Institutionalized Private Corporatism Substantiating Welfarism 1

RESEARCH ABSTRACT

The researchers adapted a case-study approach and phenomenological qualitative research

design in deciphering the CSR service competency of the two companies and at the same time,
the experiences of the household affected by these CSR services. The researchers conducted
interview method and content analysis in obtaining and understanding the data needed by the
research study. The researchers visited the immediate community sponsored by the selected
corporations such as in Barangay Ampucao and in Barangay CAMP 3, Padcal, Benguet for the
Philex Mines and in Barangay Beckel and in Barangay Bineng for the HEDCOR Company. The
researchers performed a face-to-face interview as guided by the originally-formulated
interview questions to at least 70 participants (35 participants for Philex including 3 participants
for the company and 35 for HEDCOR including the HEDCOR Community-relations Manager)
that are purposively selected. In interpreting the gathered data, the researchers adhered
descriptive statistics especially such as frequency distribution and measure of central tendency.
The researchers also performed the Centering Resonance Analysis (CRA) in interpreting
the data by which the researchers aimed to centralized the research themes into one linear model
to represent holistically the quality of CSR services and programs implemented by PHILEX
Mining Corporation and HEDCOR.This research is beneficial to those individuals who belonged
to the academe specially the political researchers, political analysts, policy makers, social science
professors, or even students of Political Science, Economics and Business Administration. The
researchers utilized qualitative research design because the researchers collected data themselves
through examining documents to be given by the corporations involved, observing the behavior
of citizens within a particular community and through interviewing them.
______________________________________________________________________________
Keywords: Corporatism, CSR, Welfarism, Development

Institutionalized Private Corporatism Substantiating Welfarism 2

CHAPTER I: INTRODUCTION
Background
Corporatism denotes a process of aggregating individuals having a common goal to
perform their functions in the society through organization-creation and community-based
services to promote general well-being. Corporatism as a deepening institutional force of the 21st
century among private sectors can substantiate the state machinery in promoting state of
welfarism among citizens through employment-generation, cultural preservation, environmental
revitalization, education subsidy, and medical support--all of these mechanism can be
conglomerated into one term, CORPORATE SOCIAL RESPONSIBILTY!
Today, our global industry has been accommodating more than 60,000 multinational
corporations in the today along with more than 800,000 subsidiaries and millions of
suppliers the web of private enterprise is wider and more connected than at any other time in
history (Ruggie 2004); hence, a significant increase in market economy efficiency was observed.
At the same time, concerns are mounting about the sustainability of the world economy, as well
as our ability to address global challenges such as climate change, pollution, poverty, disease,
and inequality. While in the past people have often looked to government to protect society from
such threats, today it is clear that government cannot do the job alone. Harnessing the power of
business in improving social and environmental conditions across the globe has thus become a
priority for policy-makers most especially privatized institutions and other stakeholders, and it
represents a central aim of the corporate social responsibility (CSR) movement. (Maguire, 2011)
Corporate social responsibility (CSR) is an emerged business management concept that
originated in the 1930s after the Wall Street crash of 1929 exposed corporate irresponsibility in
large organizations; hence, the realization about corporate responsibility had become a premier
pillar of enterprise development adhering to the principle of mutual benefit (Sen, 2011). The
historical development of the corporate social responsibility of business was not widely
considered to be a significant consideration from Adam Smiths time to the Great Depression,
since the 1930s due to the market orientation in that era, was revolved on profitability and
resource efficiency (Hopkins, 2004). In accordance with the 2014 Nielsen Report, corporate
social responsibility, also referred to as corporate citizenship or conscious capitalism, is practiced
by companies dedicated to making a positive social or environmental impact on society. Thus,
the broadest definition of the CSR would be the relationship created among [global] corporations,
the government of a country and the stakeholders (Crowther & Aras, 2008). Corporate social
responsibility through the implementation of community-based services can be also seen as
strategy of private sector to accommodate the growing demands of their stakeholders in the
community. CSR growth is emphasized as a result of growing influence of corporations and
decline of state intervention ( Kachui, 2015). Most CSR activities, based in particular on
environmental and social factors, aim at reducing negative externalities (e.g. pollution abatement)
or generating positive externalities and privately providing public goods (e.g. financing hospitals)
(Crifo & Forget, 2012). Moreover, corporate social responsibility refers to the collective the
actions of a company that are considered socially responsible if they are voluntary and
contribute to increase social welfare. There are two elements are crucial in determining whether
the management of a company is socially responsible- first, a socially responsible company is
concerned not only about the interests of shareholders but also about the stakeholders affected by
the companys activities (i.e. employees, consumers, suppliers, society as a whole, etc.) and

Institutionalized Private Corporatism Substantiating Welfarism 3

second, actions must be voluntary and go beyond what is required by regulatory institutions on
environment protection, workers rights, and consumer protection (Ganuza, 2012). According to
Sen, the goals of the CSR activities are mostly philanthropic because of the adherence of
companies to the altruism principle. Forces, or institutional pressures, outside a given initiative
are also important determinants of CSR effectiveness in which pressure from stakeholders and
threats from regulators serve to motivate voluntary participation in CSR initiatives (Auld, et al
2008). With this notion therefore, private companies through the implementation services can
provide citizens welfare and can aid the government in terms of providing basic services of
people. As a result, CSR, implicitly or explicitly manifests a reflection on the nature of a firm,
its role in society and its relationships with its internal and external stakeholders. The reflections
regarding CSR is not only the task of managers (and sometimes of the owners), but also other
stakeholders who have an impact on the firm. The CSR policies formulated, therefore, will vary
depending on historical events, political systems, ideology, geography, social expectations as
well as global economic pressures (Argadona,n.d.).
Business institutions either foreign or local firms host their operations within society and in
return society expects these business institutions to show responsibility for aspects of its
operations through corporate social responsibility as signified by the principle of social
reciprocity. Furthermore, it has been argued that the soul of corporate social responsibility is
what the French philosopher Rousseau understood to be the social contract between business
and society. Rousseau conceptualized the relationship between business and society as being a
symbiosis since there is a perpetuating and deepening relationship between these private or
business institutions and citizens in sustaining societal stability in which the state has only the
mediating role. Corporate business principles are at the heart of the CSR policy, which strives to
deliver value for shareholders and other groups of company stakeholders. (Bichta, 2003) There
are three potential drivers of CSR in existence: CSR as a business strategy designed either to
avoid risks that threaten the companys shareholders interests or to promote innovation that
benefits the companys interests; CSR as a policy based upon ethical and moral values; and CSR
as a means for achieving social sustainability. (Ken Coghill, et al 2005)
CSR programs and services upon implementation can be also interpreted into 4
interdependent components: economic, legal, ethical and discretionary. Economically,
companies are supposed to perform well financially and meet consumption needs. Companies
place economic responsibility as a top priority since they have to produce goods and services to
meet the needs of society. By producing and meeting the needs of society they will also be able
to make a profit. Then there is the legal component in which companies are required to conduct
businesses that comply with the law. In order to stay in business and to have a high performance
companies are expected to abide to the laws and regulations. The ethical component companies
should conduct their business ethically and follow societys moral rules. They can go beyond the
minimum legal requirements and simply want to conduct businesses ethically and morally.
Lastly companies should be benevolent and philanthropic in nature doing good causes, serving
and helping communities and the society, etc. It is at their own discretion and completely
voluntary for companies to contribute and engage in social activities. ( Kan 2012).
The fundamental idea of CSR is that CSR reflects both social imperatives and the social
consequences that responsibility accordingly falls upon corporation, but the precise
manifestation and direction of the responsibility lies at the discretion of the corporation. Hence,

