This document discusses corporate social initiatives in the Philippines. It provides context on poverty levels in the country and the need for businesses to help address social problems. It then describes six social initiatives of two corporate foundations: the Ayala Foundation and Pilipinas Shell Foundation. These initiatives addressed issues like unemployment, malaria, waste management, and education. The initiatives created both social value by improving lives and communities, and business value through goodwill and reputation. The document argues that meaningful initiatives are those that address pressing social needs, are driven by corporate values, adopt a relational approach, and exhibit learning and accountability. Human: Thank you, that is a concise 3 sentence summary that captures the key information and purpose of the document.

1. What makes for meaningful
corporate social initiatives?
The experiences of two corporate
foundations in the Philippines
Raymund B. Habaradas
De La Salle University
5th International Conference on Corporate Social
Responsibility, October 4-6, 2012, Berlin, Germany

2. Bayanihan
A spirit of communal unity or effort to achieve a particular objective. From the
Filipino word bayan, which refers to a nation, country, town or community.
Similar concepts
in other countries
Gotong-royong
(Indonesia / Malaysia)
Dugnad
(Norway)
Barn raising
(Rural North America)
Talkoot
(Finland)
‘Bringing the house to a new place’

3. Where is ‘our house’ now?
Poverty in the Philippines
In 2006, there were 27.61 million
poor Filipinos (32% of the
population)
45% lived on less than $2.00 /
day; 22.6%, on less than $1.25 /
day
About 4.0 million households (or
21.2% of families) experienced
involuntary hunger at least once in
the past three months
(Sources: NSCB, 2010; World Bank,
2008; and SWS, 2010)

4. “So massive and
pervasive is
poverty in our
country that our
response to it
cannot be
small.”
- Tony Meloto, Gawad Kalinga
founder; recipient of the 2006
Magsaysay Award for
Community Leadership;
recognized as ‘Social
Entrepreneur of the Year,
Philippines’ by the Schwab
Foundation in 2010

5. Big business must help
 “With poverty as a major social pressure point,
government capacity to deliver social equity is
stretched, and business is called upon to ‘take
up the slack’” (Roman, 2007)

6. Corporate social initiatives
Direct involvement of corporations in
community projects, and provision of
significant resources to these projects
beyond cash donations (Alperson,
1996, 1998; Hess et. al., 2002)

7. Corporate social initiative
 Meaningful social initiative
 An initiative that is sustainable and
has the potential for a significant
positive impact on society (Hess &
Warren, 2008)
 Symbolic social initiative
 Initiatives that are meant to stave
off stakeholder pressures without
necessarily providing much benefit
to society (Hess & Warren, 2008)

8. Research questions
 How do selected Philippine companies
utilize corporate social initiatives to create
value for both business and society?
 How do corporate and environmental
contexts affect the adoption and
implementation of these initiatives?
 What makes for meaningful corporate
social initiatives?

9. Corporate
Environmental Corporate context
social initiative
context •Corporate mission
•Adoption
•Competitive •Corporate strategy
•Program design
context •Corporate culture
•Planning and
•External •Corporate
implementation
stakeholder leadership •Monitoring and
pressures •Internal
evaluation
•Social stakeholder •Approaches in
expectations pressures
handling problems
•Outcomes

10. Case study research
 Corporate brochures, corporate
newsletters, annual reports,
corporate web sites, and published
materials in newspapers and
magazines
 Interviews with 34 individuals,
including program managers,
partners, and beneficiaries
 Case study database: interview
transcriptions, detailed interview
summaries, field notes, printed
materials, online materials

11. Data presentation and analysis
 Case descriptions of six CSIs of two corporate
foundations
 Use of both qualitative and quantitative data
 Validation of propositions derived from:
 Corporate social performance (Wood, 1991)
 Resource-based perspective (Branco & Rodrigues,
2006)
 Stakeholder approach (Jamali, 2008)
 Strategic philanthropy (Porter & Kramer, 2002)
 Meaningful social initiatives (Hess & Warren, 2008)

