ETHICAL CONSUMERISM AND CORPORATE

SOCIAL RESPONSIBILITY

GROUP # 3 (5 TH
presenter)

MARQUEZ, AVELINO JR.R.

LACSON, JESSICA
FULGENCIO, NICOLE ALLYSSA
CAGUIOA, EFRAIM
GUIANG, RONNALYN ALBERTO
PALAGANAS, VANDA
ESPINOSA, PRINCESS SARAH
OCSILLOS, ANDREI
CADIZ, ROXANNE JOY
VILLETA, JUDE

SUBMITTED TO:
MA’AM MARRY JANE NINO
Insructor
 ETHICAL CONSUMERISM AND CORPORATE
SOCIAL RESPONSIBILITY

I. INTRODUCTION
Richard Stengle wrote The Responsibility Revolution. according to him the sense of a
citizen or people is that voting and volunteering is not the only definition of a person but what
they can buy and own, additionally he said we also knew that needless self-interest was bad
morals, but we didnt know that is the bad economics. And we learned this after the collapse of
lehman Brothers. Then he discoverd the shares sense responsibility is good economics. There
are new dimention positions that are growing these are the ideas that are given not only in
giving time to communities and to others schools but also giving responsible work, this also
were we start putting our wealth and possession. The growing awareness of buying products is
the way to the growth of ethical consumerism. Some campanies that are registered with
charities for the preservation of animal species, and there also campanies that use animals,
such their skin, which they turn into quality products. Because of poverty a company has
created quality milk for poor families for thier childrens. Different types of poverty problems,
first of all clean water, especially in poor country like africa. They have no source of clean
water, which cause various deseases. That is why created a products that poor families could
afford. And also many campanies that make their products illegaly, there will be bad progress
that leads to allegations and complaints that are refuted by other companies.
…as a matter of fact…
Wendy's
The Boycott was called by the Coalition of Immokalee Workers after Wendy's refused
to join the Fair Food Program (FFP). The FFP is a social responsibility program that addresses
decades-old farm labor abuses. It is unique partnership among farmers, farmworkers, and
retail food companies that ensures humane wages and working conditions for the workers who
pick fruits and vegetables on participating farms. It harnesses the power of consumer demand
to give farmworkers a voice in the decisions that affect their lives, and to eliminate the
longstanding abuses that have plagued agriculture for generations. The Program has been
called "the best workplace-monitoring program" in the US in the New York Times, and "one of
the great human rights success stories of our day" in the Washington Post, and has won
widespread recognition for its unique effectiveness from a broad spectrum of human rights
observers, from the United Nations to the White House. All Wendy's major competitors such as
McDonalds, Burger King, Subway and Taco Bell have signed up. Those that sign up agree to
purchase exclusively from suppliers meeting the code of conduct including a zero-tolerance
policy for slavery and sexual harassment. In truth...
L'Oreal (include Body Shop) (including Body Shop) Dedicated to enhancing the lives of
Animals, an organization whose goal is to eradicate animal cruelty and raise animal welfare
standards globally, maintains a long-standing boycott of 1'Oreal for continuing to test
cosmetics on animals. The French multinational company employs ingredients that have
undergone testing. Notwithstanding claims to the contrary in the media, un animals. It also
been accused for advocating against an EU ban on animal experimentation for cosmetics.
Adidas an activist group called Viva has called for a boycott of safeguarding native wildlife and
animal welfare, and utilizing Some football boot styles use kangaroo skin as a material
Hermes PETA is urging consumers to avoid purchasing luxury handbags from Hermes., which
are made from reptile skin. the crocodile and the alligator are ruthlessly killed for fashion's
wealth
Nestle (Milk products and Baby Formula) (Milk products and Baby Formula). This
