Case Study
Top 3 Local Companies with best CSR: 1. San Miguel Corporation 2. Nestle PH 3. Isuzu PH

San Miguel Corporation
Industry definition-
San Miguel Corporation is the largest publicly listed food, beverage and packaging company in the Philippines. It has been in the industry since 1890being founded by Don Enrique Maria Baretto. Since then, the SMC ensure that its strategy, organizational structure and processes, and external relationships were adequate to confront the expected threats and to capitalize on the opportunities facing it domestically and internationally.
Overview of the industry- a. market size and growth
San Miguel Corporation has a sizable international presence. The company has over 100 facilities in the Philippines, Southeast Asia, China, and Australia. Its major operating facilities include five breweries, four glass plants, two metal closure and lithography plants, two plastic case plants, and a coconut oil mill. San Miguel is one of the Philippines' biggest private employers, with over 25,900employees.
The company reported a net income of $171 million in 2005. As of the first half of 2006, the company's net income had grown 15 percent from a year earlier toP4.36 billion. b. industry profitability
The company reported a net income of $171 million in 2005. As of the first half of 2006, the company's net income had grown 15 percent from a year earlier toP4.36 billion. c. major players
The major players are Asia Brewery Inc.; Asahi Breweries, Ltd.; Tsingtao Brewery Company Limited; Foster's Group Limited. d. trends and prospects * The concept of global markets was developed. * Asian beer markets were similar to the Philippine beer market, in that there was one major player, followed by a few players. * There was the perception that anything imported was probably of better quality than the local brand. * The expected payback period for a brewery is about 5-15 years depending on the market.

e. Mission/Vision/Objectives of the Company
Vision
SMC’s fundamental and historical philosophy — Profit with Honor the following are SMC’s objectives: * To be constantly aware of the aspirations of the people and of the nation, and to ensure that San Miguel continues to make a major contribution towards the achievement of these aspirations. * To manufacture, distribute and sell throughout the Philippines food products, beverages, packaging products and animal feeds, being ready at all times to add, modify or discontinue products in accordance with changes in the market. * To diversify into fields this will ensure optimum utilization of management resources and a substantial contribution to corporate profits. * To seek and develop export markets for new products as well as for those already being produced by the Corporation. * To generate a return on funds employed sufficient to ensure an adequate rate of growth for the Corporation, and to provide satisfactory returns to stockholders. * To provide an environment which is conducive to the development of the individual and which encourages employees to realize their full capabilities. * To adopt a flexible and objective attitude towards change and to pursue an active policy of innovation.
Mission
San Miguel Foundation, Inc. is committed to the empowerment of San Miguel host communities and various stakeholders by harnessing corporate social responsibility among the various San Miguel businesses in pursuing mutually beneficial programs that lead to self-reliance and sustainability.

