Companies urged to do responsible business

By Caesar Vallejos
Eagle News Service

Under the theme, “Fostering CSR in the Philippines,” business organizations were encouraged to practise sustainability and corporate social responsibility in the Philippines in a conference held at the Makati Shangri-La, January 17.

Sponsored by the Embassy of Sweden in Manila, the ASEAN CSR Network (ACN), and the League of Corporate Foundations (LCF), the conference provided a venue to understand current trends in CSR, inclusive, and responsible business in the larger global and regional landscapes.

“We champion responsible business as a way to respond to the challenges that the world is facing – environmental degradation, climate change, poverty, water scarcity, gender inequality, to name a few,” Harald Fries, Ambassador of Sweden in the Philippines said.

Old thinking

“It’s old thinking that CSR is about charity or that it will increase cost and prevent company growth. The most successful companies will those that will make sustainability part of their core business,” the Ambassador said.

For Philippine companies to emulate, Fries also noted that “many of the Swedish companies today are at the forefront of integrating a sustainable approach to their business and their strategies in daily management. They realize that active measures to protect the environment, respect human rights, improve working conditions and resist corruption is a profitable business.”

National Economic Planning Development Authority (NEDA) Assistant Secretary Carlos Abad Santos detailed Ambisyon 2040, a vision that will help the Philippines in its goals for sustainable development. “It envisions a prosperous middle-class society, a healthy and resilient society, a smart and innovative society and a high-trust society,” Abad Santos said.

United Nations 17 SDGs

On the United Nations 17 Sustainable Development Goals, the NEDA Assistant Secretary mentioned that while some Philippines businesses are already practising this, many have to yet to advance their understanding of the private sector’s contribution to developing mechanisms beyond traditional philanthropy.

However, he cited the report of the Transformational Business publication by the United Nations Development Program (UNDP) and the Philippine Business for the Environment that P40.7 billion has been invested in SDG-aligned core business practices and programs. 98% of the total disclosed investments were initiatives for smart cities and communities (SDG11), Quality Education (SDG4), Clean Energy (SDG7) and Health (SDG3).

UNDP cites that US10 trillion per year is needed to implement the 2030 agenda. Every year, savings from the public and private resources are estimated at US22 trillion. “NEDA confirms that there are significant resources to implement the SDGs but these do not necessarily go to where they are needed the most,” Abad Santos declared.

A Philippine example from the SDG Pioneer

Jaime Zobel Augusto de Ayala (JAZA), Chairman and CEO of the Ayala Corporation who served as one the panelists of the conference said that it “reinvented some of our business models and created new ones to broaden our positive impact on the communities where we operate and the country at large.”

From businesses that catered to the higher end of the market, Ayala is now reaching a wider segment of the population.

“Ayala Land now offers affordable housing for as low as P500,000, while Globe Telecom provides affordable subscription plans for mobile and internet. Meanwhile, BPI has also made it a point to create customized loan products and provide financial guidance to the micro- and small entrepreneur segment,” JAZA said.

He added that Manila Water delivers water supply as well as sewerage and sanitation services to more than 6 million customers in the eastern part of Metro Manila.

To address all sectors with critical gaps in quality and affordability that are crucial in sustaining our country’s growth and development, the Ayala Chairman said that they entered the energy, infrastructure, health, education, and industrial technologies spaces.

“These are only a few examples of how Ayala is responding to the call of the times. The United Nations Sustainable Development goals were instrumental as we made a deliberate shift in company strategy. We can all agree that the SDGs are the simplest, clearest articulation of the goals we all share: the eradication of poverty, and the flourishing of communities, industry, innovation, and the environment,” Ayala said.