Shared Value headlines mid-year CSR Forum

The Aboitiz mid-year CSR forum held last July enjoined the business units to step up their back-end processes for more successful execution of their respective CSR projects, this as ongoing parallel efforts are being done to install the Creating Shared Value framework across the Aboitiz Group. This alignment of purpose, and enhancement of CSR project management are geared towards encouraging innovation in addressing societal needs and challenges. Here are some key highlights from the forum.

“CSR practitioners should constantly ask how else can they innovate and create better programs with greater social impact. Businesses must reconnect company success with social progress.”

–Maribeth Marasigan, First Vice President and Chief Resource Officer, Pilmico



Creating Shared Value
Bonar Laureto – Executive Director, Philippine Business for the Environment

  • CSR is more on responding to societal needs while Creating Shared Value (CSV) focuses on innovation to address societal challenges at scale as business proposition
  • CSR has not proven to lead to sustainable growth on both economic and societal fronts as it is generally separate from profit-driven core business practices and is limited by corporate budgets
  • CSV means enhancing competitiveness through meaningful value propositions that not only boost shareholder value but serve as catalysts to advance social conditions in communities in which a business operates


Social Enterprise
Sen. Cynthia Villar – Managing Director, Villar Social Institute for Poverty Alleviation and Governance

  • Livelihood programs should be sustainable; dole-outs are not adequate as they are mere bandage solutions to social development programs
  • Funding for projects must go to those who demonstrate genuine interest, which makes people engagement all the more important in order to realize program goals
  • The senator plans to propose a bill to institutionalize insurance premiums for farmers
  • DOST and WeatherPhilippines can collaborate to produce data that can benefit farmers in terms of weather prediction; this data can be basis for insurance providers when computing for affordable premiums for farmers


K to 12 and the Adopt-a-School Programs
Enrique Palacio, Ma. Cecilia Nayve, and Rolly Soriano – Department of Education

  • Additional 2 years of Senior High School (SHS) allows students to focus on a track based on their competencies and inclination
  • SHS students accumulate a total of 31 subjects including Core and Contextualized subjects under the new GE curriculum of the Commission on Higher Education
  • Adopt-a-School Law allows private companies to assist public schools preferably located in the 20 poorest provinces
  • Private companies that enter into agreements to provide assistance and services to public schools can claim tax incentives


Guidelines on Tax Exempt Donations
Atty. Joseph Tugonon – VP for Tax Advisory and Compliance Services, Aboitiz Equity Ventures

  • To qualify for tax exemptions, companies must meet conditions stated in Section 30 of the National Internal Revenue Code of 1997 (i.e. description of business type)
  • Gifts in favor of educational and/or charitable, religious, cultural welfare corporation, institution, accredited non-government organization, trust or philanthropic organization or research institution or organization are exempt from donor’s tax
  • Donors must issue Notice of Donation on every donation worth at least P500,000 to the Bureau of Internal Revenue within 30 days from receipt of the Certificate of Donation from the donee
  • Annual administrative expenses of a private foundation must not exceed 30% of its total expenses during the taxable year


Groupwide CSR Award
Sonny Carpio – EVP and COO, Aboitiz Foundation

  • Aboitiz Foundation’s Groupwide CSR Awards launched this year, which aims to recognize high-performing BUs and encourage CSR officers to excel
  • Award categories are: Most Outstanding BU in CSR Budget Approval and Project Closure, Most Outstanding BU in CSR 2.0 Attainment, Most Outstanding BU in CSR Social Impact, and Most Outstanding BU in Communicating CSR
  • Will be awarded in 2017 covering 2016 projects


Project Management Cycle
Danny Cerence – AVP for Operations, Aboitiz Foundation

  • Project implementation and documents management have generally improved in 2016
  • Discussions are being done if Corporate Services Heads of BUs could be allowed to approve deviations in major CSR line items if within the 20% allowable limit
  • Aboitiz Foundation developed its CSR Project Universe that will serve as guide to BUs when planning projects
  • Aboitiz Foundation will discuss frequent issues encountered in project documentation, funding, and management with the final decision to be cascaded


SBU Scorecards and Accounting Policy Updates
Riza Madrid – Accounting Manager, Aboitiz Foundation

  • Out of the 234 million pesos worth of approved projects as of July 2016, CSR projects with 1.0 rating is at 9%, 1.5 at 34 %, and 2.0 at 57%. For 2015, CSR projects with 1.0 rating was at 20%, 1.5 at 64%, and 2.0 at 16% for approved projects amounting to P251 million.
  • The accounting side of the project management cycle falls under the three-way matching principle in the purchasing cycle with the added control of matching the actual costs against the approved project proposal:

Document: What is shows
Project Proposal: What was approved
Three-Way Match:

  1. Purchase Order –  What was ordered at what cost
  2. Delivery Receipt –  What was received
  3. Supplier Invoice –  What was billed


Project Documentation Updates
Czarina Markines – Administrative Manager, Aboitiz Foundation

  • All documents must undergo soft copy review by Foundation to avoid delays in document processing
  • Legal department will provide input in improving project documentation template, which shall be shared groupwide


Project Management System, Monitoring, and Evaluation

Louie Boy De Real – Supervising Project Officer, Aboitiz Foundation

  • The CSR Project Management System will have a more user-friendly interface with enhanced features to be rolled out in 2017
  • While not all projects need to have social impact yet, measurement should still focus on KPIs of major/flagship projects