LA SALLE GREEN HILLS

ORTIGAS AVENUE, MANDALUYONG CITY

A CSR (Corporate Social Responsibility) Proposal

of “Farmer’s Pink Cocoa”

In partial fulfillment of
the requirements for
Business Ethics and Social Responsibility

Submitted to:
Mr. Mark Gilbert G. Rehoy

Submitted by:
Antonio, Vincent Oliver
Matias, Bernard Andre S.
Nava, Philip Benjamin L.
Rodejo, Carlo Miguel
ABM 5 - 12E

30 April 2021
I. Description of the Business & Product

A. Business Concept

Farmer’s Pink Cocoa is a business that utilizes the ingredients grown and cultured

from the North (La Trinidad) and the South (Batangas) of the Philippines. Farmer’s Pink

Cocoa aims to transform the traditional cocoa by applying it to the production of other

pastry and beverage products.

Farmer’s Pink Cocoa is a bittersweet story in every bite. The company noted that

the idea of combining Cocoa and Strawberry wasn’t just for brownies, but across different

variants also such as Farmer’s Pink Cocoa milkshake, ice cream, hot beverages, and a lot

more to come in the future. The company for the meantime, will be focusing on the first

variant which are the lovely, inviting, and tasteful Brownies.

The social enterprise believes that the specialty in creating this product is a witness

for the owners' combined love for Cocoa and Strawberry. Seeing two of the greatest flavors

in history into one is what makes Farmer’s Pink Cocoa brownies distinguishable among

the rest. The company merges two flavors into a high quality pastry product where both

chocolate and strawberry consumers will fall in love with.

B. Product/Service Description

The product “Farmer’s Pink Cocoa” is a powder ingredient which is used for

making and coming up with different variants of dessert pastries. Farmer’s Pink Cocoa’s

first variant is the brownie dessert. An option of two flavors are presented which are the

Milk Chocolate brownie (as the first and main flavor) and the Strawberry Cheesecake

brownie (as the second flavor). The product will serve as the bridge to the North and the

South through merging two flavors: the sweet cocoas from Batangas combined with the

fruity strawberries from La Trinidad. The Milk Chocolate brownie is made with the use of

Farmer’s Pink Cocoa Powder, the strawberries will be tasted on top of the cocoa which is

the dominant flavor for this brownie. On the other hand, the second flavor of the brownies

is the Strawberry Cheesecake brownie. It contains a layered taste starting from the top

consisting of strawberry, the middle is the cheesecake, and the base for cocoa.

The products are classified into 4 categories for selling: Classic 6 pieces, Classic 8

pieces, Premium 6 pieces, and Premium 8 pieces. Each package of a category has specific

benefits and differences. The first one is the Classic 6 Pieces, it contains a fixed flavor of

4 Milk Chocolate brownies and 2 Strawberry Cheesecake Brownies. The second category

is Classic 8 Pieces, it contains a fixed flavor of 5 Milk Chocolate brownies and 3

Strawberry Cheesecake Brownies. On the other hand, the premium boxes are only limited

to Strawberry Cheesecake Brownies. Premium 6 pieces include 6 Strawberry Cheesecake

Brownie only and lastly, the Premium 8 Pieces include Strawberry Cheesecake Brownie.
II. Business Culture and Goals

A. Company Vision

“To be the mediator of what the North and the South has to offer.”

B. Company Mission

“To produce high quality pastries that utilizes the ingredients of the North and the

South.”

C. Core Values and Code of Ethics

Farmer’s Pink Cocoa’s code of ethics policy aims to guide its employees to pursue

and use better judgement in accordance with the business and workplace ethics. The team

refers to this policy as the “Pink Code” and expects that all personnel must follow these

guidelines in order to display honesty, integrity, responsibility and the best interests of the

company. Farmer’s Pink Cocoa wants to provide all current and in-coming personnel a role

model to follow inside and outside the company using the culture, ethics, and experience

the company has developed since the start of its operations. This policy may be subjected

to change in the event of a conflict of interest and controversial situations. The policy would

change depending on the legality and the best interest of the company whilst respecting

both parties involved as we prioritize employee welfare.

