The SM Group and SM Foundation’s definition of Corporate Social Responsibility.

“CSR is integral to the business model of SM Investments Corporation. Through SM Foundation and its business unit CSR programs, SM serves as a catalyst for development in the communities it operates in.”

–Koleen Davila Palaganas

SM serves as catalyst because it’s like a substance that causes quick change or development in the community where they operate. The development explains not just about economic or financial development but also the development of community in terms of education, health, livelihood and more.

The tagline “Wherever SM goes, development follows” illustrates how SM changes the community where it operates. SM also encourages and gives opportunities to the entrepreneurs to develop their own small businesses. SM helps small businesses, the development of startups, or any other targeted group, by having shared value. One example of this is the group of Jeepney Drivers, having many passengers each day because of SM Malls gives them bigger income while SM gets many customers.

Sharing value is the idea that the success of companies and groups are mutually dependent on each other. While groups benefit from the company’s services, the company is then opened to more business as the group grows.

“SM’s approach to sustainable development includes a community impact framework – SM makes targeted social investments in (1) education, (2) health & wellness (3) livelihood and sustainable agriculture (4) shelter (5) environment sustainability (6) disaster response and (6) mall based programs for people with specific and special needs. These programs are implemented by both SM Foundation and its division SM Cares.”

–Koleen Davila Palaganas

1. Education SM College Scholarship Program Technical-Vocational Scholarships School Building Program

2. Health & Wellness Gamot Para Sa Kapwa Medical Missions with mobile clinic services Operation Tulong Express (OPTE) Felicidad T. Sy (FTS) Wellness Center

3. Livelihood and Sustainable Agriculture Kabalikat sa Kabuhayan

Nasugbu Community Development4. Shelter

The 2nd SM Cares Village5. Environment Sustainability

Trash-to-cash Campaign Join the M.O.B. (MyOwnBag) Campaign Grow A Million Trees Project

6. Mall Based Programs for People with Specific and Special Needs Program on Disability Affairs Program on Children and Youth Program on Nursing Mothers Program for Senior Citizens (Elderly) Program on Overseas Filipino Workers (OFW) Share-Your-Extras

“Our community impact framework is (1) REPLICABLE – the model covers basic needs where the gaps in services are more or less similar in the most of the areas we serve, (2) SUSTAINABLE – we are able to sustain the communities we serve because SM will remain present and involved in the community and lastly, (3) SCALABLE – as SM continues to expand its reach and footprint, integral to its operations is our community impact framework.”

–Koleen Davila Palaganas

1. Replicability

SM projects were proven to work in one community or region and the same project were also exported to other communities or regions in the same area. While there are, of course, vast differences between different areas where SM serves, a SM project will often be capable of being replicated elsewhere.

2. Sustainability

SM development meets the needs of the present without compromising the ability of future generations to meet their own needs. They develops environmental sustainability through planting trees projects and economic sustainability through giving jobs, livelihood and education that helps develop the economy of the place they operate.

3. Scalability

SM has potential to enlarge itself to accommodate fast changing growth of the environment. SM projects is capable of being scaled up to benefit thousands of people, improves their lives and as well as the environment they live.

SM CSR Structures, its CSR Direction and who Initiates It

“Given that CSR is integral to the company’s business model, the direction of its CSR was and is led by the board, particularly inspired by the vision and legacy of Mr. Henry Sy Sr. Organizationally, CSR is implemented by SM Foundation, SM Cares, and also by direct CSR initiatives and programs of the business units.”

–Koleen Davila Palaganas

“It has always been the vision of SM Foundation to make a difference in the lives of every Filipino.”

-Henry Sy, Sr.

Determination of CSR Project

“Given that CSR is integral to the company’s business model, the direction of its CSR was and is led by the board, particularly inspired by the vision and legacy of Mr. Henry Sy Sr. Organizationally, CSR is implemented by SM Foundation, SM Cares, and also by direct CSR initiatives and programs of the business units.”

–Koleen Davila Palaganas

Promotion of CSR

“Focused on SM Foundation and SM Cares, the social responsibility efforts of the SM group is promoted through these organizations. SM also leverages on its corporate assets to maximize raising awareness, mobilizing resources and creating momentum in

Henry Sy, Sr.

Chairman

Felicidad T. Sy Member

Lydia Echauz Member

Carmen Linda

Atayde Member

Paulino TanMember

Connie AngelesMember

promoting the programs it focuses on. This is achieved by inviting business partners to donate, mobilizing its customers to support the various initiatives as well as mobilizing SM’s employees to volunteer.”

–Koleen Davila Palaganas

Budget