Assessment on Corporate Social Responsibility (CSR) Initiatives of

a Construction Firm
 Chapter I

Introduction

Rationale

The Philippine construction industry is expected to grow in the next four years, reaching
$47.0 billion in 2020 through funds driven largely by the residential and the infrastructure
markets, a report by Timetrics Construction Intelligence Center. And according to the latest
survey, the construction industry is one of the top 5 key employment generators in Caraga
Region. Thus, denoting that this industry really provides a lot of opportunities in terms of
employment and would correspond to an idea that successful construction firms would mean
successful stakeholders and a growing economy. However, in making a construction firm
successful there are a lot of factors that should be considered and one of it is cogitating its
stakeholders and that would mean employing Corporate Social Responsibility (CSR) that would
uphold every facets affecting the stakeholders.

In connection to the said concern, this research is conducted to identify and fully
understand how necessary for construction firms to engage in Corporate Social Responsibility
(CSR) and how does it contributes to the success of a construction firm.

Statement of the Problem

This study intends to discover how does Corporate Social Responsibility (CSR)
contributes to the success of ETP Builders. Explicitly, this study pursues to answer the following
queries:

What are the Corporate Social Responsibility (CSR) initiatives of ETP Builders?
How are these Corporate Social Responsibility (CSR) initiatives being implemented in
ETP Builders?
Are these Corporate Social Responsibility (CSR) initiatives contributing to the success of
ETP Builders?
Objectives

The study strives to ascertain and understand the following concerns:

To identify the Corporate Social Responsibility (CSR) initiatives being implemented in

ETP Builders.
To know how are these Corporate Social Responsibility (CSR) initiatives being
implemented in ETP Builders.
To examine if these Corporate Social Responsibility (CSR) initiatives are contributing to
the success of ETP Builders.

Significance of the Study

This study will be of significant use for ETP Builders and as well as to other construction
companies here in Butuan City for it will reflect comprehensive assessment and
recommendations on Corporate Social Responsibility (CSR) initiatives of ETP Builders. With
that, this will serve as basis for ETP Builders and other construction companies for future
decisions especially in terms of employing their own Corporate Social Responsibility (CSR).
Moreover, it will also be of big help to ETP Builders stakeholders for the Corporate Social
Responsibility (CSR) that the firm will employ will surely uphold the rights and concerns of
each stakeholders and would mean stakeholders would benefit from it.

This will also serve as future reference for the researchers studying the same or related
topic emphasizing the relevance of Corporate Social Responsibility (CSR) initiatives in
construction companies. And most importantly, this study has been of great significance to the
researchers since this will harness their abilities and knowledge in terms of engaging in business
field and communicating to different people. It will also help them gain ideas on how
academically taught theories and concepts be applied in the real business world. Thus, paving
way on improving the self-esteem and interpersonal skills of the researchers.
Operationalization of Terms

These are the words that has significant use in the study:

Corporate Social Responsibility (CSR) - CSR is a concept whereby companies integrate social
and environmental concerns in their business operations and in their interaction with their
stakeholders on a voluntary basis.

Corporate Citizenship - Corporate citizenship involves the social responsibility of businesses

and the extent to which they meet legal, ethical and economic responsibilities, as established by
shareholders. The goal is to produce higher standards of living and quality of life for the
communities that surround them and still maintain profitability for stakeholders.

Construction Industry - Sector of national economy engaged in preparation of land and

construction, alteration, and repair of buildings, structures, and other real property.

Construction Firm - a business enterprise concerned with the construction of buildings, bridges,
etc
 Chapter II

Theoretical Background

Review of Related Literature

Is the practice of corporate social responsibility (CSR) going beyond philanthropy and
public relations? Filipino leaders in this field say more and more companies have moved on from
merely talking and feeling good about their efforts toward society and environment and into
embracing these in their business strategies.

