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Abstract
While there are numerous studies on the CSR communication, the Public Service
Corporations in the Philippines (PSCs) seem to follow an uncharted course probably because the
focus is on the primary function to deliver the needs of the people through their services. This study
explains the influence of the CSR communication by a Public Service Corporation on the
gathered through Key Informant Interviews and Focus Group Discussions of the selected internal
and external stakeholders; 2009-2013 quarterly newsletter and annual report issues; and
This views the CSR of the PSC as ethical and economic, ethical and legal, and philanthropic
with efforts on poverty, environment, health, education, technical and resources assistance, and
sustainability of services. The stakeholders view the Public Service Corporation with good operation
have become a widely pursued topic in business and academe world because of how its
practices have evolved and widely examined across the globe. Many companies engage in
CSR activities because it generates favorable responses such as enhanced reputation and
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 were living in poverty (Sharma, 2010).
Asian Institute of Management RVR Center for Corporate Responsibility (2005), on the
other hand, cited Gachitorena, president of the League for Corporate Foundation and Ayala
Foundation on the CSR practices in the Philippines which is “doing business in a way that
Business executives, regardless of the size of their company, consider CSR as a fundamental
part of their operations (Maximiano, 2004). Rimando (2012) affirmed this observation by
stating that more and more companies have embraced CSR in their business strategies on
how the business extends their responsibilities to the economic sphere and the environment.
The fact that several CSR categories emerged such as ethics, diversity, environmental,
sustainability and philanthropy (Chandler & Werther 2014) confirmed the continuous
How CSR is practiced and communicated by organization engaged on it also influenced its
“CSR forms an integral part of contemporary organizational and social life even if
its practice is still evolving. For that very reason, communication around CSR has
an essential role in the evolution of not just what organization does, but also in the
role that the rest of society – whether as stakeholders, NGOs, media or insiders to
the organization – play in articulating the meaning and practice of CSR.” (2011a,
p.566)
CSR communication is equally and extensively studied along with the CSR practices as
the key element of CSR management. Gray et. al. (1996) described CSR communication as
economic actions to particular interest groups within society and to society at large” while
Stanaland et. al. (2011) reported that communication on company’s attitude towards CSR
influenced the stakeholders’ perception of corporate reputation, their trust and loyalty to the
corporation.
With all these stipulations, it is assumed that the Public Service Corporations are not in any
way exempted from doing CSR and communicating it to their various stakeholders because
of its function to primarily cater to the needs of the people through its services. Public
cater to the basic needs of the populace through Presidential Decree No. 2029. This specific
Further, the massive negative criticism on the poor services led to the accusation that the
implemented CSR programs and CSR communication was to cover the poor services. This
study sought to look into the influence of the CSR practice and communication by a Public
This CSR view brings Carroll’s CSR Pyramid to the fore: philanthropic, ethical, legal and
economic responsibilities. His view was affirmed by the practitioner group, the World
Business Council for Sustainable Development (WBCSD, 1998, p.3) that company’s CSR
development while improving the quality of life of the workforce and their families as well
The European Commission (2011, p. 6) further expounded that CSR of enterprises has the
stakeholders.
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
Cone (2013) found that CSR has become more than a good strategy for business; it is now
perception of the company’s image. This affirmed Du et. al. (2010) view that CSR programs
help establish positive corporate reputation that makes consumers resilient to negative news
about the company. A recent study also showed that majority of the consumers say
supporting a cause they care enhances their perception of a product or company (Cone,
2010).
