Republic of the Philippines

CAVITE STATE UNIVERSITY

DON SEVERINO DE LAS ALAS CAMPUS
Indang, Cavite
(046) 415-0013 / (046) 415-0012
Email: www.cvsu.edu.ph

Corporate Social Responsibility A case study

of Lamoiyan Corporations CSR

Submitted by:
GRACE JOY P. CRUZ
ROSIELYN P. BELLEN
JANICA H. FANTILAGA
CLIAN B. ORTEGA
SHAIRENE T. PAPA
ALYSHA KIELL R. PEJI
MARIFEL P. PURA
BSBM3-FM4

Submitted to:
MA. GRASYA TIBAYAN
Background of the Study

Like Jollibee in fast food and Bench in fashion, Hapee has become a progressive
homegrown Filipino brand competing directly with top multinational brands. The prime mover
behind Hapee toothpaste is entrepreneur Dr. Cecilio Kwok Pedro, president and chief executive
officer of Lamoiyan Corporation. He started out in the 1970s as aluminum toothpaste tubes
manufacturer to the multinational firms like Colgate-Palmolive Co. and the Philippine Refining
Company (PRC) now Unilever Group.

In 1985, the multinationals started changing their toothpaste packaging from aluminum to
plastic tubes, so Pedro was stuck with industrial equipment but no customers, plus a stockpile of
aluminum tubes. Faced with this crisis, he decided to venture into toothpaste manufacturing with
affordable Hapee and Kutitap brands. Lamoiyan, the firm name, came from the name of Pedros
beloved grandmother, a gesture of filial love.

A distinctive homegrown consumer brand in Philippine business, Hapee toothpaste and

its founder Cecilio Kwok Pedro is this year celebrating the brands 29th anniversary, not just of
flourishing business, but also of diverse civic undertakings through their strong corporate social
responsibility (CSR).

A Christian entrepreneur who passionately believes in private business with a social

conscience, Cecilio K. Pedro has supported the international non-governmental organization
(NGO) Operation Smile Philippines to care for children afflicted with oral cleft. The company
partnered with the organization to put up the first Cleft Palate Care Center in the country that is
located in Sta. Ana Hospital in Manila. Lamoiyan Corporation put up an adjacent dental clinic to
serve the patients of the center as well. According to Lamoiyan Corp., Every child deserves a
happy smile. His factory is unique and noted for employing a lot of hearing-impaired people,
who make up about 30 percent of their total workforce and who receive equal opportunities.

Another initiative of Lamoiyan Corp. is to help many Filipinos who are in need of better
dental care that could be given through proper education and regular check-up. Each year,
Lamoiyan Corporation supports various groups, organizations, and government agencies, in their
dental outreaches particularly to marginalized communities around the country. The outreaches
include basic dental work, from teeth cleaning to extraction. A part of their objective is to also
teach communities about proper brushing and care for their teeth. The company extends support
by providing supplies, equipment, and in some instances, manpower. This is in line with the
companys belief that healthy teeth lead to a healthy and productive life.
Other than dental missions, Lamoiyan Corporation supports the Clean Water Act of the
Philippines by using recycled waste water that is treated and disinfected for non-commercial
purposes in the office. It is the companys contribution to help promote and encourage protection
of the countrys natural resources. Around the Lamoiyan compound are lush gardens of
flowering plants and fruit baring trees. These are products of recycled waste water among other
things.
Since Lamoiyan Corp. has invested in an environmental CSR program, it will make sure
that its operations do not harm the environment in any way. Inventing machines and techniques
to reduce the harmful effects of its operational activities will give the community a clean
environment. It will also give the company a chance to explore the usage of renewable resources
for its operations.
Statement of the Problem

The study aims to determine how corporate social responsibility (CSR) initiatives affect
Lamoiyan Corporations performance and reputation. The study seeks to answer questions such
as;

a) What are the strengths, weaknesses, opportunities and threats of the Lamoiyan
Corporations CSR initiatives considering their stakeholders?
b) What benefits does Lamoiyan Corporation reap from engaging in CSR initiatives?

