Tag Archives: corporate social responsibility

Corporate Social Responsibility Pinoy Style


Communicating CSR programs in the Philippines would inevitably focus on the levels of interactions with the local community stakeholders. As a general rule, the firm needs to explore the meaning and experience of business-community relations at the local level, giving importance to the Filipino’s aspirations as a people. Knowing what kind of citizenship the firm will assume will determine greatly the CSR path it will pursue in the host community. Tapping into the wealth of values that the community espouses becomes useful when analyzing the multiple claims or interests that stakeholders hold while matching the citizenship role that the firm intends to assume.

To serve the company’s strategic business thrusts, CSR must be rooted in the nature and demands of its operations and reconciled with the needs and expectations of the stakeholders. Although laws and regulations dictate that the firm must comply, going the extra mile will provide added business security in the long run.

CSR and Filipino Psychology

The bayanihan spirit, the symbolic value of a community acting together to help its members, best captures the essence of Filipino generosity. Pakikipagkapwa (a shared sense of humanity),  pagtutulungan (mutual aiding), and kawanggawa (charity) are cultural traits that tend to underlie Filipino philanthropy.

bayanihan

 

According to Virgilio Enriquez, the Father of Filipino Psychology, Sikolohiyang Pilipino is defined as ‘‘the study of diwa (‘psyche’), which in Filipino directly refers to the wealth of ideas referred to by the philosophical concept of ‘essence’ and an entire range of psychological concepts from awareness to motives to behavior.” It is based on assessing historical and socio-cultural realities, understanding the local language, unraveling Filipino characteristics and explaining them through the eyes of the native Filipino. These resulted in a body of knowledge, which includes indigenous concepts and methods. This particular field of study is thus designed to be a psychology of, for, and by Filipinos, one appropriate and applicable to dealing with health, agriculture, art, mass media, religion, and other spheres of everyday life.

Filipino psychology locates the identity of the individual in terms of the web of his social relations. For instance, the experience may be a response to colonial oppression (Philippines was a colony of Spain for 300 years, USA for 30 years and Japan for 3 years during the occupation). In terms of areas of protest,Sikolohiyang Pilipino is against a psychology that perpetuates the colonial status of the Filipino mind. It is against a psychology used for the exploitation of the masses. Hence, CSR programs must treat community members as partners and not as passive recipients of dole outs.

Enriquez and his school of thought unfolded the concept of kapwa (shared identity), which is at the core of Filipino social psychology, and which is at the heart of the structure of Filipino values. He discovered that it is not maintaining smooth interpersonal relationships that Filipinos are most concerned with, but pakikipagkapwa, which means treating the other person as kapwa or fellow human being. In this realm, the Filipino views someone as ‘outsider (ibang tao) and ‘one of us’ (hindi ibang tao). Understanding the nuances of these perceptions will enable the communication of CSR program to be more effective because the rapport will have to be established at a higher level of personal interaction.

Some CSR Practices in the Philippines

Figaro Coffee: Saving Local Farmers

The Philippines was historically one of the world’s top producers of coffee, with export earnings of at least US$150 million before 1986. However, the situation started to decline in the 1990s until only 500kg per hectare can only be produced. This change affected 60,000–80,000 coffee families, the majority of which are small farmers. Demand had fallen because of imported Arabica and large-scale domestic production of Robusta by large corporations. In 1998, the Figaro Coffee Foundation was formed to boost Filipino coffee production, particularly Barako, the indigenous liberica coffee species grown in the southern regions of Luzon Island. The company’s view of its community has subsequently expanded from its consumers to the farmers that produce its products. While the task of rehabilitating the local coffee industry and saving the Barako remain challenging, Figaro and its various partners have developed the right channels and networks to solidify and integrate their efforts as a collective unit making longer-term success achievable.

FIGARO6

The ‘Save the Barako’ cause has somehow given the coffee added value as portion of the bean sales is channeled back to into a project to promote the revival of the Barako. The project encompasses awareness programmes, new plantings, research, and targeted marketing, and is coordinated with the Figaro Coffee Foundation. The waning supply of Barako beans prompted the company to be more aggressive in securing supplies. The ‘Save the Barako’ campaign is its showpiece effort, and has earned the company a reputation as a company that cares for the coffee farmer. More than just to sustain its core product or core business, Figaro has become the trailblazer on how ‘out of the box’ ideas can be used to encourage farmers to plant the Barako again, motivate local governments to do their part and get cooperatives working toward one goal.

