Chapter 1 To 5

1
CHAPTER 1
THE PROBLEM AND ITS SETTING
Background of the Study
The role of corporates by and large has been understood in terms of a
commercial business paradigm of thinking that focuses purely on economic
parameters of success. As corporates have been regarded as institutions that
cater to the market demand by providing products and services, and have the
responsibility for creating wealth and jobs, their market position has traditionally
been a function of financial performance and profitability. However, over the past
few years, as a consequence of rising globalization and pressing ecological
issues, the perception of the role of corporates in the broader societal context
within which it operates, has been altered. As a result of this shift, many forums,
institutions and corporates are endorsing the term Corporate Social
Responsibility (CSR).
Today, Corporate Social Responsibility has become a worldwide concept
whereby organizations consider the interests of society by taking responsibility
for the impact of their activities on customers, employees, shareholders,
communities and the environment in all aspects of their operations (Rawa, 2010).
Corporate social responsibility is an important management tool today. It has
emerged as a significant theme in the global business community and has
become a mainstream activity.

2
Moreover, companies’ increasing concern about their image, identity and
culture must be seen in relation to a number of changes that influence their roles
and opportunities. Internationalization and globalization have made it clear to
companies that simultaneously it has become more difficult and more important
to differ. The increasing power of the financial world has also drawn companies’
attention to the importance of identity. Walters (2005) accentuated that corporate
image is the emotional perception developed by a customer in response to a
corporation and its activities.
Scientists and marketing professionals emphasized the importance of
corporate social responsibility (CSR) in consumer’s decision making process.
Due to the fact that social responsibility is becoming more popular in global
scale, CSR is seen as crucial in creating attractive corporate image (CI),
providing competitive advantage and differentiation, leading to business success.
Banyte et.al., (2010) underscored that CSR is an important factor constituting
corporate image.
It is on the above context, that the researcher opted to conduct this study
to provide relevant information on the social responsibility practices and
corporate image of private establishments in Valencia City. The resultant
documents could be a basis in designing suitable corporate social responsibility
programs and activities, leading to gained competitive advantage and enhanced
corporate image. Thus, making this undertaking was a matter of social relevance.
3
Statement of the Problem
This study aimed to determine the social responsibility practices and
corporate image of business establishments in Valencia City. Specifically, it
sought to answers the following questions:
1. What is the profile of the respondents in terms of:
1.1. Age
1.2. Gender
1.3. Civil Status
1.4. Educational Attainment
1.5. Length of Service?
2. What is the level of social responsibility practices of business
establishments in Valencia City in terms of:
2.1. Economic Aspect
2.2. Legal Aspect
2.3. Ethical Aspect
2.4. Discretionary Aspect?
3. What is the level of corporate image of business establishments in
Valencia City in terms of:
3.1. Customer Attraction and Loyalty
3.2. Employee Motivation and Retention
3.3. Image Building?
4. Is there a significant relationship between social responsibility practices
and corporate image of business establishments in Valencia City?

4
5. Is there significant difference on the social responsibility practices when
grouped according to profile variables?
6. What could be the benefits in engaging in social responsibility
practices?
Hypothesis
The following hypothesis was tested in this study:
1. There is no significant relationship between social responsibility
practices and corporate image of business establishments in Valencia City.
2. There is no significant difference on the social responsibility practices
when grouped according to profile variables?
Theoretical and Conceptual Framework
This study was anchored from the precious work of Virvilaite et.al. (2011)
who stressed out that if a company which seeks attractive corporate image,
company should meets laws and other legal regulations as well as fulfills
economic expectations. A company should pay some attention towards the
implementation of ethical and philanthropic social responsibilities. This was
supported by the statements of the following authors:
Michael Hopkins (2011), who pinpointed that corporate image achieve
sustainable development of business entity in the society. Moreover, Baker
(2008), emphasize that CSR is a permanent pattern of business activities aimed
at fulfilling and exceeding legal and governmental expectations, ensuring

5
employee safety and health as well as improving the well-being of the local
community.
A conceptual framework is presented in Figure 1 showing the independent
and dependent variables. The independent variable is the social responsibility
practices which is measured by economic, legal, ethical and discretionary
components. Carroll (2011) defines CSR as hierarchy of 4 responsibility levels:
economic, legal, ethical and discretionary components. Economic responsibility
is being profitable, creating good and safe working conditions, providing quality
products. Legal responsibility is complying with laws and regulations. Ethical
responsibility is conducting business in moral, just, and transparent manner.
Discretionary responsibility is voluntarily supporting social movements, investing
in well-being of society in long term. The social responsibility practices indicators
were adopted from the previous study of Carroll (2011).
The dependent variable is the corporate image which includes the
customer attraction and loyalty, employment motivation and retention and image
building. According to Dowling (2001), corporate image is the global evaluation
which comprises of a set of beliefs and feelings a person has about an
organization. Access of capital, customer satisfaction and loyalty, employment
motivation and retention and image building are part of this global evaluation.
Worcester (2009) defines corporate image as the interconnection of a
consumer’s experiences, opinions, feelings, beliefs, and knowledge about the
corporation.
6
Social Responsibility Corporate Image

Practices
Customer Attraction &

Economic Aspect Loyalty
Legal Aspect Employee Motivation

and Retention
Ethical Aspect
Reputation
Discretionary Aspect
Fig. 1 Conceptual Framework of the Study

7
Significance of the Study
This study gives significant to the different groups who may utilize the
results and findings.
Business Organizations. This gives them insights on the importance of
implementing social responsibility on their organizational system. Through this
endeavor, businesses will be guided to operate based on the ethical standards
and have a competitive advantage because consumers are more willing to trust
ethical brands and remain loyal to those products, even during difficult and
challenging time. The output of this study will also improve their brand reputation,
attract more job candidates and customers, and increase employee engagement.
Employers and Employees. This research gives them awareness the
significance of following social responsibility practices in fostering a positive
workforce environment. Employees working for a company that has a good
public image and is constantly in the media for positive reasons almost always
equal positive output. Knowledge of this study will increase their organizational
performance and time commitment to the company as well as to the community
through engaging in volunteer programs.
Community. An organization which has a positive image and practices
social responsibility is beneficial to improve the welfare of its people, of the
society and the environment as a whole through producing quality products and
services and providing them community assistance programs.

8
Researchers. This research will help future researchers to have reference
and further elaborate what have been stated. This is just a small part of the wide
scope of Corporate Social Responsibility and Corporate Image. There are a lot
of things in the topics that are still vague and need further research.
Definition of Terms
This study used the following essential phrases which were procedurally
explained to constitute a usual structure of reference:
Corporate Image. This term refers to the corporate image as measured
by customer attraction and loyalty, employee motivation and retention and image
building.
Corporate Social Responsibility. A company’s sense
of responsibility towards the community and environment (both ecological and
social) which is measured in terms of economic, legal, ethical and discretionary
aspects.
Globalization. The worldwide movement toward economic, financial, trade
and communications.
Internalization. The growing tendency of corporations to operate across
national boundaries.
Organization. A social unit of people that is structured and managed to
meet a need or to pursue collective goals.
Private Establishments. Refers to business unit established, owned,
and operated by private individuals for profit in Valencia City.

9
CHAPTER 2
REVIEW OF RELATED LITERATURE
This part contains the review of related studies conducted in the
international setting which can be significantly used for the realization of this
study. Reviews of literature related to this study are shown below:
CSR is defined in many ways and no universally accepted definition is in
place, however, the scope of CSR in corporate board rooms to be management
ranks have pervaded and continue to gain momentum. Further CSR should not
be viewed as an add–on activity as it is a concept of good practice that cuts
across an organization.
Corporate Social Responsibility is the continuing commitment by business
to behave ethically and contribute to economic development while improving the
quality of life of the workforce and their families as well as of the local community
and society at large.
Economic Aspect. McGuire, Sundgren and Schneeweis (1988) Using
Fortune magazine's ratings of corporate reputations analyzed the relationships
between perceptions of firms' corporate social responsibility and measures of
their financial performance. They found a firm's prior performance, assessed by
both stock-market returns and accounting-based measures, was more closely
related to corporate social responsibility than was subsequent performance.
Measures of risk were more closely associated with social responsibility than
10
previous studies had suggested. Wartick and Cochran (1985) traced the
evolution of the corporate social performance model by focusing on three
challenges to the concept of corporate social responsibility: economic
responsibility, public responsibility, and social responsiveness. They also
examined social issues management as a dimension of corporate social
performance.
Carroll (2011) viewed the 1980s as a shift to more empirical research
applying his proposed four- dimensional pyramid model responsibility. He
suggested that CSR includes four kinds of responsibilities or dimensions:
economic, legal, ethical and philanthropic. In 1979 he offered a conceptual model
that comprehensively describes essential aspects of corporate social
performance. He addressed three aspects of the model major questions of
concern to academics and managers alike: (1) what is included in corporate
social responsibility? (2) what are the social issues the organization must
address? and (3) what is the organization's philosophy or mode of social
responsiveness?
Legal Aspect. Mahoney and Thorne (2005) examined the association
between long-term compensation and corporate social responsibility (CSR) for
90 publicly traded Canadian firms. Social responsibility is considered to include
concerns for social factors and the environment. They found a significant
relationship between the long-term compensation and total CSR weakness as
well as the product/environmental weakness dimension of CSR. In addition, they
found a marginally significant relationship between long-term compensation and