We base our business code of ethics on common principles of ethics:

A. Humanitarian - We focus on the well-being of our working environment.

B. Rendering Primness - We bestow our best through all the actions that we perform.

C. Uprightness - We see to it that every undertaking should be of great demand.

D. Reliable and Trustworthy - We manifest honesty by producing quality service and

products.

E. Unity and Collaboration - We value each and every opinion coming from our

environment and collaborate to hear out concerns.

F. Complying - When it comes to laws and other rules, we make sure that our business

is clean from any illegal actions.

Here’s a more detailed overview of our code:

Humanitarian

This code of ethics is arguably one of the most important elements in every

successful business because it leads to having a healthy working environment. There are

several reasons why this is true, some of them are that the workers become more productive

in their own tasks, more encouraged to push through with the company’s goals, and become

accepted for their ideas that can push the company further more into the future.

Being a humanitarian business means it should manifest these values:

1. First, it means being able to manifest the value of trust and fairness within

the workplace. Honesty and fairness are always attributed and valued in
 every workplace because it makes people more committed and open which

could actually work for changing some flaws of the business operations for

the better.

2. Second, communication is a must. Every effective corporation is composed

of people who are working towards a common goal however despite

manifesting different views on things and in business.

3. Third, every team member is empowered. No one should feel left when it

comes to working because it lessens the productivity and the motivation for

other workers to participate better in the business compared if he/she feels

treated in a way that his/her ideas are considered and the work that he/she

displays is appreciated for what it’s worth.

Rendering Primness

Primness is a level where something exceeds excellence. Being excellent means

being able to abide and follow through with the goals which a business would set. But,

primness means getting past those goals and exceeding the expectations of the employers.

This means that the only difference between primness and excellence is being able to raise

personal standards. The business does not only expect and direct its members towards

following the goals which the top management sets, it expects that each of the members

should have a goal of their own to be able to perform rendering primness which will make

the business stand out from the rest.

 All of the actions which the business members perform should have a purpose.

Either it may be to be known for being successful, to feed a family, or even fulfill a lifetime

dream. Having a righteous reason for doing something deems any action automatically to

accomplish primness. Farmer’s Pink Cocoa prioritizes the overall primness of not only the

business itself, but the people who are part of fulfilling this code.

Uprightness

There would be no business without customers. These individuals hold the power

of providing the income and return of every business which is why they should always be

a consideration when making products. Farmer’s Pink Cocoa sees to it that all of its

products and ventures are up to date which can compete with other businesses.

Being upright is being able to perceive the financial future of the company and

make decisions based on what the customers prefer and will prefer. At the same time, the

company will never compromise its mission and vision, this code of ethics only means that

the decisions of every member of Farmer’s Pink Cocoa should be upright (in demand)

which will still follow the same goal that is set from the start.

Reliable and Trustworthy

A reliable person is a responsible person and being able to acquire this characteristic

will be the foundation of trust in the workplace. This is an asset of the company that should

be practiced by everyone because being able to establish rapport with each other will result

in you being trusted by your colleagues, co-employees and customers as well.

 Any form of transactions inside the company without the consent and approval of

business owners will not be tolerated and is strictly prohibited. This is to avoid cases of

stealing and also for the workplace to maintain a reliable environment where anyone can

freely be comfortable with their things and safe from any form of crime.

Business related matters must be talked about inside the workplace only. All

information should remain confidential. Giving and telling information in terms of the

company's finances, proposal, business deals, etc. outside the premises of the workplace

will result in immediate termination.

Unity and Collaboration

Understanding and accepting the differences of everyone is mandatory. This is an

open space for all employees to express their own ideas, values and beliefs. Discriminating

is a big no in this company because we believe that showing respect for each other and

being united is the key for the success of the company.

Respecting each other's opinions and helping each other is a natural thing in this

workplace. A healthy competition will be made which will let you collaborate with each

other and let you exchange opinions with other people. This is a free institution where you

can freely express yourself, don't hesitate to open new suggestions and ideas that will

contribute to the betterment of the company.

 Complying

This is done through following rules set by the company. Keeping in mind what

your purpose and reason in the company will be your strength to comply with your job and

work. Setting goals and setting deadlines for your task is beneficial for you to abide by the

rules in the company. It will also help you to organize and have a proper time management

inside the workplace.

