The main objective of the study was to assess the Impact of Nestle Philippines’ Corporate Social Responsibility Programs on Consumer Buying Behavior. It also sought to determine the level of awareness of the respondents towards the different Corporate Social Responsibility Programs of Nestle’ Philippines and to assess the effectiveness of the Corporate Social Responsibility Programs in terms of Nutrition, Environment, and Rural Development.

1. IMPACT OF NESTLE PHILIPPINES’ CORPORATE SOCIAL
RESPONSIBILITY PROGRAMS ON CONSUMER
BUYING BEHAVIOR: AN ASSESSMENT
A Thesis
Presented to the Faculty of College of Business Administration
Polytechnic University of the Philippines
Sta. Mesa, Manila
In Partial fulfillment of the Requirements for the Degree in
Bachelor of Science in Business Administration
Major in Marketing Management
KIMBERLY D. ABONGAN
TRIXIA CAMILLE D. AGUILAR
REYMART P. ARAZON
CHEZKA MARIE M. NONATO
AILEEN T. OLINIO
ROCHELLE P. RELATOR
LESLIE ANNE D. SEMPIO
DIANA MAE A. SUGANOB
CARL MARVIN P. YABUT
March 2014

2. ii
Philippine Copyright 2014
by the Author
and the
Graduate School
Polytechnic University of the Philippines
All rights reserved. Portions of this manuscript may be reproduced with proper
referencing and due acknowledgement of the author.

3. CERTIFICATION OF ORIGINALITY
This is to certify that the research work presented in this dissertation entitled
IMPACT OF NESTLE PHILIPPINES’ CORPORATE SOCIAL RESPONSIBILITY
PROGRAMS ON CONSUMER BUYING BEHAVIOR: AN ASSESSMENT for the
degree Bachelor of Science in Business Administration major in Marketing Management
at the Polytechnic University of the Philippines embodies the result of original and
scholarly work carried out by the undersigned. This dissertation does not contain words
or ideas taken from published sources or written works that have been accepted as basis
for the award of a degree from any higher education institution, except where proper
referencing and acknowledgement were made.
iii
The Researchers
ABONGAN, KIMBERLY AGUILAR, TRIXIA CAMILLE
ARAZON, REYMART NONATO, CHEZKA MARIE
OLINIO, AILEEN RELATOR, ROCHELLE
SEMPIO, LESLIE ANNE SUGANOB, DIANA MAE
YABUT, CARL MARVIN

4. ACKNOWLEDGEMENTS
This thesis would not have been possible without the guidance and the help of
several individuals who in one way or another contributed and extended their valuable
assistance in the preparation and completion of this study.
First and foremost, we would like to give our utmost gratitude to our college
Dean, Dr. Leopoldo Francisco M. Bragas of College of Business for sharing us his
knowledge as well as his patience and steadfast encouragement to complete this study;
To our professor, Mrs. Estelita Medina, for being our mentor on this thesis paper
who did reviews in spite of her busy schedule, made several important revisions and
iv
suggestions that really enhanced our study.
To our parents who have been our source of inspiration as we hurdle all the
obstacles in the completion of the write-up. We dedicate all our hardships and effort for
their unselfish and unfailing moral and financial support.
To our statistician Dr. Lincoln A. Bautista who made the computation of the
results of statistical analysis possible, for aiding us step-by-step until the derivation of
information and conclusion.
Last but not the least, the one above all of us, the Omnipresent God, for
answering our prayers and for giving us the strength to plod on despite of our
constitution wanting to give up and throw in the towel, thank you so much Dear Lord.
AK/ATC/AR/NCM/OA/RR/SLA/SDM/YCM

5. ABSTRACT
Title : Impact of Nestle Philippines’ Corporate Social
Responsibility Programs on Consumer Buying Behavior:
An Assessment
Researchers : Kimberly D. Abongan
Trixia Camille D. Aguilar
Reymart P. Arazon
Chezka Marie M. Nonato
Aileen T. Olinio
Rochelle P. Relator
Leslie Anne D. Sempio
Diana Mae A. Suganob
Carl Marvin P. Yabut
Degree : Bachelor of Science in Business Administration
Major in Marketing Management
Institution : Polytechnic University of the Philippines
v
Year : 2014

6. Adviser : Mrs. Estelita Medina
vi
The Problem
The main objective of the study was to assess the Impact of Nestle Philippines’
Corporate Social Responsibility Programs on Consumer Buying Behavior. It was also
sought to determine the level of awareness of the respondents towards the different
Corporate Social Responsibility Programs of Nestle’ Philippines and to assess the
effectiveness of the Corporate Social Responsibility Programs in terms of Nutrition,
Environment, and Rural Development.
Research Methodology
Descriptive Survey method was used. The survey was conducted at Makati City,
San Juan City, Quezon City, Pasig City, Antipolo City, Tondo, and Las Piñas City using
cluster sampling acquiring total 155 respondents. The data gathered were based on the
tally of frequency and percentage. The resulting figures were presented in tables to be the
basis of interpretation. Computation regarding the assessment of the effectiveness and
impact of Nestle Philippines Corporate Social Responsibility Programs on Consumer
Buying Behavior was done with the help of the University Statistician. Standard
deviation was measured to determine the range of the respondents’ answer and the
weighted mean was also acquired for the derivation of conclusion.

7. vii
Findings
Based on the results obtained, it was revealed that fifty four point nineteen percent
(54.19%) or 84 people were between 18 to 25 years old, seventy one point sixty one
percent (71.61%) or 111 of the respondents were female, forty five point eighty one
percent (45.81%) or 71 of the respondents were college graduate, while sixty seven point
seventy four percent (60.74%) or 105 respondents were students.
The results of Nestle Philippines’ Corporate Social Responsibility Programs
awareness level check clearly recorded that the respondents are less aware of company’s
nutritional, environmental and rural development programs. The Source of Awareness of
respondents with Nestle Philippines’ Corporate Social Responsibility Programs was
illustrated. It was clearly noted that thirty one point sixty one percent (31.61%) or 49
respondents got aware with the company’s CSR programs through the school, while fifty
seven point forty two percent (57.42%) or 89 of the respondents encountered these
programs seasonal.
Regarding the effectiveness of Nestle Philippines’ Corporate Social
Responsibility Programs on Nutrition, it was founded that though the activities help the
consumers to have a healthy body, it can be generalized that the Nestle Philippines’
Corporate Social Responsibility Programs are less effective in terms of Nutrition,
Environment and Rural Development of consumer-beneficiaries.
It was also revealed that consumer-beneficiaries agreed that the company’s CSR
programs establish a good brand rapport or brand equity. Thus, the respondents slightly
agreed that the initiatives do encourage brand switch and brand purchase intention, even
create brand trust and brand loyalty.

8. viii
Conclusions
Based on the findings, it was concluded that the most number of respondents were
at the age of 18 to 25 years old, female, college graduate as educational attainment and
were students. It was also recorded that the consumer-beneficiaries are less aware of
Nestle Philippines’ Corporate Social Responsibility Programs, though the activities help
the consumers to have a healthy body, it was noted that the programs are less effective in
terms of Nutrition, Environment and Rural Development. Respondents agreed that the
company’s CSR programs establish good brand rapport or brand equity, thus, slightly
agreed that these do encourage brand switch, hype brand purchase intention, create brand
trust and brand loyalty. Therefore, Nestle Philippines’ Corporate Social Responsibility
Programs have an impact on consumer buying behavior particularly on the establishment
of brand equity to consumer-beneficiaries.
Recommendations
Based on the findings, conduction of researches regarding the perception of
Filipinos about pro-health products is recommendable for this can serve as framework for
businesses to cope with the demands of the consumers, supported by the concluded fact
that programs mentioned above help the consumers to have a healthy body. Also, a
comprehensive comparison among factors such as nutrition, environment and rural
development would also be useful to determine what area should be tapped more to
create a meaningful dialogue with the customers, and a clearer study on how to further
the brand equity established within consumers would also be helpful to aid marketers to

9. knowing the factors to consider for the encouragement of brand purchase intention and
even build-up of brand trust and brand loyalty.
The proponents also wish for practitioners to improve brands’ relationship with
the students who would be the first individuals to recommend products to friends and
members of the family. Moreover, a more frequent holding of CSR programs would be
helpful in the establishment of strong tie with consumers which could probably result to
increasing brand purchase intention and could trigger the creation of brand trust and
ix
build-up of brand loyalty.
For the improvement of the study, the researchers look forward that aside from
the factors considered in profiling such as age, gender, educational attainment and
occupational state, other important variables such as level of income and social class can
be included for these are also supportive in assessing more the impact of Nestle
Philippines’ Corporate Social Responsibility Programs on consumer buying behavior.
Another is the pursuit to conduct the study in Lipa, Batangas which said to be the home
of the company’s CSR programs to clearly assess the Impact of Nestle Philippines
Corporate Social Responsibility Programs on Consumer Buying Behavior.

