Effects of corporate social responsibility on corporate branding of selected NCR independent oil companies

• Main Authors: Cordova, Regine Camille, Dela Cruz, Raizel Pauline, Saguinsin, Loraine, Sison, Joy Carissa
• Format: text
• Language: English
• Published: Animo Repository 2010
• Subjects: Social responsibility of business; Petroleum industry and trade; Brand name products; Business ethics
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/14657
• Institution: De La Salle University

In the Philippines, the oil downstream industry is currently being dominated by the big 3 corporations namely 1) Pilipinas Shell Petroleum Corporation, 2) Chevron Corporation and 3) Petron Corporation. Consequently, new independent oil players need to increase their market share. However, because of the monopoly of oil supplies, Philippine oil industry is regarded with distrust. To overcome this, independent oil companies should go beyond competing in terms of oil price adjustments but also by gaining consumer loyalty. This study explored how corporate image, especially customer loyalty is built through corporate social responsibility. Consumers nowadays do not only look at how good products are but also at the image of the corporation as a whole. One way to build a good company image to consumers is to utilize Corporate Social Responsibility. To provide a clear definition, Corporate Social Responsibility (CSR) is the ethical business practices that support sustainable economic, social and environmental development in the society. On the other hand, Corporate Branding is the company's vision, culture and values which the organization communicates. This study analyzes surveys and interviews of a total of 300 customers and 9 corporate respondents from the top management to the human resource and marketing departments of three independent Philippine oil companies to determine the effects of CSR programs on their Corporate Branding. The researchers intend to know the strategies that are being utilized by the participating companies and the benefits that they believe are getting from them. Findings reveal that companies mostly utilize altruistic strategy, where the companies give something back to the community in the form of philanthropy. On the other hand, benefits generally derived from CSR contribute towards developing the company's brand in terms of its reputation and image. In addition, based on their customers' perception, CSR has positive results on the loyalty of their customers. They will commit to the company more if they are aware of the CSR activities of the company.