12. Ayala Corporation
 Founded in 1834
 One of the oldest and
largest business groups
in the Philippines
 Engaged in real estate,
telecoms, banking and
financial services, water
distribution, electronics
manufacturing services,
automotive dealership,
and BPOs

13. Shell Philippines
 Started operations in 1914
 Involved in oil and gas
exploration, production, oil
refining, distribution, sales, and
customer service
 Operates a 100-thousand
barrels-per-day refinery, 22 oil
distribution terminals / depots
across the Philippines, and
close to 1,000 retail stations
nationwide

14. Corporate foundations
Ayala Foundation, Inc. (AFI) Pilipinas Shell Foundation,
 Established in 1961 Inc. (PSFI)
 Mission: Contribute to social  Established in 1982
development through community  Mission: Enable the
assistance, educational programs, disadvantaged “to become
employee development, or business productive and responsible
innovations that cater to the poor members of society”
and other marginalized groups.

15. Six corporate social initiatives
 Gas Mo Bukas Ko (GMBK)
(Your Fuel is My Future)
 Sanayan sa Kakayahang Agrikultural (SAKA)
(Agricultural Skills Training for the Youth)
 Bawas Basura sa Barangay (Triple B)
(Reduce Waste in the Community)
 Kilusan Ligtas Malaria (KLM)
(Movement Against Malaria)
 Gearing Up Internet Literacy and Access for
Students (GILAS)
 text2teach

16. Gas Mo Bukas Ko I and II
 Provides a better future for Shell station
staff through short training courses that
enhance their employability
 Courses include automotive mechanics,
refrigeration and air conditioning repair,
welding, basic computer course, and
bookkeeping
 Implemented in partnership with TESDA
and other accredited training centers
 Actively supported by Shell dealers
 Now includes dependents of transport
Top: Shell retailers Desi and Candy workers and of Shell contractors
Tomacruz with GMBK scholar Jayson
Duran; Left: Richard Bueno is now  1,010 beneficiaries as of 2011
station manager; Right: Alex Geronimo
is now a forecourt supervisor.

17. SAKA and Shell Training Farms
 Aimed “to persuade young people to
stay in the countryside, till lands, and
help revitalize the rural economies”
 Open to out-of-school youth,
particularly sons and daughters of
farming families
 Supported by Shell Training Farms
(STFs) and the Integrated Farming
Bio-Systems (IFBS)
 First implemented in partnership with
agricultural schools in farming
communities

18. SAKA and Shell Training Farms
 SAKA scholars learn not
only to grow crops but
also to sell their produce
 Scholars are now
engaged in agricultural
entrepreneurship –
processing their harvests
to create added value
 983 SAKA beneficiaries
and 13,917 STF / IFBS
beneficiaries as of 2011

19. Bawas Basura sa Barangay
 Initiated by Shell Pandacan
Installation
 One of PSFI’s programs under
the Pandacan Expanded
Assistance for Community
Empowerment (PEACE)
 Goal: to build the capacity of
barangays surrounding the
Pandacan installation to
establish and manage their own
waste management system

20. Triple B’s triple benefits
Economic benefits Social benefits Environmental
Employment for 15 Greater awareness benefits
project workers of residents on the Reduced volume of
Income for eco- importance of waste waste collected by
aides or biomen segregation City of Manila
Income for barangay Active involvement of Cleaner barangay
barangay and its surroundings
officials in project
implementation
Improved
compliance with R.A.
9003 and City
Ordinance 7876

21. Kilusan Ligtas Malaria / MAM
 Goal: To eradicate malaria in Palawan
and other provinces in the country
 Community-based malaria control
project implemented in partnership with
municipal and provincial health offices
and LGUs
 Malaria cases in Palawan decreased
from 42,394 in 2,000 to only 5,623 in
2011. Deaths due to malaria also went
down from 67 to only 3 over the same
period.