10. TABLE OF CONTENTS
TITLE PAGE …………………………………………………………………………….i
CERTIFICATE OF ORIGINALITY ……………………………………...………….iii
ACKNOWLEDGEMENT ……………………………………………………………..iv
ABSTRACT …………………………………………………………………..….……....v
TABLE OF CONTENTS ………………………………………………………….........x
I. THE PROBLEM AND ITS BACKGROUND
Introduction ……………………………………………………………………….1
Background of the Study …………………………………………………………3
Theoretical Framework …………………………………………………………...5
Conceptual Framework …………………………………………………………...8
Statement of the Problem …………………………………………………………9
Significance of the Study ………………………………………………………..10
Scope and Limitations …………………………………………………………...11
Definition of Terms ……………………………………………………………...12
II. REVIEW OF RELATED STUDIES AND LITERATURE
Foreign Literature ……………………………………………………………….15
Local Literature …………………………………………………………….……20
Foreign Studies………………………………………………………….……….28
Local Studies …………………………………………………………………….31
Synthesis and Relevance of the Reviewed Literature ………………………...…36
x

11. xi
III. METHODOLOGY OF RESEARCH
Method of Research ……………………………………………………………..39
Population, Sample Size and Sampling Technique ……………………..………40
Description of Subjects ………………………………………………………….41
Research Instrument ……………………………………………………….…….41
Validation of the Research Instrument …………………………………….……43
Data Gathering Procedure ……………………………………………………….44
Statistical Treatment of Data …………………………………………………....44
IV. PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA ………46
IV. CONCLUSIONS AND RECOMMENDATIONS
Summary ………………….……………………………………………………..57
Findings …………………………………………………………………............58
Conclusions ……………………………………………………………………...62
Recommendations ……………………………………………………………….64
BIBLIOGRAPHY ……………………………………………………………………...66
APPENDICES ………………………………………………………………………….70
CURICCULUM VITAE ……………………………………………………………….88

12. LIST OF TABLES
Total Number of Respondents ………………………………………………………..…40
Parameters for Awareness Level Check …………………………………………….......42
Parameters for the Degree of Effectiveness of Nestle Philippines’
CSR Programs on Nutrition, Environment and Rural Development ……………………42
Parameters for Assessment of the Impact of Nestle Philippines’
CSR Programs on Consumer Buying Behavior …………………………………………43
Basis for Statistical Interpretation and Discussion ……………………………………...45
Age of Respondents ……………………………………………………………………..46
Gender of Respondents ………………………………………………………………….47
Educational Attainment of the Respondents …………………………………………….47
Occupational State of the Respondents ………………………………………………....48
xii

13. Result of Nestle Philippines’ Corporate Social Responsibility Programs
Awareness Level Check ………………………………………………………………....49
Source of Awareness of Respondents with Nestle Philippines’
Corporate Social Responsibility Programs ……………………………………………...51
Encounter Frequency of Respondents with Nestle Philippines’
Corporate Social Responsibility Programs ……………………………………………...52
Result of the Effectiveness of Nestle Philippines’ Corporate
Social Responsibility Programs on Nutrition, Environment
and Rural Development of Consumer-Beneficiaries ……………………………………53
Result of the Impact of Nestle Philippines’ Corporate Social
Responsibility Programs on Consumer Buying Behavior ………………………………55
Pilot Run Results ………………………………………………………………………..73
xiii

14. LIST OF FIGURES
Conceptual Framework ………………………………………………..………….8
xiv
Survey Results
Age ………………………………………………………………………………82
Sex ……………………………………………………………………………….82
Educational Attainment …………………………………………………………83
Occupational State ………………………………………………………………83
Source of Awareness of Respondents with Nestle Philippines’
Corporate Social Responsibility Programs ……………………………………...84
Encounter Frequency of Respondents with Nestle Philippines’
Corporate Social Responsibility Programs ……………………………………...84

15. Chapter 1
THE PROBLEM AND ITS BACKGROUND
xv
Introduction
Good governance has always been the object of anyone interested in the proper
management of their organization, including their dealings with all their publics,
particularly their students and parents, alumni, their employees, and the communities
around them. For schools, on the main, this has meant providing scholarships and grants-in-
aid for their faculty, staff and deserving students, philanthropy for various causes, and
for many, a willingness to respond to situations which require their assistance or
intervention.
An organized process of taking care of all their publics, which should somehow
also redound to some benefit to their bottom line, but particularly involvement in projects
and activities which go beyond their immediate area — this is the kind of Corporate
Social Responsibility which we all hope to have, where likely out of our values and
hopefully something more, we have decided that “doing good” is not only something we
wish to do, but which was likely why our respective schools were started by their
founders in the first place.
Now, there are norms and approaches which are available which can assist us do
all these not only in a viable way, but in ways which are verifiable, and which become
part and parcel of our organized, daily way of conducting our work.
Philanthropy has been a tradition in the Philippines, where individual giving and
volunteerism are acknowledged to be “hidden forces” in the social and economic life of

16. Filipinos. Its practice is particularly prevalent within and across families and kinship
groups, and in church-related organizations or social welfare agencies which undertake
such activities as Sunday collections, social events, fund drives “for-a-cause” like “Piso
para sa pasig”, the solicitation of donations, special fund campaigns (Christmas fund
xvi
drives) and disaster relief operations.
According to M.A. Velasco of the Center for the Study of Philanthropy, the
notion of philanthropy and concern for humanity form part of the Asian psyche. In the
Philippines, mutual aid is manifested in rural traditional communities. For example, the
spirit of “Bayanihan” (a Philippine tradition which entails ‘brotherhood’) is exemplified
in the lending of mutual assistance. It is rooted in a deep sense of mutual respect. The
bayanihan tradition was cited by Philacor, the Philippines’ leading manufacturer of
refrigerators, washing machines and the like, for its decision to practice corporate
citizenship. The company reported a threefold growth in actual returns to shareholders
within a year after implementing Corporate Social Responsibility activities. The Philacor
example supports the hypothesis that economic and ethical motives and benefits are not
fundamentally opposed to each other but may actually be reconciled. Meaning, doing
business is no longer just the survival of the fittest. Corporations need to give back
something to the communities that support their services and programs (Soliman, 2013).
That is why at present, it was adopted as a “best practice”, absorbed into the core
functions and value systems of businesses. It is now considered the soul of capitalism, as
it makes corporations aware of the fact that doing business is not just the bottom line.
That it is no longer being concern only on the mass production of goods or giving
beneficial services thus, more on having a meaningful dialogue with a wide spectrum of

17. constituents, crystallizing a sound relationship with the community, incorporating with
the perspective of good governance and competitiveness, concerning to the
environmental sustainability and ecological balance, and doing relevant activities for
public wellness as of creating shared values which is the fundamental part of corporations
xvii
at today’s era.
Background of the Study
Today, companies face their toughest competition ever. Moving from a product-and-
sales philosophy to a holistic marketing philosophy, however, gives them a better
chance of outperforming the competition. The cornerstone of a well-conceived holistic
marketing orientation is strong customer relationships. Marketers must connect with
customers—informing, engaging, and maybe even energizing them in the process.
(Kotler and Keller, 2009)
Understanding consumer buying behavior is the core business strategy that
integrates internal processes and functions, and external networks, to create and deliver
value to targeted customers at a profit. It is grounded on high-quality customer data and
enabled by it” (Buttle, 2004). Customers keep the organization standing in a society.
Without customer relationship an organization will not survive and will not be successful
in their field. Customers provide the ‘life-blood’ to the organization in terms of
competitive advantage, revenue and profits. In spite of the competition an organization
must keep their products on top and of good quality because that’s what the customers
are looking for. Their reactions and suggestions are merely important to assessing the
status of the business in the industry. Their brand perception is actually significant for

18. every organization as of time. That is why, the incorporation of Corporate Social
Responsibility as a useful tool to engage with consumers through environmental and
social projects and is, moreover, an effective marketing tool which gains more and more
popularity within companies is now getting on trend.
Many studies have attested the collective impact of multiple CSR strategies on
consumer attitudes. For example, Brown and Dacin (1997) have examined the combined
influence of various CSR actions, which are support for causes, contributions to the
community, and environmental concern, finding that “CSR associations influence product
attitudes through their influence on overall company evaluations”. Murray and Vogel
(1997) have investigated the effect of associated CSR practices on consumers and
presented similar findings. The CSR activities mentioned in the research are, for instance,
environmental protection practices(energy conservation), engagement in acts to promote
human welfare, corporate social marketing (electric safety education for schoolchildren),
contribution to the economic development of the region, and consumer protection
program. Their research found that CSR programs lead to improved customer attitudes
towards the firm, including beliefs about the company’s honesty, consumer responses,
and increased support for the firm in labor or government disputes. Correspondingly,
Bhattacharya and Sen (2001) argued that a company’s efforts in multiple CSR domains,
for example community involvement, support for ethical involving issues like women,
ethnic minorities, gays and lesbians, disabled minorities, and so on had a direct effect on
the attractiveness of the company’s products, in addition to a positive effect on company
evaluations by customers. Bhattacharya and Sen (2004) have noted that consumers
engaged in positive word of mouth about firms that were committed to CSR actions.
xviii

19. Studies by Barone, Miyazaki, and Taylor (2000), Bhattacharya and Sen (2001), and
Creyer and Ross (1997) suggested that consumers are willing to actively support
companies committed to cause-related marketing, environmentally friendly practices and
that CSR practices have an impact on customer purchase intention.
Overall, the above-mentioned studies provide evidence supporting the suggestion
that socially responsible companies are likely to be perceived more favorably by
consumers than less socially responsible companies. Indeed, the researchers aim to assess
and to have a deeper understanding of the impact of corporate social responsibility
programs particularly of Nestle on consumer buying behavior in Philippine setting. This
study focuses on how the company’s designed cosmetic activities may have affected the
consumers’ brand loyalty and trust, its effect on their perception of brand equity and
xix
purchase intention.
Theoretical Framework
One of the studies that anchor this present work is the Donaldson’s (1982)
Integrative Social Contract Theory. With this, he considered the business and society
relationship from social contract tradition, mainly from the philosophical thought of
Locke. He assumed that a sort of implicit social contract between business and society
exists. This social contract implies some indirect obligations of business toward society.
This approach would overcome some limitations of deontological and teleological
theories to business.