To obtain a snapshot of how companies practice what they preach about doing good, the League
of Corporate Foundation commissioned Newsbreak, an independent media group, to conduct a
survey among large companies operating in the Philippines. This is a follow up to a similar
Newsbreak survey four years ago, or in 2007.

We designed the survey to determine how the companies CSR efforts are integrated into the
entire organization, especially its profit-making aspects. To get a glimpse of how potentially
sustainable are their CSR efforts, we also wanted to find out if companies exercise the same
discipline in their CSR activities as they do with their main business.

The survey focused on three major areas: structure and leadership, planning and funding, and
reporting and assessment. These questions help distinguish companies with genuine CSR
programs from those that merely talk about it.

We asked where CSR is in their corporate structure, who initiates and sets CSR policy, and
which department or division enforces it. We also asked what factors influence the allocation of
annual budgets for their CSR activities, which among the companys functional groups shells out
the money, and how they report, assess, improve and communicate what they do.

Respondents answered either a printed or the online version of the survey. Management
Association of the Philippines, a business group, encouraged their members, mostly C-level
executives, answer it. We also conducted follow-up interviews.
Eighty one of the country's largest companies companies participated. Almost three-fourths
generate more than P60 million revenues every year. They engage in varied business activities,
including manufacturing to outsourcing, financial services, extractive industries, non-profit,
retail, and real estate. Businesses that operate in Mindanao, Visayas and Luzon are represented.

Here are the key findings:

1. Favorable enabling environment for CSR to thrive in Philippine companies remains because
people at the top support and push it within the organization

2. Most of the CSR activities are still mainly philanthropy and event-driven, but employee
volunteerism has become more prominent in the CSR designs

3. Results assessment, which is basis for further improvement, is generally weak while
communication means still traditional

4. "Goodwill" is a main motivation for companies to engage in, report, and communicate about
their CSR, but business economics motivate financial support

The construction industry has become a truly global network of interconnected

stakeholders making demands which require the involvement of skilled workforces from all over
the world. Corporate social responsibility promotes the concept that a business has an obligation
to do more than just generate a profit for its owners. For any business, corporate social
responsibility can mean embracing a charity or following environmentally-sound practices such
as recycling. For the construction industry, however, the way companies design and build their
houses has a social impact that can last for decades -- the lifespan of the houses that they build.

A network of transactions that can be as complex as the project being undertaken is

represented by the construction process itself. From scoping the feasibility of a construction idea
to designing it, and later on executing those designs by erecting physical structures to
maintaining such structures, the construction sector is responsible for the creation and
maintenance of the built environmentstructures that range from a simple housing project for
average Filipino families to the design and 16 creation of vast urban malls, from basic
engineering work to build a bridge that connects towns to major infrastructure undertaking such
as building a dam or a nuclear power plant.

Construction covers a range of activities so vast it makes composing a single all-

encompassing definition of construction a bit of a challenge. The construction process itself
represents a network of transactions that can be as complex as the project being undertaken. In
national income accounts, construction appears twicefirst as a component of capital formation
and second as one of the major industries. In the Annual Survey of the Philippine Business and
Industry, a construction establishment is defined in the context of a contractor. Yet, these
definitions fall short in giving a comprehensive picture of the actual total contribution of
construction to production and income, underscoring the construction industrys enormous
diversity: it is large in size; dispersed by geography and product-type; dependent on labor,
materials and other inputs which are also widely used by other producing sectors; and associated
with numerous auxiliary industries.

The Timetric's Construction Intelligence Center (CIC), which provides data and analysis
on the global construction industry, reported on May 2016 that the growth would root from
infrastructure improvement, "favorable" public-private partnerships, as well as prolonged
expansion of residential and commercial buildings. It also forecasted that the Philippine
construction industry would rise from $30.2 billion in 2015 to $47.0 billion in 2020, at a
compound annual growth rate (CAGR) of 9.22%, read the 74-page report, titled Construction in
the Philippines- Key Trends and Opportunities to 2020, which was released in March 2016.