heartbreaking tale about poverty, nursing, and other issues takes place in the 1990s. and
greed. Nestle extensively promoted their breastfeeding formula. notably in less developed
(LED) nations concentrating on the underprivileged. They suggested that their newborn
formula was almost as excellent as mother's milk, which is incredibly unethical for a number of
factors. Water sanitation was the first issue. the majority of groups they were focusing on,
particularly in Africa, lacked access to clean water (many people still lack this now), hence it
was important for them to bring the water to a boil. But due to poor literacy rates, many
Mothers did not know this, therefore they combined the formula with water pollution that puts
kids at serious risk. Nestle seems may have willfully disregarded this and urged mothers to
utilize even though they were aware of the dangers, the formula breastfeeding is one of the
most crucial factors, especially in a non-sanitized environment regions, was ignored. infant
formula was "the closest thing in the This "splendid achievement of care and science" is "so
like the rest of the world," and mother's milk so that the small stomach won't be able to tell the
difference" The little stomach did, however, sense the difference. "Breastfeeding is unmatched
in its ability to provide the best nutrition for infants: Exclusive breastfeeding is the best feeding
method. Breastfeeding during the first six months, followed by till the child is two years old,
complimentary foods." - a 2007Save the Children report.
Many moms could read in their own tongue, but they were still unable to read the
wording used for the sterilizing instructions were written. even if moms were aware of the
requirement to boil the They might not have had the resources to do so, including access to
water. UNICEF estimates that a formula-fed infant residing in a between 6 and 25 times more
likely to die in unclean conditions pneumonia and two times more likely to die of diarrhea than
a youngster who has been breastfed. Mothers' propensity to use tobacco was another issue.
To extend the life of the jar, less formula than necessary was used, resulting in infants
receiving insufficient quantities in large numbers. However, even if the water was heated to a
boil and even if the recipe was followed administered in the appropriate ratio and amount, it is
deficient in many of the minerals and antibodies found in breastmilk provides. The necessary
amount of nutrients are present in breast milk. Needed for the development of neurons (brain
and nerve) safeguards the infant to a certain extent from numerous ailments and potential
infections. According to the International Baby Food Action Network (IBFAN), Nestle utilized
unscrupulous techniques to advertise their baby formula is given to underprivileged moms in
developing nations. However, things only grow worse. IBFAN alleges that Nestle provides free
infant formula samples to hospitals and maternity wards; following discharge from the hospital,
the formula no longer apply.
Nestle (chocolate products) year 2010 few knows the dirty deals behind the chocolate
production ,the dark side of the chocolate brought attention to purchases of cocoa beans from
Ivorian plantation that plantation use child slave labor age start at 12 to 15 years old and some
are trafficked from nearby countries and Nestle is no strange to this practice. In 2005 for the
fisrt time where cocoa industry was under the spotlight. The (TILRF) filed a lawsuit against
nestle on behalf of three Malian children were trafficked to cote d’ Ivoire force into slavery but
the company cannot be held liable for violation of the law and dismissed the suit. Even if nestle
wasn’t legally liable for this abuses, they are at least morally. Additionally because of multiple
violation of a supplier of cocoa reported by the independent auditor the (FLA) FAIR LABOR
ASSOCIATION were nestle hadn’t carried out checks against child labor abuses. In order the
FLA reported the Nestle was fully awear of they cocoa was coming from and uder what
condition, but did little to improve conditions.

