Corporate Citizenship: Corporate Citizenship: Participative Governance Participative Governance Experience in Philippine Experience in Philippine Public Administration Public Administration

Edwin S. Martin, Ph.D.Edwin S. Martin, Ph.D.Chief, Public AffairsChief, Public Affairs

Philippine Institute for Development StudiesPhilippine Institute for Development Studies

andand

Assistant Professorial LecturerAssistant Professorial Lecturer

Pontifical and Royal University of Santo TomasPontifical and Royal University of Santo Tomas

Presentation OutlinePresentation Outline• Background of the StudyBackground of the Study

• What is Participative Governance?What is Participative Governance?• What is Corporate Citizenship?What is Corporate Citizenship?

• Corporate Citizenship Efforts in the PhilippinesCorporate Citizenship Efforts in the Philippines• Philippine Business for Social Progress (PBSP)Philippine Business for Social Progress (PBSP)• League of Corporate Foundations (LCF)League of Corporate Foundations (LCF)

• Theoretical FrameworkTheoretical Framework• Corporate Citizenship Among Top Philippine Corporate Citizenship Among Top Philippine

BusinessesBusinesses• Membership in Corporate Citizenship OrganizationsMembership in Corporate Citizenship Organizations• Modalities of Corporate Citizenship in the PhilippinesModalities of Corporate Citizenship in the Philippines• Corporate Citizenship Modalities and Industry TypesCorporate Citizenship Modalities and Industry Types• Social Issues and Activities Businesses Want to Participate Social Issues and Activities Businesses Want to Participate

InIn• Motivations Behind Corporate Citizenship ActivitiesMotivations Behind Corporate Citizenship Activities• Relationship Between Corporate Citizenship and TaxationRelationship Between Corporate Citizenship and Taxation

• ConclusionConclusion• RecommendationsRecommendations

Background of the StudyBackground of the Study1.1. What is Participative Governance?What is Participative Governance?

• Every citizen is an integral part of the Every citizen is an integral part of the community of participating individuals in a community of participating individuals in a statestate

• Governance is a collaborative effort for Governance is a collaborative effort for people to freely contribute towards the people to freely contribute towards the reinforcement of the common goodreinforcement of the common good

• Governance is a responsibility of every Governance is a responsibility of every citizen, hence is no longer the monopoly of citizen, hence is no longer the monopoly of the statethe state

• UNDP defines governance through the 3 UNDP defines governance through the 3 major domains of the state, civil society, major domains of the state, civil society, and the private sector and the private sector

Tri-sectoral GovernanceTri-sectoral Governance

Source: UNDP, 1997

Background of the StudyBackground of the Study2. What is Corporate Citizenship?2. What is Corporate Citizenship?

•Every corporate entity is a citizen that has Every corporate entity is a citizen that has a responsibility to the community/ state a responsibility to the community/ state where it belongswhere it belongs

•Corporate citizenship is intrinsically Corporate citizenship is intrinsically responsible for four areas, namely: the responsible for four areas, namely: the market place, the work place, the market place, the work place, the community and the environmentcommunity and the environment

•Corporate citizenship is generally reflected Corporate citizenship is generally reflected through the practice of through the practice of philanthropy, socio-civic activities, cause-oriented advocacies, and electoral and political involvement

Corporate Citizenship Corporate Citizenship Efforts in the PhilippinesEfforts in the Philippines

• Philippine Business for Social Philippine Business for Social Progress (PBSP)Progress (PBSP)

– An organization of some 240 business enterprises An organization of some 240 business enterprises that is mainly dedicated to promoting private that is mainly dedicated to promoting private sector commitment to social developmentsector commitment to social development

• League of Corporate League of Corporate Foundations (LCF)Foundations (LCF)

– The League of Corporate Foundations is a The League of Corporate Foundations is a network of more than 70 corporate foundations network of more than 70 corporate foundations and private organizations that are engaged in and private organizations that are engaged in social development work in the Philippines. social development work in the Philippines.

• Four Primary Areas of Engagements:Four Primary Areas of Engagements:• Poverty AlleviationPoverty Alleviation• Corporate Citizenship AdvocacyCorporate Citizenship Advocacy• Civil Society CollaborationCivil Society Collaboration• Empowerment of People through Information Empowerment of People through Information

TechnologyTechnology

• Strategic Operation/ LocationStrategic Operation/ Location• LuzonLuzon• VisayasVisayas• MindanaoMindanao

Philippine Business for Social Philippine Business for Social Progress (PBSP)Progress (PBSP)

• Five Areas of Interest and Five Areas of Interest and Involvement:Involvement:

• EducationEducation• Enterprise DevelopmentEnterprise Development• EnvironmentEnvironment• HealthHealth• Arts & CultureArts & Culture