20. Afterwards, Donaldson and Dunfee (1994, 1999) extended and proposed an
“Integrative Social Contract Theory” (ISCT) in order to take into account the socio-cultural
context and also to integrate empirical and normative aspects of management.
Applied to the study, the meaningful contract between the businesses and the
society is getting more significant. The organizations are now being concern with the
society they do belong with – realizing that aside from doing their operations, there is a
more relevant activity to do, and this is to serve the community.
Another supporting principle is the Attribution Theory developed by Weiner. It is
concerned primarily with how individuals interpret events and how this relates to their
xx
thinking and behavior
Heider (1958) was the first to propose a psychological theory of attribution, but
Weiner and colleagues (e.g., Jones et al, 1972; Weiner, 1974, 1986) developed a
theoretical framework that has become a major research paradigm of social psychology.
Attribution theory assumes that people try to determine why people do what they do, i.e.,
attribute causes to behavior. A person seeking to understand why another person did
something may attribute one or more causes to that behavior. A three-stage process
underlies an attribution: (1) the person must perceive or observe the behavior, (2) then the
person must believe that the behavior was intentionally performed, and (3) then the
person must determine if they believe the other person was forced to perform the
behavior (in which case the cause is attributed to the situation) or not (in which case the
cause is attributed to the other person).
Weiner focused his attribution theory on achievement (Weiner, 1974). He
identified ability, effort, task difficulty, and luck as the most important factors affecting

21. attributions for achievement. Attributions are classified along three causal dimensions:
locus of control, stability, and controllability. The locus of control dimension has two
poles: internal versus external locus of control. The stability dimension captures whether
causes change over time or not. For instance, ability can be classified as a stable, internal
cause, and effort classified as unstable and internal. Controllability contrasts causes one
can control, such as skill/efficacy, from causes one cannot control, such as aptitude,
xxi
mood, others' actions, and luck.
Attribution theory is closely associated with the concept of motivation. It also
relates the work done on script theory and inferencing done by Schank. In connection to
the study, the initiative of companies that does corporate social responsibility programs
as motivating mechanism is the main factor considered in this research. At this point, the
implementation of these cosmetic activities to encourage consumers can be taken as an
example to clearly explain the Attribution theory of Weiner.

22. xxii
Conceptual Framework
Figure 1.Presents the conceptualized paradigm of the research work.
IMPACT OF NESTLE PHILIPPINES’ CORPORATE SOCIAL
RESPONSIBILITY PROGRAMS ON CONSUMER
BUYING BEHAVIOR: AN ASSESSMENT
AWARENESS EVALUATION
EFFECTS OF NESTLE
PHILIPPINES’ CORPORATE
SOCIAL RESPONSIBILITY
IMPACT OF NESTLE
PHILIPPINES’ CORPORATE
SOCIAL RESPONSIBILITY
Checking the level of awareness of
the respondents towards the different
Corporate Social Responsibility
Programs of Nestle’ Philippines.
Assessment of the effectiveness of
Nestle Philippines’ Corporate Social
Responsibility Programs in terms of
Nutrition, Environment, and Rural
Development?
BRAND EQUITY
BRAND SWITCH
BRAND PURCHASE
INTENTIONS
BRAND TRUST
BRAND LOYALTY

23. The above-showed figure illustrates the flow of the study underlying three major
xxiii
concerns:
First is the Awareness Evaluation which consists of the presentation of the Nestle
Philippines’ different Corporate Social Responsibility programs that will be evaluated by
the respondents. This will be the guiding point towards assessing the effects of the CSR
activities to consumers’ Nutrition, also to Environment and to Rural Development which
is the second area of concern of this study. It aims to determine the rate of its corollary to
consumers’ related life aspects prior their consumer buying behavior.
Lastly, is the measurement of the impact of the Corporate Social Responsibility
programs of Nestle Philippines’ on Consumer Buying Behavior and specific areas which
may have affected like brand loyalty and trust, its effect on their perception of brand
equity and purchase intention.
Statement of the Problem
The study was focused on the Impact of Nestle Philippines’ Corporate Social
Responsibility Programs on Consumer Buying Behavior.
It also sought to answer the following:
1. What is the level of awareness of the respondents towards the different
Corporate Social Responsibility Programs of Nestle’ Philippines?
2. How do the respondents assess the effectiveness of the Corporate Social
Responsibility Programs in terms of:
2.1 Nutrition;
2.2 Environment; and

24. xxiv
2.3 Rural Development
3. What is the impact of the Corporate Social Responsibility Programs on the
consumer buying behavior?
Significance of the Study
Consumer buying behavior is not a new-fangled concept but it is convalescing
day by day with changing ecology. Studying consumer buying behavior is very decisive
aspect of marketing. That’s why it is so much relevant to assess how this particular aspect
of consumers is affected by Corporate Responsibility Programs of business organizations
today. This research will confidently be a useful tool to different individuals and
organizations like as follows.
Nestle Philippines is of course the first to benefit with this study. The recognition
of their societal concern will attract more customers and will prefer their products more
thinking that in one way or the other the procurement of Nestle products can improve
lives and cause environmental sustainability and rural development.
Also the government will have an opportunity to coordinate with the projects of
the company. The increasing number of economic problems is no longer a joke, thus for
them needing an integrated relationship with businesses like Nestle Philippines who
shares its blessings with those who need its help the most – the hardworking farmer, the
promising student, the malnourished child, the calamity victim, the unemployed, and the
other less fortunate people in the communities where the Company operates.
The environmental organizations will also have gains from this. The discovery of
a new partner to settle the predicaments concerning ecological imbalance is a great help

25. as Nestle Philippines innovates various techniques to reduce their water consumption and
contribute to the water sustainability for future use. One step is the reuse of sealing water
for vacuum pumps. They also treat waste water in their Reverse Osmosis Plants to reduce
the disposal of waste water in rivers and streams. The treated waste water is used for
irrigation of plants, water for fish ponds, and other cleaning purposes. They also installed
Wastewater Treatment Plants in all their factories to prevent the contamination of natural
xxv
waterways (Nestlé Philippines, 2011).
Moreover, this may serve as a reference for students in their future research work
and as guide relative to corporate social responsibility and/or consumer brand preference
studies.
Lastly, it will be an eye-opener to Filipinos that it is not only about getting
benefits from Nestle Philippines’ creating shared value programs but also being
responsible and concern enough in lessening the issues confronting Philippines.
Scope and Limitations
With the numerous benefits of this research work this will only cover Nestle
Philippines only not the Nestle Global as a whole.
It deals with the impact of Nestle Philippines’ Corporate Social Responsibility on
consumer buying behavior in Philippine setting. This study focuses on how the
company’s designed cosmetic activities may have affected the consumers’ brand loyalty
and trust, its effect on their perception of brand equity and purchase intention.
The observational phase under the residence of the researchers will be conducted,
including the households as respondents to be carried on by the whole semester.

26. The researchers wish to include wider spectrum of respondents and more
components to better justify the study but due to limited time, financial constraint and
conflict on class schedule, these things were not be done. Eventually, a comprehensive
assessment of the Impact of Nestle Philippines’ Corporate Social Responsibility
Programs on Consumer Buying Behavior will be published.
xxvi
Definition of Terms
The following terms were defined as used in the title, statement of the problem
and other significant parts of the research work.
Brand Awareness is the extent to which the consumer associates the brand with the
product that they wish to purchase. It is the brand recall and the brand recognition of the
company to the consumers. It is an essential part of brand development which helps the
brand to stand out from the others in this monopolistically competitive market.
Brand Equity is the commercial value that derives from consumer perception of the
brand name of a particular product or service, rather than from the product or service
itself.
Brand Loyalty is a result of consumer behavior and is affected by a person's preferences.
Loyal customers will consistently purchase products from their preferred brands,
regardless of convenience or price.
Brand Purchase intention is the implied promise to one’s self to buy the product again
whenever one makes next trip to the market.
Brand Switch is the changing of support and conviction for one brand to a competing
brand.

27. Consumer Behavior is the behavior that consumers display in searching for, purchasing,
using, evaluating, and disposing of products and services that they expect will satisfy
xxvii
their needs.
Consumer Loyalty is the likelihood of previous customers to continue to buy from a
specific organization. Great attention is given to marketing and customer service to retain
current customers by increasing their customer loyalty.
Consumer Perceived Value is the anticipated benefit from a consumer's perspective of a
product or service. The customer perceived value stems from tangible, psychological and
social advantages, and since it affects demand for a product, it needs to be taken into
account when setting prices.
Corporate Social Responsibility is the company’s sense of responsibility towards the
community and environment (both ecological and social) in which it operates. Companies
express this citizenship through their waste and pollution reduction processes, by
contributing educational and social programs, and by earning adequate returns on the
employed resources.
Nutrition is the process of providing or obtaining the food necessary for health and
growth
Philanthropy etymologically means love of humanity in the sense of caring for,
nourishing, developing, and enhancing what it is to be human on both the benefactors by
identifying and exercising their values in giving and volunteering and beneficiaries by
benefitting parts.
Philacor is the divisional name for the ten industry shops, which are located throughout
the Philadelphia Prison System.

28. Rural development generally refers to the process of improving the quality of life and
economic well-being of people living in relatively isolated and sparsely populated areas.
Sustainability is a business strategy that drives long-term corporate growth and
profitability by mandating the inclusion of environmental and social issues in the
xxviii
business model.

29. Chapter 2
REVIEW OF RELATED LITERATURE AND STUDIES
This chapter clearly presents the supporting literatures and studies regarding the
nature and importance of Corporate Social Responsibility and how this concept primarily
affects the buying behavior of consumers, specifically in Philippine setting.
xxix
Foreign Literature
A growing number of writers however have recognized that the activities of an
organization impact upon the external environment and have suggested that one of the
roles of accounting should be to report upon the impact of an organization in this respect.
Such a suggestion first arose in the 1970’s and a concern with a wider view of company
performance is taken by some writers who evince concern with the social performance of
a business, as a member of society at large. Indeed the desirability of considering the
social performance of a business has not always however been accepted and has been the
subject of extensive debate. Thus, Hetherington (1973) states that, “There is no reason to
think that shareholders are willing to tolerate an amount of corporate non-profit activity
which appreciably reduces either dividends or the market performance of the stock.”
Conversely, writing at a similar time, Dahl (1972) states “....every large corporation
should be thought of as a social enterprise; that is an entity whose existence and decisions
can be justified insofar as they serve public or social purposes.” Similarly, Carroll (1979),
one of the early CSR theorists states that: “business encompasses the economic, legal,
ethical and discretionary expectations that society has of organization at a given point in
time”. More recently this was echoed by Balabanis, Phillips and Lyall (1998), who

