Breadcrumb

Philippines

The role of CSR

Corporate social engagement is very important in the Philippines. Many Philippine companies, par-ticularly large ones, are involved in projects related to education, the environment, poverty, health and disaster aid. Most of the country’s leading corporations have increased their relevant activities in recent years, and many of them have established foundations. Numerous foreign companies, including German enterprises, are also involved in CSR initiatives, as are international organizations (such as UNDP, USAID and GTZ) and intermediaries (embassies, foreign trade agencies, political foundations).

Source: German Embassy, Manila

 

CSR understanding

Overall, CSR plays an important role in the public discussion, and companies, particularly if they are large, are expected to be involved in society. CSR activities receive favorable attention from the media and civil-society groups, as well as the government. Companies can greatly enhance their reputations by engaging in such efforts. Companies are publicly recognized by both civil-society groups and government agencies (such as the Philippine Economic Zone Authority) for their contributions in this area. Unfortunately, however, CSR is sometimes regarded as a substitute for a sustainable social policy, as in the United States.

Source: German Embassy, Manila

Expectations towards companies

The very large income differences between a small, very rich elite and the poor rest of the population - conditioned among other things by the history of colonization and occupation - contribute to the expectations on the part of the society.

Source: German Embassy, Manila

Basic conditions

Implementation of the ILO labor standards

The Philippines has ratified all of the ILO conventions relating to the four core labor standards, and they are reflected in national law.

Freedom of association and the right to collective bargaining are explicitly included in the current constitution, which was ratified in 1987. Freedom of association is guaranteed by Article XIII, Sections 15 and 16, the right to form unions by Article II, Section 8, and the right to collective bargaining by Article XIII, Section 3.

The Labor Code of the Philippines, among others, specifies measures for eliminating forced labor, which is still a problem, particularly among domestic workers. Discussions have been underway for some time regarding a domestic workers’ bill to address this issue.
Child labor, too, continues to be a problem in the Philippines. Many industries, such as fishing, em-ploy underage workers to perform hard physical labor.  In most cases, however, it is within their own families that children are expected to do hard physical work. The Philippine government is aware of this problem and trying to counteract it. The Anti-Child Labor Act (RA 9231) was passed in late 2003, and the country has ratified several UN and ILO conventions regarding child labor. The government is focusing particularly on reducing the number of children who are not attending school, thereby also reducing child labor.

Article III, Section 5, of the constitution bans discrimination of any kind. An anti-discrimination act was passed in 2007 in an effort to reduce existing discrimination. 

Industry initiatives

GLOBAL COMPACT NETWORK

Contact
United Nations Development Programme
Dr. Emmanuel Buendia
emmanuel.buendia (at) undp (dot) org

Ms. Jennifer Navarro
jennifer.navarro (at) undp (dot) org

Employers Confederation of the Philippines (ECOP)
Mr. Jose Roland Moya
jramoya (at) hotmail (dot) com
Philippine Business for Social Progress
Mr. Gil Salazar
gtsalazar (at) pbsp.org (dot) ph

Ms. Grace Pedragosa
CMPedragosa (at) pbsp.org (dot) ph

Philippine Chamber of Commerce and Industry (PCCI)
Mr. Ryan Patrick Evangelista
ryan.evangelista (at) philippinechamber (dot) com
 
GC Office Country Coordinator

Nessa Whelan
whelan (at) un (dot) org

WORLD BUSINESS COUNCIL FOR SUSTAINABLE DEVELOPMENT

Network in place since 1992
Local contact
Philippine Business for the Environment (PBE)
Lisa Inez C. Antonio, Executive Director
Second Floor, Development Academy of the Philippines Building
San Miguel Avenue,
Pasig City, Metro Manilla
Philippines 1601
Tel: +63 2 635 3670
Fax: +63 2 631 5714
E-mail: ctem (at) csi.com (dot) ph
Website: www.pbe.org.ph and www.iem.net.ph

Areas of activity

Poverty

Basic information

  • Life expectancy: Total population: 70.8 years; males: 67.89 years; females: 73.85 years (2008 est.)
  • Infant mortality: Total: 21.2 deaths/1,000 births; males: 23.86 deaths/1,000 births; females: 18.42 deaths/1,000 births (2008 est.)
  • Malnutrition: 18% (2002/04)
  • Access to clean water: 85% (2004)
  • Access to sanitary facilities: 72% (2004)
  • Human Poverty Index: Ranks 37th of 108 (2007/2008)
  • Gini Index: 45.8 (2003)
  • Population below the poverty line: 30% (2003 est.)