 

Food Wrapped In A Leaf: The Story of Binalot

The Philippines is a culture of tradition. Its colorful and vibrant traditions are a product of many influences. Three hundred years of Spanish colonization inspired the local food and fiesta culture. The most popular form of public transportation is the Jeepney, an adapted military jeep left behind by the Americans after World War II. It was from this idea that the business of Binalot was created – a company that is both socially responsible and culturally sensitive. Binalot wanted to recreate and reintroduce a lost piece of Filipino culture to modern urban dwellers. The company also wanted to make Binalot the number one fast-food chain in the Philippines by promoting Filipino humor, values, and culture. Binalot started serving food to its customers the traditional way—wrapped in banana leaves.

Binalot

As the business grew, its founders realized that there was another, equally important purpose behind the business. What is uniquely Pinoy (slang for Filipino) is the practice of hospitality, that sense of community, and the strong belief that each is responsible for one another. In most villages, banana farmers earnings barely afford them the necessities of life. This led to creation of the Binalot Foundation to help farmers find diverse uses for the banana, such as making flavored banana chips or finding a bigger market for the banana flower as a vegetarian delight. The result was the Binalot DAHON community. DAHON is an acronym for Dangal at Hanapbuhay para sa Nayon, which means “Livelihood and Dignity for the Rural Community.” Under its CSR program, the company has helped the farming community by getting banana leaves direct from the farmers to eliminate the middlemen, and teaching the village women to cut and pack the leaves, which provides jobs. Soon, the women became more skilled and could finish the job in ninety minutes, and their rate of pay rose significantly. They also trained villagers to make banana chips, which were sold in Binalot stores, giving them another source of income. Binalot buys all the harvests from these communities, ensuring their market and income, and in turn, building a happy supply chain partner.

From the cases of Figaro and Binalot, one could observe the cultural underpinnings that drove both companies’ CSR programs.  CSR itself should be seen in socio-cultural terms aside from political economy settings. Communicating the CSR policy and activities of a transnational company would certainly require ample understanding of Filipino psychology if the message must be transmitted and interpreted properly.

Values-driven CSR

cartoon credit: www.elcamedia.co

cartoon credit: http://www.elcamedia.com

Sharpening one’s shared inner perception or pakikiramdam is a particularly desirable skill in many situations involving Filipino social interaction. Pakikiramdam is especially useful in conducting community extension work that may be part of the whole CSR process. If time were allowed to understand the local community’s cultural ways, they would feel comfortable enough to disclose their opinions, knowledge and experiences to the company. How the company is placed in the Filipino stakeholder’s perception determines the level of interaction that will be afforded to it. For example, if one is regarded as ibang-tao, the interaction can range from civility to interaction, conformity or getting along with. If one is categorized as hindi-ibang-tao, then the firm can expect acceptance and being one with the community, which is the desired state of interaction in order to make the CSR program truly effective.

 

The views presented here is that of the author’s only and do not represent the organizations or entities mentioned. 


Sustainability Reporting in the Philippines (Updates)


Coinciding with the revival of the Rio 2012 talks, corporate entities in the Philippines have upped the ante when it comes to reporting their non-financial performance, better known as sustainability report. A week ago, the 2012 CSR expo in Manila delivered yet another remarkable turnout which saw more and more companies demonstrating marked improvements in implementing corporate responsibility programs. In my next blog article, I will write about the thought leaders — companies that have paved the way in corporate reporting — and how their recently released sustainability reports are growing in breadth and scope. From well-thought titles to assurance statements, Philippine business are stirring amid stakeholder clamor for sincere and consistent reporting.

Here are links to some of the sustainability reports worthy of your scrutiny. While some have shown maturity (getting it right) others have given it a shoddy attempt. Nonetheless, a worthy batting average for a sector that has been known to be conservative in stakeholder engagement. Give them a try and tell me what you think. I will discuss(and critic) their content and context in the next article.

Energy Development Corporation Higher Peaks, New Horizons

Manila Water 2010 Sustainability Report

Petron 2011 Sustainability Report

Cebu Holdings 2011 Annual and Sustainability Report

Aboitiz 2011 Sustainability Report

Now, about Aboitiz’ 2011 Sustainability Report, there seems to have been similarities with an earler report published by its competitor. Interestingly, both reports work on the similar themes and design execution. Take a look below. Aboitiz Power released their 2011 Sustainability Report looking similar to the Integrated Report released by Energy Development Corporation in 2009 for its 2008 performance. Maybe the corporate communications unit of Aboitiz or its design agency failed to research on the matter? Whatever the reasons are, the published works look almost the same. Exciting times for Philippine company sustainability reporting.AQA

For the mean time, here is a “Practical advice to accelerate your company’s sustainability journey” by Richard Hardyment and Andrew Wilson of Corporate Citizenship. The first step is to assess what stage the leadership of your company is at regarding sustainability.