11
total corporate responsibility. Their findings were that executives ‘long-term
compensation is associated with a firm s environmental action, and that firms that
utilize long-term compensation are more likely to mitigate product/environment
weaknesses than those that do not. In 2006 they also examined the association
between executive compensation and corporate social responsibility (CSR) for
77 Canadian firms using three key components of executives’ compensation
structure: salary, bonus, and stock options. They measured three different
aspects of CSR, which include Total CSR as well as CSR Strengths and CSR
Weaknesses. CSR Strengths and CSR Weaknesses capture the positive and
negative aspects of CSR, respectively. They found significant positive
relationships between: (1) Salary and CSR Weaknesses, (2) Bonus and CSR
Strengths, (3) Stock Options and Total CSR; and (4 ) Stock Options and CSR
Strengths. They suggested the importance of the structure of executive
compensation in encouraging socially responsible actions, particularly for larger
Canadian firms.
Zahra and LaTour (1987) identified three major themes in research on
corporate social responsibility (CSR) of particular interest; however, is the
potential link between CSR and organizational effectiveness (OE). Data collected
from 410 college graduate and undergraduate students were used to examine
that relationship. Using factor analysis, eight dimensions of CSR and three
components of OE were extracted. They performed Canonical analysis. The
result supports the proposition that specific CSR practices affect select OE
outcomes.
12
Corporate Social Responsibility (CSR) has permeated management
practice and theory up to a point where CSR can be referred to as the latest
management fad (Guthey, Langer, & Morsing, 2006). However, so far CSR
integration into business processes has been very uneven. Hockerts (2008), for
example, finds that most firms conceptualize CSR primarily as a tool to reduce
risks and operational cost. Only a minority of firms is actually using CSR as a
means to drive innovation. In their study of 150 German and British
pharmaceutical companies Blum-Kusterer and Hussain (2001) similarly find that
regulation and technological progress are the two main drivers for sustainability
innovations. They observed that the lure of emerging market niches was no
important motivator for the firms studied. This is unfortunate since bringing
stakeholders into the innovation process offers important opportunities to
increase both the social and financial performance of firms.
The same report gave some evidence of the different perceptions of what
this should mean from a number of different societies across the world. It
respects cultural differences and finds the business opportunities in building the
skills of employees, the community and the government from Ghana, through to
CSR is about business giving back to society from the Philippines.
The current corporate social responsibility (CSR) agenda is immature,
though the issues that it is concerned with are as old as human endeavor. Basic
definitional issues are still contested. One of the principal dividing lines across
much of Europe and North America is between people who say that the
corporate social responsibility agenda should be limited to a consideration of

13
‘voluntary’ activities by businesses ‘beyond compliance’ with legally mandated
baselines, and those who argue that the starting point should be far broader –
based on an understanding of the total impacts of business in society, or the
potential contributions of businesses to the societies in which they operate.
Ethical Aspect. Hill (2006) Explained that CSR is a set of practices that
form a part of good management or business practices much of it is about
transparency and disclosure. Many organizations find that in actuality they
already do much of what is considered “CSR” but often do not have form allied
systems to report on those activities.
Mohr, Webb and Harris (2001) viewed corporate social responsibility as a
company’s commitment to minimizing eliminating any harmful effects on society
and maximizing its long term beneficial impact. Chowdhury (2004) believes that,
as a part of corporate governance. Corporate governance and monitoring is an
important control device. The independent roles of non- executive directors in a
society are dependent on economic, socio – political and cultural factors of that
society. Asia particularly China, Japan, India, Bangladesh, Malaysia and
Indonesia is characterized by collectivism and paternalism where there is high
loyalty to senior people and juniors and subordinates obey seniors’ wishes and
desires.
The World Business Council for Sustainable Development in its
publication “Making Good Business Sense” by Lord Holme and Richard Watts
used the following definition. “Corporate Social Responsibility is the continuing
commitment by business to behave ethically and contribute to economic

14
development while improving the quality of life of the workforce and their families
as well as of the local community and society at large”. Research has also shown
that job applicant and employee perceptions of a firm’s CSR affects how
attractive these individuals perceive the firm to be (Greening and Turban 2000).
The precise nature of CSR is understood in different ways, with
differences in understanding or representation of the concept relatable to
different paradigms and concerns. Although there are several contested notions
of what CSR should be and how it should work, there is some agreement upon
what it broadly entails. A number of concepts and issues are subsumed under
the heading of CSR, including human rights, environmental responsibility,
diversity management, sustainability, and philanthropy (Amaeshi & Adi, 2006),
meaning that it is a complex area with an interdisciplinary focus.
Discretionary Aspect. Today, Corporate Social Responsibility has
become a worldwide concept whereby organizations consider the interests of
society by taking responsibility for the impact of their activities on customers,
employees, shareholders, communities and the environment in all aspects of
their operations (Rawa, 2010). Corporate social responsibility is an important
management tool today. It has emerged as a significant theme in the global
business community and has become a mainstream activity (Valle 1999).
The Nordic Centre on Corporate Responsibility (NCCR) a collaborative
research effort, bringing together CSR scholars from Denmark, Sweden, Norway,
Finland, and Iceland under the sponsorship of the Danish Commerce and
15
Companies Agency (DCCA) with the goal of studying CSR-driven innovation in
the Nordic region. The report falls into five parts:
A brief review of key concepts in the CSR debate (i.e. organizational
legitimacy, moral choices, stakeholder interaction, and sustainable development);
A short discussion of the state of the art of innovation literature (i.e. incremental
vs. radical innovations; sustaining vs. disruptive innovation; user-driven
innovation, the entrepreneurial process, the role of the entrepreneur, institutional
entrepreneurship); An analysis of extant publications on CSR and innovation
(corporate social innovation, base of the pyramid (BOP), social entrepreneurship,
and eco-innovations); An analysis of social innovation on all four levels discussed
in the first part; and providing a list of global examples of social innovation
brands.
Traditionally in the United States, CSR has been defined much more in
terms of a philanthropic model. Companies make profits, unhindered except by
fulfilling their duty to pay taxes. Then they donate a certain share of the profits to
charitable causes. It is seen as tainting the act for the company to receive any
benefit from the giving. (The World Business Council for Sustainable
Development in its publication Making Good Business Sense by Lord Holme and
Richard Watts)
It is generally agreed that CSR involves corporations voluntarily exceeding
their legal duties to take account of social, economic and environmental impacts
of their operations. For example, the European Commission defines CSR as a
concept whereby companies integrate social and environmental concerns in their

16
business operations and in their interactions with their stakeholders on a
voluntary basis" (European Multistakeholder Forum on CSR, 2004: 3)
Before entering economic analysis, the stage has to be set by defining
Corporate Social Responsibility. In practice, a variety of definitions of CSR exists.
The European Commission (2002) defines Corporate Social Responsibility as "a
concept whereby companies integrate social and environmental concerns in their
business operations and in their interaction with their stakeholders on a voluntary
basis".
The World Bank states: "CSR is the commitment of businesses to behave
ethically and to contribute to sustainable economic development by working with
all relevant stakeholders to improve their lives in ways that are good for business,
the sustainable development agenda, and society at large.
Customer attraction and loyalty. In today’s severe competitive markets,
differentiation between organizations in terms of price, product and/or service
characteristics and the value of the delivery system is difficult. Thus, positioning
your organization inside the customers’ black box, i.e., customers’ mind through
communication channels such as advertising, promotion, postures, banner ads,
publicity, public relations, personnel selling-----etc (Anderson, 2008).
To structure the customer-side of the customer relationship marketing
management framework, the researchers adopted the well-established paradigm
of confirmation of expectations, used extensively the service quality literature
(Parasuraman et al., 1993). Customers' willingness to maintain a relationship
with a organization is contingent on their perception of the benefits of a