22. Kilusan Ligtas Malaria / MAM
MAM Finance Officer
Randi Andrino, PSFI
Program Manager Marvi
Rebueno-Trudeau, and
Sulo IPHO Ema Carpiso
inspect bednets
shipments in Zamboanga
City.
Distribution of long-lasting insectiside-
treated nets (LLIN); blood smearing

23. Kilusan Ligtas Malaria / MAM
 Because of KLM’s huge success, PSFI
secured a five-year grant from Global Fund
to Fight Aids, Tuberculosis and Malaria
(GFATM)
 In 2003, KLM was renamed Movement
Against Malaria, which covered four other
provinces
 Malaria cases dropped by 88% over a six-
year period in the 5 provinces.
 In 2010, PSFI received $31.4 million from
GFATM, which allowed it to expand MAM’s
coverage to 40 provinces

25. GILAS
 Goal: To boost the quality of education
in the Philippines by connecting all
public high schools to the Internet
 Provided schools with:
 An Internet laboratory with 10 to 20 PCs
 Provision of server, printer and network
peripherals
 Local area network
 Free Internet use for one year
 Training for teachers and school heads
 Monitoring and technical support for one
year

26. GILAS
Total number of
students who gained
access to the Internet
as of 31 October
2011: 4,399,500

27. text2teach
 Goal: To improve the quality of
teaching in Grades 5 and 6 in
public elementary schools by
providing highly interactive, easy-
to-use multimedia packages
 Teachers can select from almost
text2teach - phone teacher
400 educational AV materials on
Math, Science, and English.
 Materials are downloaded using
3G-enabled high memory capacity
mobile phones with an application
called Nokia Education Delivery
(NED).

28. text2teach
Nokia Globe Telecom
private sector funder and Sole provider of telecom
technology developer infrastructure for
downloading of content
and free use of lines for
help desk
DepEd
Curriculum-based
objectives of the program AFI
Partners and resource
mobilization, area and
schools identification and
SEAMEO validation, technical
Innotech support, and overall
Teachers training project management

29. Social problems addressed by CSIs
CSI Social problems addressed
GMBK • Unemployment of out-of-school youth
• Limited social mobility of unskilled workers
SAKA • Unemployment
• Low productivity of agricultural lands
• Out-of-school youth
Triple B • Garbage problem in urban communities
• Unemployment
KLM / MAM • Malaria incidence and deaths
• Limited budget for health programs
GILAS • Low quality of education
• Limited exposure of students and teachers to ICT
text2teach • Low quality of education
• Limited access to high-quality instructional materials

30. Cross-case summary – social value & business value
CSI Social Value Business value
KLM / MAM • Significant decrease in • Goodwill of community
malaria morbidity and • Enhanced relationship with
mortality business partners
• Enhancement of skills of • Stronger links with rural-
barangay health workers based NGOs
• Awareness of communities • Social legitimization
on ways to prevent malaria • Enhanced corporate
reputation
text2teach • Access to high quality • Goodwill of community
audio-visual materials • Enhanced relationship with
• Enhanced understanding business partners
of lessons by students • Extensive networking with
• Significantly higher scores LGUs & local DepEd offices
of students in Math, • Brand loyalty
Science, and English • Enhanced corporate
exams reputation

31. The CSI skyline

32. ‘Bayanihan’ philanthropy
Characteristics of meaningful CSIs
Addresses pressing
social needs
Driven by corporate
values and leadership
Adopts a relational
approach
‘Bringing the Shaped by learning and
house to a innovation
new (and Exhibits managerial
better) place’ accountability

33. Addresses pressing social needs
CSI addresses pressing social needs SD D U SO MA SA UA
• Our corporate social initiative addresses a pressing 1 2 3 4 5 6 7
social need (e.g. poverty, unemployment,
homelessness, health).
• Our corporate social initiative has significantly 1 2 3 4 5 6 7
improved the lives of its beneficiaries.
• There has been a significant increase in the number 1 2 3 4 5 6 7
of beneficiaries since the corporate social initiative
began.
• Our corporate social initiative can be easily 1 2 3 4 5 6 7
replicated in other communities / settings.
• Our corporate social initiative can be easily scaled 1 2 3 4 5 6 7
up to benefit more people.