Objectives

The objectives of this study are;

a) To identify the strengths, weaknesses, opportunities, and threats of the Lamoiyan

Corporations CSR initiatives considering their stakeholders;
b) To identify the benefits of Lamoian Corporation from engaging in CSR initiatives;
SWOT Analysis

Strengths Weaknesses

Contribution towards society Lack of visibility factor between the

company and the general public
Enhanced reputation and brand image
Involves a lot of money to be spent
Sustainable development

Opportunities Threats

Building new business relationships Corruption risks

Better impact of brand image on the

minds of the consumers
So why CSR?

1. Equal employment opportunity policies and practices lead to satisfied employees.

One of the admirable company policies of Lamoiyan is its hiring the hearing-impaired,
who make up about 30 percent of their total workforce and who receive equal opportunities,
proper attention and training. According to Dr. Pedro, they have very good experiences with the
hearing-impaired as they are always among the top performers. Around six or seven of them are
in the Top 10 best performers. It is indeed very rewarding and fulfilling to provide jobs to people
who may not be as fortunate as us. At the same time, Lamoiyan was able to promote better
relationships and a culture of compassion and harmony inside the company. This is what makes
them different from the world and this is what they believe is making a difference for the glory
of God.
Employees want to feel proud of the organization they work for. An employee with a
positive attitude towards the company is less likely to look for a job elsewhere. It is also likely
that they will receive more job applications because people want to work for their company.
More choice means a better workforce. Because of the high positive impact of CSR on employee
wellbeing and motivation, the role of HR in managing CSR projects is significant.

2. Satisfied customers

CSR improves customers attitude towards the company. If a customer likes the company, he or
she will buy more products or services and will be less willing to change to another brand.
Consumers may choose to not do business with companies that have a reputation for being
socially irresponsible. Businesses that show a commitment to the community and the
environment can attract customers who share these values. The good the company does is part of
the perceived value of its products and services and can result in higher customer satisfaction.
These satisfied customers are likely to continue to do business with the company.

3. Positive PR

A good CSR program will always give good publicity and even act as an advertisement for the
company. CSR provides the opportunity to share positive stories online and through traditional
media. Lamoiyan no longer have to waste much money on advertising campaigns. Instead they
generate free publicity and benefit from worth of mouth marketing.

4. Costs reductions

Lamoiyan Corp. reduces costs by:

More efficient staff hire and retention. More choice means a better workforce. This has
something to do with hiring the hearing-impaired, who make up about 30 percent of their
total workforce and who receive equal opportunities. They are among the top performers,
according to Dr. Pedro.
Implementing energy-saving programs. Lamoiyan Corporation supports the Clean Water
Act of the Philippines by using recycled waste water that is treated and disinfected for non-
commercial purposes in the office. It is the companys contribution to help promote and
encourage protection of the countrys natural resources. Using recycled waste water will, of
course, result in cost reduction.
Less investment in traditional advertising. A good CSR program will always give good
publicity and even act as an advertisement for the company. Lamoiyan no longer have to
waste much money on advertising campaigns because they generate free publicity and
benefit from worth of mouth marketing.
Conclusion

There are different grounds for defining Corporate Social Responsibility (CSR).
However, one common ground on the basis of which is that CSR can be described as a voluntary
activity that a corporation does for its employees and society as a whole as well as the
environment around it for its operations and functions. It is what the corporation gives back to
the community after using its resources to make profits.
Corporate Social Responsibility is a very important part of Lamoiyans way of doing
business. In Lamoiyan Corporation, they believe that they can make their presence a blessing to
society. These activities are focused on dental missions, helping the deaf community and taking
care of the environment.
While it is valuable for a Lamoiyan to engage in CSR for altruistic and ethical
justifications, the highly competitive business world in which we live requires that, in allocating
resources to socially responsible initiatives, they continue to consider their own business needs.

Firms like Lamoiyan Corp. have a variety of reasons for being CSR-attentive. But
beyond the many bottom-line benefits outlined here, businesses that adopt CSR practices also
benefit our society at large.
 References

Flores, W. L. (2013, May 6). Lamoiyan/Hapee, 25 years of business & CSR success. The
Philippine Star. Retrieved from http://www.philstar.com

Lamoiyan Corporation. (2017, October 20). Retrieved from

http://en.wikipilipinas.org/index.php/Lamoiyan_Corporation

Lamoiyan Corporation: Together, we can make the difference for the Gloy of God. (2013,
May 3) Retrieved from http://www.lamoiyan.com/?page_id=44