17
high relationship quality, satisfaction with a relationship, and the benefits of a
relationship that provide a continuous flow of value Service quality is one of
the most important and widely researched topics in services (Zeithaml,
2000). Services quality represents the majority of today's economy, not only
in developed countries but also developing countries throughout the world.
Service quality results from customers' comparisons of their expectations about a
service encounter with their perceptions of the service encounter (Parasuraman
et al.1993). Providing service quality is simply no longer an option. Customers
are more demanding and they are the judge of quality (Little and Little, 2009).
This is reflected in the large number of empirical research studies that have
investigated the impact of service quality on outcome variables including
customer satisfaction and customer loyalty in the past few decades.
Although service quality as “perceived by customers” (Zeithaml, 2000), but
the service provider is the one who create and deliver the service. Service
providers are the organization’s ambassadors; because they had the ultimate
balance of quality in service in the customers’ mind. In fact they act as a
boundary-spanning that links commercial organizations from inside and outside
by obtaining information and disseminating this information to all parties; this is
also known as "Discretionary behaviour", or "Travelling the extra mile for
the customer beyond the call of duty" (Slatten, 2008).
Benabou and Tirole (2006) find that extrinsic incentives can crowd out pro-
social behavior via a feedback loop to reputational signaling concerns. The
reputational concern react the possibility that increased monetary incentives can
18
lead observers to interpret pro-social action as greediness rather than social
responsibility, thereby making pro-social behavior a less efficient signal of social
type. Also firms often rely on reputation. Kitzmueller (2008) investigates the
potential effects of a CSR subsidy. If firms vary in their capacity to benefit from
CSR due to different mission and cost structures, and consumers have
preferences for mission driven CSR independent of one shot government
incentives and cannot observe firm types, then a subsidy can reduce the
effectiveness of CSR as a signal and might crowd out CSR by some firms or lead
to lower total CSR depending on the distribution of firm types.
Moreover, companies’ increasing concern about their image, identity and
culture must be seen in relation to a number of changes that influence their roles
and opportunities. Internationalization and globalization have made it clear to
companies that simultaneously it has become more difficult and more important
to differ. The increasing power of the financial world has also drawn companies’
attention to the importance of identity. Like nations appealed to patriotism in war
time, some companies now seek to appeal to solidarity and loyalty among
shareholders, politicians and the public.
Employee Motivation and Retention. Some of the warning signs that a
business might have an image problem include high employee turnover, the
disappearance of major customers, a drop in stock value, and poor relationships
with vendors or government officials. If an image problem is left unaddressed, a
company might find many of its costs of doing business rising dramatically,
including the costs of product development, sales support, employee wages, and
19
shareholder dividends. In addition, since the majority of consumer’s base their
purchase decisions at least partly on trust, current and future sales levels are
likely to suffer as well.
Corporate Social Responsibility (CSR) has become a well-known concept
over the last decade and a half. Employees, government representatives,
academic scholars, NGOs and international organizations have been
contemplating which role they have to play in regard of CSR. Laws have been
drafted that promote socially responsible behavior by companies. International
organizations have promoted principles. Companies have adopted CSR mission
statements and programmers, and are sharing their efforts through sustainability
reports. NGOs have contacted companies and pointed out how they can operate
in a more responsible way, and academics have analyzed all.
Image Building. In the process of managing corporate image, the
fundamental variables are: corporate identity, corporate communication,
corporate image, and feedback. Corporate identity is the reality of the
corporation—the unique, individual personality of the company that differentiates
it from other companies. Corporate communication is the aggregate of sources,
messages, and media by which the corporation conveys its uniqueness or brand
to its various audiences. Corporate image is in the eye of the beholder—the
impression of the overall corporation held by its several audiences.
The objective in managing corporate image is to communicate the
company's identity to those audiences or constituencies that are important to the
firm, in such a way that they develop and maintain a favorable view of the
20
company. This process involves fashioning a positive identity, communicating
this identity to significant audiences, and obtaining feedback from the audiences
to be sure that the message is interpreted positively. An unsatisfactory image can
be improved by modifying corporate communication, re-shaping the corporate
identity, or both.
Hussain and Hussain (2005) provided a constructive picture between
consumer’s perception and organization’s spending pattern on different CSR
activities. They also figured out whether consumers expect to incorporate only
brand name, or only company name or both brand and company name while
organizing CSR activities.
Corporate image, or reputation, describes the manner in which a
company, its activities, and its products or services are perceived by outsiders. In
a competitive business climate, many businesses actively work to create and
communicate a positive image to their customers, shareholders, the financial
community, and the general public. A company that mismanages or ignores its
image is likely to encounter a variety of problems (Young, 2010).
In businesses of all sizes, it is vital that managers recognize the
importance of creating and maintaining a strong image, and that they also make
employees aware of it. Corporate image begins within the offices of a company's
managers. It should be based on the development of good company policies,
rather than on controlling the damage caused by bad company policies. Young
Young (2010) recommends that business owners and managers take the
21
following steps toward improving their companies' image: focus on the firm's
long-term reputation; base actions on substantive policies; insist on candor in all
business dealings; and uphold the stakeholders' right to know. After all, he notes,
a good corporate image can take years to build and only moments to destroy.
Corporate reputation research is rooted in the earlier research on
corporate image. Corporate image is closely related to brand equity (Caruana
and Chircop, 2000). Corporate image are likely to play only a secondary role in
customers’ choice decisions unless competing services are perceived as
virtually identical on performance, price, and availability (Anderson, et.al
2008). In general, corporate image and reputation is considered an asset
which gives the organization a chance to differentiate itself aiming to
maximize their market share, profits, attracting new customers, retaining
existing ones, neutralizing the competitors’ actions and above all their success
and survival in the market (Anderson et al., 2008).
Corporate image and reputation is considered to be a critical factor in the
overall evaluation of any organization (Sarstedt et al., 2012) because of the
strength that lies in the customers’ perception and mind when hearing the name
of the organization (Bravo et al., 2009). Thus, continuous research on
corporate image and reputation is a must for those organizations that want to
successfully differentiate their positioning in the market.
Kandampully and Hu (2007) stated that corporate image consisted of
two main components; the first is functional such as the tangible
characteristics that can be measured and evaluated easily. The second is

22
emotional such as feelings, attitudes and beliefs the one have towards the
organization. These emotional components are consequences from
accumulative experiences the customer have with the passage of time with
the organization.
Several definitions are found in the literature; Aaker and Keller (1990)
defined corporate reputation as a perception of quality associated with corporate
name. Furthermore, Keller (1993) defined corporate image as perceptions of an
organization reflected in the associations held in consumers’ memory. Nguyen
and LeBlanc (2001) defined corporate image as a subjective knowledge, or
attitude such as ideology, corporate name, reputation and delivery system
quality level. All of these characteristics contribute to build the corporate image.
Corporate image is defined as the “overall impression” left in the
customers’ mind as a result of accumulative feelings, ideas, attitudes and
experiences with the organization, stored in memory, transformed into a
positive/negative meaning, retrieved to reconstruct image and recalled when the
name of the organization is heard or brought to ones’ mind (Bravo et al., 2009).
Thus, corporate image is a result of communication process in which the
organizations create and spread a specific message that constitutes their
strategic intent; mission, vision, goals and identity that reflects their core values
that they cherish (Bravo et al., 2009). This is consistent with Keller’s (1993)
worldwide vision of brand image. Thus, corporate image could be considered as
a type of brand image in which the brand name refers to the organization as a
whole rather than to its sole products/services.

23
Reputation also counts for managers. If society rewards a social behavior
not only in the market place but also in "a more societal environment", Baron
(2008) concludes that this can aggravate the moral hazard problem and
managers will have incentives to carry CSR beyond its strategic level.
In general, this part the researcher gained much point of views from the
different readings of books, journals, thesis, dissertations and websites written
and published by various authors and researchers who were expert in their field
of specialization. It helped the researcher to deepen his understanding on the
importance of determining the selection dimensions of clients in choosing a rural
bank and the level of client satisfaction. This study was further conceptualized by
the findings and results of the studies previously conducted.

24
CHAPTER 3
RESEARCH METHODOLOGY
This chapter imparts the methods and procedure utilized in this study
including the research design, research subject, research instrument and data
gathering procedure, statistical treatment of the data and other sources of
information and data treatment.
Research Design
This study uses descriptive-correlational method. This method is
concerned with the description of data and response of the respondents. A
descriptive study is undertaken in order to ascertain and be able to describe the
characteristics of the variables of interest in a situation (Sekaran, 2010). It is
conducted in order to understand and learn about the current conditions,
situations, practices and phenomena that exist in the organization or system. In
correlation research, it involves the collection of data in order to determine
whether the degree of relationship exist between two or more quantifiable
variables. In data collection, we used questionnaires as a way that would solicit
reliable responses.
Research Subject
The respondents of the study were the employees of the different
business establishments in Valencia City. They answered some question related

