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Business Response
Beyond the Fenceline
Outside the
Fenceline
Inside the
Fenceline
Corporate Social Responsibility
• Refers to a business principle that
requires companies to look at the
impact of their products and practices
on society, the environment and on
development; and on their relationship
with their stakeholders
• Common manifestations:
– Social investments
– Corporate – Community
Partnerships
– Managing Workplace Conditions
– Environmental Stewardship
CSR Initiatives:
• Bayer Crop Science, Coca Cola Bottlers -Support to River Councils such as the Save Silang Sta Rosa River Program for the Silang – Sta Rosa – Binan corridor and the SACRED / San Cristobal River Enhancement Defenders
• Caltex Phils’ Good Roots Agroforestry Projects
• Community – based coastal resources management programs of Petron Phils in Batangas Bay and of Pilipinas Shell in Oriental Mindoro
• Corporate sponsored community – based ecological waste disposal and recycling
• PBSP’s reforestation and marine sanctuary projects in Samar, Ragay and Samal in collaboration with communities and local governments
• Various corporate – assisted wildlife conservation programs (e.g for the Phil. Eagle, the Pawikan, the Irawady dolphin of Northern Palawan and the Dugong)
Avon’s Breast Cancer Crusade
• Illustrates cause-related marketing (i.e. capturing niche markets by targeting the social concerns of consumers) using the strength of its marketing, distribution and sales networks to build brand loyalty, while at the same time increasing women’s access to health care and basic education
• Mission: to ensure that women – particularly low income, minority or older women – have access to breast cancer education and early-detection screening services, at little or no cost to them. Serves as gateway into the health care system.
• Develops partnerships with local hospitals, ministries of health, and NGOs in designing programs, identifying needs for services, training Avon employees and sales reps, and contextualizing educational materials
• has raised $160 million since 1992,
Source: CORPORATE SOCIAL RESPONSIBILITY IN PRACTICE CASEBOOK
Catalyst Consortium, 2002
PBSP : HIV/ AIDs prevention in the workplace
• The program involved the formation of peer educators and counselors (PEC) in the workplace to provide timely and accurate information and provision of assistance to formulate company HIV/AIDS policies.
• Expanded education program model to 31 local companies in four regions, reaching more than 25,000 employees
• Strategies used for implementing the model included peer educators and counselors (PEC) and PEC trainers training; information dissemination, counseling, and referral for services in partnership with NGOs for training, HIV testing, counseling, hotline, and other services.; executive briefings; and HIV/AIDS policy formulation workshops.
Manila Water Company: Investing in
Employee Development
awarded the Pro-active Program Achievement Hall of Fame Award in
2010 by DTI for setting industry standards on labor quality, productivity and community relations in the Philippines.• Water for the Community / Tubig Para sa Barangay -- connecting urban poor
households to water lines and retaining the connection for the long haul; provides continuous, reliable access to safe and affordable water. Water connection costs have dropped by almost compared to costly vended water
• Water quality monitoring and Water Laboratory Services accreditation by stringent quality and safety standards of the International Organization for Standardization’s (ISO) ISO/IEC 17025:2005, ISO 14001:2004 and OHSAS 18001:2007, DOH and DENR.
• Cleaning the Rivers through Wastewater Management - expanded sanitation coverage in the East Zone by commissioning two new sewage treatment facilities
• Talent Development – In 2010, spent P20.7M in training and development.
53 percent - technical skills development to ensure steady supply of talent for
operations
and stay updated on international best practices
34 percent - in leadership development and getting results through others
13 percent : exposing our key talents to local and international forums to enable
them to network and benchmark with other practitioners in the field.
Equal Opportunity Program
• about 30 percent of the employees are hearing-impaired or
with similar handicaps.
• Also supports three schools and 14 centers that provide basic sign language
courses to the hearing-impaired. Upon graduation, some students are sent
to college as scholars, while others are hired by the company
.
“More and more companies in the world espouse CSR.
In our company, it’s a way of life, not just a marketing ploy…
It is the responsibility of every Filipino company who can afford, to help.”
Sustainable DevelopmentMeeting the needs of the present
without compromising the ability of future generations to meet their own needs
Growth with
EquityEmpowerment
of People/
Institutions
Ecological
Integrity
Sustainable Development in Business
A commitment to the principles of sustainable
development via economic growth, ecological
balance and social progress …. With the belief that
the pursuit of SD helps companies prosper and
maintain their long term license to operate, innovate
and grow.
Business is seen as a key provider of solutions …. And
has both an opportunity and responsibility to
demonstrate that it can contribute to functioning
societies.
World Business Council for Sustainable Development
“ (We) make this commitment to position our accountabilities to the environment and to society with equal importance as our financial position ….