The residential market is expected to account for as much as 33.9% of the industrys total
value in 2020 -- the largest contributor to the Philippine construction industry in the succeeding
years, riding on the back of an expanding middle-class population, urbanization of
underprivileged areas, as well as housing projects for low-and middle-income groups.

In addition, the governments Home Development Mutual Fund (Pag-IBIG Fund)

financing scheme is expected to provide continued support to low-and middle-income
households, which will help the market to grow further. Meanwhile, the infrastructure market is
not only expected to be the second largest contributor but the fastest growth sector in the
construction industry as well, with the report seeing the said market to reach $14.7 billion in
2020 at a CAGR of 14.14%, driven by government plans to develop high-speed rail links,
highways, and sea ports through PPPs. Danny Richards, lead economist at Timetrics CIC,
expects continuity in the economic growth agenda, withstanding the shift towards a Duterte
administration.
 The CSR Initiatives of Continental Temic Electronics involve humanitarian missions
such as mobile blood donations. The company has joined the Red Cross Humanitarian Blood
Services in 2007 and has recorded the highest total number of 417 volunteers, donating 2,860
bags of blood. Initiatives also include medical missions and gift-giving to the people of Barangay
Lingga (Lingga village). For preventive measures, anti-flu and cervical cancer vaccinations are
also part of Continental Temics humanitarian missions. Other general programs include
educational assistance, school scholarships, donation programs and an environmental protection
program.

There is general recognition that the long-term viability of CSR initiatives emanates from
maximizing resource competencies or strengths (organizational and technical) as a necessary
pre-condition, and given that prerequisite, projects, partnerships, and stakeholders vary
considerably, based on matching competencies with beneficiary needs.

Initiatives are still a combination of corporate mandate and individual interests, showing
that institutional and personal imperatives do work together. Personal passion and involvement is
critical in community engagement projects where a face is needed and a company must walk
the talk. The power of tradition integrates these two imperatives by keeping the momentum
for temporary projects, which over time, become more permanent programs. The tradition of
philanthropy and donations and gift-giving often pre-dates CSR, but nonetheless goes hand-in
hand with it.

With regard to educational assistance, the company began the construction of Mother
Rita Barcelo Learning School in Bian, Laguna, to provide better staff housing for the
Augustinian Sisters, and to provide a toilet for the students and a cooking area for the feeding
programs. During graduation and Christmas, students, nuns and staff all participated in a gift
giving session. The Mangyan tribe in Mindoro also participates in a back-to-school gift-giving
program. Their educational assistance includes the Environmental Safety and Health ESH
Awareness program which instills health awareness among primary schools and forms part of the
Community Relation Activity. Presently, a number of students are also given scholarships by the
company. There is a total of 30 scholars in Conti University taking two-year courses in
Electronics Technology, majoring in either Industrial Automation or Mechatronics, and eight
students in Don Bosco College Canlubang taking up BS Information Technology with a
matching two-year IT apprenticeship program in Continental.
 For the facilitators of the Executive Conversations, the debate is on the terms Corporate
Citizenship (CC) and CSR. The two terms are closely related and tend to overlap.
Theoretically speaking, CSR involves activities within and by the business. The initiatives of a
corporate foundation are separated but related to CSR. CC, on the other hand, reflects a broader
concern. Some activities described in the session involve the notion of Corporate Citizenship
of doing something for the greater good. For instance, educating school children to behave
ethically prepares them better to inculcate CSR later in life when they work in firms. In Europe,
the youth are educated on environmentally sustainability from an early age.

In the end, CSR is about values formation and behavioral change. A measure like the
number of schools built or the number of teachers trained only represent output. Real change
would be reflected in the long run. Did the teachers make a difference? Did the student get better
jobs? These are some of the main concerns of CSR practices.

