UNIVERSITY OF THE PHILIPPINES

School of Labor and Industrial Relations

Diliman, Quezon City

Enhancing the Participatory Involvement of Employees in community services through the

Implementation of Corporate Social Responsibility in Bayview Technologies Inc.

Submitted in partial fulfillment of the requirements for IR 220 HRD at the National Level

By

ACHILLES GATCHALIAN

201279706

December 2016

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 Chapter I

INTRODUCTION

Corporate Social Responsibility is the integration of business operations and values,

whereby the interests of all stakeholders including investors, customers, employees, the
community and the environment are reflected in the company's policies and actions (CSR Wire
Website, n. d.).

Bayview Technologies Inc.(“Bayview”) is an IT-enabled business process outsourcing

company that provides a variety of customer support, back office and information technology

support services to foreign companies.

Bayview is part of a group of companies that was established in 2002 and maintains offices in

Hong Kong, Taiwan, Gibraltar and has regional presence throughout Asia and Europe.

Bayview Technologies, Inc. was incorporated with the Securities and Exchange Commission on

October 15, 2003. It’s offices are situated at the heart of the Makati Central Business district at

the RCBC Plaza, which is the biggest and most modern office development in the Philippines

today which houses not only the biggest companies in the country, but also a number of foreign

embassies and consulates.

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Statement of the Problem

This study seeks to answer the question: What are the factors that influence the

participatory involvement of rank and file employees in Bayview Technologies Inc.? The paper

will do a descriptive analysis on the participatory involvement of rank and file employees of

Bayview Technologies Inc.

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 In particular, the study aims to answer the following:

1. What is the socio- demographic profile of the respondents in terms of:

a. Gender

b. Age

c. Work Experience

d. Work Status

e. Wage

f. Coping Mechanism

g. Performance Rating

2. What is the level of participatory involvement of rank and file employees in Bayview

Technologies Inc.?

3. What are the predictors of achievement in the participatory involvement of employees in

Bayview Technologies Inc.?

Objectives of the Study

The objectives of this study are:

1. To describe the participatory involvement of the rank and file employees to community
services
2. To identify the factors that influence the participatory involvement of rank and file
employees to community services;
3. To examine the effectiveness of CSR to the participatory involvement of rank and file
employees to community services.

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Significance of the Study

This study will address the issues and concerns related to participatory involvement of
rank and file employees to community services. The outcomes of this paper will provide insights
on the advantages and disadvantages of participatory involvement of rank and file employees
for the drafting of corporate measures on the conduct of corporate social responsibility through
the implementation of community development program.

Scope and Delimitation

This study will be conducted in in Bayview Technologies Inc. A total of one hundred

(100) respondents comprised of regular and casual rank and file employees will be involved in

this study.

The writer will conduct an interview with the Human Resource Manager and team

leaders regarding the status of the participatory involvement of the rank and file employees in

community development program while a survey questionnaire will be provided to the selected

rank and file employees of this company.

The writer will conduct a focus group discussion that composed of a community

development program team coordinator/ leader and rank and file employees to discuss issues

and concerns of their participatory involvement in community development activities.

The researcher will furnish request letters to interview key officers of the Department of

Social Welfare and Development (DSWD) who can provide essential data for this study.

The writer will write a letter to the head of non- government organizations for an interview

schedule with her. The researcher will do an inquiry about the best practices of this government

agency in conducting community development program. Aside from the DSWD and NGOs, the

writer will also visit companies that provide community development program and activities to

identify some of their best practices in this field.

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 CHAPTER II

REVIEW OF RELATED LITERATURE

This chapter presents related literature that helped the writer to shape his study. This

chapter is divided into three parts. Part A deals with the definitions of Corporate Social

Responsibility in a multi- perspective context, Part B stresses the practices of corporate social

responsibility in different industries and Part C presents practices of corporate social

responsibility in non- government organizations.

A. Corporate Social Responsibility in Different Countries

B. CSR Practices in Different Industries in the Philippines

C. CSR Practices in Non- government Organizations in the Philippines

The following previous studies were gathered to support this study about corporate social

responsibility.