I. CORPORATE SOCIAL RESPONSIBILITY(CSR)

Corporate Social Responsibility (CSR) is concerned with what is-or should be - the
relationship between global corporations and their local stakeholders. CSR is a concept where
companies integrate social concerns in their business operations and interaction with their
stakeholders on a voluntary basis. More and more companies are incorporating the social,
ethical and environmental concerns in their policies and blueprints. This is partly due to the rise
of ethical consumerism and the call for more active social participation within the products they
make or sell. Companies are no longer regarded as an institution isolated in a cocoon whose
main existence revolves around the notion of profit-making. Inasmuch as an individual person
is no island and is considered responsible for the consequences that his actions have towards
the bigger community, so too does corporations. Corporations are expected to play an active
role in the welfare of the society. The society, which basically forms part of a corporation's
stakeholders, is keeping a close and vigilant watch on them.
They too are socially responsible tor their undertakings and endeavors. Any actions an
organization takes will have an effect not just upon itself but also upon the external
environment within which that organization resides. This includes both the business
environment in which the firm is operating and the local societal environment as well as the
wider global environment. The effect of an organization can take many forms, such as the
utilization of natural resources or the transformation of the landscape. The greatest concern
has been with climate change and the way in which the emission of greenhouse gases are
exacerbating this. Corporate Social Responsibility (CSR) can yield a positive cost-benefit
evaluation, and it can greatly enhance a firm's competitive advantage
II-A. BASIC PRINCIPLES OF CSR
1. SUSTAINABILITY. Most of what we use and need everyday are manufactured and
produced using natural resources. It becomes a growing concern and expectation that
 corporations utilize these non-renewable resources wisely. The earth is changing at an
alarming pace, and its natural resources are thinning out faster than expected.
Sustainability is concerned with the effect which actions taken in the present has upon
the options available in the future. Sustainability implies that society must use no more
of a resource than can be regenerated. This can be defined in terms of the carrying
capacity of the ecosystem.
2. ACCOUNTABILITY. Companies are morally and socially responsible for the
consequences of their actions. Accountability is concerned with an organization
recognizing that its actions affect the external environment. It implies a reporting to
external stakeholders of the effects of actions taken by the organization and how they
are affecting those stakeholders.
3. TRANSPARENCY. Deceit in advertising is unethical and equally deemed illegal in
certain States. Consumers must know what they are actually getting when they
purchase particular products or services. Integrity in this regard is of high importance,
both as to building good corporate reputation and advocating the welfare of the
consumers.
As a principle, it means that the external impact of the organization can be ascertained from
the organization is reporting and pertinent facts are not disguised within that reporting, Thus all
the effects of the actions of the organization, including external impacts, should be apparent to
all from using the information provided by the organization's reporting mechanism.
II-B. COMPONENTS OF CSR
According to Archie Carroll, total corporate social responsibilities are based on
economic, legal, ethical and discretionary responsibilities. He argued that these four
components are not necessarily mutually exclusive, but rather, represent a continuum in which
corporate social responsibility is examined.
1. Economic Responsibilities are based on the belief that a firm has a' responsibility to use
resources available to produce goods and services for society. Some specific components of a
firm's economic responsibilities could include maximizing earnings per share, generating a
high level of profitability and operating at a high efficiency level.
2. Legal Responsibilities are the laws and regulations that all firms are expected to abide by
as they perform their daily functions. Some specific components of a firm's legal
responsibilities could include displaying complete compliance with all local, state, federal and
international regulations; and being a good, law-abiding corporate citizen.
3. Ethical Responsibilities are difficult to define and can change over time because they are
based on the expectations of society. Some components of the ethical responsibilities of a firm
include being able to adapt to new or evolving ethical and moral norms within society, and
behaving in a manner commensurate with being a corporate citizen.
4. Discretionary Responsibilities. A firm's corporate responsibility could include insuring that
the firm performs in a manner that is consistent with charitable expectations from society. This
could include helping support causes such as the fine arts and the performing arts to enrich
the cultural basis of society. It could also include providing financial and non financial
assistance to educational institutions.
..as a matter of fact..
CORPORATE PHILANTROPY According to the Council on Foundations, corporate
philanthropy refers to the investments and activities a company voluntarily undertakes to
responsibly manage and account for its impact on society. Philanthropic investments and
activities include: Money. Donations of products.
THE ROLE OF CORPORATE PHILANTROPY
An underlying question is whether the "good deeds" done by the firm can helpimprove
the corporate reputation of the firm. Michael Porter and Mark Kramer argue that corporations
must understand the true meaning of strategic philanthropy. They argue that the actions of the
firm can benefit society and the firm through the firm's development of unique assets and
expertise. As a result, firms can use their philanthropic focus to enhance their competitive
advantage. For example, Cisco Systems has developed the Cisco Networking Academy to
train computer network administrators. This is beneficial to society because the individuals
going through the academy have developed computer network skills, and it is beneficial to
Cisco Systems because the company now has a larger selection pool which to hire new
employees.