30. declared that: “in the modern commercial area, companies and their managers are
subjected to well publicize pressure to play an increasingly active role in the welfare of
xxx
society.”
Some writers have taken the view that a corporation should not be concerned with
social responsibility and certain to come across the statement from Milton Friedman,
made in 1970:“there is one and only one social responsibility of business – to use its
resources and engage in activities designed to increase its profits so long as it stays within
the rules of the game, which is to say, engages in open and free competition without
deception or fraud.” Equally, some people are more cynical in their view of corporate
activity. So Drucker (1984) had the opinion that: “business turns a social problem into
economic opportunity and economic benefit, into productive capacity, into human
competence, into well-paid jobs, and into wealth.” While Robertson and Nicholson
(1996) thought that: “a certain amount of rhetoric may be inevitable in the area of social
responsibility. Managers may even believe that making statements about social
responsibility insulates the firm from the necessity of taking socially responsible action.”
Moir (2001) is more ambivalent: “whether or not business should undertake CSR, and the
forms that responsibility should take, depends upon the economic perspective of the firm
that is adopted”.
Corporate social responsibility (CSR) is a useful tool for companies to engage in
environmental and social projects and is, moreover, an effective marketing tool which
gains more and more popularity within companies. However, CSR communication is a
difficult undertaking because it bears a variety of threats and opportunities. For this
reason the right CSR communication strategy is essential to effectively influence

31. consumer attitude and behavior. In this thesis two studies were conducted to, firstly, gain
an insight into the actual status of CSR in the Netherlands and, secondly, to analyze how
the degree of pro-activity in a company’s CSR communication strategy influences
consumer attitude and, finally, consumer behavior. In the study about the general insight
about CSR in the Netherlands it was found that Dutch consumers have a positive attitude
regarding CSR and are interested in this topic. They see companies, the government but
also themselves in obligation to contribute in environmental and social causes. Dutch
consumers state that they already have some knowledge about environmental and social
topics but are also interested to get more information about these topics. The second
study showed that a more reactive communication strategy compared to a more proactive
communication strategy has got a more positive impact on consumer attitude and
behavior because it reduces consumer skepticism and it increases the company’s image
and the perceived intrinsic motives. Moreover, it partly reduces the consumers’ perceived
extrinsic motives for the company’s engagement. This positive attitude showed to go
along with positive consumer behavior like increase Word-of-Mouth (WoM) about the
company in general as well as over its CSR engagements and the consumers’ purchase
behavior. It was also found that consumer attitude towards the companies CSR
communication was more positive when the project the company engages in fits with the
company’s image. Due to the high interest and positive consumer attitude companies
should start or increase their engagement in CSR. Due to the fact that a more reactive
communication strategy has got better effects on consumer attitude and behavior, it is
advised that companies should use this kind of communication strategy (Schiefelbein,
xxxi
1999).

32. Integrating CSR efforts into consumers' direct experience with your brand, and
monitor their response to make sure your initiatives and your message resonate with
them. Recognize that just because you spend money on CSR initiatives does not mean the
consumer will think it's fair to charge higher prices. But don't shy away from CSR
initiatives that have real meaning to consumers even if they are expensive, because the
returns in customer loyalty are substantial enough to more than cover those costs.
First, all four dimensions of CSR performance -- environmental friendliness,
treating employees fairly, community support, sourcing from local growers and suppliers
-- positively influence consumers' attitudes toward a retailer. But consumers seem to
modify their purchase behavior only when the CSR domain directly affects their actual
experience with the company or brand. In our context, broad initiatives like
environmental friendliness and community support build only goodwill, but initiatives
like offering locally sourced products and fair employee compensation -- actions related
directly to the products and people that consumers face -- bring both goodwill and a
xxxii
higher share of wallet from consumers.
Second, this economic return is significant and meaningful. For instance, if a
retailer is able to improve consumers' perception of its fair treatment of employees by one
point on a five-point scale, the consequent increase in share of wallet is approximately
1.7 percentage points. The gain from a similar improvement in local sourcing is even
more pronounced at more than 2 percentage points. These numbers appear small, but they
represent a sales lift of 10% to 15% for the average retailer in our study.
Third, if a retailer chose to leverage its improved CSR perception into higher
prices rather than higher share of wallet, the calculations from our model show that a one-

33. unit increase in employee fairness perceptions translates to a price premium of about
12%, and a similar increase in local product sourcing translates to a price premium of
xxxiii
about 16%.
Fourth, much, but not all, of this benefit is direct: Consumers patronize the
company because they see personal benefits from the CSR initiatives and because the
initiatives resonate with their own values. But an indirect benefit can occur through
consumers' perception of how fair the company's prices are. Consumers don't just
respond to the price charged; they also respond to how fair they think the price is. High
prices are considered fairer if they can be attributed to "good" motives like CSR efforts or
costs rather than to "bad" motives like profit-taking. We find that as much as 15% of the
share-of -wallet gain from the perception of employee fairness accrues through improved
perceptions of price fairness. Like the direct effect, this indirect benefit is not equal
across different CSR initiatives. There is no indirect benefit of local product sourcing --
indeed, price fairness perceptions are not better for companies that offer locally produced
products (Ailawadi, 2000).
Half of global consumers are willing to pay more for goods and services from
companies that have implemented programs to give back to society, an increase of 5
percentage points from 2011, according to a new study from Nielsen.
"While cause-marketing programs seem to resonate most strongly among younger
respondents, the rapid change in sentiment among middle-aged consumers expands the
cause opportunity for brands," said Nic Covey, vice president of corporate social
responsibility at Nielsen.

34. "Today, brands can confidently focus purpose messaging on both younger and
xxxiv
older consumers."
"In countries where skepticism toward corporate social responsibility runs high,
cause-marketers face an uphill battle," Covey said. "In these markets, especially, social-impact
programs must be incontestably authentic to a company's business objectives,
vision and values."
Speaking of giving back to society, several markets indicated a high willingness
to pay more for products and services from companies that give back, but lower rates of
experience in actually paying more - potentially indicating, according to Covey, "markets
that are uniquely ripe for cause-marketing programs" (Nationmultimedia.com)
Local Literature
Good governance has always been the object of anyone interested in the proper
management of their organization, including their dealings with all their publics,
particularly their students and parents, alumni, their employees, and the communities
around them. For schools, on the main, this has meant providing scholarships and grants-in-
aid for their faculty, staff and deserving students, philanthropy for various causes, and
for many, a willingness to respond to situations which require their assistance or
intervention.
An organized process of taking care of all their publics, which should somehow
also redound to some benefit to their bottom line, but particularly involvement in projects
and activities which go beyond their immediate area — this is the kind of CSR which we
all hope to have, where likely out of our values and hopefully something more, we have

35. decided that “doing good” is not only something we wish to do, but which was likely
why our respective schools were started by their founders in the first place.
Now, there are norms and approaches which are available which can assist us do
all these not only in a viable way, but in ways which are verifiable, and which become
part and parcel of our organized, daily way of conducting our work.
The Philippines is home to a multitude of corporations, of differing scales and
trades, both international and local in nature. Due to this, the economic development of
the country has been progressing at a notable rate. To maintain the financial advancement
currently enjoyed by the country, the Philippines must be on par with the global market
trends. Corporate Social Responsibility (CSR) accounts for one of these business
xxxv
directions.
The essence of CSR is encapsulated within its three words. Despite being
universally understood as a company’s course of action towards aligning their business
strategies with the improvement of the public’s welfare, the implementation of CSR in
the country has taken various forms. The paragraphs below briefly presents four of the
most prevalent directions corporations take when acting upon its CSR.
Primary is dole outs. In this setting, companies provide financial support to the
third sector. More often than not, it presents limited to no company engagement after the
monetary aid is granted so long as the donation is used for the benefit of the common
good or a certain project. Though the benefactor may ask for the project’s progress
report, the beneficiary, normally a non-government organization (NGO) or a commune is
given the power to carry out its tasks with no donor consultation. A manifestation of this
may include a corporation giving a check in the name of philanthropy.

36. Then, it is responsibility-sharing. There are cases wherein companies involve the
consumers in their CSR efforts. This concept of responsibility sharing allows for their
patrons to be part of the solution for the problem the company wishes to alleviate. Here,
the firm informs their consumers of the crisis, and asks them to partake in its attempt to
solve it. An example of this scenario is that of a commercial airline in the Philippines.
Together with the World Wide Fund for Nature (WWF), travellers are urged to offset the
carbon emission of their flight by donating a minimal amount to the aforementioned non-profit
organization. The collated donations are then directed to a specific project site that
concentrates on mitigating as well as adapting to the effects of climate change.
Next is financial allotment and employee involvement. A number of companies
have opted to involve their employees in their CSR efforts. Coupled with allocating
budget to carry out the task of improving lives, management empowers their workforce to
be engaged. This tactic often forms part of a company’s employee retention program. It
allows the workforce to experience work on the ground, hence creating a sense of affinity
towards the community-building program, and ultimately a loyalty of some sort towards
xxxvi
the company.
Last is the revamping the system. While there has been much debate on this,
corporations have committed to reviewing their business processes. This type may come
in the form of “greening the supply chain” as to lessen the carbon emissions of their
industry or choosing to adopt community-based products to aid in local trade.
The scenarios above indicate a lot of work. And for businesses, work means
investing in additional manpower, a wider workspace, office equipment, to name a few.
If not the former, it means supplying a charitable institution or a community with the

37. means for them to improve the issue they are motivated to ease. In short, more money to
shell-out to cover this need. With this added financial burden to a company’s bottom line,
xxxvii
why be involved in CSR?
Although the Philippine government has been conducting sessions on requiring
companies based in the country to aid in nation building through CSR activities, as of the
moment, the proposed ruling hasn’t been passed into law, therefore non-binding.
With the non-compulsory state of CSR in the country, we once again ask the
question of why invest in CSR.
Though CSR activities may be translated to tax breaks, these efforts in the
Philippines are often a combination of corporate ‘altruism’ and a marketing approach.
Companies who act upon their task of giving back to the community usually craft their
activities based on the sector of society wherein their products are centered on. For
example, publishing houses are often involved in the enhancement of education or tree
planting. The food industry advocates for the improvement of health and nutrition
especially amongst the lower stratum of the population. In addition, construction firms
work towards the building of homes for the homeless.
Corporations focus on the area wherein their expertise is most applicable. This
method for CSR provides for the exposure of the company not only through depicting a
positive image due their involvement in the improvement of lives, but also for advertising
of whatever item the company manufactures. For instance, a drug company who
organizes a medical mission will naturally use their products for the beneficiaries. They
may also opt to distribute the medicines they produce in hopes that those who receive
them will patronize it. This ‘hitting two birds with one stone’ approach has led many

