An analysis on the effects of corporate social responsibility to the financial performance and position of the Banking Industry in the Philippines. 6

Undergraduate Thesis: (Bachelor of Science in Accountancy)- Pamantasan ng Lungsod ng Maynila 2016. 56

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ABSTRACT The purpose of this study is to analyze the effects of corporate social responsibility to the profitability of the top 3 universal banks in the Philippines. The research utilized the deceptive research method wherein the data was gathered using a questionnaire and the annual financial reports of BDO Unibank Inc, (BDO), Metropolitan Bank and Trust Company ( Metrobank), as well as the Bank of Philippine Islands (BPI), all of which were readily available on their corresponding websites. Purposive sampling was used in determining the banks to be assessed in this study. The chosen respondents were provided copies of the questionnaire which consists of 14 questions that will provide specific and information regarding the banks CSR projects and its impacts on their profitability. Result of this study show that corporate social responsibility is essentials to banks because they are the key players in the financial market and they play a very important role in the economy of each country. In relation to this the factors that make a CSR project successful are increased professionalism, stronger focus on the observance of ethical codes, verifying worker's abilities and other approaches, such as transparency, orientation of the interests of stakeholders and cooperation with the societal institutions. This research undertaking also showed that corporate social responsibility affects a bank's financial performance positively but it would be limited to the other factors that can affect a bank's profitability. The researcher recommend the banks to not just establish CSR strategies of their own but also strengthen, enhance and maintain their policies and implementation to help improve their financial performance. It is also important upon designing CSR projects and launching new activities in fulfillment to their CSR objectives. They also exert effort in creating awareness to the public on how important what they do is and how it helps the society. They may use different forms of media such as internet, television, radio, newspaper, etc to raise consciousness and encourage the mass to actively participate. Companies are also recommended to address social and environmental issues not only through external and independent activities, but also in their own operations. Lastly, future researchers of this study are recommended to conduct further research regarding the measurement of corporate social responsibility in order to help institutions find a standard or framework which can be used in measuring and reporting the benefits that they experience.

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