..as a matter of fact…

Calvin Klein is sticking by its upskit ad that has caused social media uproar and a
petition for its removal.Calvin Klein, a brand well known for courting controversy with its
marketing, struck again earlier this week with an ad on its Instagram page.The ad question
features an upskirt shot of model Klara Kristin alongside the tagline: I flash in #mycalvins.As
we reported earlier this week, the ad has drawn a fierce reaction in the comments and
elsewhere on social media from critics who think it is perverted and sexist.On Thursday, the
National Center of Sexual Exploitation (NCOSE) launched a petition, calling on Calvin Klein to
stop glamorizing sexual harassment and assault. NCOSE also wants Calvin Klein to issue an
apology to victims of sexual harassment or assault everywhere.But so far, Calvin Klein has
stayed quiet on the subject. The company did not immediately respond to Business Insider’s
request for comment.In fact, the brand has continued to go on to post some sexually
provocative ads to its Instagram page. The latest image, posted late on Thursday, shows
Dutch model Saskia de Brauw topless covering her modesty with her right arm.The I _______
in my Calvins campaign first drew criticism back in March. A billboard showed Klara Kristin
posing provocatively, alongside the tagline “ I seduce in #mycalvins. Adjacent to that image
was a close-up of male rapper Fetty Wap’s face, with the slogan “ I make money in
#mycalvins.”While the attempts are far from perfect, and corporate initiatives are slower that
expected, at least there are vertical movements. But at the very least, ethical and
environmental considerations are finding their ways toward the endeavors and priorities of
business moguls and capitalist tycoons.
…As a matter of fact
NIKE AND TAG HEUER CUT TIES with MARIA SHARAPOVA.
Nike and Tag Heuer have become the first major sponsors to cut ties with Maria
Sharapova after the tennis star reveleaved she had tested positive for the banned substance,
with Porsche also suspending promotions with the player.The five time grand slam winner
announced on Monday that she failed the drug test after she was knocked out of the Australian
Open in January. She has been provisionally suspended from the sport by the International
Tennis Federation.. Sharapova has also said she hopes she can eventually return to the sport;
despite being plagued by injuries. “I let my fans down, I let the sport down that I have been
playing since the age of four and I Love so deeply.” She said at a press conference in Los
Angeles on Monday. “I know with this I face consequences. I don’t want to end my career this
way and I really hope I will be given another chance to play this game. The drug Sharapova
was using was placed on the banned list by the World Anti Doping Agency from January 1
because of evidence of its use by athletes with the intention of enhancing performance.
Sharapova claimed she had taken meldonium legally for years for health reasons.Nike,
Sharapova’s most high profile sponsor, said it would be suspending their relationship. We are
saddened and surprised by the news about Maria Sharapova,. It said, we have decided to
suspend our relationship with Maria while the investigation continues. We will continue to
monitor the situation.Swiss luxury watchmaker Tag Heuer which has had a relationship with
Sharapova since 2004 said it had stopped negotiations with the player whose previous
contract ended on 31 December.We had been in talks to extend our collaboration,” a
spokeswoman said. In view of the current situation, the brand has decided not to renew the
contract with Sharapova.”Porsche, which signed a three year deal with Sharapova to become
its first female ambassador in 2013,also said it would be suspending promotional work with the
player.In 2015, Forbes estimated that Sharapova, the worlds highest paid female athlete for
the 11th consecutive year, had earned $16M in endorsements. Her lucrative eight year
contract with Nike was signed in 2010 and worth almost $50M.Other endorsements for the
former world No. 1 include Avon, Evian and Head tennis rackets. Avon told the Guardian it
would not be commention for the time being on the future of its relationship with
Sharapova.Evian expressed disappointment but said it was reserving judgement. We were
surprised by the announcement of Maria Sharapova during her press conference, a
spokesperson said. Evian has been a partner of Maria Sharapova for many years, and until
now we have maintained a trustworthy professional relationship. Evian attaches great
importance to health, to integrity, and to transparence, and we will follow closely the
development of the investigation.Russia is barred from international competition after a major
doping scandal involving its athletes last year but hopes to meet anti doping standards set by
the International Association of Athletics Federations in time for the Olympics though many
international observes believe this is unrealistic.
NIKE CUTS TIES with MANNY PACQUIAO after derogatory comments
Nike terminated its endorsement contract with boxer Manny Pacquiao on Wednesday
after he made derogatory remarks about same sex couples.We find Manny Pacquiao’s
comment abhorrent, the company said in a statement. Nike strongly opposes discrimination of
any kind and has a long history of supporting and standing up for the rights of the LGBT
community.Based on Pacquiao’s comments, a spokeman confirmed that he is no longer on the
company’s endorsement roster. Pacquiao, 37, had endorsed Nike for a little more than eight
years.On Thursday, Pacquiao said he respects Nike’s decision to drop him but stood pat on
his opposition to same sex marriage and added that he is happy that a lot of people were
alarmed by the truth.Pacquiao s original remarks were made to a Filipino television station
earlier this week. Have you seen any animal having male to male or female to female
relations? Pacquiao said. If you have male to male or female to female relationships, then
