CORPORATE social responsibility is both relevant and necessary in today's world. The basic principle of "leaving no one behind" the aftermath of the development wave makes practical sense.
It recognizes that for development to be progressive and sustainable, the disadvantaged sectors of society cannot and should not be left far behind.
Thus the need exists to promote and encourage a sense of responsibility toward improving the lot of the poor, particularly among the corporations who create value, product and wealth.
Early models
The first early development programs in the Philippines saw both the program design and funding coming from foreign donors eager to accelerate socioeconomic progress in the country.
Activities were developed and managed directly by the foreign donors such as the Peace Corps and USAID. As local institutional and managerial capabilities developed among Filipino developmental agencies, the local agencies gradually took over the running of local programs but still largely funded by foreign donors.
The second development models saw the formation of local institutions who were organized to design Philippine initiatives and were funded as well by local corporations. Recognizing their own limitations in designing as well as running development programs on the ground, companies preferred to have dedicated organizations like PBSP do that while their corporations focused on "core business" competencies.
Corporate foundations
Over time, larger businesses saw the advantages of organizing their own development model--organizing their own foundations and initiating philanthropic initiatives.
Their annual contributions were large enough to warrant their doing it themselves rather than giving the money to someone else to manage.
Meralco Foundation, Coca-Cola and Ayala Foundation are a few examples of these.
Typically though, most activities designed and implemented fell within the welfare category and addressed basic needs like food, clothing, and shelter needs particularly in areas affected by wars, or natural calamities.
Over the years, however, "sustainability" became the operative word. The cliché "Teach a man to fish" as opposed to just "Give a man fish" gave rise to enterprise development programs among nongovernment organizations as well as company foundations.
Although there were successes, there were many more failures, particularly among the cooperative sector.
It became evident among discerning development practitioners that business was more a culture than merely a set of learned skills.
A few of the more successful and therefore sustainable enterprise development models possessed the necessary success ingredient of a business culture through a close partnership between the enterprising community residents and the corporation operating in the area.
Typically, this was through a technical/market role for the corporation with the production function remaining in the farmer's hands.
A prime example of this is the 20-year-old Papaya Contract Growing Project between Del Monte (Phils.) and the adjoining four municipalities beside the company's cannery in Mindanao which started in 1987 and continues until today.
Del Monte sources its papaya requirements for its tropical fruit cocktail product from numerous small growers, cultivating papaya on small pieces of land, and raising the financing themselves.
The farmer-growers remain independent operators in their own right, and assuming the risks, but retaining the dignity of operating their own enterprise.
Integrating CSR
Encouraging CSR among corporations promotes the "what" of the concept. It is hoped this brief paper presents one way (i.e. the "HOW") of applying CSR within one's company in a sustainable, and mutually beneficial manner.
The Philippine Development Assistance Program (PDAP), a CIDA funded development initiative over the last 20 years, is seeking to promote collaboration between rural communities and large corporations through its current PRIME program as well as the forthcoming PRIME-Plus Program.
Building on the success of the PDAP/CIDA ongoing PRIME program with its focus on organic rice, muscovado sugar and seaweed, PRIME PLUS will expand the product coverage while giving greater emphasis on managing the relationship aspects between local communities and big business, which are often plagued by misunderstood roles and expectations.
Matching the corporation's product needs with suitable pre-screened communities, designing the business model, negotiating and brokering the operating contract, and walking the community-business partnership through the difficult beginning stages are but a few of the key ingredients essential to successful economic partnerships and sustainable rural enterprises.
Although PDAP realizes that raw material outsourcing is not applicable for all CSR programs, it is especially relevant for corporations engaged in agriculture and food-related industries as well as those located in rural settings--PDAP's targeted clientele.
It is our sincere hope that the numerous organizations promoting CSR will work closely with us in PDAP toward establishing successful models of business partnerships and cooperation between big business and local communities toward a brighter future for both.
(The article reflects the personal opinion of the author and does not reflect the official stand of the Management Association of the Philippines. The author is trustee of Philippine Development Assistance Program. He served previously as undersecretary of the Department of Agriculture. Feedback at map@globelines.com.ph. For previous articles, please visit map.org.ph)
