Corporate Social Responsibility Practice of Philip Morris in Tanauan Batangas

Abstract

There is a growing consciousness among businessmen and industries to be more sensitive to stakeholders. In line with this, there are different industries which are turning to Corporate Social Responsibility programs. 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, their families, as well as the community. The research study aimed to find out how Corporate Social Responsibility is practiced by Philip Morris in Tanauan, Batangas. Specifically, the study sought to know the company's basic philosophy on CSR, to determine how the company decides on what CSR programs to initiate, to know and enumerate the different CSR programs of the company. The study also aimed to identify and enumerate the means of communication used by the company to promote its initiatives inside and outside the organization and to find out the expected outcome of the company on its CSR initiatives. The researcher made use of Davis and Blomstrom’s theory of social responsibility and the nine areas of social involvement in conducting the study. The researcher used an interview guide to solicit information from the executives of Philip Morris. Pertinent documents and reports containing information on CSR of Philip Morris were also checked. To elicit information from the beneficiaries of education, health, and livelihood programs of Philip Morris, an interview guide was used during the interviews and focus group discussions. The researcher went to different baranggays to interview the different beneficiaries of the livelihood cooperatives. It was found out that Philip Morris stands by its belief and philosophy that to be socially responsible is the right thing to do. Philip Morris believes that it is right to share their success to the community. Their philosophy serves as their guide in helping the people in the community. Before implementing different CSR initiatives, the tobacco company assesses the external environment. Mr. Mercado, Community Relations Manager and Mr. Corona, Community Relations Executive look at the basic social services that the government could not thoroughly deliver and their business reasons or cases as their basis in planning different programs. The corporate affairs department, the management team, and the regional office in Hong Kong are involved in making and finalizing decisions. It takes a year before a planned program is implemented. Philip Morris in Tanauan has four major areas of concern and these are education, health, livelihood, and environment. Business giving of Philip Morris in Tanauan comes in the form of addressing the problems in education. Education Program includes rehabilitation of school buildings, donation of textbooks, Reading and English proficiency programs. Philip Morris is involved in the community needs area as it addresses the problems regarding health. The programs for health are provision of potable water supply, donation of drinking fountains, turnover of medicine cabinets, medical and dental missions and donation of an ambulance. Philip Morris is socially involved in the area of Minorities and Disadvantaged Persons as it provides skills training program and livelihood cooperatives. Under the area of Ecology and Environmental Quality are the environment programs of Philip Morris and these are Bamboo Stock Planting and participation in the Green Philippine Highways program of the DENR. Employee volunteerism is encouraged by Philip Morris. The company communicates its CSR initiatives inside the organization with the use of PM Perspective, press releases which they post on their bulletin boards, intranet, and PMTV. On the other hand, it communicates its CSR initiatives outside the organization with PM Digest and news releases. Philip Morris aims to address the issues and the needs of the people in Tanauan. Aside from this, the company expects to have a conducive business environment and a changed perception of people towards the company. The different CSR initiatives of Philip Morris have helped the students, teachers, families, the out of school youth, the unemployed and the whole community.