“the business environment is challenged by complex problems arising from climate change … we must respond more meaningfully to the problems … and leverage our position as an industry leader
Jaime Ayala,
CEO, Ayala Land 2007 Sustainability Report
Ian Thackwray
Former COO,
Holcim Cement Phils
“ We place environmental
management high on our priorities
as a company. We recognize the
public's high expectations for
responsible management in this
area and strive to meet and exceed
those expectations"
Holcim Philippines, Inc. Chief Operating Officer Ian Thackwray receives
the Kapatiran sa Industriya (KAPATID) Award from Her Excellency
President Gloria Macapagal-Arroyo during the 30th National
Conference of Employers, organized by the Employers Confederation
of the Philippines (ECOP) last April 2.The award was given in
recognition of the outstanding productivity and quality achievements
of the company’s Lugait Plant in Misamis Oriental. Holcim-Lugait Plant
has consistently achieved excellent manufacturing efficiencies and
quality ratings while meeting environmental standards and
regulations.
Survey cites RP firms for ‘green’ efforts (http://business.inquirer.net/money/topstories/viewBy Michelle Remo, Philippine Daily Inquirer, 06/02/2009
MANILA, Philippines—The business sector emerged as the most perceivably environment-friendly in a recently released international
survey, which observers said was a result of efforts of firms in the country to actively pursue projects that promote cleaner and
greener surroundings.
According to the 2009 Grant Thornton International Business Report, the business sector in the Philippines got a score of +78
percent in terms of friendliness to the environment. The score is determined by subtracting the number of respondent-firms that
described their country’s business sector to be either “unfriendly” or “very unfriendly” to the environment from those that
considered it to be “friendly” or “very friendly.”
The respondents based their answers on environment care-related projects they know that were implemented by many businesses in
the country.
According to Punongbayan & Araullo, a tax and business advisory firm in the country that has a tie-up with Grant Thornton, the
Philippines outperformed 35 other countries included in the survey. Others that landed in the Top 5 most
environmentally friendly were the business sectors of India, Thailand, Denmark and Finland, which recorded scores of between +60
and +70 percent. Those that landed in the Bottom 5 were the business sectors of Turkey, Greece, Argentina, Spain and Russia, which
recorded scores of between -15 to -45 percent.
“This is a very encouraging sign. The Philippine business community is taking the ‘green movement’
seriously as opposed to just treating it as a fad or a trend,” said Greg Navarro, managing partner and chief
executive officer of P&A. “I think that more and more business leaders are embracing the idea that
environment-friendly practices do not have to be in opposition to their business strategies. They can
actually incorporate these practices into their mission and build a sustainable business,” he said.
Results of the IBR survey also showed that firms in the Philippines would not mind establishing or pursuing environmental care-related projects if
these would adversely affect profitability. The survey said 64 percent of Filipino firms were willing to undertake such projects despite their impact
on the company’s net income, while only 34 percent said they were not.
P&A said many of the companies belonging to the Top 1,000 corporations in the Philippines spent for projects that promoted a clean and green
environment. But it likewise said that there were also some firms outside the Top 1,000 that engaged in environment-protection projects.
“Despite the [economic] downturn, profit is clearly not the only factor driving PHBs [privately held businesses], which makes sense,” Navarro
pointed out. “At this point, adopting ‘green’ practices is becoming a self-rewarding decision.
Changes in the Corporate Ideology
• Environmental crisis isimagined
• Environmental problems largely derive from consumer choices and a rising demand for a specific standard of living
• Because every human action alters the natural environment, we need to learn to live with our environmental problems and find cost – effective solutions for them
• Environment is a cost
• Environmental crisis isreal
• Business does not only respond to a competitive marketplace, but alsoshapes consumer choicesand behavior patterns
• Focus should be less on minimizing costs andmaximizing and sustaining resources
• Environment is aninvestment.
1960s Indifference / Passiveness
1970s
1990s
21st Century
1980s
1960s Indifference / Passiveness
1970s Environmental Awareness /Pollution Control/End - of - Pipe Approach (Reactive)
Pollution/Waste reduction (Proactive) /Improving compliance
1990s
21st Century
1980s
1960s Indifference / Passiveness
1970s Environmental Awareness /Pollution Control/End - of - Pipe Approach (Reactive)
Pollution/Waste reduction (Proactive) /Improving compliance
1990s
Environmental Mgt. Systems
21st Century
CSR & Sustainability Reporting/Greener Business
1980s
1960s Indifference / Passiveness
1970s Environmental Awareness /Pollution Control/End - of - Pipe Approach (Reactive)
Pollution/Waste reduction (Proactive) /Improving compliance
1990s
Environmental Mgt. Systems
21st Century
CSR & Sustainability Reporting/Greener Business
1980s
Green Opportunities
53.6% Predicted growth rate of the global market for organic food and
drink through 2012.
