SM FOUNDATION’S CORPORATE SOCIAL

RESPONSIBILITY PROGRAMS

A Project Presented to
The Faculty of the Senior High School
Don Bosco Technical Institute
Tarlac City

In Partial Fulfillment
of the Requirements for Business Ethics
ACADEMIC TRACK
ABM STRAND

By:
Dungo, Gaevin
Peralta, Jacob
Salvador, Ramric
Santos, Aron Joshua
Valentin, Jovan

12-Iriarte
March 04, 2020
 I. INTRODUCTION
Background of the Organization

Majority of the people today, have been on a Mall once in his or her life. Our
generation today, Malls are seen everywhere. Almost all of the countries has its own
distinct mall, or has its own favorite mall. With that being said, Philippines has its
own too. In the Philippines, the most renowned malls are the SM malls. According to
this blog post, theculturetrip.com, SM Mall of Asia (MOA) is the best mall in Manila,
coming in to second place is SM Mega Mall, and 5th best mall in Manila is SM North
EDSA.

SM was originally a Shoe stores known as “Shoemart”. It was founded by Mr.

Henry Sy, Sr. on October 1958 in downtown Manila. He is known as the visionary of
Philippine retail because of his improvements in the industry, thought of beginning a
chain of shoe stores with a store layout and merchandising concepts never before
tried in the Philippines. In the 1960s, Shoemart extended its shoe store chain. By the
1970s, Shoemart was a full-line department store, shifting its label from Shoemart to
SM. In the 1980s, the company broaden its horizons and put forward into the
supermarket and home appliance store business. It opened the first "Supermall" store
in 1985 in Quezon City called SM City North EDSA.

SM Investment Corporation(SMIC) or also called as SM Group was founded by

Henry Sy, Sr. It is a Philippine conglomerate with interests in shopping mall
development and management, retail, real estate development, banking, and tourism.
Founded by Henry Sy, it has become one of the leading corporations in the
Philippines, being the country's dominant player in retail with 208 stores nationwide.

Just like any other organization and companies, SM Investment Corporation has
its very own corporate social responsibility. Truthfully, SM takes its social
responsibility very seriously and works hard to make an optimistic influence to the
society and the environment. Being the one of the largest organizations present in the
Philippines, they believe that it is one of their duties to make sure to help undeserved
Filipinos improve their lives, promote initiatives to guard and augment the
Philippines' unique and various ecological legacy and to sustain the environment for
future generations.

Therefore, this narrative article will serve as a guide to their corporate social
responsibility by giving its programs to support their corporate social responsibility.
The group will be scrutinizing their business ethics & morals and how are they being
practiced.
 II. CORPORATE SOCIAL RESPONSIBILITY
By, SM Investment Corporation

Corporate Social Responsibility (CSR) is a self-regulating business model that

supports a company be socially responsible—to itself, its stakeholders, and the public.
Practicing corporate social responsibility, also called corporate citizenship, companies
can be mindful of the kind of impact they are having on all features of society,
including economic, social, and environmental (Investopeida.com) and according to
United Nations Industrial Development Organization (UNIDO), it is a management
idea whereby companies integrate social and environmental concerns in their business
operations and interactions with their stakeholders. CSR is being the way through
which a company attains a balance of economic, environmental and social
imperatives.

Consequently, it is only right that every organization or corporation has their own
set of corporate social responsibility or even a code of conduct. We chose the SM
Investment Corporation (SMIC) to be our chosen corporation.

Correspondingly, The SMIC has their own set of code of ethics.

These are:

1. Insider trading Policy – “Directors, officers and employees

are prohibited from trading in the Company’s shares, five (5)
trading days before and two (2) trading days after the
disclosure of any material, stock price-sensitive information.
SMIC issues reminders of the “trading ban”, before the
release of financial reports or the disclosure of other material
information to ensure compliance with the policy. Trading
done by directors and officers are reported within three (3)
days of the transaction.”
2. Related Party Transactions - “SMIC discloses in the nature,
extent and information on transactions with related parties in
the Company's financial statements and quarterly and annual
reports. The newly created Related Party Transactions
Committee is tasked to review all related party transactions
and ensure that these are conducted at arm’s length.”

