Chapter 1

THE PROBLEM AND ITS BACKGROUND

It has been a theme of comprehensive debate in academia that focuses on

the theory of Corporate Social Responsibility (CSR). This debate is evident from

Carroll’s 1999 article, in which he reviewed 37 definitions of CSR. Some of the

conceptualizations were proposed initially in the1950s. CSR leads and

discoveries of a company “compose mainly a legitimacy instrument” to

authenticate its proper corporate conduct, in line with stakeholder expectations

(Branco & Rodrigues, 2008, p. 687). Moreover, CSR communication is also

believed to help a company in “protecting or enhancing its image or reputation”

(Hooghimestra, 2000, p. 64).

The significant power and influence of media, particularly the broadcast

media, in everyone's lives nowadays is indisputable. Media companies

worldwide have accepted that its responsibility encompasses beyond making

programs that people find entertaining or exciting. In their efforts to do various

social or environmental advocacies and programs, they claim to contribute to the

advancement of society by being socially responsible corporate citizens.

1
 In the Philippines, leading media companies, ABS-CBN and GMA

Networks, claim to deliver its audiences with opportunities to uncover what it

means to be a responsible citizen through their call for awareness and action on

social issues and varied situations of the communities presented in their shows.

But how do they managed their CSR programs to help the lives of many

Filipinos?

Background of the Study

As globalization movements, accompanied by international economic

growth and the loss of governmental control over the private sector, the debate

about importance of Corporate Social Responsibility (CSR) has been augmented

(Hamann & Acutt, 2003). Yet, globalization also brings numerous stakeholders

and makes the needs of stakeholders intricate.

Moreover, media companies are economic subjects that carry

responsibility in a democratic system. They impart knowledge and ideas and

function as role models. At the same time they are active as stakeholders for

other corporations that means that they rely on media's goodwill to communicate

their social actions. Having the big advantage of the direct ability to

communicate at the same time means having a huge democratic as well as

educational responsibility towards recipients and society as a whole (Schranz,

2007). Other more traditional industries however have become increasingly

2
aware of their role in society especially in times of social changes and

globalization as well as digitalization. A countless number of definitions of the

term 'CSR' in general exist, going back to the early 1950s when businesses began

to flourish and social responsibility became an issue, but there is still no

universally valid and encompassing explanation of this wide-ranging topic.

(Crane et al., 2008)

Media companies have a very special status and responsibility in society,

they are the voice of the citizens (Media CSR Forum) to focus on MCS (media

and communication studies) and at the same time the 'business' approach is

relevant in this work because media companies cannot operate with either one or

the other, they always combine both, communication and business strategies.

They are economic subjects with a daily exchange of communication

internally and especially externally, meaning their duty to provide their citizens

with news and information (Schranz, 2007). This dual task sets them apart from

other industries and makes it even more interesting to find out how the media

industry combines their economic as well as democratic and educational

responsibility with a social responsibility. Furthermore the expectations towards

communicational qualities of media companies are much higher than towards

other industries, as it is their area of expertise (Schranz, 2007).

As a result, more than ever, companies are engaging in various CSR

initiatives, ranging from philanthropic contribution to environment stewardship,

3
in order to meet various stakeholders’ expectations. According to the academic

research, almost 90% of the Fortune 500 companies have explicit CSR initiatives

(Luo & Bhattacharya, 2006), and more than 250 companies across the world now

have CSR policies to implement (Hollender, 2004).

These unprecedented CSR endeavors are driven not only by ethical

reasons, but also by the possible business returns that companies may reap from

CSR initiatives. Some scholars believe that CSR will benefit corporations in the

long run, in terms of improving companies’ reputations, maintaining customer

loyalty, building brand equity and enhancing employee recruitment

(Bhattacharya & Sen, 2010). For example, found that individuals’ reaction to

companies’ CSR activities included buying more products, seeking employment

with the company and advocating such behaviors (Bhattacharya & Sen, 2010).

To reap these business benefits, a company’s CSR efforts must be

recognized, understood and accepted by its stakeholders. Therefore, CSR

communication plays an important role in “doing better at doing good”

(Bhattacharya & Sen, 2010).

Media and CSR

As media companies become enormous businesses, corporate social

responsibility has been a part of it. In Philippines, media firms are fast growing

and competing against each other, especially, giant networks such as ABS-CBN

and GMA. They are mostly stationed in Metro Manila but aims to cover wider

4
and broader topics. Broadcast media firms have their own CSR projects or

foundation through charity.

Broadcast Media Companies and CSR in the Philippines

In our country, immense broadcast companies have introduced their own

CSR programs in their TV stations. The focus of this would be the biggest of

them all – ABS-CBN and GMA7– mainly because these networks have well

established and fully operational CSR projects.