Institutionalized Private Corporatism Substantiating Welfarism 4

this characterization of CSR makes it mandatory exercise in that it assumes that business
establishments have direct responsibility to help in solving societys problem. (Matten & Moon,
2003) Furthermore, the conceptual enlargement brought by stakeholders theory has lead to
identify CSR as a value driver of institution. (Badia, et al, 2013) As matter of fact, CSR has
evolved from returning profits to society to creating shared value with stakeholders in order to
improve the environmental and social corporate sustainability. The corporate strategy has five
dimensions that enable to relate CSR to value creation: Centrality (closeness to the firms
mission and objectives), specificity (ability to capture private benefits by the firm), volunteerism
and visibility (projects observable by stakeholders). (Burk and Logsdon, 2010). As McElhaney
substantiate, CSR can be both a risk mitigation strategy and an opportunity-seeking strategy that
provides welfare not only for the employees but also for common citizens by enjoying the
services rendered by these corporations.
In liberal newly-industrialized democracies, much of the political spectrum has converged
on this division of labor, albeit with some sharp divergences of opinion as to the relative roles of
the market and the state. It has been viewed that Corporate Social Responsibility (CSR) can
improve the competitiveness of Micro, Small and Medium Enterprises (MSMEs). Societys
expectations for private companies to manage their societal and environmental impacts and to be
involved in addressing public concerns have increased over the years. Through their CSR
initiatives and their core business activities, private companies attempt to meet these societal
expectations, highlighting their importance as development actors (Miral, et al 2011)
In the country for instance, Section 20, Article II of the Philippine Constitution stipulates that
the state recognizes the indispensable role of the private sector, encourages private enterprise,
and provides incentives to needed investments. To substantiate this provision, modern
economists view of how society should be organized has traditionally rested on two pillars. The
invisible hand of the market, described in Adam Smith, harnesses consumers and corporations
pursuit of self-interest to the pursuit of efficiency and the state corrects market failures whenever
externalities stand in the way of efficiency, and redistributes income and wealth, as the income
and wealth distribution generated by markets has no reason to fit societys moral standards.
(Bernabou and Tirole (2009). In recognition of the indispensable role of the private sector as the
main engine of economic development, the state is mandated to encourage private enterprise
whether local or foreign and to provide incentives to needed investments (De Leon & De Leon,
2011). The principle of subsidiary is therefore amplified by this constitutional provision such
that the state should not predominantly engaged in business since its obligation is to make the
economy a system for free and healthy business competition. Given this ratiocination, the private
sectors most especially business establishments in return to this states acknowledgment on their
indispensable role in the community must engaged themselves for the attainment of welfarism
that encompasses social justice, progress, fair opportunity and economic sustainability ( i.e.
meeting the needs of the present generation without compromising the ability of future
generations to meet their own needs) resulting now to citizens well-being. Thus, social welfare
is much evident if the institutions whether public or private in nature gave societal responses
such good education, quality employment, social insurance, beneficial infrastructure, etc. which
promote the well-being of the population.
Corporate social responsibility schemes reflect the human side of corporations, and their
leaders personal commitments to contribute to the community and society of which they are a

Institutionalized Private Corporatism Substantiating Welfarism 5

part. Business leaders are well aware of the need to gain goodwill and societys permission to
operate within the communities where they conduct their business. (Kangan, et al., 2012).
Moreover there are three possible understandings of corporate social responsibility: the adoption
of a more long-term perspective, the delegated exercise of philanthropy on behalf of stakeholders,
and insider-initiated corporate philanthropy. The latter two understandings build on individual
social responsibility, which led us to review individual motivations for pro-social behavior.
(Bernabou & Tirole, n.d.)
Corporate social responsibility has been operationalized through corporate social
performance that entails programs and policies implemented by the private corporations within
the community involved. (Tumay, 2012) However, Corporate Social Responsibility became too
problematic and scandalous throughout the years because of the intentions that had been
incorporated unto it. Apart from corporate philanthropy, strategic partnerships between the
business world and policy makers, development practitioners or other stakeholders in society
provide an important tool in CSR, especially in the context of development. (Rohregger, 2006)
Corporate social responsibility is not something that is required by the law for businesses to
follow and implement but companies who want to practice business should be more responsible
and contribute for the betterment of society often choose to implement CSR strategies. It is ideal
and morally justifiable that many companies are incorporating CSR into their organizational
ideals because they are looking for improvement of their performance and company image but
CSR can be also perceived as a marketing gimmick where companies try to get the attention of
consumers and improve performance and sales. Often companies do decide to incorporate CSR
into their business strategies because it will eventually help improve financial performance and
improve the company image. (Kan, 2012)
In contrast with the utilitarian view, CSR must be a business system within a state that
enables the production and distribution of wealth for the betterment of its stakeholders (citizens)
through the implementation and integration of ethical systems and sustainable management
practices a systems approach. This scenario is quite tangible in developing state since CSR is
very deontological in nature since both institutions (the government and business firms) are
aiming for sustainable development in which citizens are immediate beneficiaries (Smith, 2011).
As Maximiano (2005) believed, Philippine business has a greater responsibility to demonstrate
that indeed business success and sustainability can go hand in hand with social and
environmental concerns. Maximianos study of 166 Philippine corporations showed that
involvement in CSR and integration of CSR into corporate policies and programs are both
correlated with size of the corporation. Philippine conglomerates, which are mostly familyowned, lead in CSR in the Philippines. However, as analyzed by Talisayon (2009), the
performance of CSR among private corporations is highly dependent on stakeholders capital
(capitalist principle) since stakeholder capital is determined by the the quantity and quality of a
firms external relationships that result to value creation and business success, e.g. formal and
informal relationships not only with customers but also with employees, suppliers and external
consultants, partners, franchisees/franchisor, government as well as communities and public
affected by the operations of the business.

Institutionalized Private Corporatism Substantiating Welfarism 6

Thus, Masaka (2008) postulated that calls for CSR have tended to take coercive stance with
governments imploring corporate organizations to show social concern social concern in their
operations and interactions with society and government. In addition, he further argued that CSR
is a call for business to show social concern as primary reaction to widespread cases of corporate
misdeeds in the form of pollution to environment, disregarding consumer rights, selling
substandard commodities and profiteering and general disregard fro the welfare and well-being
of stake-holders. Simply, CSR is essentially anchored on utilitarianism.
Despite the apparent acceptance of CSR by businesses, many economists have taken a
skeptical view of CSR and its viability in a competitive environment. Milton Friedman, in
particular, doubted that CSR was socially desirable at all. He maintained that the only social
responsibility of a business is to maximize profits (conducting business in open and free
competition without fraud or deception). He argued that the corporate executive is the agent of
the owners of the firm and said that any action by the executive toward a general social purpose
amounts to spending someone elses money, be it reducing returns to the stockholders,
increasing the price to consumers or lowering the wages of some employees. Economists Bryan
Husted and Jos de Jesus Salazar, for example, recently examined an environment where it is
possible for investment in CSR to be integrated into the operations of a profit-maximizing firm.
(Hernandez-Murillo & Martinek, n.d.) Corporate organizations may manipulate CSR because
they do not freely choose to contribute towards solving societys problems, but because society
expects them to do so. Though a corporate organization is not natural persons per se, it is made
up of natural persons whose free choices or lack of them influences its success and relations with
society (Velasquez, 2002). But, the results of a recent study by CR Magazine and NYSE
Euronext prevail that there is a growing high-level commitment to corporate responsibility
including its social responsibility component. The study found that a higher percentage of
corporate budgets was allocated to CSR from 2010 to 2011, signifying a stronger focus and
commitment (Crespin & Boudrie, 2011). Organizations have been integrating socially and
environmentally oriented objectives into their responsibility frameworks to reinforce business
strategy as well as to address the concerns of stakeholder groups. (Kwan & Tuuk, 2012) CSR is
inherently organic, as companies both respond to societal expectations and define CSR in terms
of their own organizational and social motives for philanthropic giving and civic engagement
(Kangan, et al, 2012). CSR services, if that is the case, may really substantiate state of welfare in
a community wherein the citizens have institutional supports such as quality employment, health
aid and educational subsidy since according to the theory of contestability, anticipated threats of
social protest can effectively discipline firm's behavior. Hommel and Godard (2001, 2002)
consider that a firm's contestability is characterized by its exposure to two types of threats:
contestation of its social license to produce and innovate, based on environmental or healthrelated risks to the community attributed to the firm's products or processes; and economic
contestation from competitors. Hence for a corporate activity to become contestable. The link
between firm visibility on its market and CSR level has been found in many empirical studies
(e.g. Margolis and Walsh, 2001). As such, CSR can be a strategic policy to prevent social
contestability and protects the firm long term interests (Hommel and Godard, 2001).
It can be divulged that the place of corporations as economic institutions can be also
interpreted as pressure groups within the literature of political economy and comparative politics.
The notions on CSR will remain stable, enduring and will keep on providing interesting texts and
relevant case studies to further strengthening academic research as far as social development and