25
to the social responsibility practices and corporate image which includes some
indicators vis-à-vis their respective establishment. The study was conducted for
the school year 2016-2017.
The researcher used stratified random sampling in selecting the
respondents. The desired sample size was determined by using the Slouvins’s
formula which is 149 at 0.05 level of significance. Stratified sampling was used to
determine the number of samples for each rural bank location. Stratified
sampling is a probability sampling techniques that divides the population into
homogeneous groups of strata and selection is done within each strata (Salas,
1998). Strata members, according to Burns (2004), have the same percentage
representation in the sample as they do in the population, sometimes referred as
the proportionate stratified sample.
As shown in Table 1, there are 5 business corporations in Valencia City,
Bukidnon with a total number of 149 respondents or equal to 100 percent. In
Tamay Lang Corporation there are 35 regular employees, the number of
respondents are 22 with the percentage of 14.84. Lyla Corporation has the lower
number of employees of 25, the number of respondents are 16. The Roy Plaza
has the highest number of employees of 75 with the percentage of 31.78
respondents equal to 47. In Plaza Villahermosa there are 48 employees and the
numbers of respondents are 30 with the percentage of 20.43. The NVM
Marketing has 53 employees, with the number of respondents of 34 and the
percentage of 22.46.
26
Table 1
Distribution of the Respondents
Business Establishment Number of Number of Percentage

Employee Respondents
Tamay Lang Corp. 35 22 14.83
Plaza 48 30 20.34
Villahermosa
NVM Marketing 53 34 22.46
Roy Plaza 75 47 31.78
Lyla (Alkuino) Corporation 25 16 10.59
TOTAL 236 149 100.00

27
Research Instrument
The research instrument used in gathering the data was adopted from
various authors with some modification. The questionnaire was refined and
contextualized to the local setting. Pre-test was conducted to achieve the
acceptable level of reliability. The Cronbach’s Alpha of 0.905 was established.
The questionnaire is composed of four parts. The first part dealt with the
demographic profile of the respondents: age, gender, civil status, educational
attainment and length of service. Part 2 consisted of the corporate social
responsibility practices which were composed of 20 items. Part 3 composed of
items on the corporate image of business establishment which were composed
of 15 items. The last part consisted of items on benefits in engaging social
responsibility. Five-Point Likert Scale was adopted to determine the level of CSR
and Corporate Image as well as their relationship.
For the scale on the level of corporate social responsibility practice as
perceived by the respondents the following scale is used:
Range of Mean Descriptive Level Interpretation
4.50 – 5.00 Very High This indicates that CSR is

very well practiced.
3.50 – 4.49 High This indicates that CSR is

well practiced.
2.50 – 3.49 Moderate This indicates that CSR is

moderately practiced.
1.50 – 2.49 Low This indicates that CSR is

rarely practiced.
28
1.00 – 1.49 Very Low This indicates that CSR is

not practiced.
For the scale on the level of corporate image as perceived by the
respondents the following scale is used:
Range of Mean Descriptive Level Interpretation
4.50 – 5.00 Very High This means that the item

embodied is observed all
the time.
3.50 – 4.49 High This means that the item

embodied is observed
oftentimes .
2.50 – 3.49 Moderate This means that the item

occasionally.
1.50 – 2.49 Low This means that the item

rarely.
1.00 – 1.49 Very Low This means that the item

embodied is not at all
observed.
Data Gathering Procedure
The data were gathered through the following procedures.
1. Permission to Conduct the Study. A letter of permission was secured to
conduct the Social Responsibility Practices and Corporate Image of Business
Establishment in Valencia City. The researcher asked permission through official

29
communication from the different private establishment duly signed and
endorsed by the adviser.
2. Administration and Retrieval of Questions. The researcher managed
the questions to the respondents of the study and they were requested to answer
the questions honestly so that valid and reliable data will be produced.
3. Collation and Tabulation of Data. The result was collected and tabulated
before subjecting it to statistical statement.
4. Analysis and Interpretation. Results were analysed and interpreted
based on the purpose of the study.
Statistical Treatment of Data
The gathered data were classified, analysed and interpreted by using the
following appropriate statistical tools.
Frequency and Percentage. This was used to determine the
demographic profile of the respondents.
Mean. This was used to determine the level of social responsibility
practices and corporate image of business establishment in Valencia City.
Pearson r Correlation. This was employed to determine if there is a
significant relationship between the social responsibility practices and corporate
image of business establishment in Valencia City.
Chi-Square. This was used to analyse the significant differences on the
social responsibility practices when grouped according to profile variables.

30
Chapter 4
PRESENTATION AND ANALYSIS OF DATA
Presented in this chapter are the discussions on the results of the study in
answer to the questions raised in Chapter One of this research.
Demographic Profile
Age. Shown in Table 2 is the data on the demographic characteristics of
business establishment in Valencia City. The age groupings of the respondents
are as follows: 21 years old to 35 years old 98 or 65.8 percent; 36 to 50 years old
are 40 or 26.8 percent; and 51 to 65 years old are 11 or 7.4 percent.
Gender. Out of 149 respondents, Eighty Five or 57.0 percent are females
and Sixty Four or 43.0 percent are males.
Status. Moreover, there are 62.4 percent or Ninety Three single and 37.6
percent or Fifty Six are married out of 149 business establishment employees.
Educational Attainment. In terms of educational attainment Nine or 6.0
percent are high school graduate; Fifteen or 10.1 percent are
technical/vocational; Fifty One or 34.2 percent are college level; Sixty Seven or
45.0 percent are college graduate; and Five or 3.4 percent are with master’s unit;
and Two or 1.3 percent are master’s degree.
Length of Service. Furthermore, Thirty Five or 23.5 percent are 5 years
and below; Fifty Three or 35.6 percent are 6 – 10 years; Twenty Five or 16.8
percent are 11 – 15 years; Sixteen 0r 10.7 percent are 16 – 20 years; Eleven or
7.4 percent are 21 – 25 years; and Nine or 6.0 percent 26-30 years of service.
31
Table 2
Demographic Profile of the Respondents
Percentage
Indicator Frequency (N)
(%)
Age:
21 years old – 35 years old 98 65.8
TOTAL 149 100.0
Gender:
64 43.0
Male
Female 85 57.0
TOTAL 149 100.0
Status:
Single 93 62.4
Married 56 37.6
TOTAL 149 100.0
Educational Attainment:
9 6.0
High School Graduate
Technical/Vocational 15 10.1
College Level 51 34.2
College Graduate 67 45.0
With Master’s Unit 5 3.4
Master’s Degree 2 1.3
TOTAL 149 100.0
Length of Service
35 23.5
5 years and below
6 – 10 years 53 35.6
11 – 15 years 25 16.8
16 – 20 years 16 10.7
21 – 25 years 11 7.4
26 – 30 years 9 6.0
TOTAL 149 100.0
32
Level of Social Responsibility Practices in terms of Economic Aspect
Economic Aspect. Displayed in Table 3 is the data on the social
responsibility practices in terms of economic aspect. The overall mean rating is
3.61 or high. The mean ratings are sorted from highest to lowest as follows: 4.12
or high on providing good quality product and services; 3.87 or high on
Maintaining positive image to supplier and other stakeholders; 3.78 or high on
practicing fair market participant; 3.75 or high on providing of good and safe
working conditions for economic growth; 3.67 or high on acknowledging the role
of markets to ensure efficient pricing and provision; 3.61 or high on achieving its
profitability target while engaging in social activities; 3.53 or high on providing
tools and resources to use; 3.51 or high on addressing corporate social
responsibility economically oriented; 3.35 or moderate on preventing future
business problems; and 3.29 or moderate on strengthening business networks
locally and globally.
The high rating means that corporate social responsibility practices in
terms of economic aspect is well practiced. However, items on preventing future
business problems and strengthening business networks locally and globally are
moderately practiced. This connotes that private establishments provide good
and safe working conditions and achieve profitability while doing social activities.
This conforms to the study of Blum-Kusterer and Hussain (2001), who
revealed that corporate social responsibility offers important opportunities to
increase both social and financial performance of firms. In addition, Hockerts
(2008), pointed out that CSR serves as a tool to reduce operational cost.
33
Table 3
Level of Social Responsibility Practices in terms of Economic Aspect
Item Mean Descriptive

Equivalent
Addressing corporate social responsibility economically 3.51 High
oriented.
Acknowledging the role of markets to ensure efficient 3.67 High
pricing and provision.
Provision of good and safe working conditions for 3.75 High
economic growth.
Providing good quality product and services. 4.12 High
Maintaining positive image to supplier and other 3.87 High
stakeholders
Providing tools and resources to use. 3.53 High
Strengthening business networks locally and globally. 3.29 Moderate
Preventing future business problems. 3.35 Moderate
Practicing fair market participant. 3.78 High
Achieving its profitability target while engaging in social 3.61 High
activities.
Overall Mean 3.61 High
Legend:
Range of Mean Descriptive Level
4.50 – 5.00 Very High