Doing the right thing and following the laws about all kinds of crime specifically

fraud, bribery, corruption is a must. You are also required to follow rules in the company

to avoid doing unlawful actions. If you’re hesitant and confused about the law and rules

set by the company, the HR’s office is open to explain such or you may consult the legal

counsel of the company which will help you understand & give clear explanations.

III. Community Involvement

A. Description of the Target Community

The first community that Farmer’s Pink Cocoa chose is from the land of Batangas,

they are known as the San Juan Batangas Cacao Growers Association (S.J.B.C.G.A.). This

association provides quality cacao and is aimed towards providing farmers in Batangas

with better and deserved income. The second community is the Benguet State University

who owns and maintains the strawberry farms located in La Trinidad. Currently, this

community is supporting the occupations and providing more job opportunities for more

than 1000 Filipinos in La Trinidad.

 B. Needs of the Target Community

Farmer’s Pink Cocoa made it a mission to put a helping hand not only to the

company, but for the unspoken heroes of the Bayan, which are the local farmers. The

company aims to use the chosen communities' supplies and create products out of their

efforts in order for the community to continue and support its livelihood.

The business’ chosen community consists of two organizations because the

product’s suppliers are from two areas. This means that the business will be able to expand

the number of people to provide assistance and gain new partnerships with.

IV. CSR Program

A. Social Lean Canvas

1. Purpose

Most farmers in the Philippines aren't fully supported with all the

opportunities they need. The current status of the country's agricultural sector

is declining due to challenges such as climate change, low farm income, low

rural employment, agricultural competitiveness and research and development

that hampers the country's agricultural development. With that, Farmer’s Pink

Cocoa will provide new opportunities for the less fortunate and farmers who

need assistance.
2. Impact

The social entrepreneurs find it difficult to decide on whom to support since

most farmers are inclined to subsistence farming. Through an in depth research

on who will be the target community, the team pondered and concluded that the

best way to reach out to these farmers is by coordinating with local

organizations and universities who can be easily corresponded with, such as the

San Juan Batangas Cacao Grower's Association and Benguet State University.

Farmer’s Pink Cocoa chose a community consisting of two organizations

since the suppliers are from two different areas. With that the company will be

able to help two communities. Additionally, this differentiates Farmer’s Pink

Cocoa from other competitors since there is a purpose behind every ingredient

and it is to help local farmers and at the same time, there’s a story to tell in

coming up with the final product.

3. Problem

The consumer’s inability to purchase authentic local pastry

products. As more foreign brands continue to take over the food industry in

the Philippines, locally made ingredients and pastry products are becoming

more inaccessible since its demands have been overshadowed by foreign

pastry brands.
 Existing Alternatives: Local pastry brands such as Pan de Manila

have started to branch off their regular menu of products and have started

to implement other pastry products and complementary products. Though

the local pastry brands struggle to meet the quality expectations of the

consumers as compared to foreign pastry brands

4. Solution

The Social Enterprise produced a product that uses high quality local

ingredients that could compete with the taste and quality with foreign-made

pastry products. Utilizing the sweet strawberries grown from La Trinidad

and rich cacaos grown from Batangas, the company was able to produce 2

variants of premium brownie products that could compete with the

expectations, quality, and taste with foreign-made brownies.

5. Unique Value Proposition

Farmer's Pink Cocoa delivers a variety of things within one product.

With the product, the customer may be able to use it as an all-around

ingredient for their baking and drinking pleasure. The customer is left with

infinite possibilities with this product. They can make a brownie, a mixed

cocoa and strawberry shake, ice cream, etc. As long as the customers

purchase Farmer's Pink Cocoa, the possibilities are unlimited.

 Unlike other cocoa products, the company uses high-quality

ingredients that are delivered fresh from the cacao tree and strawberries

from quality-selected farms. The company’s products are professionally

developed.

6. Customer Segments

Farmer’s Pink Cocoa would mainly be targeting die-hard strawberry

lovers and kids’ ages 5 - 10 years old located in Metro Manila. The company

would focus on middle to high income social classes that are interested in

desserts, chocolate, strawberry and cheese. The business chose middle to

high income social classes because the brownies are made from high quality

ingredients and the costing for the ingredients is significantly greater than

the average-made brownies. Farmer’s Pink Cocoa targets variety-seeking

consumers who want to taste a sweeter, and higher quality ingredient

brownies that not only utilizes 1 specific taste.