2296% growth rate of global hybrid- car sales since 2000, with sales forecast to
rise 286% through 2012 in the US alone
12.3% Projected annual growth rate of global biofuels market through 2017;
production of ethanol alone expected to hit 27 billion gallons per year by
2014
100B - worldwide investment in clean energy in 2009 (New Energy Finance) up
from 71B in 2006 and 27B in 2004 *
Renewables projected to supply 20% of global power by 2020.
18.6 – 23.1B – estimated solar revenues in 2010 (Solar Buzz)
40 M – estimates by the American Solar Energy Society of the number of green
jobs in the US by 2030
500B – value of low – carbon energy markets by 2050 (Stern)
Green Opportunities
29% annual growth rate of global wind power capacity with an
estimated 27,051 megawatts in 2008, accounting for
more than 1.5 percent of the world's electricity, up from only
0.1 percent in 1997. 80 countries are now using wind power
on a commercial basis and it is now Europe's leading source of
new electric capacity (with 8,877 megawatts added), well
ahead of natural gas at 6,939 MW and coal at 763 MW.
400,000 people employed by the wind industry worldwide
US Green - Energy Stimulus Plan
- aiming to build an alternative energy economy at a cost of $50 - $100 Billion)
Five components:
• Green Bailout for automakers – increasing fuel efficiency standards for
cars by 4%/yr and investing in new battery technology for plug –in hybrids
• Green Infrastructure Fund - to make existing public buildings more energy
efficient and provide homeowners tax breaks to do the same
• Tax credits – for companies that produce wind and solar energy and
energy conservation products like fiberglass insulation
• Construction of a new “smart” electric grid – to deliver the power
generated by wind, solar and geothermal plants in rural areas to the major
population centers (with the savings in energy efficiency paying for the
grid in three yrs)
• Increased investment in mass transit – local rail and alternative energy bus
projects
2009 Sustainable Business 20 (SB20) List: The World's Top
Sustainable StocksSustainableBusiness.com
• Lists companies that, even over the past most difficult years,
have made substantial progress in either greening their
internal operations or growing a business based on an
important green technology and that have continued
innovating on the green side despite the recession, an aspect
which is increasingly viewed as a sign of management
excellence and stronger financial performance
• Intended to guide investors and analysts toward green
investments.
2009 Sustainable Business 20 (SB20) List: The World's
Top Sustainable Stocks
Bendigo and Adelaide Bank Ltd. (BEN.ASX)
Australian community bank which offers green personal and home loans at
discounted interest rates when people renovate or build with green features, such
as solar hot water or grey water systems.
Chipotle Mexican Grill, Inc. (NYSE: CMG)
A US restaurant chain of 860 restaurants that serves 100% free-range chicken and
pork, about 60% beef, rBGH-free dairy products, and organic produce and beans
with a goal to offer a completely sustainable menu as soon as they can build the
supply chain to meet their demand.
First Solar, Inc. (Nasdaq: FSLR)
The largest thin film solar producer by far of the highest efficiency and lowest cost
modules in the industry, now able to manufacture modules at $0.98 per watt,
edging closer to its 2012 goal of $0.70 per watt when solar PV will be competitive
with conventional electricity sources.
2009 Sustainable Business 20 (SB20) List: The World's
Top Sustainable Stocks
Philips Electronics
world leader in lighting technology which created the compact fluorescent
bulb in 1980; innovative green products account for 23% of total revenues,
on their way to 30% in the next three years.
Vestas Wind Systems
largest wind turbine manufacturer in the world with a 19.8% market
Share; currently working to push down the cost per kilowatt hour of
electricity from wind power and setting the industry standard for
efficiency and durability
The science is clear. The macroeconomics are also clear, with prevention now
costing a good deal less than adaptation later : 1% of GDP if we act now. 10 – 20% if we wait. The severity of the threats and challenges will increase over time ….
“(For Indonesia, Philippines, Thailand, and Viet
Nam) the potential economic cost of inaction
is huge—if
the world continues the “business-as-usual”
emission trends—considering market and non-
market impacts
and catastrophic risks of rising temperatures—
the cost to these countries each year could be
equivalent to
a loss of 6.7% of their combined GDP by 2100,
more than twice the world average”.
Economics of Climate Change in
Southeast Asia, April 2009
UK Government Economic Service, Nov 2006
Companies need to be brave and
demonstrate that this is a solvable problem ….
They can seize opportunities now by adapting more
efficient practices, developing products and services
to (bring about a low carbon future) …, and reap
all the benefits (for their customers, shareholders,
employees, partners) that come with first – mover
advantages……
How long must you wait?
You decide..
Philippine Business for the EnvironmentWe aim …to assist Philippine business to address its environmental issues and concerns….