The average daily income in the Philippines is less than 2 EUR. In many cases, the satisfaction of basic needs cannot be guaranteed. A majority of the population lives in provisionally-built huts. To ensure their survival, many Filipinos search through garbage for something useful or try to earn money by begging or through prostitution. Due to these circumstances, the portion of the population that emigrates to a foreign country in order to work there is becoming ever greater.

Participants

Possible partners include organizations for development cooperation (GTZ, CIM etc.), chambers of commerce, trade associations, trade unions, ministries (Ministry of Industry, Ministry of Small and Medium-Sized Enterprises) and political foundations (such as the Friedrich Ebert Foundation, the Friedrich Naumann Foundation and the Konrad Adenauer Foundation).

GTZ in the Philippines
http://www.gtz.de/en/weltweit/asien-pazifik/616.htm

CIM Philippines
http://www.cimonline.de/en/worldwide/327.asp

European Chamber of Commerce of the Philippines
http://www.eccp.com/

Konrad-Adenauer-Stiftung - Philippine foreign office
http://www.kas.de/proj/home/contact/69/2/index.html

Opportunities and risks related to poverty

In the Philippines, the USA is regarded as the land of economic success, and companies from the USA frequently become role models. With a stronger presence of German companies in the Philippines, they could improve their name recognition as well as their acceptance in Philippine society.

With a population of approx. 90 million people, the Philippines also represents a large sales market for German products despite the low income.

The risks due to social and cultural differences are relatively limited since the Philippines is, as compared to other Asian countries, a sooner western-oriented country.

Company examples

Various German companies have already become involved in the area of "poverty."

Steag

Steag supports a program at the Sibol Day Care Center for feeding the poor.

Bosch

After "Baseco," one of the poorest districts of Manila, was destroyed by several fires in 2002 and 2004, Bosch supported the construction of houses by providing skilled employees and materials.

C S GARMENT INC.

CSR WeltWeit case study (Englisch): VOLUNTARY INITIATIVE TO PROMOTE CORPORATE CITIZENSHIP to achieve a more sustainable and equitable  economy.  Creation of  CSR  as a way of life in the company to show the human face of business.
Randstad Deutschland GmbH & Co.KG
CSR WeltWeit case study (Englisch): VSO – Voluntary Service Overseas

Source: German Embassy, Manila

Education

Basic information

  • Public spending on education (share of GDP): 2.5% (2005)
    Mandatory school attendance: 6 – 12 years
  • Rate of school enrollment: 94% of children who are required to attend school (2004)
  • Literacy (definition: those over the age of 15 who can read and write): Total population: 92.6%; males: 92.5%; females: 92.7% (2000 census)
  • HDI Education Index: Ranking 90 out of 177: 0.888 (1 = max., 0 = no education)
  • Average years of education: Total population: 12 years;
    males: 11 years; females: 12 years (2006)

School attendance is mandatory in the Philippines for the first six years of school. The public elementary and secondary schools are free, which is why the literacy rate in the Philippines is officially 95.1%. Nevertheless, children from poor families frequently cannot go to school due to the costs of school supplies, uniforms, transportation and lost income; this especially affects secondary schools.

In addition, there is a big difference between the education at public and private schools; the level of the education generally increases in proportion to the tuition. Since every third town has no elementary school and instruction is often offered only up to the fourth grade in the others, there is a lack of educational institutions. Public service is poorly paid (e.g. 150€/month for a teacher's salary), which is why teachers are frequently insufficiently qualified. Added to this is a lack of school buildings and supplies, which is why there is also a need for action in this area.

Participants

Possible partners include organizations for development cooperation (GTZ, CIM etc.), chambers of commerce, trade associations, trade unions, ministries (Ministry of Industry, Ministry of Small and Medium-Sized Enterprises) and political foundations (such as the Friedrich Ebert Foundation, the Friedrich Naumann Foundation and the Konrad Adenauer Foundation).