38. businesses to embrace CSR. Because of this, it is possible that the spirit of CSR is often
xxxviii
lost.
Nonetheless, despite the intentions of the companies, one cannot deny that the
CSR efforts corporations perform play a part in the enhancement of lives. The factor that
separates CSR endeavors from each other is the depth of involvement. Ideally, deeds
implemented by companies should uphold sustainability. Sustainability in a sense that,
should the company put a stop on the program for whatever reason the beneficiaries
should be able to continue the undertaking. In effect, CSR should embody the quote “give
a man a fish and he will eat for one day, but teach a man to fish and he can eat for a
lifetime”. With that, education should be an integral component to the aforementioned
enterprise (Bretaña, 2011).
“The people’s buying power grows, your businesses grow, the market grows, and
everybody wins!” President Aquino arguing that companies not just to outdo each other
in marketing and advertising, but in corporate social responsibility as well. He reasoned
that corporate aid would help marginalized sectors to gain more purchasing power to buy
the companies’ goods and services.
Aquino was urging companies, during the 11th CSR Expo and Conference of the
League of Corporate Foundations, not just to outdo each other in marketing and
advertising, but in corporate social responsibility as well.
“Many of us see, in traditional and social media, how your companies compete
for attention and patronage by outspending each other in advertising and marketing. It
would be nice to see a spending war in the area of corporate social responsibility. As
well,” said Aquino.

39. Aquino reasoned that corporate aid would help marginalized sectors to gain more
purchasing power to buy the companies’ goods and services.
He noted that corporations should not separate their marketing operations from
consumers and government, calling for corporations to tie up with government to come
xxxix
up with CSR programs in the future.
“Let us talk. We will always be ready to work with corporations that want to go
the extra mile to reach out and empower the people in their respective communities. We
have always been about inclusive growth, and have always believed that a country must
move forward together,” the President said (GMA Network, 2013)
The leaders of some of the largest corporations in the Philippines at the time of
massive demonstration in the early 1970 following the imposition of Martial Law and the
adverse effect of oil shock that brought the Global Financial crisis pushed more Filipino
families into poverty. Thus in year 2000 onwards, pushed by new challenges such as
increasingly critical consumers of products and services who demand more from the
companies that produce them. Companies are now being scrutinized as never before and
they are made to measure up to standards of environmental sustainability, ethical
behavior and governance structures.
Questions arise on what else they can do to make poverty history given their
access to talent, resources, technology, information and capital. The quality of the
company’s response to these questions - the way they express corporate social
responsibility - has become as much of an asset as brands, plants and cash. Fortunately,
many corporations are already responding to these challenges. The battle cry now from

40. the top caliber businessmen operating in the Philippines and to inspire others to follow
suit to Corporate Social Responsibility to wit:
“Corporate Social Responsibility or “CSR” is doing your business responsibly. It
is going beyond compliance to the law, by becoming the supplier or service provider of
choice (provision of quality goods and services), employer of choice (fair to employees,
compliance with labor laws) and neighbor of choice (going beyond business to serve their
communities through corporate citizenship).”– Jaime Augusto Zobel de Ayala, Chairman,
Ayala Corporation. CSR is about giving back to the communities that we serve, sharing
with the less fortunate and being able to help our fellow countrymen. CSR of the past was
more of just philanthropy. But over the years, it has taken on a different meaning – all
good citizens should be involved in social responsibility (Emeritazornosa, 2010).
CSR (corporate social responsibility) is getting more and more popular. A few
years ago, most people had not heard of CSR. Today, it is a buzz-word in corporate
circles. It would be almost unthinkable for a corporation not to be involved in some form
of CSR. Most corporations realize that it’s not only good to give back to society but it’s
vital for a corporation to have an active CSR program. Lots have been written on how
CSR helps corporations in terms of profitability.
However, in dealings with different corporations on behalf of Goducate, Many
say that most of them do not look on CSR as a means to get a tax saving or publicity. The
vast majority are more concerned that their donation reaches the ones who really need the
help – whether or not they get a tax exemption or publicity. It is so encouraging to see
that most of the hard-nosed business leaders have real social responsibility! As Sam Yeo,
the Financial Director of Tien Wah Press (one of the world’s largest printers of high
xl

41. quality books) said to me: “We are more concerned that our donations get to the neediest
xli
recipients than about tax deductions.”
He realizes that the neediest recipients are usually found outside the wealthy city
of Singapore where his company operates. Therefore, when he helps the really needy
people in another country, his company will not get much publicity (if any at all!).
Furthermore when his company helps an organization like Goducate it will not get any
tax exemptions because Goducate is not a tax-exempt organization. He is fully aware that
Goducate chose not to apply for tax-exempt status in Singapore because it would then
have to spend the majority of its funds in Singapore which has one of the highest per
capital earnings in the world.
Building, maintaining and expanding a business takes a toll on society and the
environment, which is why plenty of corporate entities engage, not only in profit-generating
practices, but also in socially responsible programs. Enterprises give back to
the community for a variety of reasons, such as to improve the living standards of their
patrons, to make the economy they’re part of a healthier one, and to mitigate their
environmental impact. This way, they can be assured that their business is sustainable.
Corporate Social Responsibility is the way to accomplish this. In its most basic
definition, CSR is a business entity’s contribution to the development of a society.
According to the International Institute for Sustainable Development, key areas that CSR
addresses are “environmental protection and the wellbeing of employees, the community
and civil society in general, both now and in the future.”
When a company takes it upon itself to commit to a certain responsible
investment, it effectively communicates to its stakeholders—investors, employees,

42. suppliers, creditors, trade unions, community members, consumers, government agencies,
concerned non-governmental organizations and the public sphere—that it recognizes the
importance of social welfare and can be counted on to be part of the solution, make
xlii
ethical decisions and do the right thing.
Society at large benefits greatly with different CSR efforts by being ensured of
product safety and quality, having access to corporate-sponsored community education,
employment, housing and anti-poverty programs, being beneficiaries of employee
volunteer outreach activities and receiving charitable contributions (Biado, 2001).
Foreign Studies
Scholars and practitioners are increasingly focusing their attention on Corporate
Social Responsibility (CSR), because of its significant impact on organization’s
economic and financial performance (Luo and Bhattacharya, 2008). Companies are
increasingly incorporating social responsibility as an important aspect of corporate
management (Swaen and Chumpitaz, 2008). Corporate social responsibility refers to the
“obligations that companies have to integrate environmental and social parameters into
their modus operandi and long-term development policies” (Swaen and Chumpitaz, 2008,
Persais, 2002). Increasingly, society expects businesses to have an obligation to the
society in which they are located, to the people they employ, and their customers, beyond
their traditional bottom-line and narrow shareholder concerns (Senand Bhattacharya,
2001; Carroll, 1979; Jones, 1980; Maignan, Ferrell, and Hult, 1999). CSR became a
critical issue for organizations after financial scandals (e.g., Enron affair), social
problems (e.g., poor working conditions in developing countries), and environmental

43. disasters (e.g., Prestige shipwreck) which increased pressure on corporations through
increased media coverage and increased transparency requirements (Swaen and
Chumpitaz, 2008). Organizations are increasingly investing resources to demonstrate
their commitment, ethical outlook, and responsible behavior in this area (Decock-Good,
2000; Martinet and Reynaud, 2000). Researchers have established that CSR programs
indeed have a strong influence on consumers’ attitudes and behaviors towards products
and companies (Berens, Van Riel, and Van Bruggen, 2005; Senand Bhattacharya, 2001).
Extant research has also focused on the influence of CSR on brand image and consumer
trust (Wessels, 2003; Kennedy, Ferrell, and Le Clair, 2001), brand loyalty, firm’s
economic performance, and corporate success (Bibb and Kourdi, 2004; Reichheld and
Schefter, 2000). Prior studies have also reported that CSR activities help to build
company reputation, which also indicates company’s involvement in providing quality
services/products (Swaen and Chumpitaz, 2008). Customers often use corporate
reputation to assess products, with positive reputation resulting in higher perceptions of
product/service quality (Olson and Haddock, 1971; Shapiro, 1983). Researchers and
practitioners have understood the value of company’s socially responsible actions and its
impact on driving consumers’ purchasing decisions along with the traditional criteria of
price, quality and service (Swaen and Chumpitaz, 2008). Extant research has provided
substantial evidence that customer perception of corporate social responsibility influences
customer responses to products (Brown and Dacin, 1997), attitudes towards products
(Berens, Van Riel and Van Bruggen, 2005), identification with a particular company (Sen
and Bhattacharya, 2001), consumers’ behavioral intentions and actual behaviors
(switching behavior; consumer defection; repeat patronage and recommendation
xliii

44. intentions) (Vlachos et al., 2009). However, scholars have called for more empirical work
in this area as most studies lack empirical support, or findings are mixed (Vlachos et al.,
2009). Therefore, there is a need to further test these proposed relationships. Perspectives
and mixed results call for more detailed investigation of the interaction effects of
perceptions of service quality and CSR on customer attitudes and behavioral intentions.
Most CSR related studies has been done in product-based industry, prompting
investigation in service-based industries. Although few initiatives have been taken in
service context, there is no explicit argument provided why such relationships might be
different and/or important in a service-based industry compared to a product-based
industry. The current study makes an attempt to fill this gap in the literature. One of the
critical reasons for the initiation of the CSR programs was to keep a check on
multinational companies from exploiting human resources in developing nations. “CSR is
an over-arching strategic concept that is rooted in globalization; the desire to control
multinational companies’ activities; and the international community’s self-imposed goal
of sustainable development. It brings into the business arena a number of previously
distinct themes: human rights, labor standards, environmental protection and sustainable
development, consumer protection and more recently, the fight against corruption and
corporate governance” (D’ Hamale, 1999). However, CSR research has mostly ignored
the perspective of globalization. The present study makes a contribution to the literature
xliv
by incorporating this perspective.