Construction and Employment. As a very labor-intensive industry, construction

shouldtheoreticallybe a key generator of employment. However, it accounts for
approximately only 5% of national employment. The annual growth in the number of employed
workers in this sector averaged only 2.7% in 20012010. It was only in 2003, 2007 and 2010 that
employment in this sector grew by at least 5 percent. In 2010, at least 2 million employees were
employed in the construction industry, the highest recorded in the last 10 years.

The top three regions in terms of employment in the construction industry are the
National Capital Region (NCR), Central Luzon and CALABARZONcombined employment
level in these three regions increased from 498,000 (31% of total) in 2001 to 871,000 (46% of
total) in 2009. As a sector that allegedly comprise a complex network of backward and forward
linkages, the number of establishments in this industry has yet to break the 3,000-mark. The
growth in the number of these establishments have been mostly negative for the past 10 years
and it was only in 2009 that the number of establishments increased by 15%, pushing by 26% to
147 thousand employees.

The construction industry provides employment to workers in different types of

occupations, from licensed professionals and executives to unskilled workers. Statistics indicate,
however, that the industrys employment share according to occupation group has not changed
significantly over the past 10 years. Almost 92% of people working in this sector are employed
as Trades and Related Workers; Plant and Machine Operators & Assemblers; and Laborers and
Unskilled Workers. Only 6.7% are Professionals; Technicians and Associate Professionals; and
Officials of Government and Special Interest Organizations, Corporate Executives, Managers,
Managing Proprietors and Supervisors. Meanwhile Clerks; Service Workers and Shop and
Market Sales Workers; and Special Occupation workers make up less than 2% of employed
workers in the construction industry.

Construction employment is concentrated on occupation groups where competition and

substitutability among workers is strong and turnover rates are high especially for workers with
little or no training and/or field of specialization. The characteristic dominance of the number of
trades workers and laborers relative to professional workers also creates relevant implications for
the alleged slow uptick in labor productivity indicators for the sector. Trades and related
workers; plant and machine operators and assemblers; and laborers and unskilled workers are
hired on a project basis and remain employed only as long as the project is ongoing. Once the
project is completed, all these workers are automatically unemployed. This type of on-again-off-
again employment makes it difficult to capture and assess the real value of output of all
construction workers and renders suspect official statistics on productivity measures, especially
from the point of view of key construction industry players who know the realities of the playing
field better than any existing official statistics indicate.

There is general recognition that the long-term viability of CSR initiatives emanates from
maximizing resource competencies or strengths (organizational and technical) as a necessary
pre-condition, and given that prerequisite, projects, partnerships, and stakeholders vary
considerably, based on matching competencies with beneficiary needs. Initiatives are still a
combination of corporate mandate and individual interests, showing that institutional and
personal imperatives do work together. Personal passion and involvement is critical in
community engagement projects where a face is needed and a company must walk the talk.
The power of tradition integrates these two imperatives by keeping the momentum for
temporary projects, which over time, become more permanent programs. The tradition of
philanthropy and donations and gift-giving often pre-dates CSR, but nonetheless goes hand-in
hand with it.
Synthesis

According to the latest survey, the construction industry is one of the top 5 key
employment generators in Caraga region. However, the construction industry has been
recognized to be associated with a constantly changing work environment exposing a wide range
of hazards specific to the processes in the industry. The International Labor Organization
estimates that at least 60,000 people die every year because of injury sustained from construction
accidents. But how do these companies try to reach out its benefits to the community and to the
country? Are the CSR of construction companies fair enough to affect the lives of the people in
Caraga? Does it bring success in doing business?

Construction industry is one of the most booming industries in the whole world. This
industry is mainly an urban-based which is concerned with preparations as well as construction
of real estate properties. The repairing of any existing building or making certain alterations in
the same also comes under Construction Industry. But what is the significance of corporate
social responsibility in the construction industry?

Corporate Social Responsibility promotes the concept that a business has an obligation to
do more than just generate a profit for its owners. For any business, corporate social
responsibility can mean embracing a charity or following environmentally-sound practices such
as recycling. For the construction industry, however, the way companies design and build their
houses has a social impact that can last for decadesthe lifespan of the houses that they build.