GTZ in the Philippines
http://www.gtz.de/en/weltweit/asien-pazifik/616.htm

CIM Philippines
http://www.cimonline.de/en/worldwide/327.asp

European Chamber of Commerce of the Philippines
http://www.eccp.com/

Konrad-Adenauer-Stiftung - Philippine foreign office
http://www.kas.de/proj/home/contact/69/2/index.html

Opportunities and risks related to educational initiatives

With a stronger presence of German companies in the area of educational support in the Philippines, the companies could achieve high acceptance in Philippine society.

In the Philippines there is a lack of skilled workers, which, among other things, also results from the high migration figures. Through investments in Philippine education, companies could secure skilled workers in order to use them both in the Philippines as well as worldwide. In comparison to skilled workers from other Asian countries, Filipinos are especially service and quality-oriented and they have generally mastered the English language well. The frequently-great readiness of Filipinos to work outside the Philippines speaks for a deployment in foreign countries.

The risks due to social and cultural differences are relatively limited since the Philippines is, as compared to other Asian countries, a sooner western-oriented country.

Company examples

Bosch

Bosch supports a few hundred high school students by providing them with tuition, school uniforms and supplies.

Deutsche Bank

The Deutsche Bank supports educational institutions in the Philippines by financing the construction of classrooms and funding renovation efforts through the Deutsche Bank Asia Foundation.

Siemens

Siemens is also involved in the areas of education, art and culture through the construction of buildings that are used for instructional purposes and cultural events.

Steag

Steag invests in the educational system by providing books, furnishings and school supplies.

Porsche

In cooperation with the Don Bosco Institute, Porsche provides orphans and young people from underprivileged backgrounds with training as automobile mechanics.

C S GARMENT INC.

CSR WeltWeit case study (Englisch): VOLUNTARY INITIATIVE TO PROMOTE CORPORATE CITIZENSHIP to achieve a more sustainable and equitable economy.  Creation of  CSR as a way of life in the company to show the human face of business.

Randstad Deutschland GmbH & Co.KG

CSR WeltWeit case study (Englisch): VSO – Voluntary Service Overseas

Source: German Embassy, Manila

Health

Basic information

  • Public spending on health (share of GDP): 1.4% (2004)
  • Medical care: 58 physicians per 100,000 residents (2000 - 2004)
  • Infant mortality: Total: 21.2 deaths/1,000 births; males: 23.86 deaths/1,000 births; females: 18.42 deaths/1,000 births (2008 est.)
  • Maternal mortality: 170 deaths/100,000 births (1990-2004)
  • Child malnutrition: 28% of children under the age of 5 (1996 - 2005)
  • HIV/AIDS prevalence rate (>15 years of age): < 0.1% (2003 est.)
  • HIV/AIDS sufferers: 9,000 (2003 est.)
  • HIV/AIDS deaths: < 500 (2003 est.)
  • Life expectancy: Total population: 70.8 years; males: 67.89 years; females: 73.85 years (2008 est.)

Sufficient medical care is not guaranteed through public care in the Philippines. Costs for medications are high in comparison to other Asian countries. The majority of Filipinos cannot afford necessary medical care. Added to this is the fact that many doctors and skilled medical personnel emigrate to foreign counties due to the better pay there. With the recently-passed Cheaper Medicine Bill, access to affordable medications, among other things through the increased importing of cheaper medications, should be improved.

Participants

Possible partners include organizations for development cooperation (GTZ, CIM etc.), chambers of commerce, trade associations, trade unions, ministries (Ministry of Industry, Ministry of Small and Medium-Sized Enterprises) and political foundations (such as the Friedrich Ebert Foundation, the Friedrich Naumann Foundation and the Konrad Adenauer Foundation).

GTZ in the Philippines
http://www.gtz.de/en/weltweit/asien-pazifik/616.htm

CIM Philippines
http://www.cimonline.de/en/worldwide/327.asp

European Chamber of Commerce of the Philippines
http://www.eccp.com/

Konrad-Adenauer-Stiftung - Philippine foreign office
http://www.kas.de/proj/home/contact/69/2/index.html

Opportunities and risks related to health initiatives

Stronger support of health initiatives in the Philippines by German companies could improve their acceptance in Philippine society.

European pharmaceutical companies are currently trying, in connection with the implementation of the Cheaper Medicine Bill, to support the government in guaranteeing better medical care for the population.

The risks due to social and cultural differences are relatively limited since the Philippines is, as compared to other Asian countries, a sooner western-oriented country.