45. xlv
Local Studies
In the Philippines, more consumers are willing to pay for goods and services
offered by companies that have implemented social programs in their target communities,
a recent Nielsen survey showed.
The Nielsen Global Survey on Corporate Social Responsibility (CSR) revealed
that 7 out of 10 Filipino consumers today, or 71%, will spend more for goods and
services offered by businesses known to engage in activities that "give back to society."
This is up from 68% a year ago. "The positive view of Filipino consumers towards
corporate social responsibility runs high," said Stuart Jamieson, managing director of
Nielsen Philippines.
According to Jamieson, to attract socially conscious consumers, he said
companies should work on two key things: (1) Genuine CSR programs, as opposed to
those that merely get talked about but not done and (2) The alignment of those programs
with the company's vision, values and business objectives.
Among Southeast Asian nations surveyed by Nielsen, the top 3 with consumers
showing strong willingness are Philippines (71%), Thailand (68%), and Indonesia (66%).
Meanwhile, consumers who said they "had spent" on goods and services offered by CSR-driven
companies are from Thailand (66%), Philippines (64%) and Indonesia (56%).
Jamieson urged companies to "re-access responsibility, work towards sustainable
innovation and develop clear and strong messaging." (Loresco, 2011)
Several cross-sectional studies spanning firms across different industries have
correlated CSR performance with financial performance. The correlation is often
positive, but there are also several negative and insignificant effects. Add to these mixed

46. results the ambiguous direction of causality (meaning, does good corporate citizenship
lead to better financial returns or do financially sound companies devote more resources
to CSR?); the inconsistency among studies with respect to which CSR dimensions do and
do not generate positive returns; and that different stakeholder groups respond differently,
and it becomes clear that we don't really know much about whether, how, and how much
xlvi
CSR benefits a company.
We set out to answer this question for a major sector of the economy, consumer
goods retail. We collected field data from more than 3,000 grocery shoppers regarding
the major grocery retailers in their markets. We measured their perceptions of retailers'
CSR on four dimensions, as well as other attributes such as price, merchandise quality,
service and assortment. We then estimated a model of how these variables affect
consumers' attitudes toward the retailers and their share of wallet. Here is what we found.
First, all four dimensions of CSR performance -- environmental friendliness,
treating employees fairly, community support, sourcing from local growers and suppliers
-- positively influence consumers' attitudes toward a retailer. But consumers seem to
modify their purchase behavior only when the CSR domain directly affects their actual
experience with the company or brand. In our context, broad initiatives like
environmental friendliness and community support build only goodwill, but initiatives
like offering locally sourced products and fair employee compensation -- actions related
directly to the products and people that consumers face -- bring both goodwill and a
higher share of wallet from consumers.
Second, this economic return is significant and meaningful. For instance, if a
retailer is able to improve consumers' perception of its fair treatment of employees by one

47. point on a five-point scale, the consequent increase in share of wallet is approximately
1.7 percentage points. The gain from a similar improvement in local sourcing is even
more pronounced at more than 2 percentage points. These numbers appear small, but they
represent a sales lift of 10% to 15% for the average retailer in our study.
Third, if a retailer chose to leverage its improved CSR perception into higher
prices rather than higher share of wallet, the calculations from our model show that a one-unit
increase in employee fairness perceptions translates to a price premium of about
12%, and a similar increase in local product sourcing translates to a price premium of
xlvii
about 16%.
Consumers patronize the company because they see personal benefits from the
CSR initiatives and because the initiatives resonate with their own values. We find that as
much as 15% of the share-of -wallet gain from the perception of employee fairness
accrues through improved perceptions of price fairness. Like the direct effect, this
indirect benefit is not equal across different CSR initiatives. There is no indirect benefit
of local product sourcing -- indeed, price fairness perceptions are not better for
companies that offer locally produced products.
Poll results of the 2009 Reader’s Digest Trusted Brands Survey in the Philippines
showed that consumers consider corporate social responsibility (also called corporate
philanthropy) as a significant factor that influences purchasing behaviors. The survey was
an indication that most consumers patronize businesses that are actively reaching out to
the society’s marginalized sectors.

48. About 55% of the respondents see CSR as an important factor that should be
looked at when deciding which brands of products to buy. About 44% thinks CSR is
more than important. Thus, a whopping 99% of respondents share the same views.
The 2009 survey was trend-setting in that it was the first year that the poll added
CSR as a benchmark to the survey. The Reader’s Digest Trusted Brands Survey said the
action speaks of the organization’s belief that CSR is significantly affecting consumers’
perception about the brands, the community, the employees, and the environment.
Last year, the survey identified good customer service as a prime factor that
affects consumer behavior. The poll result this year also synchronized survey results
across Asia, where in totality, 78% of respondents think CSR influences purchasing
decisions of consumers (Humarang, 2009).
A prominent feature in the CSR process is the corporate foundation or the
founding family's charity arm. Just like in the 2007 survey, the foundation is involved in
xlviii
all aspects of the CSR process in 2011.
While the board and the top management officials planted the CSR seed when
they initiated it in the organization, it is usually the foundation that brings the companies’
CSR activities into fruition. After all, the community where the business operates, and
usually the target of foundation work, was cited as the main beneficiary of the
companies’ CSR by a whopping 95% of the respondents.
Mutually beneficial relationship with the host community is a major measurement
of CSR success. A hefty 70% of the respondents said community acceptance is their main
goal. Another 22% considered “unhampered operations” important. These usually refer to
companies that have operations in poor communities, most of them in far-flung areas.

49. They aim to keep their equipment free from bomb blasts, their executives’ safe, among
others, "The community is our best security," explained Senen Bacani, president of La
Frutera, which has a vast banana plantation in a Maguindanao, a region in the south
where rebels operate nearby. "Not only is there no disruption in our business operations,
but in a way our good name is very important in the business community because it really
adds more to the credibility of what the company is doing." (Rimando, 2007)
In Philippine setting, seven out of 10 Filipino consumers are willing to pay more
for goods and services from companies that have implemented programs to give back to
society, an increase of three points from 2011, according to a new study from Nielsen, a
leading global provider of information and insights into what consumers watch and buy.
In the Nielsen Global Survey on Corporate Social Responsibility in which more
than 29,000 Internet respondents were surveyed in 58 countries, 75 percent of surveyed
consumers from India showed the strongest willingness to spend more for goods and
services from socially-responsible companies.
Consumers from the Philippines' neighboring countries in Southeast Asia,
Thailand (68%) and Indonesia (66%) likewise indicated strong willingness.
''The positive view of Filipino consumers towards corporate social responsibility
runs high. In order to continue getting the support of consumers, authenticity is key.
Companies should ensure that their social impact programs remain true to the company's
vision, values and business objectives,'' says Stuart Jamieson, managing director of
xlix
Nielsen Philippines.

50. Synthesis and Relevance of the Reviewed Literature
According to Kotler and Lee (2005), Corporate Social Responsibility is a difficult
concept to pin down as it overlaps with other such concepts as sustainable business,
corporate citizenship and business ethics (Moon, 2002).According to Mohr, Webb and
Harris (2001), CSR is a company’s effort and responsibility to reduce or avoid harmful
effects and to maximize its long run positive and useful impact on society. In spirit CSR
speaks of organization’s reaction to social plans. Earlier Organizations were considered
only as profit maximizing entities. However, with a change in the structure of business
environment, the role of organizations has altered dramatically. Today, organizations are
an essential part of social life (Karaibrahimoglu, 2010). CSR is basically a tool for
organizations to carry out diverse activities to fund and resolve social problems and to
fulfill their commitment towards society. It also allows the organizations to generate and
assign the resources in effective and efficient way (Petrick and Quinn, 2001). So is one of
the best tools to gain competitive advantage (Porter and Kramer, 2002). Due to this
reason CSR is quickly gaining importance as more and more firms are realizing its value.
CSR initiatives and actions are not only about charity but about transforming these ideas
into useful business strategies. CSR driven efforts does not only relate to make a
contribution by donating money but it speaks of incorporating societal and moral
practices into business strategies that help the consumers in building a optimistic brand
image. Research has shown that socially responsible activities of a firm enhance the
brand image of the firms‟ goods as well as the general image of the firm.
Brand image is an important concept in consumer behavior studies since the early
1950s (Li, Wang andCai, 2011). Levy (1959) proposed the concept of brand image and
l

51. suggested that merchandises have societal and emotional characteristics and consumers
develop emotional connections with the brands. Brand image is the most vital part of
brand equity as brand image comprises of all links in the mind of consumers
interconnected to that brand. So if anything which has an influence on a business from
consumer's point of view is brand image. The brand image of a popular brand is a
valuable business asset as consumers identify products and services more easily through
the respective brands. These perceptions which are grounded on connections between
characteristics and the brand name are normally stated as the brand’s image (Keller,
1993). So, brand image is basically a perception of a brand held in the memory of a
customer and it reveals a customer’s general impression. Nowadays a brand is not
considered just as logo but it is more likely taken as a carefully scored experience which
is supported by huge marketing budgets, action and cultured mindset. A positive brand
image can be taken as a capability of a firm to hold its market position(Wu, 2011).A
positive brand image helps to increase numerous outcomes such as customer’s
contentment, service superiority, loyalty and repurchasing intention (Lai, Griffin and
Babin, 2009). Therefore, much of the marketing struggle is focused on building up
perceptions about the brand in the memory of a consumer. CSR could be a beneficial for
building a positive brand image and building consumers‟ positive attitudes so it is a key
source of competitive advantage. Endorsing brand image with the help of CSR initiatives
assures positive comments and eventually has a positive impact on the brand because a
firm is crystal clear about its external communications as well as internal practices.
li

52. In connection with the above-mentioned explanation, the impact of Corporate
Social Responsibility Programs in building a positive brand image is a significant factor
to clearly assess the consumer buying behavior.
lii

