webpage, Sagip Kapamilya foundation emphasizes

relevant concepts of sustainable CSR. First, it was pointed out that a participative approach in

community development is very essential in ensuring that there is an inclusive growth within the

community. Another relevant point raised by the branch is that it is important to establish a

relationship with the community wherein all stakeholders are aware regarding the “shared

responsibility” of the company and the community. (Sagip Kapamilya, 2014)  

Environmental Initiatives  

b.4 Kapit Bisig (River Rehabilitation)  

This branch promotes environmental protection through reviving and restoring the life of

Pasig River which used to be polluted. Through environmental protection, the branch believes

that communities will be more safe and conducive to live in  

b.5 ABS-CBN Bantay Kalikasan (Environment Protection and Conservation)  

Bantay Kalikasan serves as an environmental media catalyst to watch out for undesirable

actions that affect the goals of maintaining an environmentally sound place for Filipino people.

This branch of the foundation works hand in hand with different stakeholders in the environment

sector. One of the main projects done by this branch is the “Kapit-Bisig Para sa Ilog Pasig”

project.  

b.6 Bantay Bata 163 (Child Care)  

This CSR initiative heavily emphasizes on the benefits for children. IT is designed to

help protect and enrich the children. They currently have 10 programs and services for the

children namely:  

● Helpline 1-6-3 which is a 24 hour toll free line where people can immediately report any

forms of child abuse, where respective response teams in their different localities may

extend their help towards the distressed.  

● The Children’s Village is another service where children are placed right after they have

been saved by the foundation. They offer Home care Shelter, Education services, Health

and wellness, Rehabilitation and therapy, and placement of children for foster care and

adoption.  

● Bantay Edukasyon is a multi-year support for children, offering them with scholarships.

Their food and transportation is also supported by the foundation.  

● Bantay Kalusugan is a 6 month program, where parents are taught how to maintain their

children’s health and avoid malnutrition and abuse. It is also known as a feeding

program.  

● Counseling and Family Services is a program that is designed to be a one-on-one

conversation with the psychologist and the parents of the children. This will help address

child abuse and help families move on from traumatic experiences.  

● Community Services reaches out more towards the family units of a community where

the foundation offers Multisectoral convention and Community outreach programs.  

 

C. Scholars’ view on CSR Initiatives of ABS-CBN foundation  

According to a study conducted by Dimaano & Jumawan (2013), the CSR projects of

ABS-CBN Foundation generates both positive and negative effects to the company's reputation.

In reference to the information provided in the study, the positive feedbacks regarding AFI's

CSR state that the company shares its social arm in giving back to the communities and trying to

help them to get out of poverty. On the other hand, the researchers also encountered some people

during their interview sessions who perceived the CSR activities of ABS-CBN to be purposeful

in earning more profit and fam.  

On the other hand, there are no existing studies that examine the costs of the CSR

initiatives of ABS-CBN Foundation Inc. In this light, Thus, the researchers will only focus on the

CSR efforts of the foundation and its impact on sustainable development.  

 

D. Relevant Stakeholders in AFI’s CSR Initiatives

The ABS-CBN foundation is the primary institution under this endeavor, it is responsible

for the programs that are established to promote the betterment of social, economic and

environmental aspects of society under the name of the foundation. However, it is also relevant

to ask the primary purpose of initiating CSR projects. In a company or corporation, the stability

of the company is one of the major components of CSR. To continue doing CSR, the profit and

name of the company must be first stabilize. In this light, ABS-CBN Foundation’s role is to

foster their business first and engage in CSR projects to be able to give back to communities.  

 

The Local government units are responsible for it’s respective jurisdiction to promote the

goals of the foundation by means of collaborating with ABS-CBN’s programs, also creating

policies to raise the foundation of good governance and service towards its constituents.  

 

National Government Agencies must also seek good governance and service at a broader

scale wherein it will cooperate with the different parts of communities and also collaborate with

the ABS-CBN foundation in its advocacy for environmental, social and economic betterment at a

national scale.  