“There is no clear definition of CSR. In Corporate Social Responsibility, Legal and semi-

legal frameworks supporting CSR Lambooy gives an overview of several definitions of CSR.

The European Commission defines CSR as ‘the responsibility of enterprises for their impacts on

society’. This is the definition which is the most suitable for the context of the article’s research

question. As this article will focus on companies from the US and Japan, the authors also

provide an overview of the focus on CSR from the US and Japanese perspective. In the US

there is no governmental regulation regarding CSR or business best practices. Instead,

according to findings from Bennett American, companies have a marked tendency to use codes

of conduct. The American CSR perspective could be described as following a principles-based

approach, with codes of conduct that prescribe values and principles which company members

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as a whole should aspire to follow. In contrast, Japanese companies prefer to focus on areas

where their contributions can be statistically measured. Interest in social aspects of CSR is

significantly less pronounced than in other industrialized countries. In Japan there are no

specific provisions regulating CSR. However, the 1988 law that promotes specific non-profit

activities is of major significance in this context (Torres et al.).”

Based on the study conducted by CONE communications (2013), they found out that

“Corporate social responsibility is no longer an option — it is emphatically and indisputably a

must-do.”

The Ryerson University studied CSR and sustainable development and they found these

findings:

All organizations -- be they from the public sector, private sector, or civil society (e.g.,

non-governmental organizations, or NGOs) -- can make significant contributions to

sustainable development (SD). As defined by the Brundtland Commission, SD is

development that meets the needs of the present generation without compromising the

ability of future generations to meet their needs. In 2010, the International Organization

for Standardization (ISO) published the international standard ISO 26000, which

reaffirms the point that all organizations can make contributions to SD by defining a

socially responsible organization (any type of organization) as the responsibility of an

organization for the impacts of its decisions and activities on society and the

environment, through transparent and ethical behaviour that: contributes to sustainable

development, health and the welfare of society; takes into account the expectations of

stakeholders; is in compliance with applicable law and consistent with international

norms of behaviour; and is integrated throughout the organization and practiced in its

relationships. The Government of Canada, working with a cross section of other

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 Canadian public sector, private sector and civil society stakeholders, approved ISO

26000 in its final form. Including Canada’s support, ISO 26000 was approved by 93% of

the participating national member bodies of ISO (66 of 71).

Brazeltonet. Al. (1999) initiated this study of social responsibility in American

businesses. Their primary concern was that many of the most prominent businesses in America

may be exploiting inner city consumers and employees while generating a large portion of their

profits, and neglecting to contribute anything back to the communities of those they exploit. A

secondary concern was that these companies might in fact have a program of social

responsibility, but that the mechanisms by which they contribute to society have been

channelled incorrectly. Specifically, there may be instances in which a corporation donates to a

politically convenient or popular group which may give it a high profile public relations boost, but

may not benefit those that are being taken advantage of by the corporation. In essence, they

sought to sift the social responsibility reality from the rhetoric.

The European Commission (2009) said that the CRS projects’ main contributions are at

a conceptual level. They observed that the field of interdisciplinary CSR research has started to

achieve a level of maturity, in which more rigorous empirical research – namely information

gathered by means of observation, experience, or experiment – promises to bear fruit. The

projects also draw attention to the importance of international CSR standards and instruments,

which respond to the needs of global companies. Given the wide scope and dynamics of the

field, researchers recommend that the setting-up of a CSR observatory for Europe may be

useful.

Torres et al. (n.d.) stated that “Apple, Coca-Cola and Walmart have been under public

scrutiny, but nowadays they can be seen as companies which have become models for their

industry. Coca-Cola has taken a proactive approach and implemented initiatives to solve the

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water problems. Walmart strives to be the greenest corporation in the world. Apple is aiming to

set a new standard in the industry. Time will only tell whether it will stick to its promise to change

its supplier responsibility practice. Canon is different in this respect, as its CSR policy was not

impacted by media pressure. At first instance it might appear as if it is not comparable to the

other mentioned companies. However, this article shows that companies like Canon need to be

closely monitored as well.”