Corporate Social Responsibility
For San Miguel Corporation, integrity, teamwork, respect for others and social responsibility are just a few of its corporate values that guide them every day. Through its corporate social responsibility arm, San Miguel Foundation Incorporated, San Miguel Corporation proactively reaches out to others to bring forth change that will enable communities to live better lives. * Environmental Stewardship
As most of our operations depend on natural resources, we share in the responsibility for environmental protection and sustainable development. We have conducted coastal and creek clean-ups, as well as the planting of tree seedlings, around the country, particularly in our various host communities. * Community Development
Our community development programs aim to help leaders in our host communities recognize and develop their full potential. Through leadership and resource management training programs, community leaders are aided in improving the quality of their local government and reaching strong community life. * Education
Education is a means by which our countrymen can lead more productive lives and contribute to their families and society. We have in place scholarship programs with opportunities to work in our businesses in the future for deserving students, and other educational initiatives such as the building of classrooms to help improve students' literacy and proficiency. * Health
Our company aims to address the country's problem of inequity in access to basic healthcare services and proper nutrition through programs that cater to residents of our host communities. Aside from feeding programs for children, we also have community clinics that serve patients suffering from various ailments such as diabetes, tuberculosis and other cardiovascular diseases, and hold medical missions that give free medical and dental health services * Livelihood Development
To generate livelihood among families and communities, we promote entrepreneurship by encouraging them to engage in small but innovative businesses. Among the livelihood projects we have implemented is Kawang-gawa, a cooking demo and livelihood training initiative. * Disaster Management
The Philippines has long been prone to natural disasters, which in recent years have become more and more destructive, affecting tens of thousands of lives and causing billions in economic damage. Through all of these calamities, we stand committed to immediate response and action; last 2012, almost a quarter of our CSR spending went to helping more than 75,000 families affected by calamities through relief goods, soup kitchens and socialized housing. * Volunteerism
In carrying out the company's commitment to be a catalyst for change in the country, our employees volunteers their time for our various community service activities. We engage our employees in these worthwhile causes, so that in their own small way, they too can contribute to a better Philippines.
Throughout our transformation these past couple of years, we have never wavered in our resolve to play a major role in the development of our country. We have come to understand that investing in our country is the best way to jumpstart growth as well as push forward our social development agenda. It’s in this spirit that we have taken on more meaningful social investments that have tangible, long-term benefits to our countrymen.
We are proud to report that for 2012, our spending for social development breached the P1-billion mark, the biggest by far, by any company in Philippine history. Of this, P550 million went towards constructing 5,000 new homes in Cagayan de Oro, Iligan, and Negros Oriental for the victims of typhoon Sendong, the single-largest corporate social responsibility initiative in the country.
We also continued to invest on important social causes that are closely tied to our country's development: education, health and nutrition, environmental preservation, community-building, and disaster management.