 

These are people who donate private properties and finance in helping the advocacy of

the foundation to support its projects and programs in relation to its vision and mission. These

are one of the most important parts of the foundation wherein they cooperate in order to help the

foundation execute their activities with further support so that beneficiaries are well

accommodated.  

 

The target population group may be considered as the beneficiaries of the programs

established by the ABS-CBN foundation. They are the heart of the foundation, and that these

beneficiaries are the reason why the foundation was established.  

 

 

IV. Analysis

 

A. Impact on Sustainable Development

a.1 Economic  

If we run through the factors in achieving economic growth and development, one of the

major contributors of if is the improvement of the labor force and the training of more skilled

workers. The foundation highly emphasized on child care and their education, enticing parents to

go into proper parenting orientations regarding child discipline and health. The foundation

visited 2,083 families to perform counseling This can be seen in their annual report claiming that

Bantay Bata’s scholarship has been awarded as an effective way to prevent child abuse and to

promote better education including its access. To further expound the report, most scholars

perform exceptional in their schools as a return to thank the foundation for the opportunity to

give them access to formal education. Some are now in college, also, the graduates from the

scholarship program now repays their gratitude by working for more of the foundations CSR

programs.  

 

Most perform exceptionally well in school and have a genuine sense of appreciation for

the assistance they received. Beduk scholars who are now in college or have graduated pay the

kindness forward by actively participating in Bantay Bata’s activities and missions. The program

also gave medical assistance to 258 beneficiaries rescuing an additional 25 more people.  

The total cash spent from donations hit a total of Php 137, 372,383.86 wehre they

allotted 60% of the budget for relief activities and the remaining 40% for the rehabilitation

activities that is inclusive of livelihood and education. As of March 2014, 4 classrooms has been

constructed, 10 are being repaured and 108 more classrooms are being built.  

 

In the economic perspective, the CSR initiatives of AFI were able to impart a significant

impact to the economic status of the local communities. Particularly with the case of the

Bayanijuan projects, ABS-CBN in collaboration with Gawad Kalinga also introduced a

merchandise called “Human Nature”. This initiative is primarily concerned in providing

livelihoods for the people in Gawad Kalinga villages. In this light, it implies that the company is

envisioning a sustainable way of uplifting the economic conditions of the beneficiaries.  

 

a.2 Social  

Derived from the Annual accomplishment report in the foundation published in the year

2012, the foundation responded to more than 15,000 reports. It also extended medical assistance

to more than 2,000 patients with 31 major surgeries performed in partner hospitals.  

 

The foundation reached 15 provinces and that they have served a number of

approximately 3,636,475 individuals offering the with relief operations and still heightened after

the disaster posed by the historical typhoon Yolanda. During the implementation of other relief

goods in these following provinces, the foundation was able to provide seminars and first aid

trainings, plus they also handed out 25,344 hygiene kits for home use. This will enable people to

respond quickly to natural disasters, lessening the effects and mortality rates in the future. The

foundation believes that first aid training goes a long way if it was done right by more people

because it will stand as an immediate response to someone who is in need of medical attention.  

 

The activities done by the ABS-CBN foundation has helped boost a community’s

participation in relation to sustainable development, through establishing projects like

infrastructures, the foundation has helped people gain more self dignity by having their own jobs

or how children can access scholarships funded by the said foundation. It has helped in

establishing good governance which can be observed in ABS-CBN established communities.  

 

According to (Ross, 1995) Education and health have a positive relationship with each

other, it may also play as an economic indicator for growth and development. Her study shows

that even though there is an abundance of educational infrastructures present, if the students lack

in proper basic health needs, these students may not participate in class. Thus, this analysis may

result into a negative effect in the future generation, for these students will be replacing the

workforce of today. If the workforce gets affected due to lack of participation in classes and

academic training, the chances of getting a stable job in the future is quite thin. Economic growth

will breakdown and that the gap between the social classes will then increase all the more.  