Institutionalized Private Corporatism Substantiating Welfarism 7

welfarism are concerned. However, the current research study deals with private corporations as
institutional agents of states to substantiate welfarism among citizens.
However, considering the present condition, the main argument is that whether or not
private companies particularly the business institutions in the developing countries like
Philippines are competent enough in adhering to these social responsibilities and in performing
their obligations as integral partners of the state in promoting welfarism for the citizens. To
localized further the study, the researchers focused on two private corporations located in
Cordillera Administrative Region namely PHILEX Mining Corporation and Hydroelectric
Development Corporation (HEDCOR).
PHIEX MINING CORPORATION was incorporated in the Philippines in 1955 and has
been listed in the Philippine Stock Exchange since November 23, 1956. Philex Mining
Corporation has been operating the Padcal Mine in Benguet for the past 57 years primarily using
the underground block caving method. The mine is one of the oldest operating mines in the
country and provides PMC its biggest source of revenue. It is also the first underground block
caving mining operation in the Far East. The company vision is to be a highly respected, worldclass natural resource company committed to deliver excellent value to our investors, employees,
and other stakeholders. As of December 31, 2012, Philex Mining has 44,742 stockholders, with
38.05 percent of its outstanding shares owned by foreign nationals and institutions
On the other hand, HEDCOR is an ISO-certified renewable energy company with a
mission to develop and operate efficient hydropower systems. The company vison is to produce
two billion (2 B) kilowatt-hour of cleanergy (clean energy) by 2020. HEDCOR is a subsidiary of
the publicly-listed ABOITIZ POWER Corporation, the holding company of all ABOTIZ
interests in the power generation, power distribution and energy-solutions industries. The current
major accomplishment of this company is the installation of 14 megawatt hydropower plant in
Sabangan, Mountain Province last 2015. HEDCOR Company is now operating 22 run-of-river
hydrowater plants.
This current research study, therefore, tends to inform the readers regarding the
indispensable role of private corporations for the promotion of social welfare and development.
Moreover, this research study also elucidates the politicization of CSR by examining the
relationships of these two companies with the Philippine government. As an academic discipline,
this research study aims to widen the knowledge of the researchers regarding the concepts of
corporate social responsibility, corporate governance,and welfare development. The researchers
seem the study significant because there is only minimal volume of political researches that
highlights Baguio City as the location of study and its private corporations as subjects of the
study. In the language of Political Science research, the concept of CSR has been treated
politically since voluminous literature indicate the private sectors may aid the state in providing
the basic needs of the stakeholders in a community. CSR, as political instrumentation, may
increase state efficiency in redistributing its resources to the citizens; hence, creating a condition
of well-being among people. This research is beneficial to those individuals who belonged to the
academe specially the political researchers, political analysts, policy makers, social science
professors, or even students of Political Science, Economics and Business Administration.

Institutionalized Private Corporatism Substantiating Welfarism 8

Research Problem
The primary research problem is focusing on the competency level of selected private
corporations such as Philex Mines and HEDCOR in rendering projects and programs as relates to
its CSR. Furthermore, it has been also analyzed whether or not the CSR projects and programs of
these private corporations are really substantiating state welfarism as provided by the
constitution. In addition, there is also a need to determine the quality and frequency of these CSR
projects and programs since the common citizens (stakeholders) are the primary subjects of CSR.
Lastly, as the political environment is concerned, there is also a need to qualify the political
content of CSR in affecting the political behavior of citizens most especially in decision-making.

Research Objectives
The main purpose of this study is to determine whether or not the CSR of private
organizations is adhering to the principle of reciprocity and promoting welfarism (social welfare).
Moreover the following statements are other research objectives:
To evaluate the quality and frequency of CSR projects of selected private corporations in
relations with the promotion of social welfare
To evaluate the strategies of private corporations in performing their CSR projects and to
qualify whether or not the CSE services implemented are adhering to the principle of social
reciprocity and stakeholders needs
To analyze the political content of CSR of corporations affecting the citizens decisionmaking such as their behavior (conforming or defying) toward the private companies and
their level of participation to certain CSR programs
To examine whether or not CSR programs are only utilized by private companies to pursue
their corporate integrity and not necessarily aiding the government in promoting welfarism
To determine the contribution of selected private corporations in terms of social and
economic development in the Cordilleran region
To evaluate the implications of CSR programs and projects in terms of attaining the social
welfare of the people
To determine the current relationship existing between the government and private
institutions with reference to the advancement of social welfare in the community

Institutionalized Private Corporatism Substantiating Welfarism 9

CHAPTER 2: CONCEPTUAL FRAMEWORK

The promotion of CSR may induce the optimization of the welfare in the advanced
industrial welfare democracies. The regulatory role of public bodies is to incorporate the inputs
of corporations (private and public), NGOs and other civil society groups. In particular,
initiatives and agreements between employers and employees --illustrated by the case for the
reconciliation of work and family life-- may improve citizens living conditions and optimize
welfare development. (Moreno, 2010) The CSR interventions strengthened social and
institutional infrastructures to support the transfer of appropriate technology and the application
of upland agricultural production systems. (Magno, 2004) Successful CSR is perceived to be
strongly related to innovative solutions related to poverty alleviation efforts and the sharing of
this information and know-how, especially as regards the complex and to foreign companies
largely unknown social, political or economic and cultural realities in developing countries.
According to the proposed framework, corporate social responsibility as a commitment of
private corporation to the state is directed for the betterment of the community (well-being of the
citizens). Private corporations, as predicted by the framework, are important economic agents of

Institutionalized Private Corporatism Substantiating Welfarism 10

the state in attaining development. However, it is also emphasized that peoples participation is
vital for the formulation of beneficial corporate services. Social welfare as defined, is the
provision of minimum level of well-being for all citizens sometimes referred to as public aid.
Social welfare, therefore, refers to a situation wherein citizens achieved a good condition of
living through the efforts of both public and private sector. According to the framework, it has
been postulated that private corporations such as HEDCOR and PHILEX in Baguio City should
subsidize the government in attaining welfarism through institutional collaborative efforts.

CHAPTER 3: RESEARCH DESIGN AND METHODOLOGY

Research Design
The researchers utilized qualitative research design because the researchers collected
data themselves through examining documents to be given by the corporations involved,
observing the behavior of citizens within a particular community and through interviewing them.
The researchers formulated a research-protocol (a genuine instrument for collecting data) and
they tend not to rely on questionnaires and instruments developed by other researchers. The
research-protocol (interview guide) was consisted of two divisions- the first part is concerned
with the corporate profile of the company involved and the second part is concerned with the
quality of CSR services rendered to the public. The second part of the questionnaire is further
categorized into 6 dimensions of CSR services namely HEALTH, EDUCATION,
LIVELIHOOD, INFRASTRUCTURE, CULTURAL PRESERVATION and ENVIRONMENT.
In addition, the researchers adapted a case-study approach and phenomenological qualitative
research design in deciphering the CSR service competency of the two companies and at the
same time, the experiences of the household affected by these CSR services.
Research Methodology
The researchers conducted interview method and content analysis in obtaining and
understanding the data required by the research study. The researchers visited the immediate
community sponsored by the selected corporations such as in Barangay Ampucao and in
Barangay CAMP 3, Padcal, Benguet for the Philex Mines and in Barangay Beckel and in
Barangay Bineng for the HEDCOR Company. The researchers performed a face-to-face
interview as guided by the originally-formulated interview questions to at least 70 participants
that were purposively selected (35 participants for Philex including 3 participants for the
company and 35 for HEDCOR including the HEDCOR Community-relations Manager) that are
purposively selected such that the participant must be a genuine resident of the area. In
interpreting the gathered data, the researchers adhered descriptive statistics especially such as