Nestle PH
Over a hundred years after it first started operations in the country, Nestlé Philippines, Inc. (NPI) today is a robust and stable organization, proud of its role in bringing the best food and beverage throughout the stages of the Filipino consumers’ lives.
Nestle Philippines Incorporated is a large- scale, well-known international food manufacturing corporation engaged in the manufacture of instant coffee, milk, and ready-to-cook noodles. It was established in 1983 and is registered with the Securities and Exchange Commission (SEC) and Bureau of Food and Drugs (BFAD). Currently, it has 497 employees and member of various organizations such as Mindanao Association for Quality, Cagayan de Oro Chamber of Industries and Personnel Management Association of the Philippines.
Nestle Philippines is committed to helping in community and nation building through programs that help the underprivileged members of society. Agronomy Assistance Since the 1960's, Nestle Philippines has been helping coffee farmers in different parts of the country through imparting knowledge on how they can improve their crops. Members of the company visit these farmers regularly to reinforce among them the importance of good plantation management. By improving methods in growing coffee, farmers get better yields and eventually help increase the coffee supply in the Philippines as well as help the farmers increase their income.
Nestlé's Corporate Business Principles
1. Nutrition, Health and Wellness
Our core aim is to enhance the quality of consumers’ lives every day, everywhere by offering tastier and healthier food and beverage choices and encouraging a healthy lifestyle. We express this via our corporate proposition 'Good Food, Good Life'. Nestlé Nutritional Profiling System (pdf, 524 Kb)
2. Quality Assurance and product safety
Everywhere in the world, the Nestlé name represents a promise to the consumer that the product is safe and of high standard. Nestlé Quality Policy (pdf, 85 Kb)
3. Consumer Communication
We are committed to responsible, reliable consumer communication that empowers consumers to exercise their right to informed choice and promotes healthier diets. We respect consumer privacy. Nestlé Consumer Communications Principles (pdf, 2 Mb)
Nestlé Policy and Instructions for Implementation of the WHO International Code of Marketing of Breast-milk Substitutes (pdf, 2 Mb)
4. Human rights in our business activities
We fully support the United Nations Global Compact’s (UNGC) guiding principles on human rights and labour and aim to provide an example of good human rights’ and labour practices throughout our business activities. International Labour Organisation
5. Leadership and personal responsibility
Our success is based on our people. We treat each other with respect and dignity and expect everyone to promote a sense of personal responsibility. We recruit competent and motivated people who respect our values, provide equal opportunities for their development and advancement, protect their privacy and do not tolerate any form of harassment or discrimination. Nestlé Management and Leadership Principles (pdf, 533 Kb), Nestlé Code of Business Conduct (pdf, 76 Kb) and Guidance on Nestlé's Commitment against Bribery and Corruption (pdf, 750 Kb).
6. Safety and health at work
We are committed to preventing accidents, injuries and illness related to work, and to protect employees, contractors and others involved along the value chain. Nestlé Policy on Health and Safety at Work (pdf, 2 Mb)
7. Supplier and customer relations
We require our suppliers, agents, subcontractors and their employees to demonstrate honesty, integrity and fairness, and to adhere to our non-negotiable standards. In the same way, we are committed towards our own customers.
8. Agriculture and rural development
We contribute to improvements in agricultural production, the social and economic status of farmers, rural communities and in production systems to make them more environmentally sustainable. Nestlé Policy on Environmental Sustainability (pdf, 349 Kb)
9. Environmental sustainability
We commit ourselves to environmentally sustainable business practices. At all stages of the product life cycle we strive to use natural resources efficiently, favour the use of sustainably-managed renewable resources, and target zero waste. Nestlé Policy on Environmental Sustainability (pdf, 349 Kb)
10. Water
We are committed to the sustainable use of water and continuous improvement in water management. We recognise that the world faces a growing water challenge and that responsible management of the world’s resources by all water users is an absolute necessity. Nestlé’s commitment to Water, Creating Shared Value.
Nestlé continues to maintain its commitment to follow and respect all applicable local laws in each of its markets.
Corporate Social Responsibility * Health and Nutrition- Nestle is an advocate for good health and proper nutrition. It conducts feeding programs and medical missions in the areas where it operates. * Education and Manpower Development • Donate-a-Classroom Program • Technical Skills Scholarship Program • Academic Linkage Program