Others still see CSR as a Public Relation tool, or a form of “greenwashing”, to serve
corporate interest (Ganesh, 2007). Kim (in press) found CSR activities can also lead to
skepticism, but how companies communicate their CSR activities may determine the degree
McMillan (2007) fundamentally questioned whether companies are currently poised to take
Schultz’s (2006) stakeholder information and respond as one sided sender orientated to
stakeholder involvement which emphasizes the need to build and maintain a relationship
between organization and its stakeholders. There is the need to develop and promote
positive support from the stakeholders and for the company to understand and concurrently
She viewed the need to shift towards connection, reciprocity, and trust as a mutual dwelling
place for the rhetor and the audience. Bostdorff (1992), on the other hand, looked at how
rhetoric in the CSR communication is used to demonstrate the positive value of corporate
acts, the purity of corporate purpose, and how corporations have embraced a highly valued
social role. However, rhetoric also demonstrates how corporations privilege their own
interests and curtail public interest. The rhetorical challenge for corporations is when they
based on how the companies report, communicate and encourage engagement. The tools
used to announce, publicize, pass on or impart the companies’ CSR activities are still the
traditional unilinear model. Goodwill is the motivation for companies to engage in CSR,
Stakeholders
Stakeholders play a significant role in the success of the company’s CSR programs and
communication. Hence, it is very fitting to take careful consideration and sensitivity on their
organization should take account the effects of its actions on others as well as the potential
Mitchell et al. (1997) suggested identifying stakeholders along three dimensions: the
stakeholder’s power to influence the firm, the legitimacy of the stakeholder’s relationship
with the firm, and the urgency of the stakeholder’s claim on the firm.
Stakeholders can also be classified as internal or external. Internal stakeholders are groups
within the corporation or people who work directly within such as the management,
employees, owners and investors. External stakeholders, on the other hand, are groups
outside the corporation who are not directly working within the corporation, but are affected
Stakeholders’ Perception
Although perception is a largely cognitive and psychological process, how people perceive
each other and objects around affects the communication. People respond differently to an
object or person that they perceive favorably than others do to something they find
Gibson’s Theory explains that the cognitive apparatus was created and formed by a long
Perceptions effect on the communication process is all about how the same message can be
interpreted differently by different people. Experiences and present feelings are considered
Methodology
The study employed the Quasi-Experimental. Design where treatments or interventions are
evaluated treatments or interventions but the respondents are not randomly assigned to
posttest observations were obtained on various groups of respondents who experienced the
treatment, but there were neither control groups nor pretests. The CSR communication
program served as the treatment or intervention (independent variable) and the influence on
the stakeholders’ perception was looked at as the dependent variable. The implementation of
the CSR programs/activities was also considered independent variable which could have
influenced the perception of the stakeholders under the assumption that ommunication is
also happening in the process – that is, communicating while doing. This is specifically true
since in most Water District’s CSR activities, the various stakeholders were enjoined to
participate.
Quantitative Content Analysis was also employed in two instances: the first instance was on
the communication documents of Bislig City Water District such as Newsletter and Annual
Report issues from 2009-2013; while the second instance was on the transcribed Key
Bislig City Water District is the Public Service Corporation studied. For several years, it has
been struggling towards gaining the stakeholders’ support and participation which was
attributed to the poor communication coupled with poor services. The failure to put
to handle the communication activities, or mere refusal to respond to all the accusations and
issues thrown by the stakeholders triggered chaos among the employees, concessionaires,
media and public officials. This communication mess resulted to extensive criticism and
The water district had been openly criticized in various radio programs in the locality and
became a tool by the local election candidates in 2001 as their propaganda material,
promising solutions once elected to office. Employees were demoralized because they were
the recipient to the concessionaires’ antagonistic verbal reaction whether inside and outside
the office.
Majority of the employees viewed technical and resources donation or aid with what the
management constantly says as help to the community while others were not aware of these
activities or programs by the Water District. Employees did not know what to say to the
stakeholders creating further confusion and more prejudices against the organization.
Stakeholders’ perceived these activities and whatever attempt to inform them about it as a
form of building good public image, concealing the poor services, and gaining more
revenue. These perceptions created communication barriers between the water district and
its stakeholders.
These conditions prompted the current General Manager to put solutions when he took
office on February 1, 2004. The first move was to align corporate activities perceived to be
public relations and communications activities. These include hosting and guesting in radio
and CSR programs, and ensuring open communication with various stakeholders through
dialogues.
