THE BUSINESS PRACTICES OF INSULAR LIFE ASSURANCE COMPANY LTD.

IN THE CONTEXT OF CORPORATE SOCIAL RESPONSIBILITY

An Undergraduate Thesis Presented to the Members of the

Faculty of College of Business Education

Divine Word College of Legazpi

Legazpi City

In Partial Fulfillment of the Requirements for the Degree of

Bachelor of Science in Accountancy

By

Charlene C. Lorenzo

Jo-Ann V. Losaez

April 2015

COLLEGE OF BUSINESS EDUCATION

LEGAZPI CITY
 RECOMMENDATION FOR FINAL DEFENSE

This thesis entitled The Business Practices of Insular Life Assurance

Company Ltd. in The Context of Corporate Social Responsibility, prepared and

submitted by Charlene C. Lorenzo and Jo-Ann V. Losaez in partial fulfillment of the

requirements for the degree of Bachelor of Science in Accountancy is hereby

recommended for consideration and approval.

TRESSA ADELFA M. MORTOLA, Ph.D

Thesis Adviser

Date: April 2015

APPROVAL SHEET OF THE THESIS COMMITTEE

This thesis entitled The Business Practices of Insular Life Assurance

Company Ltd. in The Context of Corporate Social Responsibility, prepared and

submitted by Charlene C. Lorenzo and Jo-Ann V. Losaez, as recommendedis hereby

endorsed for Final Oral Defense.

TERESITA LL. NACION, Ed. D.

Chairperson

ALNEE JOY A. AZUL, MBA DARIA N. LABALAN, CPA, MBA

Member Member

2
 DIVINE WORD COLLEGE OF LEGAZPI

COLLEGE OF BUSINESS EDUCATION

LEGAZPI CITY

RESULT OF ORAL DEFENSE

CANDIDATE : CHARLENE C. LORENZO

JO-ANN V. LOSAEZ

TITLE : THE BUSINESS PRACTICES OF INSULAR LIFE ASSURANCE

COMPANY LTD. IN THE CONTEXT OF CORPORATE SOCIAL

RESPONSIBILITY

PLACE : DIVINE WORD COLLEGE OF LEGAZPI, LEGAZPI CITY

DATE : APRIL 2015

TIME : 12:00 NN-1:00 PM

PANEL OF EXAMINEES ACTION

TERESITA LL. NACION, Ed. D. _____________________________

Chairperson

ALNEE JOY A. AZUL, MBA _____________________________

Member

DARIA N. LABALAN, CPA, MBA _____________________________

Member

3
 DIVINE WORD COLLEGE OF LEGAZPI

COLLEGE OF BUSINESS EDUCATION

LEGAZPI CITY

APPROVAL SHEET

Upon the recommendation of the Oral Examination Committee, this thesis

entitled The Business Practices of Insular Life Assurance Company Ltd. in The

Context of Corporate Social Responsibility, prepared and submitted by Charlene C.

Lorenzo and Jo-Ann V. Losaez in partial fulfillment of the requirements for the degree

of Bachelor of Science in Accountancy is hereby approved.

ENGRACIO M. LUCIADA, CPA, MBA

Adviser

TERESITA LL. NACION, Ed. D.

Dean, College of Business Education

4
 ACKNOWLEDGEMENT

The researchers wish to extend their deepest gratitude to all those who willingly

helped and supported them in doing this work.

The President of Divine Word College of Legazpi, Fr. Crispin A. Cordero, SVD.,

and the SVD Community, we thank you for the continuous support to each and every

student of this learning institution.

The Dean of the College of Business Education,Teresita Ll. Nacion, Ed. D. for

the support and guidance toward this work.

For the intellectual guidance provided by our thesis adviserTressa Adelfa M.

Mortola, CPA, Ph. D, and accounting research instructor, Engracio Luciada, CPA,

MBA.

The panel of examinees, Teresita Ll. Nacion, Ed. D, and to the panel members,

Alnee Joy Azul, MBA and Daria N. Labalan, CPA, MBA, for the comments,

suggestions, and advice given in order for them to come up with this work.

The respondent, the Insular Life through Lani V. Segovia, District

Administration Supervisor, thank you for allowing us to conduct our study in your

business establishment.

Classmates, friends, and supporters for the encouragement towards this work

and for sharing their knowledge in conducting this research.

Parents for their love, support, and incredible sacrifice to invest in their

education.

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 Above all, the researchers heartedly express our deepest appreciation to the

Almighty God for His providence throughout these years of our education.

CCL & JVL

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 ABSTRACT

Charlene C. Lorenzo THE BUSINESS PRACTICES OF

Jo-Ann V. Losaez INSULAR LIFE ASSURANCE COMPANY
LTD. IN THE CONTEXT OF
CORPORATE SOCIAL
RESPONSIBILTY.
(Undergraduates Thesis, Divine Word
College of Legazpi, Legazpi City, April
2015)

This study aimed to identify and assess the business practices of Insular Life

Assurance Company Ltd. in the Context of Corporate Social Responsibility. It gave the

specification of the business policies and CSR-related activities of the company along

with its social, environmental, and financial concerns. Lastly, it determined the impacts of

corporate social responsibility on the overall business operation of Insular Life.