3. Conflict of Interest Policy - “SMIC’s Conflict of Interest

policy defines a conflict as a situation wherein a director,
officer or employee has or appears to have a direct or indirect
personal interest in any transaction, which may deter or
influence him from acting in the best interests of the Company.
Any director, officer or employee involved in an actual or
potential conflict of interest is required to immediately disclose
said conflict to the Company.”

4. Guidelines on Acceptance of Gifts and Travel Sponsored by

Business Partners – “Based on the provisions of the Code of
Ethics, SMIC’s directors, officers and employees are
prohibited from soliciting or accepting gifts, hospitality,
and/or entertainment in any form from any business partner.
The term gift covers anything of value, such as but not limited
to cash or cash equivalent. The guidelines provide exceptions
such as corporate giveaways, tokens or promotional items of
nominal value. In the same manner, travel sponsored by any
current or prospective business partner is prohibited.”

5. Guidelines on Placement of Advertisements – “SMIC issued

a policy to prohibit the placement of advertisements in
publications that solicit for such ad placement prior to the
release of the official results of an awarding process
conducted by the publication and where an SM company or
 director, officer or employee is one of the nominees vying for
the award. SM may consider placing advertisements in such
publications as part of its over-all marketing strategy, but only
after the release of the results of the awarding process and
where it will not create reasonable doubt that such ad
placement influenced in any way an award given to an SM
company or director, officer or employee.”
6. Policy on Accountability, Integrity and Vigilance
(Whistleblowing Policy) – “SMIC’s whistleblowing policy,
referred to as the Policy on Accountability, Integrity and
Vigilance (PAIV), was adopted to create an environment
where concerns and issues, made in good faith, may be raised
freely within the organization. Under the policy, any SMIC
director, officer or employee may accomplish an incident
report on suspected or actual violations of the Code of Ethics,
the Company’s Code of Conduct or any other applicable law
or regulation. Upon receipt of an incident report, Management
conducts an investigation on its merit, subject to due process
and applicable penalties and sanctions thereafter.”

7. Policy for Vendor Selection and Purchase of Goods and

Services – “Existing and potential vendors and suppliers are
required to conform to the Company’s Code of Ethics as a pre-
requisite for the accreditation process.”

8. Upholding Creditor’s Rights – “SM upholds the rights of

creditors thru the timely and accurate disclosure of all
material information, such as but not limited to earning results
and risk exposures, relating but not limited to loans and loan
covenant agreements.”
 9. Alternative Dispute Resolution System – “Ensures that the
Company maintains an alternative dispute resolution system to
settle conflicts between the Company and its stockholders or
other third parties, including regulatory authorities.”

The SM Foundation is the corporate responsibility arm of the SM group of

companies or the SMIC. The SM Foundation is established in 1983 by Henry Sy, Sr.
and Felicidad T. Sy. It has various areas of advocacy: education, scholarship
programs, building schoolhouses, a mall-based outreach program, health care,
medical missions, mobile clinics, hospital activity centers and religious community
projects.

What does SM Foundation do?

A. SM College Scholarship

More than 4,000 students have been supported by this program. The
scholarship program offers various courses namely;

BS in Computer BS in Secondary Education

Science major in Biology, Chemistry,
General Sciences, Physics,
BS in Electrical Engineering
Mathematics, English
BS in Accounting
BS in Financial Management
Information Systems
BS in Computer Engineering
BS in Information
Technology BS in Accountancy

BS in Elementary Education BS in Management

Accounting
BS in Internal Auditing
BS in Civil Engineering
BS in Electronics and
Communications Engineering BS in Accounting
BS in Electronics Technology
Engineering
 The qualifications to be a scholar student is 1.) The student must be a
Public high school graduate in the areas covered. 2.) Private high school
graduates with Department of Education (DepEd) voucher in areas
covered and completed junior high school from a public school. 3.) The
General weighted average grade of at least 88% or its equivalent for Grade
12 - 1st semester. And, The total household income of at most P150,000
per year.

B. Technical-Vocational Scholarship Program

The Technical-Vocational Scholarship Program has been

supporting 4,199 students. It gives them a quicker two-year technical-
vocational course in areas with great demand in the market.

The Tech-Voc will have the benefit of the following:

A. Choice of specialization in the areas of Food and Beverage,

Automobile Mechanic, Fitter Machinist, Electro-Mechanical
Technician, Refrigeration and Air-conditioning, Small Arc
Welding and Electro mechanics
B. Full tuition subsidy in any of its partner schools
C. On the job internship
D. Referral to industry partners after graduation, and;
E. Other enjoyable activities.