 

Currently, in the Bayanijuan program, they also emphasized the importance of health and

education. In one of the schools erected by the foundation , there are 1,857 students enrolled.

Also, the program also established a daycare center to care for the children. There are currently

170 children enrolled and are exposed to 4 programs a day in the daycare center. BNJ Daycare

Centers acquired 3-Star Accreditation from DSWD and that 64 Daycare pupils graduated in SY

2011-2012  

 

a.3 Environmental  

Because of the foundation's efforts to promote environmental awareness and care, it has

contributed to the establishment of infrastructures and programs to support environmental

protection and awareness through spearheading activities like fun runs like “Run for Pasig

River” from their program Kapit Bisig Para sa Ilog Pasig and Bantay Kalikasan. These CSR

initiatives have been contributing to the environment’s sustainability as they include the

participation of the citizens in engaging themselves in activities that promote environmental

awareness. Through some of their projects, people have been constantly being informed about

the status of our environment and that there is a need to participate. With that, simply

encouraging people to volunteer and fight for the environment is a sign that the company aims to

promote sustainable development for the environment.  

 

IV. Conclusion and Recommendations

A. Conclusion  

 

Throughout the research paper, the proponents of this report has studied the different

international and Philippine best practice that intend to describe the role of CSR in promoting

sustainable development. As cited in Lu (n.d ), an ideal CSR initiative should constitute the

following characteristics; a) measurable goal b) stakeholder engagement sustainability and c) life

cycle management.  

 

AFI’s CSR efforts have been prominent in the country because of its integrated approach

in giving back to the communities. There are different projects that intend to uplift the welfare of

the beneficiaries and their living environment. However, throughout the analysis of their CSR

activities, the reporters found out that there are still rooms for improvement specifically with the

comprehensive monitoring and evaluation of CSR to ensure that there is mutual growth and

sustainable impact to the target communities.  

 

B. Recommendations  

To further improve different company’s performance regarding their Corporate Social

Responsibility initiatives, the group identified some policy recommendations that would ensure

that CSR initiatives would be inclusive, mutually beneficial to the company and the community,

and its sustainability which are;  

● Increase community participation in the formulation, prioritization and selection of

CSR projects  

 

With all the information provided regarding the CSR activities of AFI, one room for

improvement that the reporters identifies is the need for the participation of the community in the

process of formulation, prioritization and selection of CSR projects. In relation with this policy

recommendation, there is one school of thought in community development introduced by Paulo

Freire called the “generative themes”. Specifically, generative themes can be applied in the

implementation of CSR projects to provide a place for the community for them to identify their

own problems, needs and interests. From the identified themes of the community, the company

in constant consultation and discussion with the community can hold Focus Group Discussions

(FGDs) to reach a certain point of consensus on what problems should be prioritized. Through

this recommendation, CSR implementation is more participative and collaborative.  

 

● Evaluate CSR projects both quantitatively and qualitatively to ensure mutual

growth between the company and the communities  

 

In viewing CSR, it is important to take into account the stability of the company. To

continue doing CSR projects, it is important for the company to assess whether the CSR projects

address the actual needs of the community, if its in line with the company’s vision and mission

and to see where the money goes. Both quantitative and qualitative measure are needed to ensure

that the projects are aligned, beneficial, and prioritized by the community. Also, it is a way of

constantly informing the target communities about the effectiveness of the CSR projects

implemented. Using an evaluation tool, it can also help the company to set certain indicators to

make sure that the companies are contributing to the sustainability of the community. In this

light, we can make sure that CSR projects would be sustainable to both parties.  

 

● Collaboration with Academe and Research Institutions for Further Improvement of

CSR Activities  

 

Viewing CSR activities in the perspective of companies, collaboration and partnership

with researchers from different institution is often not a top priority option. However, in

developing and creating substantive CSR programs, it is relevant to integrate the theories,

models and strategies of development to manage risks and opportunities. Using the expertise and

specialization in CSR, researchers can critically identify problems, issues and concerns.  

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