ABS-CBN upholds its social responsibility in its slogan, “In the Service

of the Filipino”, and through the work of ABS-CBN Foundation. Its programs

are intended to focus on nurturing the child and his or her environment, whether

physical or emotional. The foundation is taking projects that have the possibility

of affecting lives on a very deep level. Among the programs that were AFI (ABS

CBN Foundation Inc.,) created are E-Media, Bantay Bata (BB 163). Sagip

Kapamilya, Bantay Kalikasan (BK), etc.

On the other hand, GMA Kapuso Foundation of GMA7 promotes its

services through different programs in health (Bisig Bayan Medical Assistance,

Bisig Bayan Special Project, Linis-Lusog Kids, Operation Bayanihan), education

(Kapuso School Rehabilitation Project, Unang Hakbang sa Kinabukasan) values

formation (Give-a-gift: Alay sa Batang Pinoy, Sagip-Dugtong Buhay), and

environment (Kapuso para sa Kalikasan).

5
Rationale of the Study

The purpose of this study is to carry out a media and communication

study in order to get a closer understanding in the communication of CSR within

and outside media companies. The purpose was to find out how far and in what

way media companies, such as ABS CBN and GMA, have already implemented

Corporate Social Responsibility practices in their corporate philosophy and how

those approaches are being communicated internally as well as externally. The

subject “communication” as such, more accurate, the importance and role of

communication in a media company when it comes to promote CSR, has been

the field of interest during this study. The achievement of CSR is built upon

communication, starting within the company. If the concept and main idea of

CSR is not being clearly communicated to the employees, they might not

approve and support it. The staff, as a vital part of the company, needs to know

what Corporate Social Responsibility in an enterprise actually means, how it

helps and what the employees can or should do to get involved in the activities. It

is not enough to just implement CSR concepts into the corporate policies, it is

just as important to inform all parties, which are affected by those policies in

some kind of way. What’s more, investors need to conform to the CSR policies

and support the company in its initiatives.

6
 Hence, it is an important factor, especially in cases where businesses

depend on their investors. “CSR is fundamentally about ensuring that companies

forward broader public objectives as an integral part of their daily activities and

this can only be ensured with the appropriate communication channels with

stakeholders (Grayson, 2012).”

Significance of the Study

This study sees its significance in the field of media and in

communication. This looked into the place of CSR in media as business and how

it was implemented and communicated within and outside the company.

In the media, the study aims to provide a source of for media industry

evaluation of media economics, CSR in particular. It provided a history of the

emergence of CSR and the factors that brought about this addition. This will help

in seeing the trend and the future of the changing role of media in society and

how media is also affected by the changes in society.

Furthermore, it will also contribute to the limited scope and number of

research works about CSR, specifically in its advent and role in media.

Research Problem

7
 CSR has become prominently part of media corporations, like print and

broadcast organizations. This changes the dynamics of how they operate as

business serving the public. The purpose of this study is to analyze and compare

the CSR communication of the selected broadcast media by using this question:

How have media companies implemented CSR in their corporate policy

and philosophy?

Research Objectives

General Objectives:

1. To trace the history of CSR in the two broadcast media companies

ABS-CBN and GMA7 and

2. To determine the differences and similarities can be found the two

broadcast media companies ABS-CBN and GMA7.

Specific Objectives:

1. To provide a background on the emergence of CSR in the two

broadcast media companies ABS-CBN and GMA7 and

2. To determine why CSR was adopted and how it was communicated

by the two broadcast media companies ABS-CBN and GMA 7.

Definitions of Terms
The following terms were used and operationally defined in this study.

8
 1. Corporate Social Responsibility – the responsibilities that a business

fulfills (ethical, economic, and lega0) in meeting the expectation of the

society at a given point in time.

2. Foundation – the physical form of CSR practices in TV networks; these

are ABS-CBN Foundation, Inc., and GMA Kapuso Foundation.

3. Economic domain – includes activities which are intended to have a

direct or indirect positive impact on the corporation, which means

maximization of profit or share value (Caroll, 2003)

4. Ethical domain – the ethical responsibilities as expected by the general

population and relevant stakeholders that includes responsiveness to

domestic and global ethical imperatives (Caroll, 2003).

5. Legal domain – the reaction of the company to legal expectations

mandated by the society

Chapter 2

REVIEW OF THE RELATED LITERATURE AND STUDIES

This chapter reviews foreign and local literature that concerns on the

corporate social responsibility and the broadcast media.

9
Foreign Literature

Globalization happens when the movement of people, goods or ideas

among countries and regions accelerates. Currently, firms are more international

than ever. According to the United Nations, there are more than 60,000

multinational companies (Mott, 2004). As a firm becomes an international

corporation, the criticism against it for damaging the world increases, as does the

expectation to take the responsibility for these damages. The notion of corporate

social responsibility is an important tool for corporation to use in response to

various concerns about them in the globalization era (Rampton, 2006).