Corporate social responsibility in the construction industry extends in many directions.

Like firms in other industries, construction companies can promote corporate philanthropy
through a variety of causes. Construction companies have a significant impact on the
communities they build. Well-designed houses can improve quality of life, which in turn
promotes good health. Community design and construction affect the social life of the residents
and can even lower crime rates. Well-lite roads, bike trails and jogging paths with good visibility
and limited access from shopping areas that attract a wider customer base all reduce crime.
Responsible design and construction affects all stakeholders-employees, suppliers, home buyers,
communities, and even the government.
 The construction industry profoundly impacts the environment (e.g., through site
development, waste handling, and material transportation), indirectly affecting its customers,
suppliers, employees and project neighbors. That is why CSR is becoming increasingly
important as communities and stakeholders expect firms to demonstrate they are good corporate
citizens.

Conceptual Framework

Corporate Large Scale Commercial Mining in Caraga, Philippines

Corporate Social Responsibility

Of Construction Companies

Providing employment to Providing stability in the

economy
The community it resides

The concept of the research is focused on the idea on how does Corporate Social Responsibility
(CSR) of a construction firm specifically ETP Builders contributes to the totality if the success of
the firm. Furthermore, it analyzes the importance of construction in the industry in the
community it resides and to the economy. The adaptation of corporate citizenship by the mining
construction companies helps to the realization of engaging Corporate Social Responsibility
(CSR) in their construction operations. Thus, this research used a descriptive design to have
better comprehension about the construction industry and how it provides opportunities to its
stakeholders and to the community and environment through Corporate Social Responsibility
(CSR).

Hypothesis

HO: CSR contributes to ETP Builders success in doing business.

HA: CSR does not contribute to ETP Builders success in doing business.

Chapter III

Methodology

Design

This research paper is designed to give information that is significant to the community
and to ETP Builders. It raises awareness to the community and to ETP Builders about the
benefits of CSR.

Criteria

Research criteria includes data gathered from reliable authors, articles, and websites.
Timeliness and relevance were integrated in the research to provide a reliable one.

Methods of Analysis

The interview with the engineer was conducted via e-mail due to the hectic schedule. The
questions are formulated based on the objectives, research question and hypothesis of this
research. This is done to evaluate the real impact, significance and analysis of the research in the
current situation.
Flow of the Research

Identifying the: Information

Gathering is Interpretation
Topic made through: and Analysis of Summary,
Problem Data: Conclusions
Research
Objectives and
through books, Qualitative
Scope of the reliable articles, Analysis of the Recommendations
Study and its and websites Research
importance Interview

Chapter IV

Results and Interpretation

The researchers decided to gather information from ETP Builders, a construction

company which was a newly established construction company in 2012. ETP builders is a sole
proprietorship and it offers structural design, design and build, estimate, and other construction
related services

Students Interview Analysis

After conducting an interview with Engr. Edmund T. Plaza, the sole owner of the firm,
we found out that the way they practice Corporate Social Responsibility (CSR) is by making sure
that their activities and actions are lawful and ethical. Being new in these field of business and
had not yet established enough funds since the company is only a sole proprietorship, the firm
unlike other companies who practice CSR towards the environment, society and its stakeholders
had not yet vowed to these CSR movements. They stated in the interview that the way they
practice CSR is by making sure that:

1. All their activities and actions are in accordance with the law.
2. Providing just and equitable service and supplies to their clients.
3. Attending seminars about the new development of the construction company.
4. As to their employees, they see to it that they have SSS and Philhealth.

By being lawful and fair to its employees and clients, it upholds the integrity of the firm. To
the clients knowing that they practice CSR, they are at ease that the services they get are just,
efficient, and of good quality. Thus a higher service satisfaction, they attract more clients which
could lead them to the success of the firm.