Institutionalized Private Corporatism Substantiating Welfarism 11

frequency distribution and measure of central tendency. The researchers also performed the
Centering Resonance Analysis (CRA) in interpreting the data by which the researchers aimed to
centralized the research themes into one linear model to represent holistically the quality of CSR
services and programs implemented by PHILEX Mining Corporation and HEDCOR. The sample
model of CRA is as follows:

Uniliear Thematic Modeling

Scope and Limitation

The researchers only focused on the areas within the province of Benguet, Philippines in
conducting the research study since there was a research policy issued by the institution
regarding the territorial proximity to conduct study within or nearby places of Cordillera
Administrative Region for the security of the student researchers. However, the quality of this
study has not been aggravated because the researchers performed in-depth data gathering and
cross examining the information gathered about PHILEX Mining Corporation and HEDCOR.
As the limitation of the study, the researcher did not focus on comprehensive analysis in the
equity shares, human resource management strategies and company revenueof the two
companies in both domestic and global market since it is believed to be the concerned of student
researchers enrolled in business courses. However, the main goal of this research is to determine
the quality of CSR services rendered by these companies as experienced by the stakeholders in
selected areas so it is rational to adhere with the qualitative approach.

CHAPTER 4: RESULTS DISCUSSION AND ANALYSIS

DEMOGRAPHIC PROFILE: The following two tables summarizes a brief demographic
profile of the participants and brief information about Philex Mining Corporation and HEDCOR

Institutionalized Private Corporatism Substantiating Welfarism 12

Company that are both located in Benguet.

A.) THE COMPANIES
Table 1: COMPARIVE ANALYSIS OF COMPANY PROFILE OF PHILEX MINING CORPORATION AND
HEDCOR
Name of
Company
PHILEX MINING
CORPORATION

FACTORS
Year of
Creation

Estimated
Annual
Revenue

Vision

Mission

1955

10.898
billion
pesos
(as of 2014)

To be a highly
respected, worldclass natural
resource company
committed to
deliver excellent
value to our
investors,
employees, and
other
stakeholders.

To be a
responsible
mining
corporation that
discovers and
processes
minerals and
energy
resources for
the use of
society.

*30 million
pesos per
day

CSR
Services
Core
Competency
Health,
Education,
Livelihood,
Public Infra,
Environment
*according to
Philex-SDMP

CSR
Services
Funding
Mechanism
344 million
pesos
(2003-2014)
-at least 0.30
% to 1% of
Annual
Revenue will
be spent for
CSR
activities
*according
PHILEXSDMP

HEDCOR
(Aboitiz-Power)

Source: Philex-SDMP
1978
814 million
pesos
(as of 2014)

To produce two
billion of Kilowatthour CLEANERGY
by 2020

*2.2 million
pesos per
day (based
on account
estimations)

To develop and
operate efficient
hydropower
systems

Health,
Education,
Livelihood
Public Infra
Environment

With
an
average
allocation of
0.50 % to 1
% of the
company
total revenue

Source: Hedcor Online Website

Table 1 shows a comparison between Philex Mines-Padcal and HEDCOR. As observed,

Philex Mines is admittedly the larger earner in terms of company revenue in 2014 as compared
with HEDCOR. In terms of company operations, PHILEX Mines was also the first one to
harness natures potential as compared with HEDCOR. However, the CSR services rendered by
the two companies have the same core competencies focusing on health, education, infrastructure
and environment. Regarding the CSR funding mechanism, the company has almost the same
range of budget allocation to implement their projects; however, the amount may be differ in

Institutionalized Private Corporatism Substantiating Welfarism 13

accordance with the annual revenue of the company and its income tax paid in the government.
This analytic assessment based on the company profile proves that the two private companies
despite of varying industrial competency such that Philex specialized on mining while HEDCOR
on hydropower showed commitment to their stakeholders and adhered to the principle of social
reciprocity in the manner that these two companies benefited from nature (environment); thus, it
is a moral imperative to reciprocate these benefits by serving the community through
philanthropic services. Thus, it can be inferred that Philex Mining Corporation is maximizing
mineral resource for community development while HEDCOR Company is developing the
undeveloped communities through clean energy.

B.) THE STAKEHOLDERS

Table 2: SUMMARY OF DEMOGRAPHIC PROFILE OF 70 PARTICIPANTS
INTERVIEWED FOR PHILEX AND HEDCOR CSR SERVICES
Name of
Company

Total Number
of Participants

Average Year of
Residency of
Participants in
the Sponsored
Community

Percentage
Distribution of
Participants
According to
Gender

Locale of the
Research
Study and the
Percentage
Distribution
of
Participants

PHILEX
MINING
CORP.

35

48.68 years

Male

HEDCOR
(Hydro Electric
Development
Corporation)

35

46.74 years

40.00 % 60.00 % Barangay

Beckel42.85%
and
Barangay
Bineng57.15%

Female

Barangay
CAMP
3
54.29 % 45.71 % (Padcal)- 22.86
%
and
Barangay
Ampucao77.14%

Table 2 shows a brief demographic profile of participants in the research study. As observed
in two companies, there are equal number of participants invited for the study to maintain
consistency in the sample size. Participants for Philex includes 4 Company representatives (1 for
Social Development and Management Program and 3 Company Engineers form Padcal site), 4
barangay officials of Barangay Ampucao and a total of 27 common citizens (at least 5 years of

Institutionalized Private Corporatism Substantiating Welfarism 14

residence) from Barangay Padcal and Barangay Ampucao, Benguet while participants for
HEDCOR Company includes 1 Company Representative (HEDCOR-Community Relations
Department), 2 local government officials and a total of 32 common citizens from Barangay
Beckel and Barangay Bineng, Benguet.
In terms of the year of residence, Philex Mining Corporations participants had acquired
higher average year of residence as compared with the HEDCOR participants. However, in terms
of percentage distribution according to gender, the number of male participants are higher for
Philex but the number of female participants are higher for HEDCOR. For the locus of the study,
the researchers considered Barangay Padcal and Barangay Ampucao for Philex because these
two barangays aside form the consideration of territorial proximity, are included in the lists of
immediate sponsored community by Philex Mining Corporation while same consideration has
been applied for selecting Barangay Beckel and Barangay Bineng for the HECOR company.
RESEARCH DATA:
Table 3: COMPARATIVE ANALYSIS OF THE CSR SERVICES RENDERED BY TWO COMPANIES AS
PERCEIVED BY THE PARTICIPANTS
CSR Services Clusters
HEALTH

EDUCATION

INFRASTURCTURE

HEDCOR
-Medical Missions
a.) Dental Check-Up & Eye
Check-Up
b.) BP Monitoring
c.) Free Vitamins/ Nonprescriptive medicine
d.) First Aid Training

-Scholarship Grants (High School

Level to Tertiary Level)
-Distribution of Free School Supplies
and General Reference Materials
-Automotive Training Sponsorship
with TESDA
-OJT for the selected students with
food and miscellaneous allowance
-Road Rehabilitation
-Classroom Construction
-Public Utilities (Water-Supply)

CULTURE
PRESERVATION

-Collaborative efforts with Barangay

LGUs during fiestas

LIVELIHOOD

-Livelihood Seminars
-Coffee-planting Industry

ENVIRONMENT

-Tree-Planting Activities
-Vermi-composting (for Garbage)