3.50 – 4.49 High
2.50 – 3.49 Moderate
1.50 – 2.49 Low
1.00 – 1.49 Very Low
34
Level of Social Responsibility Practices in terms of Legal Aspect
Legal Aspect. Presented in Table 4 is the data on the social responsibility
practices in terms of legal aspect. The overall mean rating is 3.29 or moderate.
The mean ratings are organized from highest to lowest as follows: 4.12 or high
on completing compliance of permits and licenses; 3.82 or high on performing in
a manner consistent with expectations of government and law; 3.82 or high on
promptly filing of Income Tax Return; 3.76 or high on abiding company’s
constitution and by-laws; 3.74 or high on practicing fair pricing; 3.41 or moderate
on providing goods and services that meet minimal legal requirements; 3.16 or
moderate on developing a crisis management plan; 2.42 or low on transparency
of ends and means of our company to the public; and 2.39 or low on taking
proactive measures through websites, advertising or public speeches.
The moderate rating means that corporate social responsibility practices in
terms of legal aspect is moderately practiced. This indicates that business
establishment should develop social practices on being transparent to the public,
develop crisis management plan, provide litigation protection and take proactive
measures.
The result of this study is aligned with the study of Hill (2006), who
revealed that corporate social responsibility is a set of practices that form a part
of good management or business practices much of it is about transparency and
disclosure. In the same way, Chowdhury (2004) supported that good governance
is part of company’s commitment to social responsibility for long term beneficial
impact.
35
Table 4
Level of Social Responsibility Practices in terms of Legal Aspect

Equivalent
Completing compliance of permits and 4.12 High
licenses.
Abiding company’s constitution and by- 3.76 High
laws.
Promptly filing of Income Tax Return. 3.82 High
Transparency of ends and means of our 2.42 Low
company to the public.
Practicing fair pricing. 3.74 High
Providing litigation protection like media 2.25 Low
liability insurance.
Developing a crisis management plan. 3.16 Moderate
Providing goods and services that 3.41 Moderate
meet minimal legal requirements
Taking proactive measures through 2.39 Low
websites, advertising or public speeches.
Performing in a manner consistent with 3.82 High
expectations of government and law.
Overall Mean 3.29 Moderate
Legend:
4.50 – 5.00 Very High

3.50 – 4.49 High
1.50 – 2.49 Low
1.00 – 1.49 Very Low
36
Level of Social Responsibility Practices in terms of Ethical Aspect
Ethical Aspect. Viewed in Table 5 is the data on the social responsibility
practices in terms of ethical aspect. The overall mean rating is 3.44 or moderate.
The mean ratings are arranged from highest to lowest as follows: 3.92 or high on
preventing ethical norms from being compromised in order to achieve corporate
goals; 3.84 or high on achieving in a manner consistent with societal
expectations and ethical norms; 3.75 or high on practicing Code of Ethics and
ethical standards; 3.63 or high on observing ethical fairness between the
employees and the management; 3.54 or high on providing just and on-time
compensation; 3.51 or high on recognizing and respecting new or evolving
ethical/moral norms adopted by society; 3.41 or moderate on obligating healthy
ethics for a long term profitable matter; 3.37 or moderate on observing moral
integrity, justice and equality; 3.29 or moderate on taking corrective actions
ethically whenever mismanagement occurs; and 2.16 or low on providing career
development, training and professional advancement to employees.
The moderate rating means that corporate social responsibility practices in
terms of ethical aspect is moderately practiced. This finding articulate that
observing moral integrity, justice and equality must be given utmost attention
including career development and professional advancement of employees.
The above findings collaborated with the work of Mahoney and Thorne,
(2005) who found the significant relationship between long-term compensation
structures: salary, bonus and stock options and corporate social responsibility.
37
Table 5
Level of Social Responsibility Practices in terms of Ethical Aspect

Equivalent
Providing just and on-time compensation. 3.54 High
Observing ethical fairness between the 3.63 High
employees and the management.
Practicing Code of Ethics and ethical 3.75 High
standards.
Observing moral integrity, justice and 3.37 Moderate
equality.
Taking corrective actions ethically whenever 3.29 Moderate
mismanagement occurs.
Achieving in a manner consistent with 3.84 High
societal expectations and ethical norms.
Recognizing and respecting new or evolving 3.51 High
ethical/moral norms adopted by society.
Preventing ethical norms from being 3.92 High
compromised in order to achieve corporate
goals.
Obligating healthy ethics for a long term 3.41 Moderate
profitable matter.
Providing career development, training and 2.16 Low
professional advancement to employees.
Legend:
4.50 – 5.00 Very High

3.50 – 4.49 High
1.50 – 2.49 Low
1.00 – 1.49 Very Low
38
Level of Social Responsibility Practices in terms of Discretionary Aspect
Discretionary Aspect. Reflected in Table 6 is the data on the social
responsibility practices in terms of discretionary aspect. The overall mean rating
is 3.61 or high. The mean ratings are sorted from highest to lowest as follows:
4.51 or high on giving sales promotions during seasonal events; 3.85 or high on
granting goods or services to another organization; 3.73 or high on conditions
and payment deadlines are appropriate; 3.67 or high on engaging in project to
aid the environment.(i.e., clean-up drive, tree planting); 3.55 or high on
contributing resources to the community; 3.51 of high on completing consistent
liberal expectations of society; 3. 42 or moderate on donating money to
charitable causes; 3.41 or moderate on donating and sponsoring to community
organizations; 3.39 or moderate on supporting projects voluntarily that enhances
the community's quality of life; and 3.38 or moderate on conducting activities or
programs on health promotion, risk and disaster awareness and feeding
programs.
The high rating means that corporate social responsibility practices in
terms of discretionary aspect is well practiced. This connotes that business
establishment provides projects/activities voluntarily that enhances the
community’s quality of life. The finding was supported by The European
Commission (2002), they articulated that CSR is a concept whereby companies
integrate environmental concern in their business operations and in their
interactions with their stakeholders on a voluntary basis. Likewise they donate a
certain share of the profits to charitable causes.

39
Table 6
Level of Social Responsibility Practices in terms of Discretionary Aspect

Equivalent
Donating and sponsoring to community 3.41 Moderate
organizations.
Engaging in project to aid the 3.67 High
environment.(i.e., clean-up drive, tree
planting)
Donating money to charitable causes. 3.42 Moderate
Giving sales promotions during seasonal 4.51 High
events.
Conducting activities or programs on health 3.38 Moderate
promotion, risk and disaster awareness and
feeding programs.
Contributing resources to the community. 3.55 High
Supporting projects voluntarily that enhances 3.39 Moderate
the community's quality of life.
Completing consistent liberal expectations of 3.51 High
society.
Conditions and payment deadlines are 3.73 High
appropriate.
Granting goods or services to another 3.85 High
organization.
Legend:
4.50 – 5.00 Very High

3.50 – 4.49 High
1.50 – 2.49 Low
1.00 – 1.49 Very Low
40
Summary of Corporate Social Responsibility Practices
Table 7 shows the summary of the result on the level of corporate social
responsibility practices of business establishment in Valencia City. The means
ranged from 3.29 to 3.61 described as moderate with overall mean of 3.48. This
means that corporate social responsibility practices of business establishment
are moderately practiced. This implies that business establishment ensures
efficient pricing, engage in social activities, perform activities consistent with the
expectations of government and law and providing just and on-time
compensation. However, business establishment should take corrective actions
ethically whenever mismanagement occurs.
Among the indicators are the economic aspect with mean rating of
3.61which is described as high; legal aspect with mean rating of 3.29 described
as moderate; ethical aspect with mean rating of 3.44 described as moderate; and
discretionary aspect with mean rating of 3.60 described as high. The indicator
economic aspect is the highest and the lowest indicator is the legal aspect.
This finding affirmed with the point of view of Cochran (1985), who stated
that corporate social responsibility dimensions include economic responsibility,
public responsibility and social responsiveness. Besides, Carroll (1991),
supported that corporate social responsibility includes four kinds of
responsibilities or dimensions: economic, legal, ethical and philanthropic. In
addition, he underscored that social responsibility considered to include concerns
for social factors and the environment.

41
Table 7
Summary of Corporate Social Responsibility Practices

Equivalent
Economic Aspect 3.61 High
Legal Aspect 3.29 Moderate
Ethical Aspect 3.44 Moderate
Discretionary Aspect 3.60 High
Legend:
4.50 – 5.00 Very High

3.50 – 4.49 High
1.50 – 2.49 Low
1.00 – 1.49 Very Low
42
Level of Corporate Image in terms of Customer Attraction and Loyalty
Customer Attraction and Loyalty. Table 8 depicts the data on the
corporate image in terms of customer attraction and loyalty. The overall mean
rating is 3.54 or high. The mean ratings are sorted from highest to lowest as
follows: 4.23 or high on communicating to queries, wants and needs of customer;
3.81 or high on offering customer care and development program; 3.57 or high
on implementing a justifiable pricing; 3.56 or high on caring about building a
relationship with customer; 3.52 or high on improving promotional tools; 3.47 or
moderate on developing a repeat buying strategy; 3.40 or moderate on providing
program or activities for customers; 3.36 or moderate on opening a grievance
channel from the customers; and 3.15 or moderate on offering extended
customer benefit.
The high rating means that corporate image in terms of customer
attraction and loyalty is observed oftentimes. This suggests that business
establishment build relationship with customer, communicate to queries and
wants and offered customer care and development program.
The result is somehow connected to the opinion of Hussain (2005) who
expressed that the objective in managing corporate image is to communicate the
company's identity to those audiences or constituencies that are important to the
firm, in such a way that they develop and maintain a favorable view of the
company. This process involves fashioning a positive identity, communicating
this identity to significant audiences, and obtaining feedback from the audiences
to be sure that the message is interpreted positively.

