1. How important is education for the economic development of a country?

Education increases human capital and labor face which increases wages. Workers who can

read and write well are more productive than workers than workers who cannot. Furthermore,

through education these workers are more innovative and innovation are one of the major drivers

in the economic development of a country. An educated workforce is also more able to accept

and use the innovations generated by others. For instance, education helping a worker work with

computers.

Many of the most important benefits of education are often quite intangible. Education seems

to develop a greater sense of conscientiousness both in the school and ultimately later in the

workplace and also in individual’s roles as citizens. Education is truly one of the most powerful

instruments for reducing poverty and inequality and it sets the foundation for sustained economic

growth.

1. Why do you think Ayala Corporation engaged in CSR investment in education?

For Ayala Group, to be a truly successful business house, one must give back to the

community that sustains it. Ayala Corp. is one of the largest conglomerates in the Philippines

with businesses in real estate, financial services, telecommunications, water, and electronics

manufacturing services, automotive, power generation, and transport infrastructure. It follows

that it has vast financial resources, with its owners and executives running its affairs plucked

from the best and brightest men and women. The public thus looks at the corporation as an

unstoppable, giant profit-maker.

But the corporation eases its profit-making image with its corporate social responsibility

projects through pioneering corporate foundations that develop, implement and sustain programs
in various fields of social and cultural development with the aim of improving the lives of

Filipinos nationwide. . Ayala Corp. draw on their particular strengths to express their corporate

social responsibility. The company is investing in education where they can introduce innovative

solutions in addressing the broader communities’ social challenges. This practice Ayala

executive calls bringing “heart” to Ayala businesses.

2. What benefits do companies derive from engaging in CSR projects?

One of the benefits of pursuing a strategy of social responsibility is that it generates a

positive public image for your company. Further, companies that meaningfully engage in CSR

generate increased media coverage that is earned as opposed to paid, which is free, positive

publicity. With consumers increasingly concerned about the ethics of the goods and services they

purchase, positive publicity is ever more important.

A strong CSR program can also attract more investors and partners to your company by

illustrating that your business is about more than just the bottom line. What’s more, investing in

CSR can show investors that your company is healthy and looking towards the future. For

example, going green may have an upfront cost, but it will likely pay off in the long term.

Research shows that companies that pursue green programs perform better than those that don’t,

especially in the second year after the program launch.

3. Do you think CSR is profitable for companies?

Corporate Social Responsibility is profitable in a way that it has a potential value for market,

share price, and risk reduction. Investors respond to sound CR management practices by viewing

CR as an indicator of strong management, competitive differentiation, employee morale, and

innovation. CSR also has a potential value for marketing, sales, and branding. The quality,

management, integration, and communications of your company’s CR approach affects sales and

reputation outcomes. If properly aware and engaged, customers will increase their commitment

to the company. Consumers, millennials in particular, will trust the brand more and are willing to

pay a premium.

There are lot of companies that practice corporate social responsibility. One example is

TOMS, for every pair of shoes a customer bought, TOMS would donate a pair to a child in need.

TOMS is a for-profit organization, and was recently valued around $392 million.