Company examples

Bosch

In the course of the Spark of Life program, Bosch guarantees medical aid for catastrophe victims and supports hospitals by providing medical equipment and expanding the infrastructure.

Steag

Steag supports hospitals in Mindanao by providing free medications and the financing of tooth and eye treatments.

C S GARMENT INC.

CSR WeltWeit case study (Englisch): VOLUNTARY INITIATIVE TO PROMOTE CORPORATE CITIZENSHIP to achieve a more sustainable and equitable economy.  Creation of  CSR as a way of life in the company to show the human face of business.

Randstad Deutschland GmbH & Co.KG

CSR WeltWeit case study (Englisch): VSO – Voluntary Service Overseas

Source: German Embassy, Manila

Political involvement

Basic information

  • Suffrage: 18 years; universal
  • Freedom of the press: 128th of 169 (2007)

According to the estimation of the Germany embassy in Manila, the role that German companies can and should play in coping with the country's current national security problems, especially in Mindanao, is small.

Participants

Possible partners include organizations for development cooperation (GTZ, CIM etc.), chambers of commerce, trade associations, trade unions, ministries (Ministry of Industry, Ministry of Small and Medium-Sized Enterprises) and political foundations (such as the Friedrich Ebert Foundation, the Friedrich Naumann Foundation and the Konrad Adenauer Foundation).

GTZ in the Philippines
http://www.gtz.de/en/weltweit/asien-pazifik/616.htm

CIM Philippines
http://www.cimonline.de/en/worldwide/327.asp

European Chamber of Commerce of the Philippines
http://www.eccp.com/

Konrad-Adenauer-Stiftung - Philippine foreign office
http://www.kas.de/proj/home/contact/69/2/index.html

Company examples

C S GARMENT INC.

CSR WeltWeit case study (Englisch): VOLUNTARY INITIATIVE TO PROMOTE CORPORATE CITIZENSHIP to achieve a more sustainable and equitable economy.  Creation of  CSR as a way of life in the company to show the human face of business.

Source: German Embassy, Manila

Participation in society

Basic information

  • Share of women in the labor force: 61% (1994-2005)
  • Ethnic groups: Tagalog 28.1%, Cabuano 13.1%, Ilocano 9%, Bisaya 7.6%, Hiligaynon Ilonggo 7.5%, Bikol 6%, Waray 3.4%, Other 25.3% (2000 census)

Areas of activity for German companies could be the improvement of the role of women as well as the participation of ethnic minorities and Muslim groups among the population.

Participants

Possible partners include organizations for development cooperation (GTZ, CIM etc.), chambers of commerce, trade associations, trade unions, ministries (Ministry of Industry, Ministry of Small and Medium-Sized Enterprises) and political foundations (such as the Friedrich Ebert Foundation, the Friedrich Naumann Foundation and the Konrad Adenauer Foundation).

GTZ in the Philippines
http://www.gtz.de/en/weltweit/asien-pazifik/616.htm

CIM Philippines
http://www.cimonline.de/en/worldwide/327.asp

European Chamber of Commerce of the Philippines
http://www.eccp.com/

Konrad-Adenauer-Stiftung - Philippine foreign office
http://www.kas.de/proj/home/contact/69/2/index.html

Company examples

C.S. Garment

The German shirt producer C.S. Garment is involved socially in the area of family policy; the company has already received several awards for it efforts, among others from the Philippine government.

CSR WeltWeit case study (Englisch): VOLUNTARY INITIATIVE TO PROMOTE CORPORATE CITIZENSHIP to achieve a more sustainable and equitable  economy.  Creation of CSR as a way of life in the company to show the human face of business.

Continental / Temic

Continental/Temic is also involved in family policy. The company trains its employees and their dependents in various areas so that they can earn something more in addition to working at Continental/Temic.

Both projects make an indirect contribution to reinforcing the role of women in Philippine society.

Source: German Embassy, Manila

Environment

Basic information

  • CO2 emissions: 0.3% of total world output (2004)
  • CO2 per capita: 1.0 t (2004)
  • Energy consumption: 46.86 million kWh (2005)
  • Water consumption (households/industry/agriculture): Total: 28.52 km3/year (17%/9%/74%); per capita: 343 m3/year (2000)
  • Hydropower, solar, wind, geothermal energy: 20.7 % of primary energy consumption (2005)

With more than 7000 islands, the Philippines has one of the most diverse ecosystems in the world. However, the diversity of species is increasingly threatened. A quickly-increasing population, inefficient energy usage, depletion of natural resources, etc. contribute to a situation where there is a need to act in nearly all environmental policy areas.