CSR in Media Companies

In this context Boyce and Lewis (2009) argue that it is hard to realize that

“a media and communication industry fueled by advertising and profit

maximization is, at the moment, part of the problem rather than part of the

solution.” (pp. 8-9). The question is, whether this vicious cycle starts with

demands of society, leaving the news media no other choice than to constantly

proliferate and emerge in new technologies or if its the media companies

themselves and the pressure to increase their profit. The media's impact on the

environment can be tracked back to the end of the nineteenth century with the

start of printing paper and consequently deforestation. To make matters worse,

10
the pulping process and bleaching of paper required a noxious chemical process

that poisoned land and water. With media's technological convergence, not only

electricity consumption rose, e-waste started to become a serious issue, entering

groundwater and passing into soil. Between 20 and 50 million tons of e-waste are

generated by the global information and communication industry each year,

estimated by Greenpeace (Boyce & Lewis, 2009).

Moreover, satellites discharge toxic chemicals and nuclear waste that

leads to toxic emission poisoning wildlife. In the United States for example,

communication towers and wires kill up to 50 million birds annually. The media

are able to claim and to encourage CSR and Sustainability. But are they actually

aware of their impact on the planet? They contribute to our understanding of

political, economic and cultural citizenship but yet they have been rather silent

on technology and environmental topics. Existing research on media coverage of

environment and its public impact mostly comes from outside media studies.

(Boyce & Lewis, 2009)

Media companies can be seen as economic subjects that carry

responsibility in a democratic system. They impart knowledge and ideas and

function as role models. At the same time they are active as stakeholders for

other corporations that means that they rely on media's goodwill to communicate

their social actions. (Schranz, 2007, p. 31) Having the big advantage of the direct

ability to communicate at the same time means having a huge democratic as well

as educational responsibility towards recipients and society as a whole. Despite

11
technical and legal regulations media companies influence the process of change

in social structures and values which makes them producers of social, real and

culture capital at the same time. Although there is a comprehensive amount of

literature about CSR in general, not as many publications about CSR in media

companies can be found. The core of Corporate Social Responsibility lies in

establishing a voluntary commitment towards stakeholders and integrate it into

the company's visions. The media industry is subject of informal regulations,

surveillances and requirements more than any other social sector (Mc Quail,

2005).

Media companies have a dual role: they report about enterprises and are

at the same time enterprises themselves. By reporting about a subject in society

they automatically have influence on its relevance and on how people perceive it.

At the same time, as an enterprise, they are obliged to orientate their political and

journalistic actions towards social responsible principles and publish them in

form of CSR-reports for example. Media companies are responsible for and

involved in the content of those reports, thus they decide about granting or

refusal of publicity on one side and are always subject of public dialogue on the

other side (Karmasin, 2006).

In the context of CSR and sustainability reporting, media industries play

an important role. Their public influence enables them to communicate social

values and have an impact on markets and society. Further they are capable to

educate their audience and maybe even influence actions as well as buying

12
behavior. Media companies are among others a decisive factor of global

sustainable development. The dimension of CSR obliges media companies to

provide proof identification of their acting as organizations themselves and

among other organizations on the economic level. Further, the dimension of

corporate communicative responsibility (CCR) describes the cultural

responsibility of media companies. It includes the creation of communicative

publicity, reproduction of communication processes as well as manifestation of

communication channels among stakeholders (Karmasin, 2006).

According to the commission, the media have obligations to society and

media ownership is a public trust. News media should be accurate, fair, objective

and relevant as well as free but at the same time self-regulated. The media should

follow agreed codes of ethics and only under some circumstances; government

may need to intervene to self-guard the public interest. Hutchins' main goal was

to maintain freedom of the press and still give owners of the press the

responsibility to control and judge because in his opinion, “freedom requires

responsibility” (Hutchins, 1942).

Focusing just on the media industry and its obligations to society, the

theories have to be complemented by one outstanding factor: Media’s duties to

form opinions and carry information due to their role as channel of

communication. Their direct ability to communicate gives media an educational

and democratic responsibility towards society, more than any other social sector

(Mc Quail, 2005). According to Robert Maynard Hutchins, the media companies

13
should follow agreed codes of ethics and use their sociological power to enhance

the diversity of communication (Hutchins, 1942). In that sense, balancing ethics

and business for the media industry means being a platform for society to

socialize on the one hand (Brosda & Schicha, 2000) and being economic subjects

that carry responsibility in a democratic system on the other hand (Schranz,

2007).