53. Chapter 3
METHODOLOGY OF RESEARCH
This chapter contains the research method used, population, sampling design and
sample size, description of subjects, utilized research instrument, validation of the
research instrument and data gathering procedure.
liii
Method of Research
Descriptive Survey Method was used in this study. This particular design of
research is concern with the present phenomena in terms of conditions, practices beliefs,
processes, relationships or trends invariably termed as “descriptive survey study”.
According to Dr. Y.P. Aggarwal (2008) descriptive research is devoted to the gathering
of information about prevailing conditions or situations for the purpose of description and
interpretation. This type of research method is not simply amassing and tabulating facts
but includes proper analyses, interpretation, comparisons, identification of trends and
relationships.
Moreover, it is concerned not only with the characteristics of individuals but with
the characteristics of the whole sample thereof. It provides information useful to the
solutions of local issues (problems).
The survey research employs also applications of scientific method by critically
analyzing and examining the source materials, by analyzing and interpreting data, and by
arriving at generalization and prediction. Since, the present study was undertaken to study
the Impact of Nestle Philippines’ Corporate Social Responsibility Programs on Consumer

54. Buying behavior. Hence, the descriptive survey research method was adopted.
Population, Sample Size and Sampling Technique
Beneficiaries of the Corporate Social Responsibility programs of Nestle
Philippines are the subject of this research considering the gained experience of each
individual with the company’s several community activities which is a contributing factor
in evaluating and assessing the programs the business organization is doing.
Cluster Sampling was employed in the selection of samples. The population is
properly divided per cluster by the residence area of the researchers. Below is the table
showing the number of samples per researcher and the specific area where the final
liv
subjects were obtained.
Table 1
Total Number of Respondents
NAME OF THE
RESEARCHER
RESIDENCE AREA NUMBER OF SAMPLES
OBTAINED
Abongan, Kimberly Cembo, Makati City 20
Aguilar, Trixia Camille First West Crame, San Juan
City
20
Arazon, Reymart SFDM, Quezon City 20
Nonato, Chezka Marie Rosario, Pasig City 20
Olinio, Aileen Brgy. San Jose, Antipolo
City
20
Relator, Rochelle Tondo, Manila 20
Sempio, Leslie Anne San Franciso Del Monte,
Quezon City
20
Suganob, Diana Mae Pulanlupa I, Las Piñas City 20
TOTAL SAMPLES 160

55. lv
Description of Subjects
As mentioned above, consumer-beneficiaries of the Corporate Social
Responsibility programs of Nestle Philippines are the subject of this research. They were
divided accordingly based on cluster or area where the researchers are living. Each
proponent was asked to gather data from 20 respondents accumulating to 160 total
respondents for this study.
Research Instrument
The instrument of the research includes the phases or aspects of the instruments,
the items, how items were selected and validated, and the number of items. Data were
gathered utilizing the survey method. The subjects were asked to answer a questionnaire
prepared by the research proponents. This questionnaire was also translated to Filipino
for the convenience of the respondents.
To assure the confidentiality of the research, respondents were screened first
before answering the questionnaire.
The first part of the questionnaire is the personal data sheet or the profile. This
part seeks for information as regards with age, sex, educational attainment and
occupational state which served as the variables for this study.
The second part of the questionnaire contains the different corporate social
responsibility programs of Nestle Philippines. This aims to check the level of awareness
of the respondents with the different social initiatives of the company. The following
table shows the rating used:

56. Table 2
Parameters for Awaness Level Check
MARKA (Rating) MGA PANUKAT (Parameters)
1 Lubos na May Nalalaman Fully Aware
2 May Nalalaman Aware
3 Walang Masyadong
Nalalaman
lvi
Less Aware
4 Walang Nalalaman Unaware
5 Lubos na Walang Nalalaman Fully Unaware
The third part involves the evaluation of the effectiveness of the corporate social
responsibility programs of Nestle Philippines on Nutrition, Environment and Rural
Development which were evaluated by the respondents through the following parameters:
Table 3
Parameters for the Degree of Effectiveness of Nestle Philippines’ CSR Programs on
Nutrition, Environment and Rural Development
MARKA (Rating) MGA PANUKAT (Parameters)
1 Lubos na Epektibo Strongly Effective
2 Epektibo Effective
3 Di-Gaanong Epektibo Less Effective
4 Hindi Epektibo Ineffective
5 Lubos na Hindi Epektibo Strongly Ineffective
The last part of the questionnaire comprises the assessment of the impact of
corporate social responsibility on consumer buying behavior particularly with the
beneficiaries’ brand loyalty and trust, its effect on their perception of brand equity and
purchase intention.

57. Table 4
Parameters for Assessment of the Impact of Nestle Philippines’ CSR Programs on
Consumer Buying Behavior
MARKA (Rating) MGA PANUKAT (Parameters)
1 Lubos na Sumasang-ayon Strongly Agree
2 Sumasang-ayon Agree
3 Di-Gaanong Sumasang-ayon
lvii
Less Agree
4 Hindi Sumasang-ayon Disagree
5 Lubos na Hindi Sumasang-ayon
Strongly Disagree
The questionnaire was validated through presenting the questions to Professor
Estelita E. Medina, the subject adviser in Fundamentals of Research for initial evaluation,
checking of errors, and was revised for improvement.
For final checking and validation of the questionnaire, it was presented to Dr.
Lincoln A. Bautista, the Director of the Institute of Data and Statistical Analysis of the
Polytechnic University of the Philippines, Manila.
The researchers were directed to conduct a pilot run which objects to test the
degree of difficulty of the questionnaire. It was conducted at the PUP Main Campus with
20 different marketing students who are also beneficiaries of Nestle Philippines’
corporate social responsibility programs. The following results were obtained based on
the time duration the participants have answered the research instrument. The Average

58. Time of answering is 4.96 minutes according to the computation done by the proponents.
lviii
(See Appendices for the results)
Data Gathering Procedure
Following the approval of the research adviser and the validation of the
University Statistician, the proponent of the study reproduced copies of the questionnaire
and distributed by cluster to the based on the corresponding sample size divided per
researcher. The data gathered were based on the tally of frequency and percentage. The
resulting figures would then be presented in tables to be the basis of interpretation.
Statistical Treatment of Data
After the survey questions were accomplished by selected respondents from the
area of residence of the researchers, the proponents have processed the data gathered
through identifying the percentage:
Where : P = Percentage
n = number of Respondents
N = Total number of Respondents
100= Given as constant
Computation regarding the assessment of the effectiveness and impact of Nestle
Philippines Corporate Social Responsibility Programs on Consumer Buying Behavior

59. was done with the help of the University Statistician. Standard deviation was measured to
determine the range of the respondents’ answer and the weighted mean was also acquired
for conclusion. The table below was used to ascertain the results of the study.
Table 5
Basis for Statistical Interpretation and Discussion
Range Scale Verbal Interpretation
1 Fully Unaware 1.00 - 1.49 1 Fully Unaware
1.5 Unaware
1.50 - 2.49 2 Unaware
2.5 Less Aware 2.50 - 3.49 3 Less Aware
3.5 Aware
3.50 - 4.49 4 Aware
4.5 Fully Aware 4.50 - 5.00 5 Fully Aware
Range Scale Verbal Interpretation
lix
1
Strongly
Ineffective
1.00 - 1.49 1 Strongly Ineffective
1.5 Ineffective 1.50 - 2.49 2 Ineffective
2.5 Less Effective 2.50 - 3.49 3 Less Effective
3.5 Effective
3.50 - 4.49 4 Effective
4.5 Strongly Effective 4.50 - 5.00 5 Strongly Effective
Range Scale Verbal Interpretation
1 Strongly Disagree 1.00 - 1.49 1 Strongly Disagree
1.5 Disagree
1.50 - 2.49 2 Disagree
2.5 Slightly Agree 2.50 - 3.49 3 Slightly Agree
3.5 Agree
3.50 - 4.49 4 Agree
4.5 Strongly Agree 4.50 - 5.00 5 Strongly Agree

60. Chapter 4
PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA
This chapter presents the results of the conducted study. It shows the complete
data regarding the respondents’ profile down to the impact of Nestle Philippines’
Corporate Social Responsibility Programs on Consumer Buying Behavior.
Table 6
Age of Respondents
Age Frequency Percentage
17 years old and below 32 20.65
18 - 25 years old 84 54.19
26 - 33 years old 17 10.97
34 - 41 years old 11 7.10
42 - 49 years old 5 3.23
50 years old and above 6 3.87
Total 155 100.00
The table above presents the age range of the respondents. It was noted that fifty
four point nineteen percent (54.19%) or 84 people were between 18 to 25 years old.
Twenty point sixty five percent (20.65%) or 32 respondents were at the age bracket of 17
years old and below. Ten point ninety seven percent (10.97%) or 17 individuals were
between 26 to 33 years old. Seven point ten percent (7.10%) or 11 respondents were 34
to 41 years old. On the other hand, 3.87% or 6 individuals were 50 years old and above.
Then, three point twenty three percent (3.23%) or 5 respondents were aged 42 to 49 years
lx
old, for a total of 100% or 155 respondents.

61. The apparent diversity of the maturity of the respondents reflects several
implications in the study's findings. It can be generalized that most of the respondents
lxi
were at the age of 18 to 25 years old.
Table 7
Gender of Respondents
Sex Frequency Percentage
Male 44 28.39
Female 111 71.61
Total 155 100.00
The data above show the gender division of the respondents. Seventy one point
sixty one percent (71.61%) or 111 of the respondents were female while twenty eight
point thirty nine percent (28.39%) or 44 of the subjects were male.
It was clearly noted that the most number of respondents participated in the study
were female.
Table 8
Educational Attainment of Respondents
Educational Attainment Frequency Percentage
Elementary Graduate 14 9.03
Secondary Graduate 70 45.16
College Graduate 71 45.81
Total 155 100.00
This table illustrates the educational attainment of the respondents. It was clearly
noted that forty five point eighty one percent (45.81%) or 71 of the respondents were

62. college graduate, while forty five point sixty one percent (45.61%) or 70 of the subjects
were secondary graduates and nine point three percent (9.03%) or 14 individuals were
lxii
elementary graduates.
It is evident that the most number of respondents participated in the study were
college graduate.
Table 9
Occupational State of the Respondents
Occupational State Frequency Percentage
Student 105 67.74
Employed 34 21.94
Unemployed 16 10.32
Total 155 100.00
The above-showed data presents the occupational state of the respondents. It was
clearly noted that sixty seven point seventy four percent (60.74%) or 105 respondents
were students, twenty one point ninety four percent (21.94%) or 34 of the subjects were
employed, while ten point thirty two percent (10.32%) or 16 respondents were
unemployed.
It is noticeable that the most number of respondents participated in the study were
students.