* Community Development • Cut and Sew Livelihood Project • Yard and Garden Livelihood Project • Suklay and Gunting Project • Misis Kong Trainors Program • Julius Maggi Kitchen • Street Illuminations Project * Environmental Protection and Preservation • Nestle Environmental Management • Solid Waste Management Program • The Greening the Supply Chain • Air Emission Testing * Program Shift from Corrugated Container to Shrink Film From twin to single sachet Reduced cut-off length Packaging Source Reduction Program * SOLID WASTE MANAGEMENT Segregation Reuse Composting * Increasing population, with simultaneous depletion of quality water are driving a focus to preserve this essential resource of life Water: a precariously diminishing resource * Sensor operated faucets Water in Manufacturing •Water Conservation Program Water Conservation Task Forces and SGA teams Water gun on all hoses at production area Water recycling at vacuum pump cooling system Re-used water for CIP Boiler blowdown and effluent used for watering plants * Rural Development in Philippines Since the 1960s, Nestlé Philippines, Inc. has adopted an agronomy programme aimed at increasing the income of coffee farmers. By improving the methods in coffee growing, farmers can get better and higher quality yields, and help increase coffee supply in the country. * In 1994, the Company established the Nestlé Experimental and Demonstration Farm in Tagum, Davao del Norte, where coffee farmers are trained on the most efficient ways of growing coffee. It also serves as a venue for the conduct of experiments and production of planting materials. * OTHER CORPORATE SOCIAL RESPONSIBILITY The company has been very active in corporate social responsibility practice and puts premium on programs on agriculture, education and manpower development, community development, health and nutrition, and environmental protection and preservation. * Nestle sponsored PBSP projects such as the Tree Planting Program in Lipa, the Agutayan Artificial Reef Project, the Bayanan Creek Clean-Up Drive, and the Tapat Ko, Linis Ko Program in Bulacan. Also supported the Cebu Hillyland Reforestation Project, Buensuceso Resettlement Program, Marine Santuary Regeneration project, and Relief assistance and rehabilitation of disaster victims.
Izusu PH
Isuzu in the Philippines
The 1950s saw Isuzu’s Philippine debut through its line of trucks. In 1972, General Motors and Isuzu joined forces to create GM Philippines. More changes took place in the following decades, leading to the creation of Isuzu Motors Pilipinas in 1989. It is fully owned by Isuzu Motors Limited in Japan.
August 7, 1995 marked the birth of Isuzu Philippines Corporation, a forging of forces among Isuzu Motors Limited, Mitsubishi Corporation, Ayala Corporation and Rizal Commercial Banking Corporation.
More than 13 hectares of industrial land located at the Laguna Technopark in Biñan, Laguna now holds the company’s manufacturing facilities capable of producing 15,000 units annually through a modest yet productive work force.
Isuzu Philippines Corporation is guided by its corporate slogan “Your responsible partner”. This is evident in the implementation of the company’s policies and thrusts.
Even after 50 years, Isuzu continues to be at the forefront of helping the country move forward with tried, tested and trusted commercial vehicles and diesel engines. This tradition lives on as Isuzu provides first-rate customer service, boosts employee satisfaction and promotes social responsibility.
Carefully building its reputation on trust and dependence, Isuzu possesses core values unmatched by other vehicle manufacturers. It is no surprise then that Isuzu has come to be known as “The Nation’s Workhorse”.
Corporate Social Responsibility
Isuzu Philippines Corporation takes to heart its role as a responsible corporate citizen. Even as we strive to provide you with superior products and services, we work just as hard to do our bit in minimizing our environmental footprint.
Giving back to the community
The environment and education are the pillars of IPC’s corporate social responsibility program. Giving back to the community is part of the company’s annual plan of activities. Each year, a Corporate Social Responsibility program on the conservation of the environment is implemented. Since 2002, IPC celebrates its anniversary outside the office, involved in activities to help the environment.

* 2002 Started an environmental advocacy with students, mounting a puppet show with an environmental theme staged in Binan and Sta. Rosa, Laguna. * 2003 Donated 10,000 fingerlings, which was seeded into Laguna de Bay to increase its fish population. IPC also donated a river garbage trap to Sta. Rosa town. The project was implemented in partnership with the Laguna Lake Development Authority. * 2004 Donated a two-classroom building to the Binan National High School in Laguna. The building replaced the “open classrooms” in the school’s cafeteria where classrooms were separated by blackboards. The ratio then was one classroom to 80 students. * 2005 Launched a tree-planting program in Quezon Province dubbed, “ISUlong and Kalikasan!” (“Nurture Nature”). Quezon Province had recently been devastated by flash floods. The project created a forest strip along the highway in the hills of Atimonan with a donation of 10,000 seedlings, then declared a forest reserve to ensure that the narra trees wouldn’t be cut and sold when full-grown. In Infanta and Real, IPC donated 5,000 narra seedlings for planting. * 2006 Adopted a five-hectare mangrove in Alaminos, Pangasinan, and in Quezon Island, in the Hundred Islands cluster. Despite the downpour, IPC executives and friends motored to the island and planted the mangrove trees, which provides food and medicinal herbs for the community. IPC also donated flowering plants, and environmental and directional signs. * 2007 Expanded the scope of its CSR program to a national level with the Parks Conservation Campaign that included public parks in Luzon, Visayas and Mindanao. Three public parks were recepients of new ornamental plants, garbage receptacles and environment reminder signs, namely Rizal Park in Manila, the Fuente Osmena Park in Cebu City, and the Pole’s Park in Davao City. * 2008 Opened the Isuzu-TESDA Auto Mechanic Training Center in Tacloban, Leyte, which offers educational opportunities to deserving students. * The school is supported by Isuzu Motors Ltd of Japan, IPC, and Isuzu Auto Parts Manufacturing Corporation, and trains the students to obtain the National Certificate Level IV of TESDA. It produces an average of 80 graduates a year, all of them housed for free in dormitories inside the training center compound. IPC donated a 2008 NHR passenger van while Isuzu Motors Ltd. turned over a Crosswind XTi to be used as shuttle service. * Isuzu Motors funded the school, now run by Plan International and TESDA, with a $3-million donation. IPC donated a 2008 NHR passenger van, while Isuzu Motors Ltd turned over a Crosswind XTi to TESDAS to be used as a shuttle service to employees and students.

