Corporate social responsibility (CSR) of the selected services sector companies in the Philippines: An evaluation on corporate social responsibility disclosures and its correlation and impact on the profitability of the companies

• Main Authors: Cruz, Adrian Justin V., Lao, Vina Rosette P., Manalo, Matt Allen B., Tan, Mark Louie T.
• Format: text
• Language: English
• Published: Animo Repository 2011
• Subjects: Social responsibility of business > Philippines; Corporations > Philippines; Disclosure in accounting > Philippines; Profit > Accounting
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/14716
• Institution: De La Salle University

This paper provides an analysis and evaluation of the level of Corporate Social Responsibility (CSR) Disclosures found in the Annual Reports of the selected listed companies under the Services Sector of the Philippine Stock Exchange (PSE) from years 2006 to 2010. The variables retrieved from the annual reports were the level of CSR disclosures and the companies’ profitability indicators measured using Earnings per Share, Return on Assets, Return on Equity, Capital Return on Assets, and Capital Return on Capital Invested. Method of analysis includes the usage of CSR disclosure checklist modified from different authors for the level of CSR disclosures. Pearson correlation was used to check if there is a relationship between the previous year’s level of CSR disclosures with the current year’s profitability indicators. For an in-depth analysis, fixed effect model was used for panel regression analysis to check if the level of CSR disclosures can predict the companies’ performance on the next year. From the results, there is a positive correlation between the level of CSR disclosures and the profitability indicators of the companies. Furthermore, the level of CSR disclosures can predict EPS and ROA of the companies after a year from disclosure while ROA, CROA, CROCI and EPS as well can be predicted after two years from the date of disclosure.