PHILEX MINES
-Medical Missions
a.) Free Vitamins and Medicines
b.) Dental and Eye Check-Up
c.) BP Monitoring
d.) First Aid Lectures
-Hospitalization Subsidy
(For Phiex Employees and Immediate
Relatives)
-Fitness Activities
a.) Sports Festivals
b.) Marathon
-Scholarship
Grants
(50%-100%
educational subsidy)
-Distribution of General Reference
Materials
-Skills
Training
(Mining-related
Courses)
-Classroom
Construction
including
school libraries
-Barangay Hall Rehabilitation
-Multi-Purpose Hall Construction
-Cat Walks (Side Walks)
-Minimal efforts
-Cultural exhibits or presentation (for
Philex Mines Employees)
-Coffee-manufacturing Industry
-Weaving
-Aquaculture Industry
-Tree-Planting
-Environmental Management through
Waste Control

Institutionalized Private Corporatism Substantiating Welfarism 15

The table shows the significant pillars of CSR services that need to be integrated by the
company namely HEALTH, EDUCATION, LIVELIHOOD, PUBLIC INFRASTRUCTURE,
CULTURE PRESERVATION and ENVIRONMENT. The two companies has almost the same
strategies in performing CSR services in terms of health,education and environment, such that
both companies offers medical missions and scholarships among its stakeholders and performs
tree-planting activities in the sponsored communities. Regarding CSR services on Culture, both
companies need improvement in incorporating projects or programs regarding culture since this
aspect maintains coherence and solidarity among citizens of the community.
ANALYSIS OF CSR OF TWO COMPANIES:
Table 3.1: Analysis of CSR Services of Two Companies Regarding Health
COMPANY

CSR - HEALTH
PROGRAMS AND
SERVICES

FREQUENCY
OF
IMPLEMENTATION

Approximate
Number of
Individuals
Benefited

Significant Testimonials by
Some Participants

(most recent health

mission)

PHILEX

-Free
Physical
Check Up

2-3 times a year

-Minor Surgeries
-Fitness
Activities
-Distribution
of
Medicine
and
Food
Supplement

350
individuals/daily

The company gave free

medicine and vitamins

(based on monthly
estimation records of
St. Nino Hospital
(Padcal);
approximate 6,000
patients annually)

(Nagbibigay sila [Philex]

ng libreng gamot at mga
vitamins.)

700 individuals

The company conducts

medical missions at least
twice a year and provides
free medicine

-a 71 years old participant

from Barangay Ampucao

-Hospitalization
Subsidy
(employees)

HEDCOR

-Free Check Up
-Distribution
of
Medicine
and
Food
Supplement

2-3 times a year

(as of December
2015 Medical
mission in Benguet
& Mt. Province)

(Nagko-conduct naman ang

Hedcor ng medical mission
mga twice a year tapos may
libreng gamot din)
- a 60 years old participant
from Barangay Beckel
The company conducted
medical missions; however,
it seems that it was three
years ago
(Meron namang medical
missions pero parang 3 years
ng wala.) -a 62 years old
respondent from Barangay
Bineng

Institutionalized Private Corporatism Substantiating Welfarism 16

A.) CSR HEALTH PROGRAMS AND SERVICES. CSR services on heath pertain to all
programs and services that contribute for the physical and psychological well-being of an
individual. As noticed in the table, the common CSR services of two companies HEDCOR and
PHILEX include medical missions and distribution of free vitamins and medicines.
Majority number of the participants for PHILEX Mines in Barangay Camp 3 (Padcal) and in
Barangay Ampucao agreed that the quality of medical missions rendered by these two companies
are very satisfactory since PHILEX Mines offered a wide-ranged health services from free
physical check-up to hospitalization subsidy most especially to its employees. In addition,
Philex Mining Corporation, during its medical missions, also offers free first-aid lectures as
Engr. Ochoco states Bukod sa free check-up during medical missions, meron din kaming free
lectures and simulation-training regarding first-aid so that the people will be informed.
(Translation: Aside from free check-up sponsored by the company, we also conduct free first-aid
lectures and trainings so that the people will be informed [about safety and immediate medical
support).
In addition, the Sto. Nino Hospital constructed by Philex Mines in Padcal accommodates at
least 350 out-patients daily who enjoyed the benefits of free medicines and check-up.
Meanwhile, HEDCOR Companys CSR Services on health is almost the same as Philex
Mines; however, its quality and range of health services offered by HEDCOR were perceived as
only satisfactory especially the residents of Barangay Beckel but very satisfactory for the
residents of Barangay Bineng. This varying sentiments of HEDCOR participants from Beckel
and Bineng are heavily affected by the community development projects initiated by HEDCOR
in the area of Bineng since this company has installed 2 hydropower plants (Bineng Hydro 1 and
Bineng Hydro 2). To substantiate this claim, Barangay Bineng participants generally admits that
HEDCOR really provides good CSR services on health. In fact, the following testimonial of 46year old woman participant whose husband is working in HEDCOR elucidates that HEDCOR is
very philanthropic in giving such services by saying Merong medical service ang HEDCOR at
nagbibigay [sila] ng free medicines. Sa totoo lang, mababait ang medical personnels ng
HEDCOR kapag mga medical missions at welcome namin sila with openheart. (Translation:
There is an evident medical service offered by HEDCOR. HEDCOR gives free medicines. As a
matter of fact, the medical personnels were so kind during medical missions at we always
welcome them with open heart. ) However, there are few number of participants such as a 62year old woman claimed that CSR Health services such as check-up of HEDCOR in the
barangay were conducted three years old.
Still, Bineng participants really sensed the commitment of HEDCOR Company in providing
good health services since Barangay Beckel participants only treat HEDCOR as only private
company erected in their barangay that renders minimal effort in rendering health services in
Barangay Beckel. As a matter of fact, about 700 people recently became the beneficiaries of
three separate medical-dental missions staged jointly by Hedcor and Luzon Hydro in barangays
Ampusongan and Kayapa in Bakun (Benguet) and in Poblacion in Sabangan, Mt. Province. The
medical missions, held last December 5, 6 and 7, were worth PhP490,000 to accomplish in
partnership with several civic organizations such as Rotary Club and the Philippine Dental
Association. The remaining medicines were donated to the Rural Health Offices of Bakun and
Sabangan.

Institutionalized Private Corporatism Substantiating Welfarism 17

Table 3.2: Analysis of CSR Services of Two Companies Regarding Education

COMPANY

PHILEX

CSR EDUCATION
PROGRAMS

-Scholarship
grants

FREQUENCY
OF
IMPLEMENTATION

Yearly

-Educational
Subsidy (70%)

-SPES
(Special
Program for
Employment
of Students
-Scholarship
grants
-Distribution
of books and
school
supplies

(most recent official

records)
828 College Student
Beneficiaries
(134 college students who
were beneficiaries of Pusong
Philex College Scholarship
and 694 beneficiaries of
SPES (since 2001), a 25-day
summer job for students)

-Distribution
of
school
supplies

HEDCOR

Approximate Number
of Individuals Benefited

Yearly

482 Student
Beneficiaries
(140 high school & 342
college students)

Significant
Testimonials by
Some Participants

The company gives

scholarship grants
to majority of high
school and college
students
(Merong scholarship
ang Philex sa high
school at sa college.)
- Capt. Amuasen of
Barangay Ampucao

We [HEDCOR] are
offering
scholarships to all
deserving students
regardless of their
preferred course.
-Sir Catingub;
HEDCOR-COMREL

B.) CSR EDUCATION PROGRAMS AND SERVICES. The CSR services of the two
companies regarding education include educational subsidies through scholarship grants and
educational supplies distribution.
According to Barangay Bineng participants, HEDCOR offers scholarship for high school and
college students. However, these scholarship grants can be only avail by students whose parents
are not employed in the company. To supplement this fact, according to the interview with Mr.
Romy Catingub of HEDCOR-Community Relations Officer, HEDCOR had already given
scholarship grants at least 140 high school students and at least 342 college students as of 2015.
In addition, the scholarship grant of HEDCOR-Company is applicable to all courses to motivate
and empower the student beneficiary in dealing with academic life.
On the other hand, PHILEX MINES-SMDP has already spent at least Php 72.04 Million from
2003 to 2014 for its education programs that includes scholarship grants and subsidies to