Stawiskiet. Al (2010), cited that “companies have enormous potential to affect change in

their communities and the environment by investing in CSR initiatives. Our data point out that

CSR matters to employees (more to some than others) but not as much as some of the basics

like job satisfaction. Leaders need to be aware of what pay-offs they can expect to get from an

investment in CSR, and it should be noted that a miraculous improvement in retention rates is

not likely to be one of them. Though immediate benefits might be few, it is likely that the

importance of CSR will increase in years to come as people become more interested in the

social and environmental effects of corporations. Leaders who stay aware of CSR and the

implications for their organizations will be able to make the most informed decisions.”

Lunguet. al (2011) summarized that the “size characteristics measured by assets and

revenue has a very weak correlation to the extent of CSR reports published by companies. This

came in contrast with most of the prior studies. A possible explanation is that the credibility and

the trust in very large companies are already assured by their goodwill, and the value-added by

the disclosure of corporate social information cannot overcome their already high credibility. On

the other hand, even it is negative and moderate, the correlation between change in revenues

and the extent of social and environmental disclosure is 95% significant for the sample and 98%

significant for companies in Europe.”

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 Robins stated “that CSR can improve profits, is possible. And almost no large public

company today would want to be seen unengaged in CSR. That is clear admission of how

important CSR might be to their bottom line, no matter how difficult it may be to define CSR and

link it to profits.”

Ioannou & Serafeim (2014) found “that more experienced analysts and higher-status

brokerage houses are the first to shift the relation between CSR ratings and investment

recommendation optimism. We find no significant link between firms’ CSR ratings and analysts’

forecast errors, indicating that learning is unlikely to account for the observed shifts in

recommendations. We discuss implications for both for future research and practice.

References

Ryerson University Website. CSR and Sustainable Development:

http://www.ryerson.ca/csrinstitute/

Fred Brazelton, Scott ellis, Carlos Macedo, Alton Shader, and Ken

Suslow. (1999, June 2) Poverty & Prejudice: Breaking the Chains of

Inner City Poverty. Retrievd from the EDGE Website:

https://web.stanford.edu/class/e297c/poverty_prejudice/citypoverty/hedge_poverty.htm

European Commission (2009).Towards greater corporate

responsibility.http://ec.europa.eu/research/social-sciences/pdf/policy-review-corporate-social-

responsibility_en.pdf

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Cristina A. Cedillo Torres, Mercedes Garcia-French, Rosemarie Hordijk, Kim Nguyen, Lana

Olup (n.d.) Four Case Studies on Corporate Social Responsibility: Do Conflicts Affect a

Company’s Corporate Social Responsibility Policy?Utretch Law Review Website:

file://nas200/PUBLIC%20DISK%201/PC%20%23%201/205-412-1-PB.pdf

2013 CONE Communications /

Echo Global CSR Study.

http://www.conecomm.com/stuff/contentmgr/files/0/fdf8ac4a95f78de426c2cb117656b846/files/2

013_cone_communicationsecho_global_csr_study.pdf

Stawiski, S., Deal, J.J., andGentry, W. (2010).Employee Perceptions on

CSR.http://www.ccl.org/leadership/pdf/research/EmployeePerceptionsCSR.pdf

Lungu, C. I ,Caraiani C. &Dascăluhttp, C. (2011).Research on corporate social responsibility

reporting. Retrieved from www.amfiteatrueconomic.ro/temp/Article_1019.pdf

Robins, R. (2011). “Does Corporate Social Responsibility Increase Profits?” Retrieved from the

Business Ethics Website: http://business-ethics.com/2011/05/12/does-corporate-social-

responsibility-increase-profits/

Ioannou, I. &Serafeim, G. (2014).The Impact of Corporate Social Responsibility on Investment

Recommendations Harvard Business School Website:

http://www.hbs.edu/faculty/Publication%20Files/11-017_0382b262-a30f-480e-9a8c-

daa953550b23.pdf

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 CHAPTER III

STUDY FRAMEWORK

A. Theoretical Framework

This part presents the theories that give way to the development of this study.