Media Ethics and the Social Responsibility of Media

Ethical responsibility in general refers to doing what is right, just, fair and

non-harmful. Media ethics build an elementary basis for sociopolitical and

economic questions. Further they try to explore the impact of media and their

ethical responsibility on human behavior. Ethics in media and journalism have

always been shaped by the social, technological, and economic structure of news

media. (Mc Quail, 2005)

According to Pulitzer, a media mogul found the following:

“Always fight for progress and reform. Never tolerate injustice or

corruption; always fight demagogues of all parties — never lack
sympathy for the poor; always remain devoted to the public welfare;
never be satisfied with merely printing the news; always be drastically
independent; never be afraid to attack wrong.” (Cited in Mc Quail, 2005).

14
 Media ethics referred to the ethics of journalism, advertising, marketing,

and public relations. Journalism ethics was considered a branch of media ethics.

Media ethics, in all forms, were established as the responsible use of the freedom

to publish, from journalism to advertising. It was seen as a guideline of norms

that define responsible media practice and practitioners. In times of digital

journalism new ethical standards have come up. With fundamental changes in

news media, their ethics change as well. New forms of journalism and

practitioners create new values; media revolutions challenge and reemphasize the

existing conceptions and principles of media ethics. Next to traditional new

media, new forms of communication have developed. Blogs and social media

such as Facebook or Twitter enable not only media companies to reach more

recipients but at the same give citizens access to publishing technology and let

them become rapporteurs. This democratization of media has increased a lot in

recent years and developed from conventional to mixed media and journalism. In

addition, the globalization of media as a recent trend puts news coverage under a

new perspective. Media report on global issues and events such as immigration,

climate change, world trade policies, war and poverty or international politics.

Thanks to emerging technologies, news spread around the globe in just a view

seconds. But it is questionable if this global media network consisting of not all-

professional but also amateur journalists spreading news around the globe,

copying from often unreliable or flawed sources really is an asset for the

education of society (Ward, 2013).

15
 Media should be the intermediary between political, economic and social

coherence and make the overflow and complexity of information assessable and

transparent for everyone. On one side they connect government body with the

people, on the other side media also has a control function and should reveal

social injustices(Brosda & Schicha, 2000). Next to a political function media

should be entertaining, giving good advices and integrate citizens, in other words

be a platform for society to socialize. Furthermore, as voice of democracy, media

are obliged to respect individual and public human rights and make sure not to

cause any harm (Mc Quail, 2005).

As media companies usually are private, profit-orientated organizations,

their own economic goals might collide with the demands and expectations

placed upon them. They find themselves in a field of tension between

journalistic, economic and societal power. In fact media representatives always

emphasize, that quality and profit are closely interlinked and mutually dependent.

But due to emerging technologies, economization, convergence of content as

well as the increasing market consolidation and the dissolution of boundaries

between private and public this interaction does not work as easy: “In recent

decades, media markets were seen as a new panacea for the problems of public

and/or government-controlled media: inefficiency, inflexibility and

bureaucratization, paternalism and lack of interest for popular taste and culture,

lack of innovation, and so forth. More recently, the dark side of market- driven

media is getting more attention; its mainstream orientation, its interest in

16
consumers (not citizens), the influence of sponsors, et cetera” (Bardoel & Leen

d’Haenens, 2004, p. 10). This could become a major issue because media

companies carry a special democratic as well as educational responsibility

towards society in the first place. Their role as economic subjects at this point is

secondary, because the media industries influence the process of changing value

and structures of society (Karmasin, 2006, p. 119).

What has to be mentioned at this point is that media produce merit good

which means that in order to justify their special market conditions like freedom

of press, press subsidies etc., a presumed contribution to the benefit of society

needs to be secured. Media companies have to be aware of the fact, that those

special regulations and privileges have been instituted to protect ethical and

social worthwhile goals. To represent the reality of media markets in the right

way, their cultural relevance in society has to be treated equally important as

media's economic dimension (Karmasin, 2006).

Local Literature

Mass Media is an important constituent of the mass communication

system of a country. The field of mass communications itself covers a broader

area of specialized studies. The structure of mass communication is quite similar

to the structure of business operations. It is evident that in both the

17
communication and business fields, the mass media perform the function of the

“gatekeepers”, the determining factor that decides whether or not a message can

successfully flow from the transmitter to the receiver (Ktagibak-Tan, 1994).

The media industry is business. The corporate decisions are grounded

mainly on the maintenance and endurance in the market of competition. To

create long-term gains, these companies deal with their patrons through their

continuing commitment and economic contribution by the use of CSR,

consequently making CSR a part of their business strategy. The media takes it

won portion by creating several foundations as a complement to its services to its

audience. In the case of broadcast media, these are foundations mainly targeted

to its viewers.

