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CSR is a business investment

Corporate Social Responsibility (CSR) concept has been here for decades and I am glad
to see some companies adopt and implement their own. However we need more
companies that are for profit and at the same time help to solve social economic problems
of the country.

With the economic hardships in this country, local communities are swamped with
problems such as poverty, homelessness, pollution, lack of quality education and other
social disparities. Government social programs do not last due to lack of funding. Non-
profits fill the gap, which is a great alternative, but they rely on grant and donations to
operate. Recently many NGO’s or Civil Societies in the country are experiencing funding
problems straining further the implementation of their programs.

Philippine Business for Social Progress (PBSP), one of the biggest local donor
organizations in the country has been preparing for this long time ago. I was lucky to
work with them in the past and I can fully remember well the agenda of the organization -
to make companies active participants in social development. PBSP have realized then
that sooner or later Donor funds would certainly become scarce, thus, the CSR program
was pushed as a strategy to sustain the development initiatives. Meaning, the business
sector is seen as a viable asset in poverty alleviation efforts. Aside from their natural
advantages such as fund, technical expertise and network, their stakes are naturally high
if social situation deteriorates.

There are companies that converted their pubic relations department into CSR centers and
created foundations to manage their resources and implement projects to communities
where they operate. We are thankful for their CSR programs, but I am worried of the
growing pattern that their projects and their implementation are very similar to those of
the Civil Societies. These company foundations that are supposed to be the expression for
their corporate social responsibility are in fact competing with local NGOs in accessing
donor funds particularly foreign sources.

It is not entirely bad, but I am afraid that this has departed from the CSR philosophy.
Corporate Social responsibility to my understanding is fundamentally an essential
strategy for business sustainability. It is solidly founded from the fact that poor social
conditions affect business viability. CSR concepts should transcend from mere marketing
or image building strategy to get customer loyalty and public support, but an exercise of
responsibility just like any good citizen of a country – helping improve people’s lives that
in return create good dividends which is called business opportunities. To be honest about
it, CSR is strictly business investments and good practices aimed to improve business
profits. The only difference is that investments in CSR are meant to bring social change.

I am afraid, companies could be easily accused of using public funds (foreign assistance
are inherently public funds) for their own ends. Sounds familiar? Yep, not different from
politicians using projects financed by public funds to prop-up their chances on the next
election.
You need not chew over the parallelism provided. I do not intend to discourage CSR
programs from accessing public funds as they may be more efficient and effective than
other NGOs, but we have to remember that foreign funds are drying up while on the other
side of the social scale worsens. Our country needs more resources to arrest the
deteriorating social conditions. Investing in CSR should be an addition to the overall
effort and not just addition of actors.

Businesses are in the best position to implement programs that have lasting and
meaningful effect. One of this is engaging in social entrepreneurship. This is not a new
model, in fact in one of my readings it is defined as “an act of recognizing a social
problem, and using entrepreneurial tactics to make social change.” Without much capital
required, for example, a business can help young entrepreneurs with startup ideas to
develop or offer startup ideas and help develop young social entrepreneurs. Those
assisted in return can help by offering help to others with similar interest. It is not
expensive, as companies can donate a part of their profit for such a cause which is tax
deductible anyway.

What we need today are more actors with wide-ranging resources.

For comments, e-mail to: roldanalex@yahoo.com

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