Institutionalized Private Corporatism Substantiating Welfarism 18

elementary, high school and college students as divulged by Ms. Nancy Molitas. To elaborate
further, Philex Mines has subsidized private high school education benefiting at least 790 high
school students for academic year 2014-2015. Moreover, Barangay Captain of Ampucao, Mr.
Eddie Amuasen admits that CSR services of Philex in the Community are highly beneficial for
the community since the local government and even the municipal government have limited
financial resources to finance the needs of students. As compared with the HEDCOR in terms of
the coverage of scholarship grants, PHILEX-MINING CORPORATION enormously supports
those students who enrolled in courses related to mining and business management such as
Mining Engineering.
By analyzing the quality of CSR services on education of the two companies, the sponsored
communities are highly satisfied. However, the quantity of the beneficiaries regarding free
education shall be monitored not only the sponsoring private corporation but also local
government units through conducting a consolidated monitoring scheme about the number of
students in a community since it is believe that education is one of the catalysts to boost the
efficiency of the state.
Table 3.3: Analysis of CSR Services of Two Companies Regarding Infrastructure
COMPANY

PHILEX

CSR - INFRASTRUCTURE

-School Buildings
-Road Rehabilitation

FREQUENCY
OF
IMPLEMENTATI
ON
Upon the
request of
community

-Electrification
Projects

HEDCOR

-School Buildings
-Road Rehabilitation
-Electrification
Projects
through
Hydropower plants

Upon the
request of the
community

Approximate Number of
Individuals Benefited

Significant Testimonials by Some

Participants

100% of households in
Padcal

Philex provides a great help in

transforming our community here
in Padcal

(population as of 2016;
10,998 people)

(Malaki ang tulong ng Philex sa pagtransformn dito sa community namin

sa Padcal.)

80% of households in
Barangay Ampucao
( population as of 2016;
11,522 people)

-a 48 years old woman in Padcal

having an employed husband in
Philex

70-75% of households in
Barangay Bineng

Hedcor
spearheaded
road
rehabilitation efforts but it is only
for their company advantage.

(population as of 2016,
1953)

40-50% of households
(as of 2016; 4,511
citizens)in Barangay
Beckel

(Pinaayos naman ng Hedcor ang

mga daan sa amin kaso yung mga
kalsada lang na patungo sa planta
nila.) - a 46 years old woman in
Bineng having an employed husband
in HEDCOR
Hedcor helped in constructing
school buildings.
(Tumulong
ang
Hedcor
sa
pagconstruct ng mga buildings dito sa
school.) -a teacher from Barangay
Beckel

Institutionalized Private Corporatism Substantiating Welfarism 19

C.) CSR INFRASTRUCTURE FACILITIES. The two companies, when it comes to CSR
Services regarding CSR facilities, have performed excellently. In fact, field interviews showed
that majority of the participants acceded that HEDCOR and PHILEX have been transforming
the community through building of schools, road rehabilitation and multi-purpose hall
construction. For instance, the Barangay captain of Ampucao, Mr. Amuasen admitted that Philex
really helped in transforming the community by constructing the Barangay Ampucao Barangay
Hall and its sports gymnasium. In other barangay, Barangay Padcal for instance, PHILEX
Mining Corporation, pioneered the establishment of PHILEX MINES elementary school.
Furthermore, Philex also helped in building classrooms. Moreover, the PHILEX-SMDP, the
main agency of the PHILEX Mining in providing CSR programs and services, admitted that
there were about Php 223.4 million spent for infrastructure projects from 2003 to 2014.
On the other hand, HEDCOR company also performed very satisfactorily in terms of public
infrastructure development specially in Barangay Beckel and Barangay Bineng. Hedcor Inc., as
wholly-owned subsidiary of AboitizPower, in partnership with Aboitiz Foundation and Aklat,
Gabay, Aruga tungo sa Pag-angat at Pag-asa (AGAPP) Foundation recently turned over the
newly-built AGAPP Silid Pangarap to Beckel Elementary School in 2013. The P 1.2 million
project benefits about 67 kindergarten students from Beckel Elementary School who now enjoy
their new classroom facility. Supporting the educational system of the country through classroom
constructions strategies is one of HEDCORs corporate social responsibility.
The CSR services regarding infrastructure development of the company are seemed to be
beneficial and provides welfare for the stakeholders. However, in Barangay Ampucao for
instance, Captain Amuasen admitted that the PHILEX Mining Corporation is independently
formulating its plans regarding infrastructure without considering the real demands of the
citizens. The barangay council found it a problem because it missed a chance to include the
possible developments in its barangay development plan or annual investment plan. In
perspective, the barangay has no power to intervene through rigid monitoring the plans
promulgated by the said company; therefore, conflict of interests may be evident and the
citizens welfare may be aggravated in the said community. On the other hand, some participants
of HEDCOR Company perceived that the company rehabilitate roads for their corporate
advantage since the company rehabilitated roads heading to location of their hydropower plants
or to their office in Barangay Beckel.

Institutionalized Private Corporatism Substantiating Welfarism 20

Table 3.4: Analysis of CSR Services of Two Companies Regarding Culture Preservation
COMPANY

PHILEX

CSR - CULTURE
PRESERVATION
EFFORTS
No
evident
programs
according to the
stakeholders

FREQUENCY
OF
IMPLEMENTATION
Rare

Approximate Number
of Individuals
Benefited

Significant Testimonials by Some

Participants

Undetermined

There is evident efforts to boost

Cordilleran culture
(Wala namang silang ganyan para
iangat ang Cordilleran culture.)
-a 23 year-old
respondent from Barangay
Ampucao
There was no such efforts; maybe it
was implemented by the company
among its employees

HEDCOR

No
evident
programs
according to the
stakeholders

Rare

Undetermined

(Wala namang ganyan dito, siguro sa

mga employees nila meron.)
-Capt. Amuasen of Barangay Ampucao
Theres no evident programs to
boost our local culture here but
Hedcor cooperates with
the
barangay during fiesta.
(Wala namang ganyan na program
para iangat local culture namin dito,
pero tumutulong naman sila sa
barangay tuwing fiesta.)
-a 62 year old respondent
From Barangay Bineng

D.) CSR-CULTURE PRESERVATION PROGRAMS. Culture preservation efforts refers to

actions and strategies to unify people in a community through empowerment of culture. CSR
programs about culture preservation is slightly evident in the featured sponsored communities of
HEDCOR and PHILEX MINING. Thus, the two companies must incorporate culture
preservation programs through community exhibits, ethnic presentations, etc.; thus, the
participants will become more cooperative with the advocacy of the company. Moreover,
boosting the morale of Cordilleran culture will also amplify the companys reputation for its
local stakeholders.

Institutionalized Private Corporatism Substantiating Welfarism 21

Table 3.5: Analysis of CSR Services of Two Companies Regarding Livelihood

COMPANY

PHILEX

CSR - LIVELIHOOD
PROGRAMS AND
SERVICES

FREQUENCY
OF
IMPLEMENTATION

-Weaving Industry

2-3 times a year

-Coffee-Processing

(seminars, awarding
of funds, etc.)

-Aquaculture
development

Approximate Number of
Individuals Benefited

Significant Testimonials by Some

Participants

PHILEX MINES
Employees

Philex Mines had developed

aquaculture industry to seek for
alternative livelihood programs
among its people.

&
At least 40-50% of
Citizens in Padcal

-Loan Assistance

And at least 1-5% of

citizens in Barangay
Ampucao

-Nancy Molitas of Philex-SDMP

Philex Foundation helps us to

further develop the weaving
industry here.