Lopez Holdings Corporation

In 2010, Lopez Holdings provided P6 million in seed funding to

Knowledge Channel Foundation, Inc. (KCFI) for the establishment of the Out-of-

school and Mature Learners Alternative Learning Institute (OMLALI). As of

December 31, 2013, the seed funding had been fully disbursed, covering the

production of educational TV materials, the provision of KCh LITE (Knowledge

Channel Light Instructional Tool for Educators), the provision of KCh content

for the Alternative Learning System (ALS) to more mobile teachers, and teacher

effectiveness training and monitoring. OMLALI reached more than the expected

18
outcome at the end of the project. From the original target of 100 mobile teachers

and from the revised plan target of 1,500 mobile teachers who would receive the

ALS content videos, the project installed the KCh for ALS videos to 1,499

laptops of ALS implementers. In addition, 42 E-Learning Centers with 397

desktops received access to the KCh for ALS content videos during the ALS

roadshows. These E-Learning Centers are used by ALS teachers in holding ALS

classes in their communities.

Approximately 115,575 out-of-school youth and adult learners would

benefit from these installed learning videos. Lopez Holdings also established an

endowment fund in the amount of P50 million to support KCFI operations. This

endowment fund, established in 2009, provided P4.36 million in operational

funds for KCFI in 2011, P4.36 million in 2012, and P2.9 million in 2013. The

endowment fund was returned to Lopez Holdings in 2014, after associate ABS-

CBN assumed full custody of KCFI operations.

On the initiative of staff members, Lopez Holdings supported BayaniJuan

(BnJ) sa Southville 7, formerly BnJ sa Calauan, through a P1.5 million donation

in 2010. Through the coordination between ABS-CBN Lingkod Kapamilya

Foundation or ALKFI (formerly ABS-CBN Foundation, Inc .) and the

Department of Education, the donation funded the expansion of the canteen, the

installation of artesian wells and the rehabilitation of the electric water pump of

the public elementary school in the area. The donation also covered the

installation of 32 solar street lights in Site 1, including community facilities such

19
as the chapel, community center, school, wet and dry market, wellness center,

playground, and recycling facility.

In 2011, Lopez Holdings committed to sponsor elementary scholars of

Phil-Asia Assistance Foundation, Inc. (PAAFI) for six years. Founded by the late

philanthropist Roberto M. Lopez, PAAFI helps urban poor children stay in

school by subsidizing transportation, school projects, uniforms, as well as tutorial

and counseling service. Each scholar’s performance is monitored through regular

school and home visits by PAAFI social workers, and the quarterly submission of

the report card. Since 1987, PAAFI’s “Off the Streets, Off to School” program

has provided 11,140 scholarship grants, with 1,044 scholars enrolled for school

year 2014-2015.

In 2014, Lopez Holdings supported the operations of Lopez Group

Foundation, Inc. (LGFI) and its member foundations, particularly in the areas of

arts and culture through Eugenio Lopez Foundation, Inc., which administers the

Lopez Museum and Library; disaster relief and rehabilitation through ALKFI;

and education through KCFI and PAAFI. These causes are consistent with its

vision to improve the lives of Filipinos (http://lopez-holdings.ph/about-the-

company/corporate-initiatives/corporate-social-responsibility).

GMA Kapuso Foundation

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 The GMA Kapuso Foundation (GMAKF), continues to uphold the

Network's long tradition of service to the marginalized – a commitment that

serves as the moving spirit behind GMA Network. Through the GMAKF, the

Network spreads the gospel of sharing and caring and manifests what being a

Kapuso means. And though usually identified as the CSR arm of GMA Network,

it is an independent, PCNC-certified, non-stock, non-profit, media-based

organization. As such, apart from the Network which is its biggest donor, it also

relies on partnerships and donations from individuals, groups and corporations in

order to operate, those who share in its belief to uplift the lives of the

underprivileged Filipinos, especially in the most remote, far-flung and even high-

risk security areas of the country. The programs include health, disaster relief,

education and values formation (https://www.devex.com/organizations/gma-

kapuso-foundation-47276).

Television networks at the forefront of Corporate Social Responsibility

According to Red (2013), while television networks are in a dash to

clinch leadership on the broadcast industry, their corporate affiliates tasked to

defuse their serious commercial competition also race to places where the

population are in a different struggle. These are foundations that reach out to the

21
communities with projects related to livelihood, health, and environment. It has

been a paramount concern among the broadcast stations to take the role as

catalyst in many aspects of social life, first as bearer of news and information,

apart from the entertainment they provide the population, and second as

instruments of change via the proactive duty they embrace as part of public

service. When disaster strikes, who will you see in the area? Most likely you’d

encounter someone wearing T-shirts with the now iconic heart-shaped drawing

with the letters GMA and words Kapuso Foundation, or those in their own T-

shirts printed on them Sagip Kapamilya ng ABS-CBN Foundation.

