MANILA, Philippines—Cost management is a much bigger driving force behind most local businesses’ corporate social responsibility (CSR) initiatives than brand-building or saving the planet, according to the Grant Thornton International Business Report.
The international business report, an annual global survey that provides insights into the views and expectations of business leaders from 39 economies, included among its respondents 150 Filipino business leaders who were asked about their CSR activities for the second time since the topic was first covered in 2008.
This year, an overwhelming 92 percent of local business leaders said “cost management” was motivating their move to more ethical practices, higher than 78 percent during the last survey in 2008. This was followed by “public attitude and brand building,” with 84 percent of Filipino business leaders, citing it as one of the drivers behind their CSR activities, likewise higher than the 69 percent level the previous survey.
Although 76 percent of local businesses cited “saving the planet” as an important driver, the factor ranked low compared with the other drivers – fifth among seven drivers. Globally, the environment’s relevance dropped even more: with only 36 percent of international respondents motivated by the desire to preserve the natural environment, a 4-point drop from 2008.
“The numbers show us that more Filipino businesses are seeing the merits of CSR, and their shift towards more ethical business practices is being undertaken to improve the bottom line; more specifically, to drive costs down,” said Marivic Españo, managing partner at Punongbayan & Araullo(P&A), one of the largest audit, tax and advisory firms in the country.
P&A, a member firm within Grant Thornton International Ltd., released the results on the Philippines on Wednesday.
“It’s also worth noting that public perception and brand building has gained significant traction as a motivator – it is up 15 percentage points from 2008. This tells us that more and more businesses recognize the ability of a strong CSR program to raise their profiles and make them stand out from the competition,” Españo said.
The research looked into the types of CSR activities that businesses undertook in the past year. Majority of local businesses focused their recent CSR efforts on employee well-being: 94 percent actively promoted workforce health, while 93 percent worked on promoting diversity and equality in the workplace.
In terms of environmental initiatives, a significant proportion of local businesses – 90 percent – sought ways to improve waste management; 89 percent looked at ways to improve energy efficiency.
“This is further proof that adopting sustainable, ethical practices and improving the bottom line don’t have to be conflicting goals,” Españo explained. “Even as these business leaders focus on managing their costs, they are able to roll out programs that positively impact the environment and benefit their employees.”