• Establishment of Corporate Social Establishment of Corporate Social Responsibility Institute (CSRI)Responsibility Institute (CSRI)

League of Corporate League of Corporate Foundations Foundations

(LCF)(LCF)

Theoretical FrameworkTheoretical Framework

1.1. Rudolf Steiner’s Social Threefolding Rudolf Steiner’s Social Threefolding TheoryTheory

• Postulates the essential interaction and Postulates the essential interaction and coexistence of the three basic components of coexistence of the three basic components of social interface, namely: polity, culture and social interface, namely: polity, culture and economyeconomy

2.2. Nicolas Perlas’ Threefolding and Nicolas Perlas’ Threefolding and GlobalizationGlobalization

• Postulates the autonomous interaction of the Postulates the autonomous interaction of the three sectors of society, i.e., state, civil society three sectors of society, i.e., state, civil society and private sector, that serves as a means to an and private sector, that serves as a means to an end for a comprehensive sustainable development end for a comprehensive sustainable development

Corporate Citizenship Among Corporate Citizenship Among Top Philippine BusinessesTop Philippine Businesses

Transportation, Communication

and Storage17%

Electricity, Gas and Water

8%

Finance21%

Trade9% Manufacturing

37%

Conglomerate6%

Real Estate2%

Proportion of respondents according to types of business:

Membership in Corporate Membership in Corporate Citizenship OrganizationsCitizenship Organizations

7.1%

47.6%

57.1%

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0%

Others

League of CorporateFoundations (LCF)

Philippine Business for SocialProgress (PBSP)

Memberships in Corporate Citizenship Organizations :

Modalities of Corporate Modalities of Corporate Citizenship in the Citizenship in the

PhilippinesPhilippines

3.8%

88.7%

90.6%

96.2%

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0%

Electoral and political involvement(campaign funds, policy lobbying)

Philanthropy

Cause-oriented advocacies(environment, marginalized sectors

rights, etc.)

Socio-civic undertaking (communityoutreach, volunteer w ork)

Distribution According to Corporate Citizenship Categories:

Corporate Citizenship Corporate Citizenship Modalities and Industry TypesModalities and Industry Types

PhilanthroPhilanthropypy

Socio-civic Socio-civic UndertakinUndertakingg

Cause-Cause-oriented oriented advocaciesadvocacies

Electoral Electoral and and political political involvemeninvolvementt

ManufacturiManufacturingng

11 22 11 55

TransportatiTransportation, on, CommunicatCommunication and ion and StorageStorage

44 11 66 55

Electricity, Electricity, Gas and Gas and WaterWater

5.55.5 66 22 1.51.5

FinanceFinance 22 33 33 1.51.5

TradeTrade 33 55 44 55

ConglomeraConglomeratete

5.55.5 77 55 55

Real EstateReal Estate 77 44 77 55

Social Issues and Activities Social Issues and Activities Businesses Want to Participate Businesses Want to Participate

InInSocial Issues that the private sector wants their corporate citizenship efforts to give focus on (according to rank):

1 – Education 2 – Environment 3 – Health 4 – Peace and Order 5 – Community Infrastructures6 – Livelihood 7 – Marginalized groups8 – Youth and Sports9 – Arts and Culture10 – Housing

Motivations Behind Corporate Motivations Behind Corporate Citizenship ActivitiesCitizenship Activities

• Ethical and Psychic rewards as top Ethical and Psychic rewards as top choices among the respondentschoices among the respondents

• Tax exemption as least driving force Tax exemption as least driving force in the conduct of corporate in the conduct of corporate citizenship.citizenship.

• ““Bayanihan” (communal reciprocity) Bayanihan” (communal reciprocity) as inherent cultural concept among as inherent cultural concept among Filipinos.Filipinos.

Relationship Between Relationship Between Corporate Citizenship and Corporate Citizenship and

TaxationTaxation

90.9% of the respondents deduct corporate citizenship programs and projects expenses on their taxes

Among those who deduct these expenses on their taxes, 70% of them claim only 11-20% tax exemption

ConclusionConclusion

• Participation is gradually gaining Participation is gradually gaining grounds as a crucial concern of grounds as a crucial concern of governance.governance.

• Corporate Citizenship is an evolution Corporate Citizenship is an evolution of Corporate Social Responsibility of Corporate Social Responsibility that is strongly grounded on the that is strongly grounded on the business sector’s realization of their business sector’s realization of their need to be involved in social-political need to be involved in social-political cohesion cohesion

Recommendations

• There is a need for a more structured mechanism to synchronize and optimize contributions of private sector in governance.

• Corporate citizenship organizations should find interest in sponsoring more studies in the area of participative governance

• Inclusion of participative governance and corporate citizenship in the academic curriculum of universities

End of PresentationEnd of Presentation

Thank you!Thank you!