Theory X and Theory Y

In the 1960s, Douglas McGregor proposed theory X and theory Y. Theory X employees
avoid work and dislike responsibility while Theory Y employees enjoy putting forth effort at work
when they have control in the workplace. According to McGregor, employers must develop
opportunities for employees to take on responsibility and show creativity as a way of motivating

Hawthorne Effect

Elton Mayo developed the Hawthorne Effect. He theorizes that employees are more
productive when they know their work is being measured and studied. He realized that
employees were more productive when provided with feedback related to the studies and
allowed to provide input into the work process. Likewise, he added that workers need
recognition for a job well done and reassurance that their opinion matters in the workplace to be
motivated to perform.

Equity Theory

John Stacey Adams stated that employees are motivated when they perceive their
treatment in the workplace to be fair and unmotivated when treatment is perceived to be unfair.
Employees must be provided with recognition for the work they are doing and give all
employees the chance to earn rewards

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 Hierarchy of Needs

Maslow's Hierarchy of Needs contains five levels that often shape motivation styles in an
organization. To motivate employees, an organization must move up the pyramid of needs to
ensure all of an employee's needs are met. The bottom of the pyramid contains physiological
needs such as food, sleep and shelter. Safety makes up the second level and belonging the
third. The top two levels of the pyramid include esteem and self-actualization. Successful
organizations focus on the top two levels of the pyramid by providing employees with the
necessary recognition and developing opportunities for employees to feel they are doing
valuable work and reaching their potential with the company.

Maslow (1943)

1. This psychologist, from his studies, proposed a hierarchy of human needs building from basic
needs at the base to higher needs at the top.

2. Maslow made assumptions that people need to satisfy each level of need, before elevating
their needs to the next higher level e.g. a hungry person's need is dominated by a need to eat
(i.e survival), but not to be loved, until he/she is no longer hungry.

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3. Today the focus in most Western societies is on the elements towards the top of Maslow's
hierarchy - in which work environments and 'jobs' (including 'having a job' and the satisfaction
or otherwise such jobs provide - have become typical features. Notably the attainment of self-
esteem and, at the very top of the hierarchy, what Maslow calls 'self-actualization' -
fundamentally the synthesis of 'worth', 'contribution' and perceived 'value' of the individual in
society.

Advantages

 Managers can/should consider the needs and aspirations of individual subordinates.

Disadvantages

 The broad assumptions in 2 above have been disproved by exceptions e.g. hungry, ill artist
working in a garret.

 Empirical research over the years has not tended to support this theoretical model.

Regarding monetary reward, sometimes beyond certain level of pays (e.g. consultant) other
things become more important than another £1000 a year
e.g. working conditions, boss, environment etc.

McGregor (Theory X and Theory Y)

Managers were perceived by McGregor, whose theories are still often quoted, to make
two noticeably different sets of assumptions about their employees.

Theory X (essentially 'scientific' mgt) Theory Y

Lazy Like working

Avoid responsibility Accept/seek responsibility

Need space to develop

Therefore need control/coercion
imagination/ingenuity

Schein type: 'rational economic man' Schein type: 'self-actualizing m

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Likert

Described 'new patterns of management' based on the behaviours of managers four

main patterns:

1. Exploitative - authoritative where power and direction come from the

top downwards', where threats and punishment are employed, where 'Rational
communication is poor and teamwork non-existent. Productivity is economic man'
typically mediocre

2. Benevolent - authoritative is similar to the above but allows some

Weaker version
upward opportunities for consultation and some delegation. Rewards
of 'rational -
may be available as well as threats. Productivity is typically fair to good
economic man'
but at cost of considerable absenteeism and turnover

3. Consultative where goals are set or orders issued after discussion with
subordinates, where communication is upwards and downwards and
'social man'
where teamwork is encouraged, at least partially. Some involvement of
employees as a motivator

4. Participative - group is reckoned by many to be the ideal system. Self -

Under this system, the keynote is participation, leading to commitment to actualising man
the organisation's goals in a fully co-operative way. Communication is (see also
both upwards, downwards and lateral. Motivation is obtained by a variety McGregor:
of means. Productivity is excellent and absenteeism and turnover are low theory Y)

Another useful way of looking at this is that (1) is a highly task-orientated management
style, whereas (4) is a highly people-orientated management style.
Advantages

Essentially Likert's work gives more alternatives in the spectrum between theory X and
theory Y.

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 Disadvantage

 criticized for being based more on theory than empirical practice. Therefore not widely
accepted by practising managers.