43
Table 8
Level of Corporate Image in terms of Customer Attraction and Loyalty

Equivalent
Caring about building a relationship with 3.56 High
customer
Providing program or activities for 3.40 High
customers
Providing pre-sale and post-sale service. 3.31 Moderate
Communicating to queries, wants and 4.23 High
needs of customer.
Offering customer care and development 3.81 High
program.
Opening a grievance channel from the 3.36 Moderate
customers
Developing a repeat buying strategy 3.47 Moderate
Improving promotional tools 3.52 High
Implementing a justifiable pricing 3.57 High
Offering extended customer benefit 3.15 Moderate
Legend:
4.50 – 5.00 Very High

3.50 – 4.49 High
1.50 – 2.49 Low
1.00 – 1.49 Very Low
44
Level of Corporate Image in terms of Employee Motivation and Retention
Employee Motivation and Retention. Table 9 discloses the data on the
corporate image in terms of employee motivation and retention. The overall
mean rating is 3.28 or moderate. The mean ratings are arranged from highest to
lowest as follows: 3.59 or high on establishing clear cut policy of hiring; 3.54 or
high on reconciling professional and personal life; 3.52 or high on providing good
working conditions; 3.45 or moderate on providing fringe benefits; 3.39 or
moderate on extending welfares to employees family member; 3.38 or moderate
on providing products and services special incentives; 3.25 or moderate on
granting promotions, acknowledgement and rewards; 3.21 or moderate on
establishing personality & skills development programs; and 2.32 or low on
granting field trainings and continuing education.
The high rating means that corporate image in terms of employee
motivation and retention is observed occasionally. This indicates that
compensation plan, fringe benefits, trainings and continuing education,
personality and development programs and granting promotions are occasionally
observed.
The finding was supported by Greening and Turban (2000), who proved
that corporate image achieved by improving the quality of life of the workforce
and their families as well as of the local community and society at large. In line
with this concept, Young, (2010) who exposed that manager should recognize
the importance of creating and maintaining a strong image, and that they also
make employees aware of it.

45
Table 9
Level of Corporate Image in terms of Employee Motivation and Retention

Equivalent
Granting promotions, acknowledgement and 3.25 Moderate
rewards
Establishing better compensation plan 3.16 Moderate
Providing fringe benefits 3.45 Moderate
Providing good working conditions 3.52 High
Reconciling professional and personal life 3.54 High
Establishing personality & skills development 3.21 Moderate
programs
Providing products and services special 3.38 Moderate
incentives
Granting field trainings and continuing 2.32 Low
education
Establishing clear cut policy of hiring 3.59 High
Extending welfares to employees family 3.39 Moderate
member
Legend:
4.50 – 5.00 Very High

3.50 – 4.49 High
1.50 – 2.49 Low
1.00 – 1.49 Very Low
46
Level of Corporate Image in terms of Image Building
Image Building. Presented in Table 10 is the data on the corporate image
in terms of image building. The overall mean rating is 3.61 or high. The mean
ratings are organized from highest to lowest as follows: 4.02 or high on
developing employer-employee relationship; 3.78 or high on strengthening
employee’s reputation and integrity; 3.64 or high on developing goal oriented
activities; 3.61 or high on enhancing good corporate communication; 3.58 or high
on improving corporate identity and brand name; 3.55 or high on strengthening
political and social concern; 3.54 or high on encouraging corporate giving and
volunteering; 3.51 or high on strengthening environmental protection; 3.47 or
moderate on upholding corporate vision and mission; and 3.40 or moderate on
enhancing conformity to standardization.
The high rating means that corporate image in terms of image building is
observed oftentimes. This connotes that business establishments improve
corporate identity, good communication, corporate giving and volunteering,
strengthen environmental, political and social protections.
This findings affirmed with the point of view of Bravo et.al., (2009) who
stated that corporate image is a result of communication process in which the
organizations create and spread a specific message that constitutes their
strategic intent; mission, vision, goals and identity that reflects their core values
that they cherish. In addition, image building creates and communicates a
positive image to their customers, shareholders, the financial community and the
general public.
47
Table 10
Level of Corporate Image in terms of Image Building

Equivalent
Improving corporate identity and brand name 3.58 High
Enhancing good corporate communication 3.61 High
Encouraging corporate giving and 3.54 High
volunteering
Strengthening employee’s reputation and 3.78 High
integrity
Enhancing conformity to standardization 3.40 Moderate
Developing employer-employee relationship 4.02 High
Developing goal oriented activities 3.64 High
Upholding corporate vision and mission 3.47 Moderate
Strengthening environmental protection 3.51 High
Strengthening political and social concern 3.55 High
Legend:
4.50 – 5.00 Very High

3.50 – 4.49 High
1.50 – 2.49 Low
1.00 – 1.49 Very Low
48
Summary of Corporate Image of Business Establishment in Valencia City
Presented in Table 11 is the summary of the result on the level of
corporate image of business establishments in Valencia City. The means range
from 3.28 to 3.61 described as moderate with overall mean of 3.47. This means
that corporate image of business establishment in Valencia City is observed
occasionally. This implies that business establishments should develop programs
and activities to improve corporate image in order to attract more customers,
retain skillful employees and enhance brand identity and reputation.
Among the indicators are the customer attraction and loyalty with mean
rating of 3.54 which is described as high; employee motivation and retention with
mean rating of 3.28 described as moderate and image building with mean rating
of 3.61 described as high. The indicator image building is the highest and the
lowest indicator is the employee motivation and retention.
The above findings is in congruent to the study of Anderson et al., (2012)
who concluded that corporate image and reputation is considered an asset
which gives the organization a chance to differentiate itself aiming to
maximize their market share, profits, attracting new customers, retaining
existing ones, neutralizing the competitors’ actions and above all their success
and survival in the market.
Furthermore, this result is congruent with the study of Sarstedt et al.,
(2012) who noted that corporate image and reputation is considered to be a
critical factor in the overall evaluation of any organization because of the strength
that lies in the customers’ mind when hearing the name of the organization.
49
Table 11
Summary of Corporate Image of Business Establishment in Valencia City

Equivalent
Customer Attraction and Loyalty 3.54 High
Employee Motivation and Retention 3.28 Moderate
Image Building 3.61 High
Legend:
4.50 – 5.00 Very High

3.50 – 4.49 High
1.50 – 2.49 Low
1.00 – 1.49 Very Low
50
Significant Relationship between Social Responsibility Practices and

Corporate Image of Business Establishment in Valencia City
Reflected in Table 12 is the relationship between social responsibility
practices and corporate image of business establishment in Valencia City. The
overall correlation result on the level of social responsibility practices and
corporate image of business establishment in Valencia City is .715 (p-
value=.000) which is significant at 0.01 level of significance. Therefore, the null
hypothesis is hereby rejected. It could be stated that there is a significant
relationship between the social responsibility practices and corporate image of
business establishment in Valencia City.
When the indicators of independent variable which is social responsibility
practices were correlated with corporate image, economic aspect had a
correlation coefficient of .712, legal aspect had a correlation coefficient of .678,
ethical aspect had a correlation coefficient of .481; and discretionary aspect had
a correlation coefficient of .734, which are significant at 0.01 level of significance.
The result is somehow similar to the study of McGuire et al., (1988) who
analyzed the relationships between perceptions of firms' corporate social
responsibility and measures of their financial performance. They found a firm's
stock-market returns and accounting-based measures, was more closely related
to corporate social responsibility. In like manner, the study conducted by
Mahoney and Thorne (2005), on the association between long-term
compensation corporate social responsibility revealed a significant relationship
between the long-term compensation and total corporate social responsibility.