7. Community Involvement

The business’s chosen community consists of two organizations and

making them as the company's suppliers will provide them livelihood to

support their living. Additionally, showing the chosen community

recognition by giving value to the foods that they harvest is a way to

appreciate its products. The first community from Batangas are known as

the San Juan Batangas Cacao Growers Association (S.J.B.C.G.A.).

 They give quality cacao and freshly sourced cacao from Batangas

which is clearly locally made giving an advantage to the community

because it originally came from its harvest. The second community is the

Benguet State University who support the occupations and provide new job

opportunities for the Filipinos in La Trinidad. Same with the first

community, giving livelihood to the farmers is a way to support this

community.

8. Social Business Model

Farmer’s Pink Cocoa’s social enterprise fits in with the Service

Subsidization business model as the enterprise would mainly gather the

needed ingredients from the beneficiary. In the Social Business Model, the

beneficiary is not involved in the production process of the Enterprise, but

mainly gets its funds through supplying the enterprise with the needed

ingredients. After gathering the needed materials, the social enterprise

would then produce a one-of-a-kind product and sell it to the external

market.

9. Cost Structure

In the long run, the primary costs associated in the Social Enterprise

are classified into: Research and Development, Packaging which includes

Strings, Boxes, Stickers and the ingredients in coming up with the products.
 Another thing is the utilities which are the Electricity and also the

equipment needed in baking. Moreover, another factor are the Social Media

Ads which will be boosted soon to reach a larger amount of audience. In the

near future another costing that will be included is the salary for home

bakers, since the business assumes that numerous orders will be produced,

the business will be needing manpower.

Strawberry Cheese Cake Brownies (Yield: 16 Pieces)

Brownie Base

ITEM QTY APC/U TOTAL

All Purpose 250 grams 0.055 Pesos 13.75 Pesos

Flour

Bensdorp Cocoa 60 grams 0.376 Pesos 22.56 Pesos

Powder

Baking Powder 4 grams 0.14 Pesos 0.56 Pesos

Salt (Iodized) 4 grams 0.04 Pesos 0.16 Pesos

Cacao Powder 1000 grams 0.23952 Pesos 239.52 Pesos

Butter, unsalted 125 grams 0.4 Pesos 50 Pesos

White sugar 260 grams 0.056 Pesos 14.56 Pesos

Eggs, Medium 3 pieces 7 Pesos 21 Pesos

Cream Cheese Mixture

Emborg 220 0.64 140.8

Cream grams Pesos Pesos
Cheese

Butter, 30 0.04 1.2

unsalted grams Pesos Pesos

White Sugar 60 0.056 3.36

grams Pesos Pesos

Egg, 1 7 7 Pesos
Medium piece Pesos

All Purpose 30 0.055 1.65

Flour grams Pesos Pesos

Strawberry 200 0.32 64 Pesos

Comstock grams Pesos

TOTAL 580.12
Pesos

Milk Chocolate Brownies (Yield: 16 Pieces)

ITEM QTY APC/U TOTAL

All Purpose 250 grams 0.055 Pesos 13.75 Pesos

Flour
Bensdorp 60 grams 0.376 Pesos 22.56 Pesos

Cocoa

Powder

Baking 4 grams 0.14 Pesos 0.56 Pesos

Powder

Salt (Iodized) 4 grams 0.04 Pesos 0.16 Pesos

Cacao 1000 grams 0.23952 Pesos 239.52 Pesos

Powder

Butter, 125 grams 0.4 Pesos 50 Pesos

unsalted

White sugar 260 grams 0.056 Pesos 14.56 Pesos

Eggs, 3 pieces 7 Pesos 21 Pesos

Medium

Callebaut Milk 55 grams 0.6 Pesos 33 Pesos

Chocolate

Strawberry 200 grams 0.32 Pesos 64 Pesos

Comstock

TOTAL 459.11 Pesos

 10. Revenue Structure

As every business profits from their consumers, Farmer’s Pink

Cocoa gains its revenue from their valued customers. It is no question that

through the continuous dedication on producing quality products, Farmer’s

Pink Cocoa can reach out to a wider audience and seek their opinions and

suggestions. Every day, the business aims to reach a target of followers on

every marketing and advertising platform. This enables the business to

widen its array of products and thus increase their sales.