·         Is the company in “denial”? This can be characterised as “business as usual” mode where the board has limited interest in non-financial issues; this may include a CEO that shows little or no interest in environmental, social or economic sustainability issues.
·         Is the company “primed to move”? Has the company issued a sustainability report or is it planning to? Are sustainability issues gaining momentum, is the CEO interested in some flagship sustainability programs or are some board members seeing some connection between their role and sustainability issues?
·         Is the company a CSR champion? Is the Board is a driving force behind sustainability initiatives and are directors looking toward new tools and ideas to improve social and environmental performance?
Here’s the link to the article, courtesy of CSR Asia. Enjoy!

The MBS Chronicles: Sustainability, Business & Society


Starting with this entry, I will be posting some of my memorable learning experiences while studying in the University of Manchester. The opening salvo of this chronicle-type series will cover sustainability as the new paradigm of corporate social responsibility…

Is sustainability just a buzzword? Or is it a reinvention of the environmentalism fad that caught the imagination of people in the 90’s only to evaporate in the post-9/11 era? People of my generation often wonder how we could ever fit in today’s weary world – have we become passive recipients of the burgeoning capitalist phenomenon or have we had enough of this post-modern apathy that has been plaguing our so-called couch potato existence?

It was against this backdrop that I found myself going to the United Kingdom to pursue a masters studies. With the naïveté of a freshly minted international student in Manchester, I left that mooring on sustainability tucked in my pocket because I had to face the demands of postgraduate studies in the business school. A few months later, I found myself dipping back into that pocket to take out sustainability and ponder upon it again when I took an elective module called Skills in Sustainability and Social Responsibility (SSSR). By enrolling in the module, I expected to discover better, and perhaps original, ways of looking at sustainability challenges and most importantly, provide creative solutions to the sustainability problems. The appeal of the class is its problem-based learning (PBL) approach, which was totally new to me.

Sustainability and Social Responsibility

At the beginning of the module, we were re-introduced to the concept of sustainable development. When I saw those three circles overlapping to create a common centre, memories from high school and college days came flooding back.  The concept of sustainability as a universal goal is the result of a conference spearheaded by the United Nations in Stockholm, Sweden in 1972. It was from that conference that the Brundtland report titled Our Common Future was commissioned. In gist, sustainability is a macro-level framework used in addressing the so-called trilemma of our world – how to reconcile the conflicting natures of economics, environmentalism and equitable development. When I joined the corporate world, this was viewed in the triple bottomline paradigm – financial, ecological and social sustainability. It challenged firms to consider the ecological and social equity dimensions of doing business.

Corporate sustainability and the triple bottomline approach (Elkington, 2006)

Most people confuse sustainability with the narrow concerns for ecological/environmental preservation. However, for those who had been working in responsible corporations, sustainability is viewed as a balance between financial gains and social/environmental impact. Progressive businesses are now viewing financial sustainability as something that is rooted in the firm’s long-term viability vis-à-vis sustainability of supply chains. It is not enough that firms pay taxes and follow laws. Codes of conduct and business ethics pervade the entire business system and while ensuring that responsible business is also practiced by its suppliers and partners. A stable economy and a healthy environment are not conflicting ideals, rather they should be treated as complementary goals that could actually be achieved in the 21st century sustainability paradigm. Most importantly, this paradigm does not exclude the community and the people that live in it. This is the third circle that completes the new paradigm, and yet most people do not immediately see this circle in the sustainability equation. This third circle is used to address the problem of social inequity. The other two circles, which strive for economic stability and environmental preservation converge with the third to meet the basic needs of man as well as create opportunities to satisfy each person’s aspiration for a better life.

In the business sector, the idea of running a sustainable operation is mostly rooted in the practice of corporate social responsibility (CSR). A company practices CSR because satisfied customers and happy stakeholders are desirable ends. Other firms practice CSR because it is a moral duty asked of them in a society of wants. A firm’s sustainability character can often be defined by its adherence to CSR and how it is being implemented as part of the overall corporate strategy. In the 21st century sustainability paradigm, the third circle has elevated stakeholders to a higher level of influence in that dimension. R. Edward Freeman sparked the stakeholder theory discussion in his book Stakeholder Approach to Strategic Management (1984) and this definition is most often quoted in CSR discussions: “[Stakeholder] is any group or individual who can affect or is affected by the achievement of the organization’s objectives.” This stakeholder definition had always been at the centrepiece of the problem-solving strategy in our class. We have experienced the complexity of addressing stakeholder demands in the cases about water footprinting and food tracking. There were numerous stakeholders that were identified in those cases and recommending a solution was not easy knowing that trade-offs will definitely happen. In situations like these, a good track record in delivering CSR programs could be the best justification that a company could use, either lessening the reputational damage or shielding the organisation from unwieldy crisis situations.

