SMC levels up approach to corporate social responsibility efforts
A corporate social responsibility (CSR) department is “de rigueur” among corporations around the world. It is their way of expressing gratitude—an acknowledgment of the support that the community or the nation has extended to them.
At San Miguel Corporation, Ramon S. Ang, the president and CEO, is in charge. This is a departure from common practice, in which CSR is handled by a minor functionary or, in large corporations, by a mid-level official.
In the Philippine context, CSR is heavily involved in disaster mitigation and relief delivery. The country, after all, suffers from about 20 intense and destructive typhoons every year.
Moreover, the Philippines straddles the Pacific Ring of Fire and is thus prone to earthquakes and volcanic eruptions.
It is against this backdrop that Mr. Ang has become, in effect, Mr. CSR himself.
San Miguel Corporation has taken it upon itself to cut waste and protect the environment, encourage reforestation and sustainable agriculture, and generally “do right beyond what the law requires.”
Mr. Ang, through the CSR program, did all that. However, he earned the sobriquet largely for launching Better River PH, which took on the task of dredging and cleaning up river systems in Pampanga, Laguna, Bulacan, and Metro Manila—including Quezon City, Parañaque, Pasig, San Juan, and Manila.
The river rehabilitation project falls under the auspices of New NAIA Infra Corp., an SMC subsidiary.
In Parañaque City, Better River PH removed more than 139,153 tons of silt and solid waste from waterways surrounding the Ninoy Aquino International Airport.
It has been pointed out that SMC has won the contract to modernize and operate NAIA, the country’s premier gateway to the world. The question thus arises: Is the corporation merely protecting its investment?
That may be the case. But Better Rivers PH has also spent at least a billion pesos dredging the Tullahan River, from which SMC does not expect any economic benefit.
The Tullahan River stretches from the La Mesa Reservoir in Quezon City and meanders through Caloocan, Malabon, Valenzuela, and Navotas before emptying into Manila Bay.
Nor does SMC expect to gain anything from the Pasig River Rehabilitation Project, which made the Pasig River Ferry System a viable proposition for the first time.
The river cleanup and dredging operations cost billions, yet Mr. Ang and SMC did not bill the government. They did it for free.
San Miguel Corporation has never allowed itself to be distracted from its primary purpose: to create wealth for shareholders, provide employment to thousands, and contribute to national development.
Its growth as a corporation remains robust and steady across manufacturing, agribusiness, infrastructure, fuel and oil, and real estate.
At a time when many Filipinos have lost confidence in local companies’ ability to take on big-ticket projects, SMC has demonstrated that it can hold a candle to any Japanese or American multinational.
Its work on the NAIA modernization program is on track, without the government shelling out a single peso. In fact, SMC has remitted P52 billion to the government, including a P30-billion upfront payment.
The conglomerate’s consumer products also remain world-class. Few foreign brands can compete with San Miguel Pale Pilsen and San Mig Light. Its fresh and processed foods, dairy products, and non-alcoholic beverages are preferred locally.
This fact holds more significance than most people realize. By producing goods that outperform imported alternatives, SMC helps curb foreign currency outflows.
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