B. Social Enterprise Business Model

SOCIAL
ENTERPISE
BUSINESS
MODEL
 The Social Business Model fits with Service Subsidization. The partnered

communities would serve as the suppliers for the strawberry & cocoa. In addition, the

company took the initiative to reach out via email to both communities and coordinate in

regards to the supply of both fresh strawberries and cacao.

The “Pink Code” would apply to all personnel and business partners of Farmer’s

Pink Cocoa. The personnel’s includes individuals such as employees, business partners,

suppliers and interns. This may include certain elements such as proper dress code inside

the company, proper etiquette, good behavior inside and outside the company, and careful

use of influence or social media. These elements must be observed whilst observing the

business ethics of Farmer’s Pink Cocoa. The team calls it the Code Rose, the ethics policy

that guided the company to where it is now. Following the values of: Rendering Primness,

Uprightness, Reliability and Trustworthy, Compliance, Unity and Collaboration.

The business will be possessing a Culture of Collaboration & Adhocracy Culture.

This aims to form the employees with an innovative and open mind, increased risk-taking

abilities, and individuality. This policy may be subjected to change in the event of a conflict

of interest and controversial situations. The policy would change depending on the legality

and the best interest of the company whilst respecting both parties involved as we prioritize

employee welfare.
 C. Particulars of the CSR Program

Farmers Pink Cocoa values the wellbeing of the workers and the relationship with

its partners. Supporting the development of the workers is the first move for implementing

the company's Corporate Social Responsibility. Next is through providing a code of ethics

that doesn’t restrict the workers freedom in moderation by being productive and having

morally right actions. Lastly, treating everyone as part of the Farmers’ Pink Cocoa Family.

V. Impact

A. Impact on the Company

Having a socially responsible company could increase the company’s positive

reputation and help construct its brand. In an article written by Chris Murphy (2019), social

responsible companies tend to attract outstanding employees with enough collective efforts

to significantly boost productivity and team morale. The only downside of implementing

CSR programs are those that require a significant amount of investment. Maria Kielmas

(2019) argued that small businesses are more prone to fall disproportionately compared to

major corporations due to the cost of the CSR alone.

B. Impact on the Community

Consumers who buy locally grown produce and other products continue to boost

the rural economies, develop and sustain valuable employment, support communities, and

reinforce society and culture. According to an article from the website Fora Financial, it

is stated that participating in the community is a simple and efficient way to raise brand

recognition, build a positive identity, and expand one’s market. It also encourages an

individual to build real partnerships and actively contribute to those who are less fortunate.

C. Impact on the Customers

In order to attract customer preference, a business must have the knowledge

regarding the process of creating customer satisfaction. Customer satisfaction plays a big

role in the overall process of customer preference because it has an enormous impact on

short-term and long-term run of the business. It has a direct correlation with the business's

profitability. According to Hoyer and McInnis (2001), satisfied customers form the

foundation of any successful business because it directs them to repeat purchase, brand

loyalty, and positive word of mouth.

References:

Fora Financial. (2018, July 2). The Importance of Community Involvement in Growing
Business. https://www.forafinancial.com/blog/small-business/community-involvement/

Hoyer D. L. and Maclannis, T. P. (2001), “Emergent Experience and the Connected

Consumer in the Smart Home Assemblage and the Internet of Things” Available at SSRN:
http://ssrn.com/abstract=2648786

Kielmas, M. (2019, March 4). Pros & Cons of Corporate Social Responsibility. Small
Business - Chron.com. https://smallbusiness.chron.com/pros-cons-corporate-social-
responsibility-56247.html.

Murphy, C. B. (2020, August 28). Why Is Social Responsibility Important to Some

Businesses? Investopedia. https://www.investopedia.com/ask/answers/041015/why-social-
responsibility-important-
business.asp#:~:text=Being%20a%20socially%20responsible%20company,greater%20productiv
ity%20in%20the%20workforce.