Chapter V

Summary, Conclusions and Recommendations

Summary

The construction industry has been recognized to be associated with a constantly

changing work environment exposing a wide range of hazards specific to the processes in the
industry. It is one of the most booming industries in the whole world. This industry is mainly an
urban-based which is concerned with preparations as well as construction of real estate
properties.

Corporate Social Responsibility promotes the concept that a business has an obligation to
do more than just generate a profit for its owners. For the construction industry, the way
companies design and build their houses has a social impact that can last for decadesthe
lifespan of the houses that they build. Corporate social responsibility in the construction industry
extends in many directions. Like firms in other industries, construction companies can promote
corporate philanthropy through a variety of causes. The construction industry profoundly impacts
the environment (e.g., through site development, waste handling, and material transportation),
indirectly affecting its customers, suppliers, employees and project neighbors. That is why CSR
is becoming increasingly important as communities and stakeholders expect firms to demonstrate
they are good corporate citizens.

Conclusions

Construction industries give job opportunities and contribute to the economy. It provides
livelihood for the citizens living within the vicinity.
These construction industries must not just focus on how they would earn and become
rich, but also must adapt to the practice of CSR which is a crucial component of a companys
competiveness and something that should be led by the firm itself. This means having policies
and procedures in place which integrate social, environmental, ethical, human rights or consumer
concerns into business operations and core strategy, all in close collaboration with stakeholders.
Recommendations

Research recommendations are as follows:

The company should engage also on the issues concerning the community not just their
employees and stakeholders. Collecting feedbacks for example and being responsive to
the concerns of the community.

Since the companys business is still new and growing, the researchers recommend that
they would make a lot of connections. Finding partners that their company trusts and
could depend on or plan to incorporate the business in future years so that they could
 acquire more assets which could make their company not just successful but also
sustainable for its future operations.

For further researches, the researchers recommend to have full background of the
company and acquire all available information to gain full knowledge about the
companys business.

Chapter VI

References

Websites:

Business World (2016). Construction industry to grow in next 4 years, boosted by

housing market. Retrieved from:
http://www.bworldonline.com/content.php?section=Economy&title=construction-industry-
to-grow-in-next-4-years-boosted-by-housing-market&id=128058
 DOLE (2013). A SAFER CONSTRUCTION WORKPLACE IN CARAGA REGION.
Retrieved from:
http://www.caraga.dole.gov.ph/default.php?retsamlakygee=298&resource=3dd6b9265ff18f31dc
30df59304b0ca7

TESDA (2011). LABOR MARKET INTELLIGENCE REPORT CONSTRUCTION

INDUSTRY. Retrieved from:
http://www.tesda.gov.ph/uploads/File/LMIR2011/ST-PO%2005-03-
2011%20%20(Construction).pdf

Thomas Metcalf (2015). Corporate Social Responsibility in the Construction Industry.

Retrieved from:

http://smallbusiness.chron.com/corporate-social-responsibility-construction-industry-72475.html

DLSU (2015). INDUSTRY CAREER GUIDE: Construction. Retrieved from:

http://www.dlsu.edu.ph/research/centers/aki/participant/trainings/workingPapers/2015-24.pdf
Lala Rimando (2012). How CSR is evolving in the Philippines. Retrieved form:
http://www.rappler.com/newsbreak/3421-how-csr-is-evolving-in-the-philippines

Aras and Crowther (2008). Corporate Social Responsibility. Retrieved from:

http://www.kantakji.com/media/3473/z126.pdf

Investopedia (2016). Corporate Citizenship. Retrieved from:

http://www.investopedia.com/terms/c/corporatecitizenship.asp
 Business Dictionary (2017). Construction Industry. Retrieved from:
http://www.businessdictionary.com/definition/construction-industry.html

Collins Dictionary (2017). Construction Firm. Retrieved from:

https://www.collinsdictionary.com/dictionary/english/construction-company