MANILA, Philippines – The global economic crisis is pushing more people into poverty, and the picture is even more grim in developing countries like the Philippines, according to the Asian Development Bank.
The Manila-based lender has thus encouraged governments in the region not to go slow on pump-priming to cushion the effects of the economic downturn.
Cash-strapped governments that are grappling with soaring budget deficits, however, can not do it alone.
The private sector is thus called on to do its share in ensuring that the citizens get access to vital social services and programs needed to keep them afloat and prepare them to take advantage of the rebound down the road.
Companies in the Philippines, fortunately, are ready and willing to take on the challenge to remain good corporate citizens despite pressures on their bottom line brought about by the downturn.
In an interview with the Inquirer, Linda Atayde, president of the League of Corporate Foundations that is encouraging companies to go into CSR, shares her views on how and why Philippine companies are responding to the challenge to do even more corporate social responsibility projects in these trying times.
Q: Given the economic difficulties companies are facing, do you see companies trimming their budgets for CSR activities?
A: From our discussions with our members and partners, as well as initial results from surveys that we are doing, the general observation is that investments in CSR continue to grow despite the crisis. This is proof that companies are looking beyond the short-term effects of the crisis and considering the long-term sustainability of the businesses.
Q: What are the pet projects of companies these days?
A: The majority of CSR programs continue to address education issues.
This is evidenced by the strong public-private partnerships that have been developed by companies with the department of education, local governments and NGOs.
The private sector continues to invest in school buildings, information and communications technology, teacher training programs, nutrition and health programs, books and scholarships.
In recent years, there has been increasing focus on the environment, especially with regard to climate change issues.
Companies, especially those in the energy sector, are stepping up efforts to reduce and mitigate carbon emissions. We expect this trend to continue with more companies to engage in programs related to the environment.
Companies are also taking an interest in microfinance and livelihood development opportunities. In addition, companies also contribute significantly to health programs, housing and disaster relief efforts, in coordination with NGOs and government agencies.
Q: For LCF, how do you propose to get companies to remain excited about CSR?
A: In a time of crisis, it is very important to link CSR to long-term sustainability and to show the business benefits of practicing CSR.
The crisis can also be seen as an opportunity to further prove the relevance and importance of CSR—now more than ever, firms must step up their efforts.
Q: Do you see more companies going toward more volunteer projects and less cash outlay?
A: In this regard, it is very important for companies to integrate CSR into their core business. Every line manager, in effect, must be a CSR manager. CSR is more than just doing good, it should be part of the way we do business.
A responsible company must manage not only the financial bottom line but also its social and environmental impact.
One notion that we want to dispel is that you have to have a big budget to do CSR. A lot of SMEs, in fact, are practicing CSR through their value chain practices, benefiting both the communities they operate in and their business operations.
There are many ways to do CSR and not all require huge investments.
Q: What is LCF’s message for the CSR expo this year?
A: For this year, we are calling on the business community to respond to the ‘SOS’ brought about by the crisis by offering Skills, Opportunities and Sustainability.
The challenge is to practice CSR as usual, or even more than usual, despite business unusual.
A particular focus for this Expo is on the area of Enterprise Development and how companies can help those at ‘the base of the pyramid’ through business strategies.
We have partnered with organizations such as PinoyMe and Fundacion Codespa to help us reach out to the micro and small enterprise sector.
Q: What for you is the main reason why companies must pursue CSR projects?
A: CSR helps ensure a company’s sustainability. By practicing CSR, companies build trust with stakeholders and protect themselves from risk and crisis.
When integrated into the business process, CSR also helps ensure the sustainability of a company’s value chain and boost its competitiveness.
CSR is no longer ‘optional’ in today’s business environment. Companies must do its share in helping its communities and stakeholders grow and prosper, thereby also ensuring the businesses sustainability.
(LCF is holding its 8th CSR Expo: Business Unusual: Skills, Opportunity, Sustainability [SOS] on July 9 and 10 at the SMX Convention Center). –Tina Arceo-Dumlao, Philippine Daily Inquirer
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