63. Table 10
Result of Nestle Philippines’ Corporate Social Responsibility Programs
Awareness Level Check
lxiii
Corporate Social
Responsibility
Programs
Fully
Aware
Aware
Less
Aware
Unaware
Fully
Unaware
SD WM VI
5 4 3 2 1
Frequency
Nutrition 1.081 3.23
Less
Aware
1. Laki sa Gatas:
Putting Milk at the
Heart of Good
Nutrition for Growing
Children
45 34 32 19 25 1.427 3.35
Less
Aware
2. Libreng Check-Up:
“Choose Wellness,
Choose Nestlé” at the
Trade
38 34 38 26 19 1.335 3.30
Less
Aware
3. Morning Exercise at
Makati Park: Making
Wellness the Lifestyle
Choice of Filipinos
27 27 49 27 25 1.304 3.03
Less
Aware
Environment 1.253 3.23
Less
Aware
4. Conserving Water
Program (Programa
ukol sa Pagtitipid ng
Tubig)
38 30 39 28 20 1.350 3.25
Less
Aware
5. Spreading Water
Awareness
(Pagpapabatid sa
Kahalagahan ng
Tubig)
28 41 39 30 17 1.259 3.21
Less
Aware
Rural Development 0.952 3.15
Less
Aware
6. Micro-
Distributorship
Program (Mga Ice
Cream Cart Vendor na
nag-iikot sa bawat
bayan)
39 36 35 32 13 1.289 3.36
Less
Aware
7. Nestlegosyo:
Helping Small Stores
Boost Business
12 33 60 32 18 1.094 2.93
Less
Aware
OVERALL: 0.918 3.20
Less
Aware

64. The table above shows the result of Nestle Philippines’ Corporate Social
Responsibility Programs awareness level check. It was clearly noted that the respondents
are less aware of the company’s nutritional programs particularly of Laki sa Gatas:
Putting Milk at the Heart of Good Nutrition for Growing Children, Libreng Check-Up:
“Choose Wellness, Choose Nestlé” at the Trade, and Morning Exercise at Makati Park:
Making Wellness the Lifestyle Choice of Filipinos.
It is also noticeable that the consumers are less aware of the environmental
programs like Conserving Water Program (Programa ukol sa Pagtitipid ng Tubig) and
Spreading Water Awareness (Pagpapabatid sa Kahalagahan ng Tubig).
The record also indicates that customers are less aware of the rural development
initiatives of Nestle Philippines namely Micro-Distributorship Program (Mga Ice Cream
Cart Vendor na nag-iikot sa bawat bayan) and Nestlegosyo: Helping Small Stores Boost
lxiv
Business.
It can be generalized that the consumer-beneficiaries are less aware of Nestle
Philippines’ Corporate Social Responsibility Programs.

65. Table 11
Source of Awareness of Respondents with Nestle Philippines’ Corporate
Social Responsibility Programs
How did you know that Nestle
Philippines has Corporate Social
Responsibility programs?
lxv
Frequency Percentage
Family 31 20.00
Friends 42 27.10
School 49 31.61
Government Councils 33 21.29
Total 155 100.00
The table above illustrates the Source of Awareness of Respondents with Nestle
Philippines’ Corporate Social Responsibility Programs. It was clearly noted that thirty
one point sixty one percent (31.61%) or 49 respondents got aware with the company’s
CSR programs through the school, while twenty seven point ten percent (27.10%) or 42
of the subjects were informed by their friends.
It is also visible that twenty one point twenty nine percent (21.29%) or 33 were
educated with the help of government councils, thus, twenty percent (20%) or 31
individuals were got conversant through family.
Based on the mentioned results, the school is the first-hand source of awareness of
respondents with Nestle Philippines Corporate Social Responsibility Programs.

66. Table 12
Encounter Frequency of Respondents with Nestle Philippines’ Corporate
Social Responsibility Programs
How often do you witness/join the
Corporate Social Responsibility
programs of Nestle Philippines?
Frequency Percentage
Weekly 18 11.61
Monthly 19 12.26
Quarterly 7 4.52
Yearly 22 14.19
Seasonal 89 57.42
Total 155 100.00
The report above clearly states the encounter frequency of respondents with
Nestle Philippines’ Corporate Social Responsibility Programs. It was clearly noted that
fifty seven point forty two percent (57.42%) or 89 of the respondents encountered these
programs seasonal. Fourteen point nineteen percent (14.19%) or 22 of the subjects
experienced those yearly, while twelve point twenty six percent (12.26%) or 19
individuals witnessed the company’s initiatives monthly.
It is also noticeable that eleven point sixty one percent (11.61%) or 18
respondents joined with the CSR Programs of Nestle Philippines weekly, thus, four point
fifty two percent (4.52%) or only 7 persons said that they encounter these social activities
lxvi
quarterly.
It can be generalized that the Encounter Frequency of Respondents with Nestle
Philippines’ Corporate Social Responsibility Programs is seasonal.

67. Table 13
Result of the Effectiveness of Nestle Philippines’ Corporate Social
Responsibility Programs on Nutrition, Environment and Rural Development of
Consumer-Beneficiaries
lxvii
Degree of
Effectiveness
Strongly
Effective
Effective
Less
Effective
Ineffective
Strongly
Ineffective
SD WM VI
5 4 3 2 1
Frequency
Nutrition 1.190 3.38
Less
Effective
1. Informing you
about the status of
your health
43 46 29 19 18 1.326 3.50
Less
Effective
2. Helping you to
have a healthy
body
48 43 24 22 18 1.364 3.52 Effective
3. Providing an
avenue for a diet
23 40 43 32 17 1.221 3.13
Less
Effective
Environmental Sustainability 1.082 3.32
Less
Effective
4. Helping in
taking care of the
environment
28 44 45 26 12 1.178 3.32
Less
Effective
5. Conducting
programs about
water conservation
26 43 49 24 13 1.168 3.29
Less
Effective
6. Good
implementation of
nourishing water.
25 48 48 23 11 1.131 3.34
Less
Effective
Rural Development 1.122 3.26
Less
Effective
7. Helping in
improving the
means of living of
the community
people
24 44 46 31 10 1.140 3.26
Less
Effective
8. Giving hope to
those who are less
fortunate
28 37 52 27 11 1.161 3.28
Less
Effective
9. Providing an
additional source
of income to those
who are in-need
28 37 48 27 15 1.216 3.23
Less
Effective
OVERALL: 1.061 3.32
Less
Effective

68. The aforementioned data show the result of the effectiveness of Nestle
Philippines’ Corporate Social Responsibility Programs on Nutrition, Environment and
Rural Development of consumer-beneficiaries. It was clearly noted that the aim of
company’s nutritional programs particularly in informing about the status of consumer’s
health and providing them an avenue for a diet are less effective, while helping the
consumers to have a healthy body was recorded as effective.
It is also noticeable that the objectives of the environmental programs like helping
in taking care of the environment, conducting programs about water conservation and
good implementation of nourishing water are less effective.
The record also indicates that the agenda of the rural development initiatives of
Nestle Philippines are less effective specifically in helping to improve the means of living
of the community people, giving hope to those who are less fortunate and providing an
additional source of income to those who are in-need.
Though the activities help the consumers to have a healthy body, it can be
generalized that the Nestle Philippines’ Corporate Social Responsibility Programs are
less effective in terms of Nutrition, Environment and Rural Development of consumer-beneficiaries.
lxviii

69. Table 14
Result of the Impact of Nestle Philippines’ Corporate Social Responsibility
Programs on Consumer Buying Behavior
The table shows the result of the impact of Nestle Philippines’ Corporate Social
Responsibility Programs on consumer buying behavior. It was clearly noted that
lxix
Impact of Social
Responsibility
Programs of Nestle
Philippines on
Consumer Buying
Behavior
Strongly
Agree
Agree
Moderately
Agree
Disagree
Strongly
Disagree
SD WM VI
5 4 3 2 1
Frequency
1. Nagiging positibo
ang iyong pagtingin sa
Nestle Philippines at
sa mga produkto nito.
(Brand Equity)
43 55 21 20 16 1.299 3.57 Agree
2. Naeeng-ganyo kang
bumili ng kanilang
produkto kapalit ng
iyong nakasanayang
ginagamit. (Brand
Switch)
32 52 36 23 12 1.196 3.45
Slightly
Agree
3. Mas nahihikayat
kang bumili nang
bumili ng kanilang
mga produkto. (Brand
Repeat Purchase
Intention)
32 54 37 21 11 1.170 3.48
Slightly
Agree
4. Umuusbong ang
iyong tiwala sa mga
produktong mayroon
sila. (Brand Trust)
35 51 31 23 15 1.259 3.44
Slightly
Agree
5. May paniniwalang
walang kahit anong
produkto ang
makakapalit sa
produktong iyong
ginagamit mula sa
Nestle Philippines.
(Brand Loyalty)
32 40 53 17 13 1.176 3.39
Slightly
Agree
OVERALL: 1.129 3.47
Slightly
Agree

70. consumers-beneficiaries agreed that the company’s CSR programs establish a good brand
rapport or brand equity. Thus, the respondents slightly agreed that the initiatives do
lxx
encourage brand switch.
It is also noticeable that customers slightly agreed that the CSR programs hype
the buyers to purchase more than the usual routine of procurement or brand purchase
intention.
The record also indicates that the respondents slightly agreed with Nestle
Philippines’ consumer-related activities’ ability to create brand trust as well as form
brand loyalty.
Based on the above-mentioned discussion, it can be generalized that Nestle
Philippines’ Corporate Social Responsibility Programs have an impact on consumer
buying behavior particularly on the establishment of brand equity to consumer-beneficiaries.