51
Table 12
Relationship between Social Responsibility Practices and Corporate Image
Independent Variable Dependent Variable

(Social Responsibility (Corporate Image)
Practices) Customer Employee Reputation Overall
Attraction Motivation
and Loyalty and
Retention
Economic Pearson r .656** .634** .644** .712**
Aspect (p-value) (.000) (.000) (.000) (.000)
Legal Pearson r .633** .615** .654** .678**

Aspect (p-value) (.001) (.000) (.000) (.000)
Ethical Pearson r .416* .318* .489** .481**

Aspect (p-value) (.031) (.027) .(001) .(013)
Discretionary Pearson r .658** .612** .785** .734**

Aspect (p-value) (.000) (.011) (.000) (.000)
Overall .723** .778** .781** .715**

(.000) (.000) (.000) (.000)
*p<0.05
**p<0.01
Significant (Decision on Ho= Reject)
52
Chi-square Test on the significant differences on the Social Responsibility

Practices when grouped according to profile variables
Table 13 presents the Chi-square Test on the significant differences on
the social responsibility when grouped according to profile variables. The
respondents perceived to have no significant differences when analyzed
according to profile variables. The probability values are as follows: age with p-
value of 0.1339; sex with p-value of 0.0678; civil status with p-value of 0.6289;
educational attainment with p-value of .1975; and length of service with p-value
of .3732 which are higher than 0.05 level of significance. Therefore, the null
hypothesis is accepted. There is no significant difference on the social
responsibility practices when grouped according to profile variables.
Table 13
Chi-square Test on the significant differences on the Social Responsibility

Practices when grouped according to profile variables
Profile Chi-square test at 0.05 level of

Variables significance p-value Decision
df X2 computed X2 critical
Accept Ho
Age 18 24.6878 28.8692 0.1339 Not Significant
Accept Ho
Sex 3 7.1789 7.8352 0.0678 Not Significant
Accept Ho
Civil Status 7 7.1804 18.8587 0.6289 Not Significant
Accept Ho
Educational 21 26.2176 32.6754 0.1975 Not Significant
Attainment
Accept Ho
Length of Service 15 15.6587 24.8798 0.3732 Not Significant
53
Respondent’s opinion as to benefits in engaging on social responsibility
Table 14 depicts the benefits in engaging on social responsibility.
Respondents believed that there are certain benefits in engaging social
responsibility practices. The result revealed that One Hundred Twelve or 75.2
percent believed that it will enhance business reputation. About Thirty or 20.1
percent assumed that it will improve relations with customers, government and
private agencies and the community. On the other hand, only Seven or 4.7
percent believed that engaging in social responsibility practices will mean an
increase income or profitability.
Table 14
Respondent’s opinion as to benefits in engaging on social

responsibility
Frequency Percentage
Indicator
(N) (%)
Increase in income or profitability 7 4.7
Enhance business reputation 112 75.2
Improve relations with customers,

government and private agencies and 30 20.1
the community
Total 149 100.0

54
Chapter 5
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
This chapter presents the summary of findings, conclusions and
recommendations based on the analysis of data obtained.
Summary
This study aimed to determine the social responsibility practices and
corporate image of business establishments in Valencia City. Specifically, it
sought to answers the following questions:
1. What is the profile of the respondents in terms of:
1.1. Age
1.2. Gender
1.3. Civil Status
1.4. Educational Attainment
1.5. Length of Service?
2. What is the level of social responsibility practices of business
establishments in Valencia City in terms of:
2.1. Economic Aspect
2.2. Legal Aspect
2.3. Ethical Aspect
2.4. Discretionary Aspect?

55
3. What is the level of corporate image of business establishments in
Valencia City in terms of:
3.1. Customer Attraction and Loyalty
3.2. Employee Motivation and Retention
3.3. Image Building?
4. Is there a significant relationship between social responsibility practices
and corporate image of business establishments in Valencia City?
5. Is there significant difference on the social responsibility practices when
grouped according to profile variables?
6. What could be the benefits in engaging in social responsibility
practices?
The researcher employed descriptive-correlational research design
through the set of survey instrument as data gathering instruments. The study
was conducted among the 149 employees of business establishment in Valencia
City for the school year 2016-2017.
The following were the findings of the study:
1. The demographic profile of respondents in terms of age: 21 years old to
35 years old 98 or 65.8 percent; 36 to 50 years old are 40 or 26.8 percent; and
51 to 65 years old are 11 or 7.4 percent, it showed that the respondents were
mostly in their 20s to 30s. On gender profile, the majority of them were females
(85 or 57.0 percent) while male employees were (64 or 43.0). On their civil
status, majority of the respondents were single (93 or 62.4 percent) and 56 or
56
37.6 percent were married. Moreover, In terms of educational attainment 9 or 6.0
percent are high school graduate; 15 or 10.1 percent are technical/vocational; 51
or 34.2 percent are college level; 67 or 45.0 percent are college graduate; and 5
or 3.4 percent are with master’s unit; and 2 or 1.3 percent are master’s degree.
Regarding their length of service: 35 or 23.5 percent are 5 years and below; 53
or 35.6 percent are 6 – 10 years; 25 or 16.8 percent are 11 – 15 years; 16 or
10.7 percent are 16 – 20 years; 11 or 7.4 percent are 21 – 25 years; and 9 or 6.0
percent 26-30 years of service.
2. The level of corporate social responsibility practices of business
establishment in Valencia City had means ranging from 3.29 to 3.61 with overall
mean of 3.48.The indicators had the following means scores: economic aspect
3.61; legal aspect 3.29; ethical aspect 3.44; and discretionary aspect 3.60. The
indicator economic aspect was the highest and the lowest indicator was the legal
aspect.
3. The level of corporate image of business establishments in Valencia City
had means ranging from 3.28 to 3.61 with overall mean of 3.47. The indicators
had the following mean scores: customer attraction and loyalty 3.54; employee
motivation and retention 3.28 and image building 3.61. The indicator image
building was the highest and the lowest indicator was the employee motivation
and retention.
4. There was a high correlation between social responsibility practices and
corporate image as manifested in its .715 correlation coefficient with p-value of
.000 at .01 level of significance, hence, the rejection of null hypothesis.

57
5. The respondents perceived to have no significant differences when
analyzed according to profile variables. The probability values are as follows: age
with p-value of 0.1339; sex with p-value of 0.0678; civil status with p-value of
0.6289; educational attainment with p-value of .1975; and length of service with
p-value of .3732 which are higher than 0.05 level of significance, hence, the
acceptance of null hypothesis.
6. The respondents believed that there are certain benefits in engaging
social responsibility practices. The result revealed that 112 or 75.2 percent
believed that it will enhance business reputation; 30 or 20.1 percent assumed
that it will improve relations with customers, government and private agencies
and the community and 7 or 4.7 percent believed that engaging in social
responsibility practices will mean an increase income or profitability.
Conclusion
On the basis of the foregoing findings, the following conclusions were
drawn:
1. The employees of business establishment in Valencia City are aged
30s and below, mostly female and single. Majority are college level/graduate and
10 years below of service.
2. There is a moderate level of corporate social responsibility practices of
business establishment in Valencia City in terms of economic aspect, legal
aspect, ethical aspect and discretionary aspect.

58
3. There is a moderate level of corporate image of business establishment
in Valencia City in terms of customer attraction and loyalty, employee motivation
and retention and image building.
4. There is a significant relationship between social responsibility practices
and corporate image of business establishments in Valencia City.
5. There is no significant difference on the social responsibility practices
when grouped according to profile variables.
6. The respondents believed that the benefits in engaging social
responsibility practices will enhance its business reputation.
Recommendation
Based on the forgoing conclusions, the researcher proposes the following
recommendations:
1. The management must have to integrate social responsibility practices
in all phase of its business operation and enhance knowledge and skills on how
to conduct social responsibility activities.
2. Involvement of employees in different social responsibility activities.
Allow employee to participate or attend on seminars/trainings on social
responsibility practices in business as a way of providing professional
development and career advancement.
3. Develop programs or activities that will improve the quality of life of the
workforce and their families, the welfare of the community and the well-being of
the society as a whole.

59
4. Promote environmental protection and conservation and extending
donations and other resources to foundations and charitable organizations in
order to entice prospect customer, retain strong employee, attract potential
workforce, and most of all enhance business image/reputation for competitive
advantage.
5. It is recommended that a similar study may be undertaken for other
sectors, which have not been covered by earlier studies. Additional variables can
also be added in subsequent research endeavor to determine other point of view
of business concerning social responsibility and corporate image.

60
References
Aakar, R. and Keller, T. (1990). Conceptualizing the dynamics of social

responsibility: Evidence from a case study of Estonia, Journal of Business
Ethics, 81, 371-385.
Adi, D., Suparn, S & Amaeshi, (2006). Corporate Social Responsibility: The Key
Role Of Human Resource Management. Business Intelligence Journal.
Anderson, T.W.& Olsen. L.L.(2008). The impact of customers’ perception of

varying degrees of customer service on commitment and perceived
relative attractiveness. Managing Service Quality, 18(4), 309-328.
Baker, M. (2008). Corporate Social Responsibility – What Does It Mean?