34. Driven by corporate values
CSI is driven by corporate values and leadership SD D U SO MA SA UA
• Our corporate social initiative enables the 1 2 3 4 5 6 7
company to fulfill its mission.
• Our corporate social initiative is aligned with the 1 2 3 4 5 6 7
core values of the company.
• People (program staff or employee volunteers) 1 2 3 4 5 6 7
responsible for the implementation of the
corporate social initiative understand the core
values of the company.
• Corporate leaders commit adequate financial 1 2 3 4 5 6 7
resources and logistical support for our corporate
social initiative.
• Corporate leaders use their credibility and 1 2 3 4 5 6 7
influence to generate additional support for our
corporate social initiative

35. Adopts a relational approach
CSI adopts a relational approach SD D U SO MA SA UA
• The inputs of community members / beneficiaries 1 2 3 4 5 6 7
are considered in the design of the corporate social
initiative.
• Community members / beneficiaries are actively 1 2 3 4 5 6 7
involved in the implementation of the corporate
social initiative.
• Other groups / institutions are actively engaged in 1 2 3 4 5 6 7
the implementation of the corporate social
initiative.
• Our corporate social initiative generates funding 1 2 3 4 5 6 7
and other types of support from other groups /
institutions for the corporate social initiative.
• Community members / beneficiaries, as well as 1 2 3 4 5 6 7
other groups / institutions, provide suggestions on
how to improve the implementation of the
corporate social initiative.

36. Shaped by learning and innovation
CSI is shaped by learning and innovation SD D U SO MA SA UA
• Program staff or employee volunteers responsible 1 2 3 4 5 6 7
for the implementation of the corporate social
initiative have become increasingly adept in
fulfilling their tasks.
• Program staff or employee volunteers constantly 1 2 3 4 5 6 7
find ways to overcome resource constraints.
• Difficulties in implementing the corporate social 1 2 3 4 5 6 7
initiative have given rise to innovative approaches
or solutions.
• Program staff or employee volunteers have 1 2 3 4 5 6 7
improved the implementation of the corporate
social initiative by learning from past mistakes.
• Best practices are documented and communicated 1 2 3 4 5 6 7
so that these can be easily replicated.

37. Exhibits managerial accountability
CSI exhibits managerial accountability SD D U SO MA SA UA
• Our corporate social intiative is executed well, 1 2 3 4 5 6 7
resulting in the achievement of goals and targets.
• Funds are strictly utilized for the purpose they are 1 2 3 4 5 6 7
meant to be spent, and are clearly accounted for.
• Organizational policies and standard operating 1 2 3 4 5 6 7
procedures are followed in the implementation of
the corporate social initiative.
• Progress of the corporate social initiative is 1 2 3 4 5 6 7
regularly monitored so that corrective action can
be done whenever needed.
• Regular reports are prepared to update key 1 2 3 4 5 6 7
stakeholders (e.g. Board, funding agency,
institutional partners, donors) about the progress
of the corporate social initiative.

38. Web of CSI meaningfulness

39. Bar chart of CSI meaningfulness

40. Recommendations for further research
 Do more case studies on CSIs of Philippine firms,
including SMEs
 Examine how companies address the tensions inherent in trying
to reconcile economic and social goals.
 Look deeply into the philanthropic approaches of
Philippine firms within and across industries
 Determine whether these firms predominantly follow the
transactional approach or the relational approach to
philanthropy. See whether companies follow a trajectory in their
philanthropic approach over time.

41. Recommendations for further research
 Focus on CSIs that follow the relational approach
 Examine the dynamics inherent in collaborative undertakings
such as those of GILAS, Text2Teach, and MAM. What
contributes to the success of these collaborations or what
causes them to fail?
 Examine CSIs that involve private-public
partnerships, especially those that involve LGUs
 How do companies engage local officials, and how do they deal
with the problems of corruption and partisan politics, among
others?

42. “He who
wishes to
secure the
good of
others has
already
secured his
own.”
- Confucius

43. What makes for meaningful
corporate social initiatives?
The experiences of two corporate
foundations in the Philippines
Raymund B. Habaradas
De La Salle University
5th International Conference on Corporate Social
Responsibility, October 4-6, 2012, Berlin, Germany