To pursue the forgoing purposes, the researchers sought the answers to the

following specific sub-problems:

1. What are the existing business policies of Insular Life in terms of its:
a. Social;
b. Environmental; and
c. Financial

concerns relative to corporate social responsibility?

2. What are the corporate social responsibility-related activities undertaken by

Insular Life along the aforecited variables?

3. What are the impacts created by corporate social responsibility on the overall

business operation of Insular Life?

This study is deemed significant and beneficial to Insular Life for it serves as the

primary beneficiary of the findings of this research. Recommendations of this study can

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be utilized as baseline data for any future CSR programs and activities to be

implemented.

The findings of the study on the business policies and CSR related activities can

provide better information not only to insurance companies but also to other related

industries. The result could be beneficial to them in terms of improve CSR programs

which are necessary for corporate and social objectives.

Findings

Based on the data gathered and analyzed, the findings of the study were as

follow:

1. The Business Policies of Insular Life

The following are the business policies of Insular Life along social,

environmental, and financial aspects:

Insular Life stipulates the existence and scope of the companys efforts to

address customers health and safety and elaborates its efforts to interact with the

communities in which they operate. Insular Life describes its efforts to ensure that its

value chain is environmentally friendly or is consistent with promoting sustainable

development. It continually improves its operations to ensure transparency of the

company with its various stakeholders in the most efficient, paperless and

environmentally friendly manner. Insular Life directs anti-corruption programmes and

procedure and describes how creditors rights are safeguarded. The company has also a

reward/compensation policy that accounts for the performance of the company beyond

short-term financial measures.

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2. The Corporate Social Responsibility-Related Activities of Insular Life

For Insular life, education is one of the most important investments it can make in

their people and the countrys future. It gives everyone a fighting chance to overcome

poverty and inequality. In 2012 and 2013, Insular Foundation sustained its various

investments in education and forged new partnerships. Granting scholarships, Literacy

and storytelling caravan, 57-75 Campaign to reverse the education crisis, and Principal

Empowerment Program are some of the projects implemented by the company.

Insular Life also believes that its employees are a key component of the

companys CSR initiatives. Their efforts enhance what the company contributes to our

communities on a corporate level. Thus, the company holds programs for its employee

volunteerism called Adopt a Scholar and GAWAD Kalinga Volunteerism.

To magnify its impact on education, Insular Life collaborated with like-minded and

same-purposed organizations, which can reach out to more underprivileged Filipino

children. In 2013, it partnered with Knowledge Channel Foundation, Inc. and recognize

those people who have greatly contributed to the welfare of the Filipino people through

the The Outstanding Filipinos (TOFIL) Awards.

Insular Foundation also embarked on various activities in 2013 such as monetary

donation to Itaas Elementary School for materials needed for cleaning and repainting of

school premises and facilities under the DepEds Brigada Eskwela program and

donation of 1,000 sets of school supplies and bags to three schools in Bataan, one of

the provinces hardest hit by the southwest monsoon rains brought about by Typhoon

Maring. Insular Foundation also came in solidarity with the nation in reaching out to

Filipinos whose lives and properties were affected by the spate of calamities in the latter

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part of 2013 by giving donation of hygiene kits and food packs to the survivors of Super

Typhoon Yolanda.

Insular Life was among the first Filipino corporations to patronize and promote

Philippine art in the 1950s by commissioning Fernando Amorsolo for a series of

paintings on Philippine history and industry. The company also promotes excellence in

the performing arts through it many venue grants to music, dance, and production

companies in its two theatres located in the Insular Life building in Makati and in its

headquarters in Muntinlupa.

Insular Foundation also reached out to the other sectors of society in 2012. It

made a Php1 million donation to the Philippine Eagle Foundation, Inc. for the

conservation of the Philippine eagle and its forest habitat. It also assisted in the

rehabilitation work in Yolanda-devastated areas and conducted a talk on The Philippine

Economic Environment.

In 2012, Insular Life partnered with AIESEC Philippines, the worlds largest

youth-driven organization, for a Leadership Convergence Summit, which aimed to

exchange ideas on issues relevant to the global and Philippine society. In 2013, Insular

Life Finance Division conducted its 6th annual Finance Training at Insular Life Corporate

Centre in Alabang. It also sponsored Personal Finance Management Forum for the

companys HR Heads. The company also conducted a financial education through a

360-degree approach.

