DETERMINANTS OF FACTORS INFLUENCING SOCIAL RESPONSIBILITY PERFORMANCE IN BUSINESSES OF MARAWI CITY

Abstract

Along with the rising number of business enterprises, there is also a growing importance of social responsibility among businesses. However, there is a lack of visible CSR (Corporate Social Responsibility) initiative being implemented among the local business enterprises despite the known importance of CSR to a company's reputation and its impact to overall business success. Hence, this research sought to determine the various factors influencing social responsibility in businesses of Marawi City. This particularly includes the business profile, the level of understanding, the drivers and barriers, as well as the significant relationship of these factors with CSR initiatives. For this purpose, this study adopted quantitative-correlational type of research. Data was collected through a questionnaire from a 246 sample of businesses from different sectors in Marawi City. The data gathered was analysed using various statistical tools. The results of the study indicate that CSR activities are prevalent despite the fact that the majority of the firms operating within the city have a low net income. It was found that the firms' ability to participate in more CSR efforts were relevantly limited by lack of financial resources. The findings of this study also suggests that the belief that CSR is a form of charity is the most significant factor that drives the performance of CSR initiatives. The results of this study not only offer a deeper understanding of the factors affecting CSR implementation, but also proposes an Islamic CSR Framework that is in accordance with the practices valued by Muslim Maranao entrepreneurs.