Argyris

He felt that classical models of organization promoted 'immaturity' (see below). He felt
that it was important to understand the needs of people and integrate them with needs of
organization. Only in this way, he said, can employees become co-operative rather than
defensive or aggressive.

Characteristics of Employee
Immaturity Maturity

Passivity ---------------------------------------------------Activity
Dependence--------------------------------------------------Relative independence
Behave in a few ways----------------------------------------Behave in many ways
Erratic, shallow interests----------------------------------Deeper interests
Short time perspective-------------------------------------Long time perspective
Subordinate position-------------------------------------------Equal or superior position
Lack of awareness of self---------------------------------------Awareness and self control

Advantages
 Argyris is moving here towards a 'contingency approach' i.e. remedy depends on diagnosing
problems first
 He presents a spectrum rather than bipolar patterns of employees behaviour could be
expected from immaturity to maturity. Certain behaviours of employees may be preferred
Disadvantages
 Still too centred around 'self -actualising man'. Viewed not to be applicable to production lines
with manual workers, workers in sterile supplies, people manning phone helplines etc whose
needs are perceived to be typically lower in Maslow's hierarchy of needs

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System Theories

Attention began to focus on organisations as 'systems' with a number of inter-related sub-

systems. The 'systems approach' attempted to synthesise the classical approaches (
'organisations without people') with the later human relations approaches that focused on the
psychological and social aspects, emphasized human needs - almost 'people without
organizations'.
Systems theory focuses on complexity and interdependence of relationships. A system is
composed of regularly interacting or interdependent groups of activities/parts that form the
emergent whole.

Part of systems theory, system dynamics is a method for understanding the dynamic behaviour
of complex systems. The basis of the method is the recognition that the structure of any system
-- the many circular, interlocking, sometimes time-delayed relationships among its components -
- is often just as important in determining its behaviour as the individual components
themselves.
Early systems theorists aimed at finding a general systems theory that could explain all systems
in all fields of science. The term goes back to Bertalanffys basic work 'General Systems Theory'.
Sociologists like Niklas Luhmann also worked towards a general systems theory. As of today,
whilst no systems theory can live up to this claim, there are general system principles which are
found in all systems. For example, every system is an interaction of elements manifesting as a
whole. Miller and Rice likened the commercial and industrial organisation to biological
organisms.
Systems theories took much more of an holistic view of organisations, focusing on the total work
organisation and the inter-relationships between structures and human behaviours producing a
wide range of variables within organisations. They help us understand the interactions between
individuals, groups, organizations, communities, larger social systems, & their environments and
help us enhance our understanding of how human behaviour operates in a context.

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 B. Conceptual Framework

Figure 1
DIAGRAM OF RESEARCH FRAMEWORK

Input Process Output

CSR Intervention
Improved participation
 Releasing of  Pre- of rank and file
memorandum implementation employees
 Conducting of  Implemetation
Meeting  Monitoring
 Formulation of  Evaluation
possible  Recoomendation
measures
 Writing an
agreement

C. Hypothesis

To appraise the relationship between the participatory involvement of rank and file
employees and the intervention and the CSR, the researcher formulated the following
hypotheses:

H0: There is no significant relationship between the participatory involvement of rank and file
employees and the CSR.

H1: The CSR would probably improve the participatory involvement of rank and file
employees in Bayview Technologies Inc.

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D. Operational Definitions of Terms

Corporate social responsibility (CSR)- CSR is the contribution of companies to the major
challenges of sustainable development through the incorporation into their strategies and plans
of action of the social and environmental impacts that are associated with their activity. CSR
enables economic logic, social responsibility and respect for the environment to be combined
(source: www.developpement-durable.gouv.fr). The acronym RSO is also used for
organizations.

Impact- All the direct or indirect effects that an organization may have on its social, economic
and natural environment. These impacts may be positive or negative. In an environmental
context, the term “externalities” is also used (http://www.bnpparibas.com/en/csr-glossary#V).