people are worse than animals.Pacquiao apologized on Twitter within hours. Im sorry for
hurting people by comparing homosexuals to animals. Pacquiao tweeted. Please forgive me
for those I hurt. God bless!
Pacquiao’s promoter, Bob Arum, CEO of Top Rank, said he understood Nike’s decision to end
the deal. Nike is in the business of selling its products to as wide of an audience as they can,
and Manny’s comments were insulting to a lot of people,” Arum told ESPN.com. “His
comments were made to a Filipino audience, where same sex marriage is not as accepted as
it is here, and Manny is a convert of enlightened Christianity, which does not believe in same
sex relationships. But to people in the United States, his words can only be viewed as hate
speech. If I was running Nike. I would have to make the same decision they did. Pacquiao was
more of a billboard for Nike, which had its swoosh on his shorts for fights and on his shoes,
instead of a true revenue steam. Few Pacquiao items reached the market.Nike has been more
active in terminating contracts of late than any other time in company history.Over the past four
years, it has severed deals with cyclist Lance Armstrong, running back Ray Rice, running back
Adrian Peterson and sprinter Oscar Pistorious. Arum, according to the Associated Press, said
Pacquiaos message was diametrically opposed to what I believe. Im in favor of gay rights and
same sex marriage, Arum said. Im apologetic personally to the gay movement in the United
States. This week wasn’t the first time Pacquiao has been involved in a furor over gay rights. In
2012 he was quoted as saying he was against same sex marriage because it’s the law of God,
though he denied implying that homosexuals should be put to death.
And companies are willing to do all of there for the sake of good corporate reputation. And
having a strong positive reputation can produce three major benefits for the strategic focus of
the firm.
III-ENVIRONMENTAL SUSTAINABILITY
One of the key principles of corporate social responsibility is sustainability, as was already
mentioned. Environmental concerns appear to be more relevant despite the fact that all of the
traditional CSR-related issues are important. Since the effects of climate change can now be
felt almost everywhere, it is more important than ever to take quick action to at least slow down
its rate. Environmental sustainability consequently becomes a key factor in the creation or
reformulation of corporate policy as well as the image or reputation that firms are trying to
establish for themselvesIn his book Corporate Environmental Responsibility, Joe DesJardin
discussed the reasons why environmental sustainability is so crucial, particularly for the
younger generation.
The vast majority of people in the world subsist on or less than the absolute necessities for
survival. Industrialized nations are home to 25% of the world's population, and they consume
80% of all goods produced globally. In the coming decades, there must be a sizable quantity of
economic activity in order to meet the basic requirements and needs of the remaining 75% of
the world's population. It is anticipated that energy consumpticome would need to increase by
five times and economic activity would need to expand by two times in order to meet the
current living standards of industrialized countries during the next fifty years. Environmental
sustainability, said simply, is taking making choices and taking action to preserve the natural
world, with a focus on maintaining the capacity of the environment to maintain human
existence Making ethical decisions is important. will lessen the company's harmful effects on
the environment. Not at all simply referring to consuming less or producing less trash energy,
but it is focused on creating procedures that will eventually Future enterprises becoming fully
sustainable,' Businesses and in this area of environmental leadership, entrepreneurs are
anticipated. not simply because they have the tools to implement such sustainability not only
because they have been a huge offender in terms of causing harm to the environment
andsince a few decades ago, if not millennia. While incorporating environmental sustainability
is important cannot be exaggerated in one's company plan, as we have already said. Its
inclusion and implementation are what was actually covered in the prior topics. saying than
doing. Using greener raw materials or abstaining The use of substances that are harmful to the
environment led to be very expensive both financially and in terms of the effects they have to
add to their current production practices and policies. However, given the state of our world
today, it is less likely. less of a choice and more of a duty. Additionally, its inclusion may result
in the creation of a positive company reputation that may be helpful to the business
Turning Trash Cans Into Piggy Banks
So far, Recyclebank has enlisted more than 1 million people in 20 states in the US. to
help save the planet by padding their wallets "That's our value proposition: we're going to
make it financially attractive to recycle," says Ron Gonen, who co-founded the for profit
company in 2004 while enrolled at Columbia Business School Participants receive a container
with a computer chip embedded in it that weighs the amount they recycle and rewards them
with points that can be redeemed at more than 1,500 retailers, including Target. com and Bed
Bath & Beyond. The system, which lets consumers earn up to $400 a year, makes for a nice
little curbside pick-me-up. by Alex Altman.
Selling Solar On The Cheap
It's a playful name for a serious company: D. light Design sells $10 to-$25 solar
powered lamps in more than a dozen countries. Where people lack electricity and often spend
a lot on kerosene, which gives off noxious fumes. D. light's latest model also recharges phone
batteries. But one of CEO Sam Goldman's goals is to find ways to lower the cost even further.
"I'm not satisfied with $10," he says. "The real customers that we started this business for can't
afford that."-by Gilbert Cruz