After more than 10 years of undertaking, it is only fitting to evaluate and explain the
influence of the CSR communication of the Bislig City Water District on the stakeholders’
perception.
Methods of Analysis
Descriptive Statistics was used in the analysis of data. The recorded interviews and
discussions with the respondents were first transcribed word for word in the Microsoft Word
following strictly the standard format of the transcription of recorded data. The transcribed
interviews of the Key Informant Interviews and Focus Group Discussion were subjected to
Two human coders were used including the researcher. Each CSR communication and
practice statements were assigned to a category based on the questions and codes. Out of the
151 articles and statements coded, Coders 1 and 2 had 136 codes in agreement with a
The 15% of the respondents from the management and employees understood CSR as
ethical, 10% an obligation and 5% giving back, for the sustainability of the services and
contribute to the development of the local economy. While a higher of 45% from the
concessionaires, media and public officials also understood CSR as ethical and 5% an
obligation, for the sustainability of the services and contribute to the development of the
local economy.
While asked on the objectives of the Public Service Corporation in doing CSR, 6% of the
respondents from the management and employees saw CSR as a means of giving benefits to
the people, 7% for profit, 11% for the sustainability of the services and show the quality
management, 6% for the welfare of the employees and build relationship with the
stakeholders. While a high percentage of 28 from the concessionaires, media and public
officials also observed giving benefits to the people, 11% for the sustainability of the
These results concur with Crowther and Aras’ (2008) view that companies are seriously
taking CSR not just because it is a key to business success and can give strategic advantage,
but also because people in the organization care about social responsibility which consider
social consequences and responsibilities such as what is a business and what contribution
CSR information sources, 11% mentioned cable tv, 11% through information, education and
from the concessionaires, media and public officials identified cable tv, 14% radio, 5%
through information, education and communication, leaflet and pamphlet, and 3% from the
employees.
Based on the responses, the Public Service Corporation noticeably tried to maximize every
communication resources available in the locality. These reveal the significant impact of
radio and cable tv in the influence of the CSR communication in the locality. This means
that these two popular channels are the most readily available and accessible to the
The 63% of the articles about CSR indicated ethical and economic. The Public Service
Corporation honestly explained the need of profit for the sustainable access of services of
the people as well as helps them earn through skills trainings. While 21% conveyed ethical
but mandated by law like the senior citizen benefits. The 7% presented economic on the
need of profit for the sustainable services at the same time help the local people earn for a
living. The 5% indicated charity works such as technical, resources, and disaster or calamity
The CSR, therefore, conveys ethical and economic, ethical and legal, and philanthropic with
the efforts on poverty, environment, education, health, technical, resources and disaster aid,
contributing resources to the community and improving the lives of the people; ethical
responsibilities that is doing what is right, just and fair; legal responsibilities by obeying the
The Public Service Corporation, on the other hand, highlights ethical and economic by
doing what is right, just and fair at the same time be profitable to ensure sustainable services
and help the stakeholders earn for a living or be profitable. Ethical and legal by doing what
is right, just and fair and is mandated by law; and philanthropic by providing technical and
resources assistance.
To do what is right, just and fair at the same time obey the
law.
Philantrophic
Stakeholder Involvement Strategy. First, it sends information on the CSR using the different
consequently, respond by calling or visiting the office to inquire and participate. Or they call
or visit the office to inquire on the implemented or ongoing CSR as they learned or
witnessed.
The Public Service Corporation uses the stakeholder information and stems to stakeholder
interact with each other or with other stakeholders to successfully implement or participate
in the CSR activities and or develop CSR initaitives to attain the goals.
How the messages on CSR are received and perceived by the Stakeholders
The 9% of the respondents from the management and employees identified the watershed
management, protection and rehabilitation, 12% on the free labor and materials, 10% on the
free water during fire incidents, 5% on the assistance for the victims of calamities and
disasters, 5% on both operation “tuli” circumcision and career development program for the
development program.