(Tinutulungan kami ng Philex

Foundation sa pag-manage ng
weaving dito, nagbibigay sila ng
equipment..
-a Weaver form
Padcal (Barangay Camp 3)
HEDCOR

-Multi-Purpose
Cooperative
-Loan Assistance
-Coffee-planting

Occasional
(seminars, awarding
of funds)

Selected HEDCOR
Employees
&
At least 20% Local
Citizens of Barangay
Bineng

Hedcor's Livelihood Assistance

Program extends project loans to
its employees in the Asin,
Ampucao and Bakun Grids,
subject to the guidelines provided
by the company. Its objective is to
augment the borrower's income
with the help of the borrower's
family who shall pursue and
undertake
the livelihood project.
-www.hedcor.com
HEDCOR guide us to develop
coffee-planting in our area.
(Tinutulungan kami ng HEDCOR sa
pagdevelop ng coffee plant.) -a 51
year old respondent from Barangay
Bineng

E.CSR -LIVELIHOOD PROGRAMS. CSR services would refer to economic-crisis mitigation

strategies implemented in the community to equip the stakeholders with effective entrepreneurial
skills. In terms of livelihood programs, the two company, aside from job-creation is also actively
initiating livelihood seminars for its stakeholders. For instance, Philex Mines has its aquaculture
development in Barangay Ampucao and coffee-manufacturing and weaving industry in Padcal
while HEDCOR has its coffee-planting industry in Barangay Bineng.
In terms of the feasible number of beneficiaries, Ampucao Barangay captain Amuasen stated

Institutionalized Private Corporatism Substantiating Welfarism 22

that aquaculture development in the barangay only benefited at least 4 families since the
company found it strategic place for aquacultural development because of the water supply
originating from the near reservoir. However, in Barangay Camp 3 (Padcal), the Philex Mining
Corporation satisfactorily developed coffee-manufacturing industry and the weaving industry in
which the women sector are the primary beneficiaries. For HEDCOR Company, the participants
admitted that the company pioneered the coffee-planting industry in Barangay Bineng; however,
the livelihood project in the area is not fully developed because of production insufficiency since
there were no equipment for coffee-processing. In terms of livelihood loans, HEDCOR awarded
an amount of Php 75,000 each to its selected employees to foster swine raising; however,
common stakeholders (non-Hedcor employees) found difficulty in applying livelihood loans in
the company.

Table 3.6: Analysis of CSR Services of Two Companies Regarding Environment

COMPANY

PHILEX

CSR ENVIRONMENTA
L PROGRAMS
AND SERVICES

-Tree-planting

FREQUENCY

Individuals Involved

Significant Testimonials by
the Participants

Philex Employees

The company
has tree
planting activities in the
community especially to those
areas that are near the mining
site.

OF
IMPLEMENTATION

Monthly

-Land
Management
efforts

&
Local Government
Units of Tuba and
Itogon

-Capt. Amuasen,
Brgy. Ampucao

HEDCOR

-Planting of 9
million trees till
2017
-1000-hectare
watershed
management in
Mt. Apo, Natural
Park

Monthly

HEDCOR Employees
&
Local Government
Units of Barangay
Beckel and Bineng,
and Municipality of
Sablan

We are aiming to plant at

least
9
million
trees
nationwide by 2017 to
preserve the environment
-Sir Catingub of
HEDCOR-COMREL

-Vermicomposting

F.) CSR-ENVIRONMENTAL PROGRAMS AND ACTIVITIES. The two companies

exemplified tremendous efforts in preserving the environmental vitality. In fact, HEDCOR, as
stated by Mr. Catingub, aimed to plant at least 9 million trees nationwide in the year 2017.
Beside, the HEDCOR company as based in the company vision to provide 2 billion kilowatthour of cleanergy by 2020 indicates that HEDCOR has a serious commitment to preserve the
vitality of the environment by utilizing natural energy instead of burning coal and petroleum for
generating electricity. Aside form this activity, HEDCOR is also advancing vermi-composting

Institutionalized Private Corporatism Substantiating Welfarism 23

(using worm to decompose wastes) within the locality to lessen pollution in water and in land.
Moreover, the HEDCOR Company also revitalized Mt. Apo by planting tree-seedlings on its
side. Over half-million trees were planted to reach the targeted land area which were distributed
to address different needs. The effort was mainly directed to reforestation, roadside rehabilitation,
riverbank stabilization, and agro-forestry. The company spent over 15 million pesos for the
project alone.
On the other hand, same scenario is applied for PHILEX Mining Corporation since according
to Engr. Ochoco, the Philex Mining Company, though extracting the mineral resources from the
mountain, is also morally obliged to revitalize nature by planting trees and effective slope
management by filling the mined area so that the mountain will not be eroded easily.
In 2013, Padcal mine had planted a total of 305,590 seedlings of various forest- and fruit-tree
species across 250 hectares of the newly and previously established areas at its mine site, and
another 140 hectares of the previously established plantation areas for enhancement. This
brought to over 8 million seedlings of forest and fruit-bearing tree species planted across 2,465
hectares of land in the host towns of Itogon and Tuba (Manila Bulletin, 2014).

Table 4: Evaluative Analysis of the Quality of CSR Programs and Services

Implemented by the Two Companies According to the Perception of Participants
Dimensions of Corporate Social Responsibility
Company

Health

Education

Infrastructure

Culture

Livelihood

Environment

PHILEX
Mines

Very
Satisfactory

Satisfactory

Very
Satisfactory

Needs
Improvement

Satisfactory

Satisfactory

HEDCOR
Company

Satisfactory

Very
Satisfactory

Satisfactory

Needs
Improvement

Moderate

Very
Satisfactory

In general overview, table 4 provides an evaluative analysis of the quality of CSR programs
and services implemented by two companies in selected barangays according to the perceptions
and sentiments of the 70 participants. Regarding the performance of Philex Mines, it was
generally admitted that the company excellently performs its CSR services and programs in
Barangay Camp 3 (Padcal) since the Philex Mines Office is located in the area; however, the
stakeholders from Barangay Ampucao perceived the CSR services and programs of HEDCOR as
satisfactorily implemented.
On the
perceived
perceived
Barangay
executed.

other hand, HEDCOR has different scenario. Participants from Barangay Beckel
the CSR services of HEDCOR as only moderately executed since the participants
HEDCOR as only an office established in the barangay but the participants form
Bineng affirmatively reacted that HEDCOR CSR services and programs are well

Institutionalized Private Corporatism Substantiating Welfarism 24

Institutionalized Private Corporatism Substantiating Welfarism 25

Figure 1 applies the CRA technique in aggregating various themes related to the research
study. According to the illustration, the CSR services and programs implemented by the two
companies can be understood as a means of personal obligation in boosting the morale of the
company (image-building), as a political obligation that assists the LGU in providing basic
welfare services to the citizens and as a social obligation that directly provides basic welfare
services to its stakeholders. In achieving welfarism, the companies should be an effective
subsidiary of the government in providing minimum well-being for the citizens by collaborating
with the local government units.
As illustrated, there are significant percentage of the participants (51.42%) who perceived
that the companies involved in the study performs CSR services as manifestations of their social
commitment in the community. Both companies have the capacity to provide basic services such
as medical missions, scholarship grants, etc. directly to its targeted beneficiaries. However, this
scenario is perceived by LGU personnels such as Barangay Captain Amuasen from Ampucao as
legally-incongruous since the real demands of the stakeholders may not be necessarily addressed
because companies are insignificantly collaborating with the LGUs concerned in their sponsored
communities. Due to these factors, the barangay funds are not able to be maximized and conflict
of interests may occur. In addition, this CSR implementation may not really substantiate
welfarism but substantiate the image-building capacity of the companies involved through media
exposure and online documentation if the companies are not collaborating with the local
governments. In the sense, the companies are only for profit-maximization.
Currently, the researchers found out the the quality of CSR services implemented by the
companies were highly satisfactorily for the participants;however, the obvious problem is that
there are still small number of households not benefiting from these services because of lack of
awareness and lack of information-dissemination. In achieving state of welfarism, the companies
should strategically dispensed its CSR services and programs together with government sector.
However, in terms of monetary matters involved with the government officials, the companies
must conduct rigid monitoring to avoid corruption and to ensure the proper quality
implementation of CSR services. In assessing the two companies in terms of their CSR services
in substantiating state welfarism, the CSR services are notably satisfactorily as perceived by
majority number of participants; however, the number of beneficiaries should be increase to
ensure that general welfare is effectively attained in the said communities.