Among the identified CSR-related activities of Insular Life, giving out medals to

the valedictorians of a select list of 1,000 public and private high school in the

Philippines is the only activity practiced in Legazpi City, which means that the company

is not that active in terms of Corporate Social Responsibility in the said City. The

10
company has focused giving back in places such as Metro Manila, Pampanga, and

Palawan.

Conclusions

In line with the findings of the study, the following conclusions are presented:

Insular Life has complied with its existing business policies along social,

environmental, and financial concern. It has given importance not only on for the

goodness of the company but also for the community where it belongs. The company

has focused on programs that support the youth by investing in education and has

engaged its employees through volunteerism. It has magnified its impact on education

through partnership with like-minded and same-purposed organizations. The company

has recognized those who have greatly contributed to the welfare of the Filipino people

in enhancing and uplifting the lives of their fellowmen. It has embarked on various

activities such as outreach programs to public schools in the country and has reached

out those Filipinos whose lives and properties were affected by the spate of calamities.

Insular Life has also undertaken CSR-related activities along

environmental concern, which indicates its care for the protection of the

ecological community and conservation of biodiversity. The company is also

engaged in CSR-related activities along financial concern, which means that the

company supports the importance of providing financial education to its

employees. The company is not that active in terms of Corporate Social

Responsibility in Legazpi City. The company has focused giving back in places

such as Metro Manila, Pampanga, and Palawan. But in general, Corporate Social

Responsibility has created a high impact on the overall business operation of

Insular Life.

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Recommendations
In line with the findings and conclusions of the study, the following

recommendations are presented:

Insular Life should continue the existing business policies it implements in terms

of its social, environmental, and financial concerns relative to its corporate social

responsibility in order to conduct its projects and programs properly. It should sustain its

various investments in education in order to help people break away from the cycle of

poverty and inequality. Granting scholarships to aspiration deserving students who

aspire to lend a hand to children who are in need of quality education and reaching out

to Filipino youths will surely help other people, the community, and the country as well.
The company should also continue engaging its employees through volunteerism

in order to make them be aware that their efforts contribute a lot on the future of other

people. It should sustain its partnership with other organizations to reach out to more

children that are underprivileged and continue honoring those modern day Filipino

heroes. Insular Life should continue its outreach programs to different public schools,

especially those in rural areas that need more assistance and should continue helping

rebuild lives of those people affected by the typhoon and other calamities.

Insular Life should continue to execute projects that will protect the environment

especially now that the world is experiencing climate change. Moreover, the company

should continue to carry out trainings and seminars that enhance the given skills and

knowledge of its employees. It should continue to set the minds of its employees with

philosophy and beliefs that are optimistic, so that they can be well guided and directed

toward the right path. Insular Life should also try to conduct its CSR-related activities

here in Legazpi City.

TABLE OF CONTENTS

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TITLE PAGE i

ACKNOWLEDGEMENT v

ABSTRACT vii

CHAPTER 1- THE PROBLEM AND ITS SETTING

Introduction 1

Statement of the Problem 4

Scope and Delimitation 5

Significance of the Study 5

End Notes 7

CHAPTER 2- REVIEW OF RELATED LITERATURE

Introduction 8

Related Literature 8

Synthesis of the State-of-the-Art 20

Gaps Bridged by the Study 21

Theoretical Framework 22

Conceptual Framework 24

Definition of Terms 24

End Notes 27

CHAPTER 3- RESEARCH METHODOLOGY

Introduction 31

Research Design 31

Source of Data 31

Respondents of the study 32

Research Instrument 32

Data Gathering Procedure 33

Statistical Treatment of the Data 33

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 End Notes 35

CHAPTER 4- THE BUSINESS PRACTICES OF INSULAR LIFE ASSURANCE

COMPANY LTD. IN THE CONTEXT OF CORPORATE SOCIAL

RESPONSIBILITY

The Business Policies of Insular Life 36

The CSR-related activities of Insular Life 38

The corporate social responsibility-related activities of Insular Life

along social concern 41

The corporate social responsibility-related activities of Insular Life

along environmental concern 52

The corporate social responsibility-related activities of Insular Life

along financial concern 54

The impacts of CSR on the overall business operation of Insular Life 55

CHAPTER 5- SUMMARY, FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

Summary 57

Findings 58

Conclusions 65

Recommendations 66

BIBLIOGRAPHY 68

APPENDICES

Appendix A. Questionnaire 73

Appendix B. Letter 77

Appendix C. Letter 78

CURRICULUM VITAE 79

LIST OF TABLES

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Table Title Page

1 The Corporate Social Responsibility-related practices

undertaken by Insular Life along social concern 40

2 The Corporate Social Responsibility-related practices

undertaken by Insular Life along environmental concern 51

3 The Corporate Social Responsibility-related practices

undertaken by Insular Life along financial concern 53

4 Impacts of Corporate Social Responsibility 55

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 LIST OF FIGURES

Figure Title Page

1 Theoretical Paradigm 23

2 Conceptual Paradigm 26

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