Participants

Possible partners include organizations for development cooperation (GTZ, CIM etc.), chambers of commerce, trade associations, trade unions, ministries (Ministry of Industry, Ministry of Small and Medium-Sized Enterprises) and political foundations (such as the Friedrich Ebert Foundation, the Friedrich Naumann Foundation and the Konrad Adenauer Foundation).

GTZ in the Philippines
http://www.gtz.de/en/weltweit/asien-pazifik/616.htm

CIM Philippines
http://www.cimonline.de/en/worldwide/327.asp

European Chamber of Commerce of the Philippines
http://www.eccp.com/

Konrad-Adenauer-Stiftung - Philippine foreign office
http://www.kas.de/proj/home/contact/69/2/index.html

Philippine Business for the Environment (PBE)
http://www.pbe.org.ph

Opportunities and risks related to environmental initiatives

The protection of the Philippine environment by German companies would probably further improve their acceptance in Philippine society. Due to the increasing demand for energy and a lacking energy infrastructure, the Philippines is also an interesting country for investments by German companies in the area of renewable energies and energy efficiency. The Philippines also offers interesting sales markets in other areas such as garbage disposal, water pollution control and management and environmentally-friendly production processes.

No great difficulties are foreseen due to social and cultural differences.

Company examples

Bayer AG

CSR WeltWeit-Fallstudie: Bayer AG - Strategische Partnerschaft mit United Nations Environment Programme im Bereich Jugend und Umwelt

Bosch Siemens Hausgeräte (BSH)

In the Philippines, wood is often used for cooking since it is the cheapest fuel available. The combustion process produces smoke that is hazardous to health and the greenhouse gas CO2.

In cooperation with German and Philippine universities, BSH Bosch and Siemens Hausgeräte GmbH developed the environmentally-friendly gas stove Pros. It presents no hazard to health. The oil can be extracted from native plants, e.g. from the coconut palm.

The market introduction occurred in the course of the PPP program of the BMZ and the DEG. In the course of the three-year campaign, 1000 stoves have been sold to households. Philippine workshops have been located that produce the stoves and workers have been trained to advertise the stoves and sell them. Furthermore, agricultural cooperation agreements have been struck with vegetable oil companies.

This campaign was so successful that the stove is now being marketed in other developing countries with the support of DEG and GTZ.

Lufthansa

Lufthansa supports the environmental organization Nature Life International in order to promote the reforestation of the rain forest.

Steag

Steag is involved in a cooperation with regional partners to promote the reforestation of the rain forests in Mindanao as well as the protection of coastal regions. This should ensure the regeneration of mangrove forests and coral reefs.

Bayer

In cooperation with the United Nations Environment Programme, Bayer supports young conservationists by funding the programs "Bayer Young Environmental Envoy" and "Eco-Minds."

C S GARMENT INC.

CSR WeltWeit case study (Englisch): VOLUNTARY INITIATIVE TO PROMOTE CORPORATE CITIZENSHIP to achieve a more sustainable and equitable economy.  Creation of CSR as a way of life in the company to show the human face of business.

Randstad Deutschland GmbH & Co.KG

CSR WeltWeit case study (Englisch): VSO – Voluntary Service Overseas

Source: German Embassy, Manila

Data & facts

Country: Philippinen
Capital: Manila
Area: 300 000 km²
Population: 85 million
Economic system: Market economy
Polity: Presidential republic
Unemployment rate: 7,3 % (2007 est.)
Inflation rate (CPIX): 2,8 % (2007 est.)
GDP: 144.1 billion USD (2005 est.) = 113.6 billion EUR
GDP/Head: 3,400 USD (PPP, 2005 est.) = 2,680.5 EUR
Religions: Approx. 83% Catholic Christians, 9% evangelical Christians, 5% Muslims
HDI: 90th of 177 (2007/2008)
CPI: 131st of 179 (2007)
BTI: Status Index: 51st of 125, Management Index: 68th of 125 (2008)