Corporate social responsibility and financial performance: The experience of selected Philippine companies, 1995-1999

Date of Publication


Document Type


Degree Name

Doctor of Business Administration

Subject Categories

Business Administration, Management, and Operations


Ramon V. Del Rosario College of Business


Management and Organization Department

Thesis Adviser

Rhoderick R. Santos

Defense Panel Chair

Louie A. Divinagracia

Defense Panel Member

Jose Ramon G. Albert
Remedios S. Ching
Victor B. Mariano


The study investigates the social responsibility of selected Philippine companies for the period 1995 to 1999.

The companies were investigated based on 40 measures consistent with the measures used by Kinder Lydenberg Domini Co. of the USA, MHC International of Europe and the Bishops Businessmen Conference of the Philippines, among others. These were validated by experts in the area of corporate social responsibility (CSR) in the Philippines.

Results show that there are companies with high scores as well as low scores in corporate social responsibility among the most actively traded companies during the period. It was found that based on the measures used, eighty six percent or 26 companies out of the 30 companies have corporate social responsibility scores above the midpoint of the highest possible score. Thirteen percent or 4 companies had very low scores on corporate social responsibility. Bank of the Philippine Islands got the highest score.

In the top ten (counting ties) are twelve companies from different sectors--three banks, three food and beverage, two power and energy, one communication, one transportation, one holding and one property company. Companies in whatever type of business can be socially responsible.

Companies in the same group in terms of resources were at different levels of corporate social responsibility. Companies with relatively less resources like ABS-CBN, La Tondena Distillers, Inc. and Jollibee Foods Corporation managed to occupy 2nd, 5th and 6th place in CSR ranking. There was no significant correlation between resources and CSR rank and between resources and CSR score.

There was a significant correlation between revenues and CSR rank and between revenues and CSR score. As revenues increase, CSR rank and CSR score increase. It was observed that there were wide variances in CSR score of companies within the same group as to revenues. The firm's rank in CSR was not dependent on total revenues. Companies with lower revenues like International Container Terminal Services, Inc. and Globe Telecom, Inc. showed higher CSR scores, being 5th and 8th place in CSR ranking than those with relatively high revenues.

The results show that profit margin was not the condition for being socially responsible. Three companies have a profit margin of five percent and below. These companies--La Tondena Distillers, Inc. and Petron Corporation are in the 5th and 6th place in the CSR ranking. Two companies, Globe Telecom, Inc. and Philippine National Bank, were incurring losses but managed to be in the 8th and 11th place in CSR. There was no significant correlation between profit margin and CSR rank, and between profit margin and CSR score.

High score on social responsibility did not necessarily match with relatively high total resources, high revenues or high profit margins. Nor was there a match of low scores of social responsibility with relatively low resources, revenues or profit margins. Enormous resources, revenues and profit margins were not conditions for being socially responsible. There must be other drivers of corporate social responsibility.

Through a two-step multivariate regression analysis, the study found that having a proper waste disposal system and use of recycled materials were the CSR practices that had significant effects on investor's assessment of the firm that influenced stock price. Employees knowledgeable on companies mission/vision and the use of recycled materials were CSR practices that significantly affected the firm's return on equity. These signal an effect of CSR on the firm's financial performance.

Abstract Format






Accession Number


Shelf Location

Archives, The Learning Commons, 12F Henry Sy Sr. Hall

Physical Description

148 leaves ; 28 cm.


Social responsibility of business; Industries -- Social aspects; Issues management; Business ethics

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