Issue- These are the global issues that countries, businesses and communities are each facing
at different levels. These issues cut across the fields of the environment (climate disruption, loss
of bio-diversity, etc.), social questions (world hunger, education, health and access to
healthcare, etc.) and the economy (management of tax havens, the economic growth of
developing countries, etc.) (http://www.bnpparibas.com/en/csr-glossary#V)

Non-governmental organizations (NGO) NGOs are organizations which pursue a public interest
and operate independently from government and international institutions. NGOs meet the
following criteria:
- private
- not-for-profit
- financially independent
- politically independent
- public-interest activity
NGOs are external stakeholders in a company (http://www.bnpparibas.com/en/csr-glossary#V)

Process of continuous improvement- This is a structured approach that improves the overall
performance of the company by using methods appropriate to its problems. Its scope may be
the quality or social responsibility of the business (http://www.bnpparibas.com/en/csr-
glossary#V).

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Reporting- Reporting consists of the supply and updating of representative data and indicators
whose degree of detail tends to vary depending on the person or organization for whom or for
which they are intended. For the purposes of sustainable development, tools such as
the GRI (Global Reporting Initiative) enable a standardized methodology to be agreed on at
international level. In France, article 225 of the NRE (New Economic Regulations) Law requires
that all companies beyond a certain size publish a CSR (or “sustainability”) report
9http://www.bnpparibas.com/en/csr-glossary#V).

Stakeholder - An individual, group or organization that is likely to be affected, directly or

indirectly, by an activity, a program or a particular arrangement of a company. Stakeholders
include all those groups who participate or are otherwise involved in its economic life
(employees, customers, suppliers, shareholders), those who observe the company (unions,
NGOs) and those that it impacts either directly or indirectly (civil society, local authorities, etc.).

Sustainable development- A model of development and growth for the world that is based on
the integration of criteria that are complementary to a purely economic approach: in particular,
the taking into account of the environmental and social – or societal – impacts of an activity. The
definition dates back to 1987, to the time of the Global Commission on the Environment and
Development. In a report titled “Our Common Future”, the Norwegian Gro Harlem Brundtland
wrote: “Sustainable development is development that meets the needs of the present without
compromising the ability of future generations to meet their own needs”(
http://www.bnpparibas.com/en/csr-glossary#V).

Volunteering of competencies- Of the various forms of aid to local development provided by

corporate philanthropy, the volunteering of competencies consists of supplying the supported
causes with the professional skills and know-how of the company’s current or retired staff over a
given period (http://www.bnpparibas.com/en/csr-glossary#V).

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 CHAPTER IV

METHODOLOGY

This chapter deals with the research design, methods, data- gathering techniques and

statistical treatment that will be utilized in this study.

A. Research Design

The writer will utilize a mixed research design to determine the impact of CSR

intervention to the participatory involvement of rank and file employees in Henkel Asia Pacific

Service Center. This design will help the researcher to describe and interpret the relationship

between the CSR intervention and the participatory level of the respondents.

B. Research Instrument

The researcher will conduct in- depth interview with HR managers and team leaders,

provide survey questionnaire to rank and file employees and form a focus group comprising of a

team leader and employees.

C. Sampling Technique

The writer will conduct this study at Henkel Asia Pacific Service Center. A total of one

hundred (100) rank and file employees will be randomly selected. Systematic sampling

technique will be used to obtain participants.

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D. Data Gathering Procedure

The writer will interview the Human Resource Manager and team leader regarding the

operation of the CSR and its impact to the participatory involvement of rank and file employees.

The writer will conduct a focus group discussion that composed of a team leader and rank

and file employees to discuss about what to be done in order to improve the participatory

involvement level of rank and file employees.

The researcher will write a letter to the key officials of the Department of Social Work and

Development, Non- government Organization (NGO) and selected private companies to identify

the best practices of the CSR.

The respondents will be chosen using the systematic random sampling technique. A

survey questionnaire will be provided to each participant to get the important data needed to

accomplish this study. The Statistical Package for Social Science (SPSS) Version 17.0 will be

used by the writer to study the relationship between the CSR intervention and the participatory

involvement of the rank and file employees of Henkel Asia Pacific Service Center.. The

researcher will use statistical tools to interpret the results.

Bibliography

BNP Paribas Website: http://www.bnpparibas.com/en/csr-glossary

Health Knowledge Website: http://www.healthknowledge.org.uk

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