Is this crowding in the advocacy to assist the society good for the

industry? This may not result to better programs or well-planned programming,

but the impact of their outreach activities to the society in general can be

encouraging. For example, ABS-CBN Foundation has made a commitment to

rehabilitate the Pasig River. Along with that, the foundation also got into

preservation and redevelopment programs. In 2010, it began redeveloping the

century-old Paco Market into an environmentally sustainable world-class market,

with the help of generous donors. Now, the new market has remained as faithful

to the original architecture integrating new and eco-friendly designs. In keeping

with ecological principles, the structure has made use of recycled material, use

less water and less power. The area was designed to require little to no lighting

during the day and no air conditioning, because of an elevated roof. Its

strategically placed windows regulate airflow and let in natural light. The market

22
is also able to manage its water usage-wastewater would be collected, reused,

and possibly treated, so that no more waste are discarded into the recovering

estero. An activity center has been created inside the market to serve as a bustling

education and entertainment hub for the residents of Paco, Manila. Gina Lopez,

managing director of ABS-CBN Foundation, is proud her organization has been

able to accomplish a number of projects from child protection and welfare

(Bantay Bata163), Sagip Kapamilya, Kapit Bisig Pasig, Bayan Juan and Bantay

Kalikasan. These are all, she says, for the future generation of Filipinos.

GMA Kapuso Foundation is involved in a number of projects, most of

which it initiated, the most significant of them being the Kapuso School

Development (KSD) providing areas with school buildings or rehabilitating

dilapidated buildings torn down by string typhoons or merely in a state of

disrepair. The foundation has other programs that answer the needs of a largely

marginalized population, especially in health care (Bisig Bayan Medical

Assistance) and welfare (Kalusugan Karavan). It is also very active in education

(Unang Hakbang sa Kinabukasan) apart from building classrooms, and disaster

relief (Operation Bayanihan). But one thing the Kapuso Foundation doesn’t want

to ignore is values formation, which in its curriculum of projects takes a special

focus, especially attention that must be given infants and toddlers. “They are the

future of this country, and we must be able to assist in their development—

physical and mental,” says Mel Tiangco, president of GMA Kapuso Foundation.

23
 If these two philanthropic arms of the networks would continue doing

what they have started, there might come a time when the government could use

their expertise in delivering the services agencies failed to do

(http://manilastandard.net/news/26th-anniversary-issue-on-csr/79175/television-

networks-at-the-forefront-of-corporate-social-responsibility.html).

Chapter 3

STUDY FRAMEWORK

24
 To sustain existence in the market, the media firms currently face various

issues to begin with. Broadcast media have been run and have become part of

media firms, and thus part of the market, in the existing society. Accepting these,

the researchers employed Mark Schwartz’ and Archie Caroll’s Three-Domain

Model of CS to describe how broadcast network validate the necessity of CSR in

the existence of their businesses. The theory was also used to categorize the

forms of CSR they use.

Theoretical Framework

Corporate Social Responsibility

25
 Figure 1. The Three-Domain Model of Corporate Social Responsibility.

Source: Carroll & Schwartz 2003: 509

Carroll & Schwartz found the following:

“In general, these domain categories are defined in a manner consistent

with Carroll’s four-part model, with the exception that the philanthropic
category is subsumed under the ethical and/or economic domains,
reflecting the possible differing motivations for philanthropic activities.”
(2003: 508).

Figure 1 shows the Venn diagram of Three-Domain Model of CSR which

says that businesses follow the three responsibility areas: ethical, economic, and

legal in meeting the expectation of society at a given point in time. Actions may

26
not only fall strictly under the three domains but also in the intersections of the

three.

The Economic Domain

According to Carroll & Schwartz (2003: 508), the economic domain

“captures those activities which are intended to have either a direct or indirect

positive economic impact on the corporation in question.” The positive

economic impact mentioned in the previous sentence is based on two related

criteria: the maximization of profit and/or the maximization of share value.

(Poitras 1994 in Carroll & Schwartz 2003).

The direct economic activities could for instance be actions that are

intended to increase sales or avoid litigation, whereas possible indirect economic

activities could be the kind of activities which are designed to “improve

employee morale or the company’s public image”. (Carroll & Schwartz 2003:

508).

According to Carroll & Schwartz (2003: 508), “Any activity that is

pursued with improving profits and/or share value in mind is deemed to be

economically motivated.”, and it can be expected that most corporate activities

are economic in nature.

27
The Legal Domain

The legal domain concerns society’s expectations regarding companies’

responsiveness to federal, state and local jurisdictions and law. Legality is

divided into three categories: 1) compliance, 2) avoidance of civil litigation and

3) anticipation of the law.