Enabling Change

As far as enabling change is concerned, I am of the belief that there is much work to be done. Since the Brundtlandt report, sustainability has made inroads but the journey is nowhere near its destination. Multilateral agreements and intergovernmental cooperation on sustainable projects are some of the results of that idea. I am mostly appreciative of the impact that sustainability had on the academe. One of the positive effects of Brundtland is that it launched the Decade of Education for Sustainable Development from 2005-2014. The University of Manchester goes one step in the right direction by integrating sustainability in the higher education curriculum. One can see the sustainability effort being devoted by the university through its policy on sustainability and through its course offerings that focus on the applied sciences of sustainability studies. Even if MBS has not offered a solely sustainability-based program yet, I believe that creating this particular module is also in congruence with this recent development. We are nearing towards the end of that decade and our mere participation in the SSSR class demonstrates the influence it has had in our academic and professional pursuits.

Here at the Manchester Business School, we are constantly reminded to apply original thinking. For a foreign student like me, there is a two-level process of learning in MBS: discovering new ways of thinking and doing things and relating them into our own individual contexts i.e. country of origin, racial background, undergraduate study, professional orientation, etc. For students who already have work experience prior to studying here, there is yet another process that needs to be undertaken, that of the process of un-learning old habits.  As a PR practitioner back in my country, there is a wealth of practical knowledge that I had acquired from being involved in actual projects. To be able to understand and appreciate new knowledge, one has to learn how to check biases and to keep an open mind. Later on as critical thinking is required, one would have to revert to the shoes of a professional practitioner and examine whether or not the new learning is closely related to reality: is the theory and model responsive to real-life problems? Can we actually use it to frame the problem? Does it offer an appropriate solution to the dilemma at hand? Most importantly, do we have access to the right information? How could we use these to provide solutions to the case problems given to us?

The interplay of societal institutions combined with the historical role of business and its relationship with society produces quite different articulations of sustainability for each project given to us. I realised that the questions posed in those projects highlight the need to explore how economic institutions either enable or constrain the business’ articulation of social responsibility/sustainability.

The Learning So Far…

By breaking away from the usual elective courses that my other classmates chose, I realized that I pursued both my needs to experience a different learning environment and to interact with students outside the ambit of corporate communications and marketing. SSSR polished my knowledge on sustainability, expanded my understanding of the different facets of the sustainability paradigm and to a certain degree, provided me with extra professional skills that I will definitely use when I resume work in the Philippines. Armed with all these wonderful experiences, I am now more confident that I can go back to my country and complete the sustainability project I temporarily left.  Sustainability is a destination that we aspire to reach with the selection of the sustainable pathways that we choose as we proceed along the journey. I will return richer with ideas, wiser with experience.

View of Sackville Street Building from Renold Building where we held our SSSR classes. Sackville is one of the university's oldest buildings coming from the merged UMIST campus.


Taking CSR to New Heights – CSR Expo in Manila


Corporate Social Responsibility (CSR) moves up to a higher level in the Philippines as the League of Corporate Foundations (LCF) begins preparations for the 10th annual CSR Expo to be held on July 20-21 at the SMX Convention Center in Pasay City.

This year’s theme”Taking CSR to New Heights,” will showcase the best and latest trends, practices, and models on CSR in this part of the world. From the official release of LCF, they announced that the two-day event will feature topics such as CSR’s crucial role in increasing business competitiveness, attracting and retaining talent,  the various ways CSR is practiced within different organizations, and measuring and communicating CSR activities in the plenary and breakout sessions. There will be a discourse on current issues such as the proposed CSR legislation in the Philippines and whether the practice of CSR should be mandatory or voluntary. For more details on the expo program, visit www.lcf.org.ph/csrexpo2011.

Aside from the conference proper, there will also be an exhibit of LCF, its members, partners, and other organizations to showcase their CSR initiatives and activities, as well as free CSR 101 sessions for students.

This year’s Expo is expected to build on the success of last-year’s event, which was the first large-scale green conference in the country.

LCF is an umbrella foundation composed of more than 70 corporations and corporate foundations in the Philippines. It helps its members to promote CSR and contribute to CSR practices through effective and strategic corporate social investments among its members. Our company, Energy Development Corporation is actively involved in LCF and SVP Agnes de Jesus is the Chair of the Environment Committee.

CSR Expo Theme in 2009
CSR Expo theme in 2010