MallenBaker.net.
Banyte, J., Brazioniene, L., & Gadeikiene, (2010). A. Expression of Green

Marketing Developing the Conception of Corporate Social Responsibility.
Inzinerine Ekonomika–Engineering Economics (5), 550-560.
Baron, D.P. (2008). Private politics, corporate social responsibility and integrated
strategy, Journal of Economics and Management Strategy, 10(1), 7-45.
Benabou, S., & Tirole, J. (2006). How does Corporate Social Responsibility
Create Value for Consumers? Journal of Consumer Marketing, (1), 48-56.
Burns, A.B & Bush, F.R ( 2004). Marketing Research. Pearson Education
Asian. Ltd. Jurong Singapore.
Blume, L. and Kusterer, S. (2001). National Case Study Germany, A Contractual

Approach to Multi-level Governance: How to Design Effective
Relationships between Central and Sub-National Governments, OECD-
document GOV/TDPC/RD (2005)/16 Paris.
Bravo, K.L. (2009). Building Corporate Image Through Societal Marketing

Programs. Society and Business Review, (3), 230-253.
Carauna, A.,Money, A.H. & Berthon, P.R.(2000). Service Quality and

satisfaction- the moderating role of value. European Journal of Marketing.
Vol. 34, Iss. 11,pp. 1338-1352.
Carroll, A. B. (2011). The Pyramid of Corporate Social Responsibility: Toward

the Moral Management of Organizational Stakeholders. Business
Horizons.
61
Chowdhury, M. (2004). Manage Your Customers’ Perception of Quality. Review

of Business,24,18-38.
Dowling, M.C. (2001). Structural Equation Modeling with Amos: Basic

Concepts, Applications and Programming, New Jersey: Lawrence Erlbau
Associates, Inc., Publishers.
EU (2004), Green Paper on Promoting a European Framework for Corporate

Social Responsibility, European Commission, Luxembourg,
http://www.activecitizenship.net/socialresp/greenpaper.pdf
European Commission (2002), Green Paper on Promoting a European

Framework for Corporate Social Responsibility, European Commission.
Luxembourg, http://www.activecitizenship.net/socialresp/greenpaper.pdf,
accessed on 21 August 2001.
Guthey, B. L., Langer, R. N., & Morsing, R. H. K. (2006). Environmental

Protection and the Social Responsibility of Firms. Perspectives from Law,
Economics, and Business. Resources for the Future. Available from
internet: GoogleBooks.com.
Greening DW, & Turban DB (2000). Corporate social Performance as a

competitive advantage in attracting a quality workforce, Business and
Society, 39: 254–280.
Hill, A(2006). Shareholder value, stakeholder management, and social issues:

What’s the bottom line? Strategic Management Journal,
22: 125-139.
Hopkins, M (2011). Communicating a New Corporate Image During Priv

atization: the Case of El Al Airlines. Corporate Communications: an
International Journal, (4), 380-393.
Hussain, P.,& Hussain, W. (2005). Influence of Corporate Social Responsibility

on Competitive Abilities of Corporations. Inzinerine Ekonomika–
Engineering Economics (3), 34-44.
Kandampully, A., & Hu, D. (2007). Corporate Social Responsibility: a Theory of

the Firm Perspective. Academy of Management Review, (1), 117-127.
Keller, K. L. (1993). Building Brand Equity Through Corporate Societal Marketing.

Journal of Public Policy & Marketing , 21 (1), 78-89.
Mahoney, B.M. and Thorne, H.K. (2005). Guided by the Brand: from Brand
Management to Integrative Corporate Communications. Business Strategy
Series, (5), 248-258.
62
McGuire, J., Sundgren, A. and Schneeweis, T. 1988. Corporate social

responsibility and firm financial performance, Academy of Management
Journal, 31: 854-872.
Mohr, R.E, Webb, T.L & Harris, F.T. (2001). The evolution and future of national
customer satisfaction index models. Journal of Economic Psychology,
22(2), 217-45.Jones, T., & Sasser, W.E (1995).Why satisfied
customers defect. Harvard Business Review, 73, 88-99.
Nguyen, N. & Leblanc, G. (2001). Corporate image and corporate reputation in

customers’ retention decisions in services. Journal of Retailing and
Consumer Services, 8, 227-36.
Parasuraman, A. & Berry, L.L. (1993). A Conceptual Model of Service Quality

and Its Implications for Future Research. Journal of Marketing. Vol. 49,
Iss. 4, pp. 41-50.
Rawa, A. S. (2010). Corporate Social Performance Revisited. Academy of

Management Review, (4), 691-718.
Salas, V.L.(1998). Statistics: A Reviewer/Text. Goldstar Publishing, Cagayan de

Oro City, Philippines.
Sekaran, U. (2010). Research Methods for Business (4th ed). John Wiley & Sons,
Inc. India, Republika Press Pvt.Ltd.
Valle, D. (1999). Understanding Business Processes. Available from internet:

GoogleBooks.com.
Virvilaite et.al. (2011). “Corporate Social Responsibility in Forming Corporate

Image”,
Walters, R. (2005). Social Responsibility and Impact on Society. The TQM

Magazine, (3), 172-178.
World Business Council (2006). Corporate Social Responsibility for Sustainable

Development. 23 Feb. Lord Holme and Richard Watts.
Worcester, R. (2009). Reflections on Corporate Reputations. Management

Decision, (4), 573-589.
Wortick, K., & Cochran, V. (1985). Corporate Social Responsibility: the 3C – SR

Model. International Journal of Social Economics, (5/6), 386-398.
63
Young, Y. (2010). A critical review of consumer satisfaction. In V. Zethiaml (Ed),

Review of marketing (pp. 68-123). Chicago: American marketing
Association.
Zahra, K.L & LaTour, M.B(1987). The Strategic Role of Product Quality. Journal
of marketing, .51 (October),31-44.
Zeithaml, V.A & Berry, L.L. (2000). SERVQUAL: A Multi-Item Sale for Measuring
Consumer Perception of Service Quality. Journal of Retailing. Vol. 64, Iss.
1, pp. 12-40.

Chapter 1 To 5

Diunggah oleh

Informasi Dokumen

Judul Asli

Hak Cipta

Format Tersedia

Bagikan dokumen Ini

Bagikan atau Tanam Dokumen

Opsi Berbagi

Apakah menurut Anda dokumen ini bermanfaat?

Apakah konten ini tidak pantas?

Hak Cipta:

Format Tersedia

Chapter 1 To 5

Diunggah oleh

Hak Cipta:

Format Tersedia

1

THE PROBLEM AND ITS SETTING

Background of the Study

The role of corporates by and large has been understood in terms of a

commercial business paradigm of thinking that focuses purely on economic

parameters of success. As corporates have been regarded as institutions that

few years, as a consequence of rising globalization and pressing ecological

institutions and corporates are endorsing the term Corporate Social

Today, Corporate Social Responsibility has become a worldwide concept

whereby organizations consider the interests of society by taking responsibility

for the impact of their activities on customers, employees, shareholders,

Corporate social responsibility is an important management tool today. It has

emerged as a significant theme in the global business community and has

become a mainstream activity.

Moreover, companies’ increasing concern about their image, identity and

and opportunities. Internationalization and globalization have made it clear to

attention to the importance of identity. Walters (2005) accentuated that corporate

image is the emotional perception developed by a customer in response to a

corporation and its activities.

Scientists and marketing professionals emphasized the importance of

corporate social responsibility (CSR) in consumer’s decision making process.

scale, CSR is seen as crucial in creating attractive corporate image (CI),

providing competitive advantage and differentiation, leading to business success.

Banyte et.al., (2010) underscored that CSR is an important factor constituting

to provide relevant information on the social responsibility practices and

corporate image of private establishments in Valencia City. The resultant

documents could be a basis in designing suitable corporate social responsibility

programs and activities, leading to gained competitive advantage and enhanced

Statement of the Problem

This study aimed to determine the social responsibility practices and

corporate image of business establishments in Valencia City. Specifically, it

sought to answers the following questions:

1. What is the profile of the respondents in terms of:

1.3. Civil Status

1.4. Educational Attainment

1.5. Length of Service?

2. What is the level of social responsibility practices of business

establishments in Valencia City in terms of:

2.1. Economic Aspect

2.2. Legal Aspect

2.3. Ethical Aspect

2.4. Discretionary Aspect?

3. What is the level of corporate image of business establishments in

Valencia City in terms of:

3.1. Customer Attraction and Loyalty

3.2. Employee Motivation and Retention

3.3. Image Building?

4. Is there a significant relationship between social responsibility practices

and corporate image of business establishments in Valencia City?

5. Is there significant difference on the social responsibility practices when

grouped according to profile variables?

6. What could be the benefits in engaging in social responsibility

The following hypothesis was tested in this study:

1. There is no significant relationship between social responsibility

practices and corporate image of business establishments in Valencia City.

2. There is no significant difference on the social responsibility practices

when grouped according to profile variables?

Theoretical and Conceptual Framework

economic expectations. A company should pay some attention towards the

implementation of ethical and philanthropic social responsibilities. This was

supported by the statements of the following authors:

Michael Hopkins (2011), who pinpointed that corporate image achieve

sustainable development of business entity in the society. Moreover, Baker