Category 1, “compliance”, can be further divided into three types:

passive, restrictive, and opportunistic. A passive type of compliance is of

accidental nature, meaning that the company does what it wants and simply

happens to be following the law. Carroll & Schwartz (2003: 510) provide the

following example: “If there is a safety standard for a certain product that a

company would have adhered to even if the legal requirement did not exist, the

company is in a passive compliance mode.” The second type of compliance,

restrictive compliance, happens when a company is legally compelled to do

something that it would otherwise not do. The adjective restrictive reflects “the

idea that the legal system is limiting, constraining, or modifying otherwise

intended behavior in a restrictive fashion.” (Schwartz & Carroll 2003: 510).

Examples of restrictive compliance can be the payment of taxes or tariffs, which

is often done reluctantly, and hence restrictively, or it can be a company which

wishes to sell goods with fewer safety warnings or pollute at higher levels, but

does not do so because the law prohibits it. Opportunistic compliance is the third

type of compliance and can be divided into two. The first kind occurs when a

company actively seeks out and takes advantage of loopholes in the legislation to

make certain activities possible. In these cases the company is typically

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following the letter of the law, but not the spirit. The second kind happens when

a company operates in a certain jurisdiction because it has weaker legal

standards. In these cases, the company’s decision is based on the legal system, so

it is technically complying with the law.

The second category of legality, “avoidance of civil litigation”, concerns

those corporate activities “that are motivated by the desire to avoid possible

current or future civil litigation for negligent conduct.” (Carroll & Schwartz

2003: 511). As response to this fear, companies may for instance choose to

disengage in the production of dangerous products, stop activities that are not

environmentally friendly, or voluntarily recall products

The third legal category, “anticipation of the law”, relates to anticipation

of changes to legislation. The legal process is often slow, and companies might

want to engage in activities, which will result in immediate compliance once the

law is ultimately enacted. Anticipation’ refers to situations where the legal

process is slow and corporations engage in voluntary activities that will result in

immediate compliance on legislation’s ultimate enactment. When changes are

made to legislation in other jurisdictions, it often implies that similar changes

will be made in one’s own jurisdiction. Anticipation of these changes might lead

companies to engage in voluntary activities in order to prevent or slow down the

pace of new legislation, and in this way the companies are acting on basis of a

consideration of the legal system. (Carroll & Schwartz 2003: 511)

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The Ethical Domain

The ethical domain encompasses the public and relevant stakeholders’

expectations regarding businesses’ ethical responsibilities in both a domestic and

global context. The three-domain model includes three general ethical standards:

1) the conventional standard, 2) the consequentialist standard, and 3) the

deontological standard.

In Carroll & Schwartz’s model (2003: 512), the conventional standard is

defined as “those standards or norms which have been accepted by the

organization, the industry, the profession, or society as necessary for the proper

functioning of business.” Society is defined as encompassing general citizens, a

company’s stakeholders, including shareholders, consumers, employees,

suppliers, competitors, and the local community. Carroll and Schwartz indicate

(2003: 512) that societal norms can vary depending on one’s reference point

(different stakeholder groups). To enhance this standard’s practical application,

“reference should be made to formal codes of conduct or ethics (e.g.,

organizational, industrial, professional, or international) to establish whether a

company is acting ethically according to the conventional standard.” Within the

conventional standard, actions must still comply with a set of “minimum ethical

standards”.

Within the consequentialist standard, there is a focus on ends or

consequences. The principle of utilitarianism – promoting the good of society - is

relevant for the purposes of the ethical domain under the consequentialist

30
standard. This means that actions are considered ethical according to

consequentialism, when they are promoting the good of society. (Carroll &

Schwartz 2003: 512).

The third type of ethical standard is called the deontological standard.

This standard has a focus on activities that reflect a consideration for persons’

duty or obligation as opposed to focusing on consequences. “…the three-domain

model utilizes the category of deontological principles because it has the

potential to more specifically capture a broader range of potential ethical

justifications that have been suggested in the literature as duty-based in nature.”

Examples of this could be specific core values as for instance “trustworthiness

(i.e., honesty, integrity, reliability, loyalty); responsibility (i.e., accountability);

caring (i.e., avoid unnecessary harm); and citizenship (i.e., assist the community,

protect the environment)” (Josephson 1997 in Carroll & Schwartz 2003: 513).

Philanthropy

As already mentioned, philanthropy is not a domain in itself, but falls

under the economic and/or the ethical domain(s) in the three-domain model,

signaling companies’ differing motivations for the philanthropic activities.

Carroll & Schwartz define the domain as comprising ‘those corporate actions that

are in response to society’s expectation that business be a good corporate citizen”

which can for instance include engaging in acts or programs that promote human

welfare or goodwill. (Carroll 1991: 42).