Whereas 14% of the respondents from the concessionaires, media and public officials’ cited
assistance for the victims of calamities or disasters, plumbing trainings and raffle draw, 2%
on the free water during fire incidents, operation circumcision “tuli”, career development
program for the employees and infrastructure restoration assistance. There was no mention
The watershed management, rehabilitation and protection are the top ranking identified CSR
followed by the free labor and materials and free water during fire incidents. The three top
identified CSR are linked to the core service of the Public Service Corporation.
Therefore, this explains the significant influence of stakeholders’ involvement in the CSR as
Schlegelmilch & Pollach (2005) stated that their involvement determines the positive CSR
outcomes. This also underscores the vital effect of the CSR activities relevance to the
This also explains that doing CSR is also communicating as the stakeholders recognize the
importance of the CSR which encourages other stakeholders to call or visit the Public
This indicates how challenging CSR communication is which requires understanding of the
stakeholders, their information needs, and the communication channels. It is important for
received and perceived CSR, 12% recognized connection and reciprocity between Public
Service Corporation and stakeholders, 8% understood the services especially during crisis,
changed their perception towards the Public Service Corporation and the efforts for
sustainable services, and educated about the Public Service Corporation and its CSR.
While 12% of the respondents from the concessionaires, media and public officials
they are educated and felt part of the Public Service Corporation.
The results point out a substantial level of positive influence of the CSR communication by
a Public Service Corporation on its stakeholders’ perception about the organization. The
messages of the General Manager and Chairperson of the Board of Directors as conveyed in
the relationship of CSR to the sustainability of the services and their significant contribution
revealed relevant influence on the stakeholders’ perception. This illustrates connection and
How the communication of CSR influence its Stakeholders Perception about the
organization
Other researchers pointed out that corporation is hesitant to communicate their CSR because
as well as Christian Aid (2004), Cloud (2007), Woolfson & Beck (2005) curtailing public
because of the significant response of the different stakeholders’ groups’ on corporate social
responsibilities.
The results show that 29% of the respondents from the management and employees
perceived the Public Service Corporation with a good operation and 7% takes care of the
people while a higher percentage of 36 from the concessionaires, media and public officials
perceived them with a good operation, 14% the Public Service Corporation takes care of the
people, however, 7% suggested the need to still improve the services. These perceptions
Conclusion
The study concludes that the CSR of the Public Service Corporation are responsibilities 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
This views the CSR of the Public Service Corporation 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 services. These still direct the moral
perception of companies’ inherent obligation to do what is right, just and fair, lawful and
profitable (Caroll, 1991, 1999). The watershed management, rehabilitation and protection;
free labor and materials; and free water during fire incidents are the top identified CSR
CSR works. Likewise, doing CSR is also communicating to the stakeholders. 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.
Radio, Cable TV and the CSR itself are the prevailing communication channels that
Therefore, this affirms the vital role of various stakeholders in the success of the CSR as
they are the doers, communicators and receivers. CSR messages are received and perceived
The study concludes a substantial level of positive influence of the CSR communication by
a Public Service Corporation on the stakeholders’ perception about the organization as they
perceived the corporation with a good operation and the utmost act of taking care of the
people but with the suggestion on improving the services. This also highlights the cultural
context of the CSR communication of the Public Service Corporation that would provide
Recommendations
Based on the results and findings of the study, the following recommendations are therefore
presented.
formulate the policies on the practice and communication of CSR to guide the top
management and employees to create a more strategic and effective communication of CSR
CSR:
“The Public Service Corporation shall institutionalize CSR practices and shall be
guided with the vision and mission, shall focus and maintain liability to act in
accordance to the overall goals of the community and society under the
CSR Communication:
all times and stakeholders shall be informed in a timely and readily accessible
Giving focus on communicating other CSR practices. Other CSR programs are equally
significant with the Watershed Management, Rehabilitation and Protection, thus, focus on
other effective strategies in in communicating should also be given time and efforts.
Campaigning the Public Service Corporation’s website. With the progress in
communication technology, the Public Service Corporation should campaign its website as a
modern source of CSR information and feedback from the various stakeholders.
Another research study. Conduct a study that takes into the cultural context on the
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