To be a Tech-Voc scholar you must be a high school graduate and

you must pass the requirements presented by partner Technical-Vocational
Schools.

C. SM School Build Program

This Program provides underprivileged children with better quality

public education by donating school buildings and classrooms in
partnership with the Department of Education (DepEd). The said program
has built more than 90 school buildings with 248 classrooms built.
 Each School built by this program includes, Wall fans,
Blackboards, Teachers’ Desk Sets, and Toilets/Washrooms.

D. SM Medical Missions

This Program provide free medical care and services to thousands

of patients which include medical consultations, basic laboratory tests and
dental check-ups, as well as proper and complete dosage of medicines.

E. Felicidad Sy Wellness Centers

It renovates and refurbish public hospitals and community health

centers through its Program. All of SM’s wellness centers have upgraded
facilities and modern equipment which helps give better medical care and
service to the host communities. The centers have a therapeutic ambiance
to help in both the physical and emotional healing and recuperation of the
patients. Through the program, they help these centers to meet the
accreditation standards set by the Philippine Health Insurance Corporation
(PhilHealth).

Wellness Centers for Children

They help provide care for children patients visiting or confined in

public pediatric wards by renovating and refurbishing these areas into a
safe and child-friendly zone. By providing a therapeutic play environment,
they help ease children’s fears of hospitals and doctors.

Wellness Centers for the Elderly

The centers for the elderly provide wellness and social support to
senior citizens by engaging them through recreational and physical
activities. These can help ease their journey as well as symptoms
associated with ageing.
Hospice Units

SM’s hospice units are equipped to help ease the journey of

terminally ill patients. It helps provide adequate facilities with therapeutic
ambiance that will help increase peace and comfort for the patients while
providing them with the right medical and emotional support.
F. Community Health Centers

They help community health centers by providing adequate

facilities and upgraded equipment for improved medical care, especially in
rural areas. Through the program, these centers can now meet the
accreditation standards set by PhilHealth which helps extend medical care
to indigent and underprivileged patients. It also helps centers receive
capitation fund from the government which are allotted for administrative
use and purchase of supplies to better serve the community.

G. Soldiers’ Facilities

They care for the health and well-being of our soldiers by

renovating and refurbishing medical and health facilities dedicated to the
men and women in service.
H. Farming Hope

It helps bring back hope in farming by updating the agricultural

knowledge of the farmers through the Kabalikat sa Kabuhayan Farmers’
Training Program. For 12 weeks, farmers are taught on effective backyard
planting and small-scale farming techniques for fruits and vegetables. This
helps improve the quality and quantity of their crops as well as provide
organic food for their families. It also assists farmers who form
cooperatives by linking them to local markets and SM suppliers for a more
stable source of income.

I. Extending a Helping Hand

Serve as one of the first responders during calamities by giving

immediate assistance to our communities in form of medicine and other
basic needs. Through the nationwide presence, they are able to provide
Kalinga Packs which consists of bottled mineral water, rice, ready-to-eat
 meals and instant noodles. In heavily affected areas they conduct medical
missions to provide basic medical care and first aid treatments.

The SM Cares is a division of SM Foundation. It handles the corporate social

responsibility programs of SM Prime Holdings, Inc. It was launched in 2004 to
consolidate the sustainability efforts into a comprehensive program that tackles a
wide range of initiatives: From giving a voice to the under-represented sectors of our
society, to preserving the environment and to creating innovative but sustainable
avenues of growth.

SM Cares comprise Programs on Persons with Disabilities, Children & Youth

Development, Women & Breastfeeding Mothers, Senior Citizens, Overseas Filipino
Workers and Environment and Sustainability. It works with several organizations,
corporations, shareholders and people from the community in coming up with
innovative solutions that pave way to living more sustainable lives. As a responsible
mall developer, SM ensures that its CSR programs serve as catalyst for positive
change for the community it serves.

What does SM Cares do?