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 Carroll’s pyramid of CSR from 1991 consists of four main categories,

which together maker up businesses’ total corporate social responsibility: the

economic, the legal, the ethical, and the philanthropic responsibilities. The basic

notion of the model is that economic performance is businesses’ most

fundamental societal obligation. Simultaneously, companies have to obey the

law, since it is society’s codification of acceptable behavior, they must act

ethically, which means do what is right, just and fair and avoid/minimize harm to

stakeholders, and finally, society expects companies to act as good corporate

citizens by engaging in philanthropic activities, and hereby contributing financial

and human resources to the community and improving the quality of life.

In 2003, Carroll & Schwartz re-examined the model, made modifications

and improvements that resulted in the text “Corporate Social Responsibility – A

Three-Domain Approach”. Like the old one, the new model contains categories

of responsibility, which are consistent with the categories of the old model, with

the exception of the philanthropic activities, which have been replaced and do

now belong under the ethical and/or economic domains, reflecting possible

differing motivations the philanthropy

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Conceptual Framework

Ethical
TV Station A
TV Station B

E/Ec E/L

EE/Ec/L
Economic
TV Station A Legal
TV Station B TV Station A
Ec/L TV Station B

The TV networks in this study are Kapamilya (ABS-CBN) and Kapuso

(GMA) that have CSR. The following domains will be used, such as purely

economic, legal, and ethical with overlapping domains ethical/economic,

ethical/legal, legal economic, and ethical/economic/legal. The types of CSR (e.g.

their charity foundations) will be categorized into these domains.

The media firms or broadcast companies are performing CSR in fulfilling

economic, legal, and ethical expectations of the society in the current period.

There are different types of CSR like but not limited to, charity, relief operations,

scholarships and grants, environmental help, livelihood means, medical

assistance, etc.

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Operational Framework

Ethical
ABS-CBN Kapamilya Foundation,
Inc
GMA Kapuso Foundation

E/Ec E/L

Economic EE/Ec/L LEgal

ABS-CBN Kapuso ABS-CBN Kapuso
Foundation, Inc Foundation, Inc
GMA Kapamilya Ec/L GMA Kapamilya
Foundation Foundation

Fulfilling the Three-Domain are the two major networks ABS-CBN and

GMA7. They will be imparted as firms/corporations using CSR. The types of

CSR emerge in the projects they assumed outside their standard TV programs.

Kapamilya has their own CSR programs like Bantay Batay 163, Sagip

Kapamilya, Bantay Kalikasan, etc.

On the other hand, Kapuso has various projects such as for health (Bisig

Bayan Medical Assistance, Operation Bayahihan); education (Kapuso School

Tuition Project, Unang Hakbang sa Kinabukasan); values formation (Give-a-gift,

Sagip-Dugtong Buhay), and the environment (Kapuso para sa Kalikasan).

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 Chapter 4

RESEARCH METHODOLOGY

This chapter presents the methodology of the study. Specifically, it

discusses the research design, method, concepts and indicators, instruments, unit

analysis, and scope and limitations.

Research Design

The study will employ cross-sectional and qualitative approach to

describe and analyze ABS-CBN and GMA as operations and media outlets. The

researchers will use this kind of design to trace the background and to determine

the functions of CSR in these media companies.

Research Method

Focus interviews will be conducted with the people directly involve with

the CSR program of the two broadcasting networks.

35
 Media experts will be interviewed to help evaluate and understand the

data gathered by the researchers from the two networks.

On the other hand, the researchers will gather and cite relevant documents

to support the focus interviews and to explain the need of implementing CSR

programs.

Concepts and Indicators

The study will look into the history of CSR and its need for existence in

the broadcast companies.

By means of the focus interviews, the background and the advent of CSR

in the two companies will be determined. Furthermore, it will present the

information needed to create the account of the advent of CSR in the broadcast

companies.

Research Instruments

The researchers will use an interview guide ABS-CBN and GMA

networks to know the brief background of the companies’ CSR and its goals and

agenda. Moreover, it will reveal the reasons for adapting the CSR to the two

media companies.

36
 To evaluate the data from the two networks, two experts will be asked.

Unit of Analysis

There will be one or two interviewees from each of the networks. Two

experts will be interviewed to back and examine the assertions of the networks.

The criteria in choosing the interviewees as follows:

For the Foundations:

1. Should be the member or head of Administrative body of the Foundation

(CSR).

2. Length of service should be more than a year.

For the Experts:

1. Should be a practicing member of the media, academe, or business field.

2. Length of service should be at least five years.

Scope and Limitation

The study will focus on the two networks in the Philippines, respectively,

ABS-CBN and GMA. The key informants included the representatives of CSR

team for each network. To evaluate the data gathered by the researchers, two

37
experts will be interviewed coming from the field of journalism, marketing or

business and academe.

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