* IPC gave back to the children in Hospicio de San Jose in Manila, the Children’s Joy Foundation in Canlubang, and the Urchins Street Kids in Paranaque by distributing sacks of rice, canned goods, food boxes—as well as good cheer through clowns and magic shows—to the orphans. * Also adopted 11 hectares of the forest in La Mesa Watershed project of the ABS-CBN Foundation. The company’s donation was used to rehabilitate the forest through the Bantay Kalikasan section of the Foundation. * 2009 Launched “The Road to 2020”, a campaign initiated by Haribon Foundation, which aims to restore one million hectares of the country’s rainforests by 2020. This reforestation project brought IPC executives, media friends and volunteers together to plant 3000 seedlings in the area. * 5000 native tree species were donated by IPC to various rainforests in Luzon, Visayas and Mindanao, as well as 2000 seedlings in Tabunan Watershed in Cebu, and in Mt. Diwata and Hilong-Hilong in Surigao del Sur. * The Isuzu Auto Mechanic Training Center was named the “Kabalikat Awardee” by TESDA. Isuzu Motors Limited of Japan was honored as the overall or national awardee in the industry category, and the regional level for establishing the training center in Tacloban. This year, a total of 75 scholars were in the training center. * Ondoy, one of the worst typhoons that blew into the Philippines, brought much destruction to Metro Manila and its neighboring provinces. IPC immediately responded to the emergency situation by distributing relief goods to 800 families in barangays in Cabuyao, near Binan. * The floods also destroyed hundreds of motor vehicles. IPC offered assistance to owners of Isuzu vehicles that were damaged by the floodwaters, through discounts for labor and parts, and easy-payment schemes. * 2010 Adopted thirteen hectares of a forest reserve in Mt. Makiling. Over three years, 300 native trees will be planted within the 13 hectares. The funding for the project includes the construction of a 1.3-km walkway inside the Makiling Botanical Garden. * In November, the Isuzu-TESDA Auto Mechanic Training Center graduated its first batch of 25 scholars who earned four national certificates recognized by government and private agencies, which increases their chances at finding better jobs. As a start, 17 were assigned to have on-the-job training at IPC, IAMC and Isuzu Dealerships * 2011 Further expanded its CSR with a comprehensive agro-forestry program. Partnering with the World Wildlife Foundation (WWF), the automaker adopted a forest in the Northern Sierra Madre Natural Park, the largest remaining swath of old-growth rainforests in the Philippines. This forest-cum-watershed area is a vital source of water for Cagayan Valley.

* IPC’s agro-forestry project will include an education program for farmers, equipping them with the proper skills for tree planting, seedling production, and the use of organic fertilizer. * IPC officials, media friends and volunteers planted mango and Satsuma seedlings in the area, donating 6,500 seedlings to start the agro-forestry efforts aimed at protecting the community from flash floods due to soil erosion, as well as allowing the farmers to earn from the sale of their fruits. * The Isuzu-TESDA Auto Mechanic Training Center also graduated another batch of scholars and held an open-campus event to present the students to companies who require the services of qualified automotive technicians.

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