CHAPTER 1

Introduction

Over the last several years, corporate social responsibility (CSR) has
impacted the role of business in modern society. Businesses that practice CSR
go above and beyond what they are obliged to do legally and economically to
improve society as it deems it the best thing to do. It assumes that the
organization conforms to the law and treats its stockholders well while adding an
ethical imperative to act towards the betterment of communities (Robbins &
Coulter, 2012).

Corporate social responsibility awareness in the Philippines began in the

1960s. According to Flores (2018), awareness started through cash donations
given to foundations and other charitable organizations. Soon after, in the 1970s,
a socio-economic turmoil caused the business landscape to shift. In this decade,
the Philippine Business for Social Progress (PBSP) was formed, which aimed to
collectively bring together resources to further social development and enable
both member and non-member companies to implement and integrate their
practices of corporate social responsibility. Later on, more organizations and
enterprises were inspired to conduct these practices to help grow their
companies. Its practice is not only prevalent in the Philippines, but in different
parts of the world as well. Its importance in the present is undeniable as,
according to an article published on Sourcing Journal (2019), up to 87 percent of
millennials and 94 percent of Generation Z consumers expect companies to
address social and environmental issues in some way.

The practice of corporate social responsibility may result in an advantage

over competitors in the market. Businesses that undertake philanthropic activities
have successfully met external demands and stakeholders' expectations as
these efforts benefit not only their economic gains but also their social impact
(Porter & Kramer, 2002). New and interested customers may see effective
marketing strategies to complement the practice of corporate social responsibility.
This creates an interest that piques a consumer's interest. Therefore, these
organizations view practicing corporate social responsibility as a source of new
opportunities to further growth and development, but what do these opportunities
truly encompass?

These may revolve around consumer preferences, piques, and

perceptions. The current trends and inclinations towards the environment,
fashion, food, music, and media revolve around the concept of consumer
preferences and continuously evolve. Another source would be what piques a
consumer's interest in a business. If customers see that a business becomes
versatile in delivering its products and services, they become more inclined
towards the said business. For example, creating government satellite offices in
malls has increased convenience for the general public, which entices these
people to transact more frequently with these agencies (Morato, 2016). On the
other hand, consumer perception is positively related to a company's imagery, as
this reflects the brand's personality. As such, an emotional appeal can be derived
from the way a company presents itself. An example would be buying Mont Blanc
pens as a status symbol (Kumar, 2009).

When taken into the context of social responsibility, the activities of brands
and organizations are put under a microscope. According to Smith (2020),
consumers now hold brands more accountable regarding how they respond to
those in need. As such, these companies look for methods to genuinely connect
with their consumers through different causes and values that lean toward
corporate social responsibility in hopes of gaining a profit. With that said, the
purpose of this research is to examine if consumer preferences, piques, and
perceptions are positively affected by the practice of corporate social
responsibility by different local businesses and to understand the effectiveness of
these practices in creating brand recognition and loyalty. The problem focuses on
the activities that organizations have publicly marketed as part of their campaigns
and how well the general public has received these.

Statement of the Problem

This research aims to answer the effect of corporate social responsibility

on consumer preferences, piques, and perceptions. Specifically, it aims to
answer the questions:

1. What companies in Cebu practice corporate social responsibility?

2. How does corporate social responsibility affect a business’s brand
recognition and loyalty?
3. Is marketing a business’s CSR activities effective in gaining more
consumers?
4. Why must companies practice corporate social responsibility?
Significance of the Study

This study could be of great importance to the following:

The Consumers. This research can aid consumers in understanding the

importance of corporate social responsibility in their respective communities. This
will foster wise consumerism and higher decision-making skills for the
consumers.

The Business Owners. This research will enable business owners to better
improve their corporate social responsibility activities. They will also see the
benefits of starting and continuing these activities. This will also aid business
owners in understanding how CSR activities affect consumers’ brand perception
and loyalty.

The Marketers. This research will help marketers in planning strategies to further
reach different segments of the market. They can use the findings of this study in
formulating and improving the effectiveness of their marketing strategies and
collaterals.

Future Researchers. This research may be used as a reference for conducting

future research. It may also serve as their guide to gather related information for
more prominent studies.

Scope and Delimitation

This study aims to identify the impact a business’s participation in

corporate social responsibility has on the preferences, piques, and perceptions of
consumers. The research conducted looks into consumer behavior as it
recognizes the impact consumer perception has on buying decisions (Snowberry,
2017). This research looks into the causative relationship between consumer
preferences and a business’s engagement in corporate social responsibility by
understanding consumer behavior.

Corporate social responsibility is characterized by a business’s

self-regulating social accountability in which it is aware of its impact on the social,
environmental, and economic aspects of society (Chen and Scott, 2020). With
this in mind, this research studies the consumer’s perspective and that of the
businesses and corporations as well. This will allow the researcher to understand
why the methods and strategies are implemented in response to such market
trends.

This research is to be conducted within the jurisdiction of Cebu City with a

sample size of thirty (30) consumers and five (5) business respondents. The
thirty (30) respondents within the age range of fifteen (15) to twenty-five (25)
years old are to be randomly selected. The targeted respondents are taken from
that particular age group as this research recognizes the varying perspectives of
different age groups present in the market. This study aims to look into the
behavior of the targeted age group. The five (5) business respondents will be
taken from local businesses in Cebu. A letter will be written to each organization
in hopes of receiving permission to interview the figures of authority in each
corporation.

This research will utilize the online survey platform “Google Forms” as this
study is limited by the presence of the global pandemic in the country. The
survey forms will include a video of a business practicing corporate social
responsibility. The respondents will then be asked personal questions to create a
discussion that will allow the researcher to analyze the roots of consumer
behavior with regards to their perception, piques, and preferences. In addition to
this, the researchers will be sending out survey forms to business owners. These
businesses are selected from those practicing corporate social responsibility. The
forms will contain both multiple choice and subjective-based questions to be
answered personally. The researchers acknowledge the constraints and
additional stress the pandemic has caused, so the respondents will be given
ample time to accomplish the survey forms.
References:

Corporate Social Responsibility (CSR). (2020). Retrieved September 26, 2020,

from Investopedia website: https://www.investopedia.com/terms/c/corp-
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Flores, A. (2018, February 18). CSR in the PH: An evolution based on service to
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undations%20and%20other%20charitable%20organizations.&text=%E2%
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mmunities%20in%20need.

Kumar, S. R. (2009). Consumer Behaviour and Branding: Concepts, Readings

and Cases - The Indian Context. Chennai: Dorling Kindersley
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Morato, E. A., Jr. (2016). Entrepreneurship. Quezon City: Rex Book Store.

Porter, M. E., & Kramer, M. R. (2002). The competitive advantage of corporate

philanthropy. Harvard Business Review, 80, 50-69.

Smith, W. (2020, September 15). 4 Brands Embracing Cause Marketing In The

COVID-19 Era. Learn - GlobalGiving; GlobalGiving.
https://www.globalgiving.org/learn/covid-19-cause-marketing?rf=learn_csrf
acts

‌Robbins, S. P., & Coulter, M. K. (2012). Management. Boston, MA: Prentice Hall.

Web, P. (2017, November 28). How Consumer Perception Influences Buying

Decisions | Snowberry Media. Retrieved September 26, 2020, from
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%20and%20increase%20your%20turnover.

What Millennials and Gen Z Think of Your Brand’s CSR Efforts. (2019,
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‌