COST management remains the primary driving force behind

COST management remains the primary driving force behind local businesses’ corporate social responsibility (CSR) initiatives, according to a survey by Grant Thornton.

In a statement, Punongbayan & Araullo (P&A), the local partner of Grant Thornton, said the latest International Business Report (IBR) asked 150 Filipino business leaders regarding their CSR activities for the second time since the topic was first covered in 2008.

The IBR is an annual global survey that provides insights into the views and expectations of business leaders from 39 economies.

In the latest round of the poll, 92 percent of Filipino business leaders said ‘cost management’ motivates their move to more ethical practices, higher than the 78 percent who said the same in 2008.

Cost management was followed by ‘public attitude and brand building’, with 84 percent of Filipino business leaders citing it as one of the drivers behind their CSR activities, also higher than the 69 percent in 2008.

Although 76 percent of local businesses cite ‘saving the planet’ as an important driver, this ranks low at fifth out of seven drivers.

The environment’s relevance dropped to 36 percent of global respondents, a four-point drop from 2008.

“The numbers show us that more Filipino businesses are seeing the merits of CSR, and their shift towards more ethical business practices is being undertaken to improve the bottom line; more specifically, to drive costs down,” said Marivic Españo, P&A managing partner and chief operating officer.

“It’s also worth noting that public perception and brand building has gained significant traction as a motivator—it is up 15 percentage points from 2008. This tells us that more and more businesses recognize the ability of a strong CSR program to raise their profiles and make them stand out from the competition,” Españo said.

The IBR also looked into the types of CSR activities that businesses have undertaken in the past year. Majority of local businesses focused their recent CSR efforts on employee well-being: 94 percent actively promoted workforce health, while 93 percent worked on promoting diversity and equality in the workplace.

In terms of environmental initiatives, 90 percent of Filipino respondents sought ways to improve waste management, while 89 percent looked at ways to improve energy efficiency.

“This is further proof that adopting sustainable, ethical practices and improving the bottom line don’t have to be conflicting goals,” Españo said. “Even as these business leaders focus on managing their costs, they are able to roll out programs that positively impact the environment and benefit their employees.” –Manila Times