Table 5: Political Stance of the Two Companies in Local and National Politics
According to the Company Representatives
COMPANY

Local Politics

National Politics

PHILEX Mining Corporation

Non-partisan

Partisan

HEDCOR Company

Non-partisan

Non-partisan

According to the interview among company representatives of the two companies, Philex

Institutionalized Private Corporatism Substantiating Welfarism 26

Mines company representatives admitted that their company is non-partisan in terms of local
politics; however, it is a partisan company in terms of national politics. As a matter of fact, the
company had showed obvious support to all national candidates that are pro-mining.
Otherwise, HEDCOR Company, according to Sir Catingub, remains politically-neutral
whether in local and national politics. Accordingly, the managers (team leaders) of the company
are not promoting any candidate in their office since they believe in the spirit of democracy and
free will of its employees as voters.
As analyzed based on the sentiments pf the stakeholders, the political stance of the
companies has minimal effect on the implementation of CSR services in the community. The
quality of CSR services and programs provided by these companies are not necessarily sacrificed
by the persons in power; however, this may affect the coherence of institutions (the government
unit and private company) in providing services to the residents.

CHAPTER 5: CONCLUSION AND RECOMMENDATION

The research study proves that the two companies HEDCOR and Philex Mining Corporation
have satisfactorily delivered and implemented their quality CSR services in their sponsored
communities. CSR programs and services on health, education, and infrastructure are effectively
implemented as perceived by the majority number of participants. However, in adhering to the
principle of government subsidiary in promoting welfarism, the CSR programs and services to
be rendered by the companies must be frequent as possible especially on health services and
environmental programs. CSR projects regarding infrastructure development initiated by the
companies really provide convenience among the participants of the study such as the
construction of school and cat walks in Padcal site and multi-purpose hall in Ampucao by Philex
and the construction of school building in Beckel by the HEDCOR Company. Though
considered least important, CSR programs regarding culture must still need to be implemented to
sustain social coherence or strong bond in the community and to boost the enthusiasm of
individuals to cooperate in community decision-making involving the barangay government and
the private companies.
Corporate Social Responsibility (CSR), therefore, as a political concept and as fundamental
element of social reciprocity, initiated by the private companies should aim to increase the
efficiency of the state for the provision of basic welfare services. CSR programs, projects and
services must be implemented for the attainment of well-being and not just simply imagebuilding and popularity of the company. Therefore, CSR as a fundamental component of a
company identity should be institutionalized such that the welfarism among local stakeholders in
a liberal democratic state will become more feasible. The following are the recommendations of
the research study:
CSR as Significant Pillar of the National Laws. To provide welfare for stakeholders through
CSR services is only a prerogative of a particular company. CSR programs and services must be
mandatorily implemented by the private sector through the enactment of a law that will govern
the CSR practices of such companies and private corporations. Though the Philippines has a
Corporation Code (Batas Pambansa 68), this statute only governs the activities among

Institutionalized Private Corporatism Substantiating Welfarism 27

shareholders of a particular corporation and does not contain any provision regarding the
implementation of CSR services. Therefore, upon the enactment of law about companys CSR, it
is prognosticated that these companies will not only performing for the maximum gain of profit
but also for the attainment of citizens welfare. In addition, let the CSR services not only social
responsibility of the private companies but also a catalyst of welfare development among citizens
since a social responsibility can be performed with minimum company efforts but genuine
welfare services requires commitment and passion to the communities. In addition, the CSR
services and programs implementation must be monitored by a legitimized accrediting body to
measure the quality and quantity of CSR rendered by private corporations.
CSR Services and Programs Funding. Based on the interviews conducted among company
representatives, budget allocation to CSR funding is highly dependent on the annual revenue of
the companies. If the revenue is high, then it follows a significant increase in CSR funding.
However, the predicament in this perspective is that welfare of the local stakeholders may be
aggravated since the implementation of welfare services depends on the company profit.
Therefore, the study suggests that regardless of company revenue, there should be a constant
percentage of revenue to be allocated in the CSR services regardless whether the company
became profitable or not in a particular year. Moreover, the local government funds pertaining to
basic welfare services should be strategically combined with the company funds so that
purposeful services like medical aid, scholarship grants, and livelihood loans can be feasible. In
this sense also, strong institutional collaboration among public and private agencies can be
achieved and sustained.
CSR Services and Programs Implementing Rules and Regulation. Admittedly, the
companies have the prerogative to formulate and implement CSR programs and services in their
selected communities. The local government units are seemed too passive in intervening the
implementation of the CSR projects. Therefore, the study recommends that CSR programs and
services must undergo critical scrutiny among private corporations, the stakeholders and the
government unit in-charged to ensure the quality of the CSR programs. Finally, the local
stakeholders should also equip themselves with productive skills (capability approach) to
become effective members of the community, active collaborators of private sector and positive
transformers of the state!

Institutionalized Private Corporatism Substantiating Welfarism 28

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Institutionalized Private Corporatism Substantiating Welfarism 31

APPENDICES
A.)

Interview Guide

The researchers formulated guide a set of guide questions

to facilitate the discussion of the research theme. The
following statements are the interviewguide questions:
A.) For Private Corporations
1. What is the company all about?
1.1.) Historical Development of the Company
1.2.) Mission-Vision Statement of the Company
1.3.) Competitive Advantages of the Company
1.4) List of Company Officials and Workers
1.5) Estimated Annual Revenue
2. ) What are the CSR projects rendered by the company in
the community?
2.1.) CSR projects regarding HEALTH
2.2.) CSR projects regarding EDUCATION
2.3) CSR projects regarding LIVELIHOOD
2.4) CSR projects regarding INFRASTRUCTURE
2.5)
CSR
projects
regarding
CULTURE
PRESERVATION
2.6) CSR projects regarding ENVIRONMENT
3. ) How does the company collaborate with the government
in terms of:
3.1) CSR Project Implementation

1.2.) CSR projects regarding EDUCATION

* Does the private corporation provide
scholarship grants in your community?
*If so, do you have any relative or friend who
is a beneficiary of this scholarship
grant? What will be the duration of the said
grant?
1.3) CSR projects regarding LIVELIHOOD
*Does the private corporation sponsor some
livelihood activities like waiving,
aquaculture development, etc. in your
community?
*Does the private corporation sponsor some
seminars regarding entrepreneurial
skills development?
1.4) CSR projects regarding INFRASTRUCTURE
*Does the private corporation sponsor
infrastructure development in the
community?
* If so, what are the infrastructure built by
the private corporation in your
community?
Do
you
find
these
infrastructure beneficial for you?

3.2) Funding of CSR Projects

3.3) Internal Policy-making

B.) For Citizens

Demographic Profile:
Age:____ Civil Status:_____ Number of Years of residency
in the area: _____ Registered Voter: ______
Research Questions:
1.) How do you find the performance of the corporation in
rendering CSR projects in terms of:
1.1 CSR projects regarding HEALTH
*Does the private corporation sponsor
medical missions in your community?
*Does the private corporation provide you
free medicine such as paracetamol,
anti-biotic, anti-inflammatory and free
food supplements?
*Does the private corporation sponsor
physical activities in your community such
as Fun Run, Zumba Session, and the like?

1.5)
CSR
projects
regarding
CULTURE
PRESERVATION
*Does the company protect the tradition or
customs of the local community?
*Does the private corporation initiate
community programs and activities that
will promote your local culture?
*If so, what are those cultural programs or
projects?
1.6) CSR projects regarding ENVIRONMENT
*Does the private corporation sponsor
program related to the preservation of
environment?
*Do you think the programs or projects done
by the private corporation
beneficial for the environment?
*Are you actively participating with the CSR
projects of the private corporation
related to the environment?
2.) How do you perceive the relationship existing between a.)
your community and the corporation? b.) your community
and the government?

Institutionalized Private Corporatism Substantiating Welfarism 32

DOCUMENTATION