A. Green Campaigns

SM provides different platforms to promote their care for the

environment. They organize advocacy campaigns with call to action, forums,
training, as well as fairs to showcase the latest technologies.

a. Trash to Cash

SM initiated the program Trash to Cash recycling market. This is a

widely celebrated program, open on every first Friday and Saturday of the
month, allowing anyone to exchange their recyclable materials for cash and
other household items. The program has resulted to an exchange amounting to
about PHP 47 million worth of recycled goods.

b. Green Retail Agenda

 It brings the forefront environmental issues by conducting the annual
Green Retail Agenda. This event is conducted for the network of SM
Prime’s mall tenants, public and private sector business partners, to educate
the audience on pressing environmental concerns.

c. Green Film Festival

The Green Film Festival shows environmentally-relevant films for free, to

public and private high school students across SM Cinemas; the coastal clean-up
at the SM properties in support of the International Coastal Clean-Up Day; and
several bamboo and tree planting activities in various communities where an SM
mall is present.

B. Disaster Resilience

SM is committed to support the Philippine government and the United

Nations Office for Disaster Risk Reduction’s (UNISDR) Private Sector Alliance
for Disaster Resilient Societies (ARISE) by integrating a holistic disaster risk
reduction approach into its design and sustainable operations.

This project is organized by SM, full privately financed with donations

coming from its tenants, business partners, employees and the community. Its
ambitions are to show that a collective effort from the private sector can make a
significant positive change in communities, most especially those that were
affected by the typhoon.

The houses are made with concrete roofs and walls to accelerate the
conventional building method and it is also equipped with proper ventilation. It
can endure severe weather conditions without major damage and are designed
higher than government standards and each village is built-in with basic amenities
such as street lights, electricity, water, a basketball court and/or a community
center.

The residents are also given an chance to be involved in their own

community by allowing them to participate in various activities and programs
such as livelihood and values formation seminars, membership to their local
cooperative, tree planting activities, rehabilitation assistance of their local
establishments, and waste segregation schemes.

C. Environmental Sustainability

SM recognizes the impact it has on the environment. The company has

made to prioritize the efficient management of its resources. SM consistently
tracks its use of energy and water, as well as its waste.

a. Energy Efficiency

SM hosts events to raise awareness of communities on energy efficiency.

Working hand-in-hand with WWF-Philippines, all SM branches annually shut off
their lights to participate in the Earth Hour, the world’s largest celebration to raise
awareness of the world’s environmental concerns.

b. Water Consumption

SM preserves, treats, and reuses water for sustainable operations and

efficient commercial consumption. Using a daily water recycling system, they
could recycle used potable water for its cooling towers, comfort room flushing,
grounds keeping, and even irrigation. In the year 2016, 33 percent of SM’s
potable water consumption was recycled. That translates to 4,707,466 cubic
meters of recycled water equivalent to 1,882 Olympic-sized swimming pools.c

c. Emissions and Waste Management

They remember their commitment to their stakeholders on environmental

performance, to ensure that we continue to grow in a way that is efficient and
sustainable. SM has also committed to business continuity planning which is
rolled out to all mall tenants and business partners.

D. People and the Community

 SM focuses on serving the customer and the community where every SM
mall operates. The people in the community and in the mall are given a voice and
opportunity to be heard, through the various activities and initiatives of SM Cares.

a. Persons with Disabilities

The SM Cares Program on Persons with Disabilities is promoting a

barrier-free and disability inclusive environment. It ensures that SM becomes a
place for all. Every Filipino, with or without disability, is welcome in SM. This
Program on Persons with Disabilities helps promote awareness, acceptance, and
inclusion for the sector.

b. Children and Youth Development

This Program includes the projects like, the Drink for Two. It partnered
with UNICEF, where a portion of the sales of the SM Supermalls’ bottled water
goes to the Project W.A.S.H. (Water, Sanitation and Hygiene) program. This
program provides a decent water system and basic sanitation in various provinces;
the Adoption Consciousness Week project, where specialty booths are put up in
selected malls, geared to assist families who are interested in adoption; the annual
Global Youth Summit; National Children’s Book Reading Day event, held across
all SM malls in the Philippines and in China, and the celebration of the
International Youth Day.

c. Senior Citizens

It offers community programs for seniors to be more active, productive,

engaged, and social. Aside from providing them with services for leisure and
ease, they also give them opportunities that make them rediscover their self-worth
in society.
 III. RESOURCES

https://www.sm-foundation.org/

https://en.wikipedia.org/wiki/SM_Investments

https://www.smsupermalls.com/

https://en.wikipedia.org/wiki/SM_Supermalls

https://www.sminvestments.com/