Green Is Good For Business

GEviews its sustainability effort as a moneymaker, Green is green, says senior vice
president Beth Comstock. Launched in 2005, GE's "ecomagination" unit focuses on the
energy-efficient technology that reaped $17 billion in revenue last year, up 21% from 2007.
It's not easy for a company long known for dumping chemicals to change course. But, says,
Comstock, ecomagination "has put the words social and environmental responsibility in bord,
big and colorful letters. In the same page, it declares: "At Crayola we believe being responsible
means doing what is right. It is being a good citizen in the communities and countries where
we operate and our products are found. It means incorporating social and environmental
priorities and practices into our Crayola brand, our products and our relationships with
customers, vendors, consumers and employees. Every day we learn more and work to apply
best practices to improve our company, our Crayola products and the environment. We take
these issues and challenges very seriously. We work hard to make a difference by complying
with, and even exceeding industry standards and our own sustainability goals. Crayola may
make virtually every color under the sun, but its current favorite is green. By using renewable
energy, reducing waste and protecting the rainforests, Crayola's green initiative is helping to
ensure that today's kids will have a healthy environment for their creative tomorrows. The
Crayola solar farm includes over 30,000 panels on 20-acres of land. These solar panels
provide enough power to make 1 billion Crayola crayons and 500 million markers a year."

There are number of points that strongly support the business case for environmental
sustainability.
1. Moving towards environmentally sustainable practices present few or no risks to
business operations. If a business acts now and environmental sustainability continuous
to become an increasingly important and heavily regulated issue, you will have a head
start over many of your competitors
2. Another key point in the business case for environmental sustainability, is the potential
to reduce your expenses in the medium to long term. For example, making your
business more energy efficient will save you a significant amount on energy costs and
help you to improve your bottom line.
3. It may also have a competitive edge when it comes to attracting customers and
investors. Modern consumers, as well as investors, are aware of social and
 environmental issues and keep themselves informed about which businesses are acting
responsibly in the community.

4. Most importantly, it does not negatively impact on a business ability to generate a profit.
In fact, in the long term it is considered to actually improve profitability through the
reduction of expenses and increased competitiveness" Another edge that environmental
sustainability gives to companies that adopt the same is business differentiation. If a
number of business, including yours, is selling the same product or offering the same
service, how would you set yours apart? Why would consumers purchase your product
and not that of others? One way of doing that is creating your own trend, setting a new
fad for people to follow. Another way is taking the route from the opposite side, Le by
riding with the changing consumer expectation. And, as we have discussed earlier,
consumers are becoming more and more concerned with environmental issues then to
create a corporate image patterned after this expectation would be helpful to one's
business.

