Corporate Citizenship: Participative Governance Experience in Philippine Public Administration

1. Corporate Citizenship: Participative Governance Experience in Philippine Public Administration Edwin S. Martin, Ph.D. Chief, Public Affairs Philippine Institute for Development Studies and Assistant Professorial Lecturer Pontifical and Royal University of Santo Tomas

2. Presentation Outline • Background of the Study • What is Participative Governance? • What is Corporate Citizenship? • Corporate Citizenship Efforts in the Philippines • Philippine Business for Social Progress (PBSP) • League of Corporate Foundations (LCF) • Theoretical Framework • Corporate Citizenship Among Top Philippine Businesses • Membership in Corporate Citizenship Organizations • Modalities of Corporate Citizenship in the Philippines • Corporate Citizenship Modalities and Industry Types • Social Issues and Activities Businesses Want to Participate In • Motivations Behind Corporate Citizenship Activities • Relationship Between Corporate Citizenship and Taxation • Conclusion • Recommendations

3. Background of the Study 1. What is Participative Governance? • Every citizen is an integral part of the community of participating individuals in a state • Governance is a collaborative effort for people to freely contribute towards the reinforcement of the common good • Governance is a responsibility of every citizen, hence is no longer the monopoly of the state • UNDP defines governance through the 3 major domains of the state, civil society, and the private sector

4. Tri-sectoral Governance Source: UNDP, 1997

5. Background of the Study 2. What is Corporate Citizenship? • Every corporate entity is a citizen that has a responsibility to the community/ state where it belongs • Corporate citizenship is intrinsically responsible for four areas, namely: the market place, the work place, the community and the environment • Corporate citizenship is generally reflected through the practice of philanthropy, socio-civic activities, cause-oriented advocacies, and electoral and political involvement

6. Corporate Citizenship Efforts in the Philippines • Philippine Business for Social Progress (PBSP) • An organization of some 240 business enterprises that is mainly dedicated to promoting private sector commitment to social development • League of Corporate Foundations (LCF) • The League of Corporate Foundations is a network of more than 70 corporate foundations and private organizations that are engaged in social development work in the Philippines.

7. Philippine Business for Social Progress (PBSP) • Four Primary Areas of Engagements: • Poverty Alleviation • Corporate Citizenship Advocacy • Civil Society Collaboration • Empowerment of People through Information Technology • Strategic Operation/ Location • Luzon • Visayas • Mindanao

8. League of Corporate Foundations (LCF) • Five Areas of Interest and Involvement: • Education • Enterprise Development • Environment • Health • Arts & Culture • Establishment of Corporate Social Responsibility Institute (CSRI)

9. Theoretical Framework • Rudolf Steiner’s Social Threefolding Theory • Postulates the essential interaction and coexistence of the three basic components of social interface, namely: polity, culture and economy • Nicolas Perlas’ Threefolding and Globalization • Postulates the autonomous interaction of the three sectors of society, i.e., state, civil society and private sector, that serves as a means to an end for a comprehensive sustainable development

10. Corporate Citizenship Among Top Philippine Businesses Proportion of respondents according to types of business:

11. Membership in Corporate Citizenship Organizations Memberships in Corporate Citizenship Organizations :

12. Modalities of Corporate Citizenship in the Philippines Distribution According to Corporate Citizenship Categories:

13. Corporate Citizenship Modalities and Industry Types

14. Social Issues and Activities Businesses Want to Participate In • Social Issues that the private sector wants their corporate citizenship • efforts to give focus on (according to rank): • 1 – Education • 2 – Environment • 3 – Health • 4 – Peace and Order • 5 – Community Infrastructures • 6 – Livelihood • 7 – Marginalized groups • 8 – Youth and Sports • 9 – Arts and Culture • 10 – Housing

15. Motivations Behind Corporate Citizenship Activities • Ethical and Psychic rewards as top choices among the respondents • Tax exemption as least driving force in the conduct of corporate citizenship. • “Bayanihan” (communal reciprocity) as inherent cultural concept among Filipinos.

16. Relationship Between Corporate Citizenship and Taxation • 90.9% of the respondents deduct corporate • citizenship programs and projects expenses on • their taxes • Among those who deduct these expenses on • their taxes, 70% of them claim only 11-20% • tax exemption

17. Conclusion Participation is gradually gaining grounds as a crucial concern of governance. Corporate Citizenship is an evolution of Corporate Social Responsibility that is strongly grounded on the business sector’s realization of their need to be involved in social-political cohesion

18. Recommendations • There is a need for a more structured mechanism to synchronize and optimize contributions of private sector in governance. • Corporate citizenship organizations should find interest in sponsoring more studies in the area of participative governance • Inclusion of participative governance and corporate citizenship in the academic curriculum of universities

19. End of Presentation Thank you!