Lopa: Beyond philanthropy, CSR should promote growth
The private sector needs to reexamine its corporate-social responsibility (CSR) programs and redevelop models for inclusive growth that go beyond corporate philanthropy, Rafael Lopa, executive director of Philippine Business for Social Progress (PBSP), said.
Speaking during a symposium dubbed, “Step forward into higher gear,” at a hotel in Makati City on Friday, Lopa said the private sector plays a very important role in addressing poverty—“basically the same problem that caused the social and political unrest in the Philippines in 1970s.”
He said it was during such period of social and political unrest that many corporate foundations were established, precisely to demonstrate CSR and “give something back to the communities.”
Lopa said the CSR of some Philippine companies are still at the corporate philanthropic stage.
“Corporate philanthropy is good. But it is not enough,” he said.
Lopa, who oversees PBSP’s operations and the implementation of the foundation’s poverty reduction programs, said there’s a need to respond to the challenge of developing new CSR models that actually make significant change in addressing poverty.
PBSP is the country’s largest corporate-led social development foundation, with over 240 companies as partners.
Organized by Gesellschaft für Internationale Zusammenrbeit (GIZ), the symposium paved the way for the presentation of best practices in CSR on the perspectives of Philippine and German companies.
Lopa, who presented “Corporate Social Responsibility: A Philippine Perspective,” said new investments going the country’s way is creating a lot of optimism and offers exciting opportunity for CSR.
“There is much optimism in investing in the Philippines,” he said, adding that the challenge, however, is “how to transform these investments into enthusiasm that would see through the development of more models for inclusive growth.”
Lopa said large-scale social change requires broad cross-sector coordination, yet the social sector remains focused on the isolated intervention of individual organizations.
He cited the “Pinoy Phone” product of Myphone, a cellular phone which remind users when it is time to pray, or give lessons in history.
Nestlé, he said, has successfully redefined productivity in the value chain through contract growing, wherein it provides support to farmers that produce coffee, ensuring its supply and providing livelihood assistance to individuals, making them distributors of their products, in effect, making Filipinos small entrepreneurs in their own right.
Another innovative CSR project, he said, is Smart’s initiative that focused on hazard monitoring and reporting or early-warning system, which is very important in helping reduce the risk of disaster, considering that the country is facing the worst impacts of climate change. The project, he said, establishes loyalty for Smart.
According to Lopa, the fact that Smart’s project saves lives gives the company’s products an edge over other networks because it reminds people of the company’s CSR initiative.
Lopa said leveraging collective corporate philanthropy toward collective impact, and creating shared value toward more inclusive growth is the way to go.
Meanwhile, Dr. Gunter Matschuck, president of the German-Philippine Chamber of Commerce and Industry, said German companies’ CSR programs in the Philippines are diversified, but was quick to say that there’s a high level of compliance when it comes to CSR, albeit voluntary performed.
In Germany he said there’s already a high level of compliance among companies that when they put up subsidiaries, they are sure that these companies behave very well.
“Multinationals have absolutely super standards. The medium and small enterprises, we as chamber, guide them. We do not have any black sheep, especially with regard to community acceptance and employees protection,” he said.
Matschuck said CSR programs of German companies operating in the Philippines and other parts of the world are focused more on capacity building, providing education and training.
“A lot of our small entrepreneurs give scholarships to their employees’ kids, and chips in in philanthropic donation. We want to give the community a chance to be part of the broad spectrum which German companies are known for,” he said.
Matschuck, however, underscored that CSR must be at the heart of every company.
“It must be in your heart. It must be in your entrepreneurship. Circumventing rules is not the easiest thing you can do. It [CSR] must be a voluntary element. Otherwise, if it is imposed, that will not be for the good of anybody,” he said. — Jonathan L. Mayuga
Published in Business Mirror, 15 October 2012 ; http://businessmirror.com.ph/index.php/news/economy/560-lopa-beyond-philanthropy-csr-should-promote-growth