Pacifying the uproar by trying to adopt environmentally-charged policies would

differentiate one's business from that of the others And all around the world, an ample of
small entrepreneurs and big corporations alike are starting to gear towards embracing
the call for environmental responsibility, Crayola, for example, has gone from simply
being a corporate mogul in coloring materials into a company wanting to lead the
charge towards a greener future. In its internet site. it flags.
AYALA GROUP OF COMPANIES
The committee representing the Ayala group approved a policy for Businesses that are
committed to being more sustainable reduce energy, water, and other resources used in the
operations area expanding beyond compliance and reducing solid waste footprint
requirements for social and environmental responsibility on a global scale. In accrediting
suppliers, they include environmental criteria. offering opportunity for communities, as well as
enabling entrepreneurs that are considering reducing their company's environmental effect
other things like product development. Fernando Zobel, President and COO of Ayala
Corporation De Ayala, on the other hand, clarified that although their corporate social
responsibility Initiatives related to responsibility (SR) were previously more directed in the
direction of philanthropy and charity donations, this time, the Sustainable business practices
will be integrated into CSR initiatives. them SR, he asserted was more about distributing little
sums, although wasn't having any effect. The difficulty is in how to begin bringing SR switched
to their working mode. He noted that the new business developmental approach goes beyond
oversight and openness and focuses more on the the company's "footprint" or "effect" on
society, the environment, and the long term. Ayala explained that what made them realize this
was The advantages of sustainable business practices are their water resources.
entrepreneurship, Manila Water Co. "It was a chance to move into an a crucial yet inefficient
sector of the economy that the company services This is an example of a business that serves
some of the poorest neighborhoods. That will benefit those who weren't helped in the past.
Currently, we are offering more of the business agreements. such example creating street
signage or painting projects, to the communities rather than our conventional suppliers", he
declared.

SM PRIME HOLDINGS WATER MANAGEMENT

In the year 2013, SM had 3 million customers a day. The water consumption in the
same year reached a total of 11,234,157 cubic meters. Faucet aerators helped conserve 20%
of water consumption. installed in all comfort rooms help conserve water consumption by
about 20% and the sewage treatment plants in the malls recycled 3,090,271 cubic meters of
water which was then reused for cooling towers, comfort room flushing, irrigation, and grounds
keeping. the plants features reactors that reduce power consumption in the processing of
waste water treatment. Moreover, SM prime follows standards in treating sewage water before
discharge to the public sewer line and have been acknowledged for excellent compliance
through the Laguna Lake Development Authority's Diwang Lawa Award.
SM Prime prioritizes waste management in its operational sustainability program. The malls
monitor waste generation and the implementation of policies on proper waste disposal. The
malls provide recycling trash bins to encourage the practice of waste management among
tenants and shoppers. SM Prime has been promoting the use of reusable bags with its own
line of Eco Bags, even before the release of plastic ordinances.
AIR QUALITY MANAGEMENT
SM malls have implemented a no smoking campaign to reduce pollution and improve
air quality within the mall for both customers and employees. There are designated isolated
smoking areas to cater to smoking patrons. SM malls feature bus bays and transport terminals
for public utility vehicles for the convenience of the customers. All transport operators are
required to submit certificates of emission tests for all units plying the malls. This provision
helps promote the use of public transportation for cleaner air and helps decongest the roads
surrounding the mall. Bicycle parking slots are available in the parking lots, promoting the use
of bicycles to reduce vehicle emissions. The park finder in green and red light bulbs indicate
the availability of parking slots. This parking device gives parking availability guidance for mall
shoppers thereby preventing traffic congestion and gridlocks in multi-level parking structures of
the malls. None of the SM malls are located in nationally declared protected areas nor do they
have direct or significant effects on biodiversity, especially endangered species. The Company
advocates environmental protection. There were no spills of any material from the facilities
during the reporting year. SM Prime has had no significant tines nor non-monetary sanctions
for non-compliance with environmental laws and regulations in the year 2013.