Business Ethics and Corporate Social Responsibility

Final Subject Requirement

(12 ABM-A)

Part I

Corporate Social Responsibility aims to ensure that companies conduct their business in a way that is
ethical. This means taking account of their social, economic and environmental impact, and consideration of human
rights. Some businesses have as their main purpose the fulfillment of social or environmental goals, as opposed to a
business that tries to achieve its financial goals while minimizing any negative impact on society or environment (The
University of Edinburgh, 2017).

Alto Broadcasting System - Chronicle Broadcasting Network or commonly known as ABS-CBN

Corporation is the Philippines’ leading media and entertainment organization. Primarily involved in television and
radio, the Company has since expanded and now owns the leading cinema and music production/distribution outfits
in the country and operates the largest cable TV service provider as well. ABS-CBN also has business interests in
merchandising, licensing, mobile and online multimedia services, publishing, video and audio post production,
overseas telecommunication services, money remittance, cargo forwarding, TV shopping services, food and restaurant
services, theme park development and management, and property management. These investments are all aimed at
making positive changes in the media landscape and strengthening the fiscal position valued by our stakeholders.
ABS-CBN is formally referred to as "The Kapamilya Network", kapamilya is a Filipino term which means a member
of a family, is originally introduced in 1999 and was officially introduced in 2003 during the celebration of its 50th
anniversary. It is the largest television network in the country in terms of revenues, assets, and international coverage.
Sustainable development has been defined as “development that meets the needs of the present without
compromising the ability of future generations to meet their own needs.” (Our Common Future, 1987) Corporate
social responsibility (CSR) is now integrated into this discipline which calls for the convergence of economic
development, social equity and environmental protection.
ABS-CBN Broadcasting Corporation, already a communications giant in Asia, made a corporate
commitment to the public by establishing the ABS-CBN Foundation, Inc. One of the truly heartening developments
in our society now is the concern for the welfare and interest of our people especially the poor shown by some of the
richest families here who own several giant corporations that practically control and hold about 90 percent of our
country’s wealth and resources.
Notable among these conglomerates is ABS-CBN, the largest media network in the country owned by the
Lopez family. With a firm and intense sense of corporate social responsibility, ABS-CBN has embark on projects and
programs that cater to the material, physical and educational needs of the less fortunate in our country.
At present this admirable media conglomerate has also established continuing assistance program for our less
fortunate through its “Tulong Kapamilya” Foundation. This Foundation has even put up a “Tulong Center” at the
ABS-CBN compound to assist the deprived and the needy regarding their problems in life. Now, the center also
provides legal assistance to those who may have problems involving their rights and obligations under the law.

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ABS CBN CSR benefits to local Community
Operation Sagip is the emergency humanitarian assistance program of ABS-CBN Lingkod Kapamilya. They
provide food and non-food relief to affected communities of disasters, as well as engage in rehabilitation and disaster
risk reduction projects.
Since 2004, Operation Sagip has been very active in Disaster Relief and Rehabilitation Operation (DRRO). The
staff has crisscrossed the entire country conducting relief and rehabilitation efforts with utmost dedication and
professionalism, no matter how daunting the task maybe, particularly those in local and remote communities. Thus, it
is without a doubt that SK various community projects and other services for the past eight years truly benefited
millions of families particularly children.
There is no better proof of the Foundation's sincere devotion to public service than to support community
aspirations and see them through to reality, and Operation Sagip is determined to do just that. Yes, the challenge
maybe overwhelming but in Team Operation Sagip firmly believe in the worthiness of it.

To Environment
Bantay Kalikasan is ABS-CBN Lingkod Kapamilya Foundation's environmental arm. It was launched to serve
as a catalyst in addressing the concern over the worsening state of the Philippine environment characterized by air and
water pollution, denudation of forests, irresponsible waste disposal and their life-threatening effects.
In 1999, ABS-CBN Lingkod Kapamilya Foundation, Inc. created Bantay Kalikasan (Nature Watch). Through
the years, it has implemented several projects addressing specific, environmental issues at hand.
During the height of the El Nino phenomenon beginning May 1998, it provided food relief for the starving upland
communities in Tampacan, South Cotabato through "Butil Para Sa Buhay" (Grain for Life). In exchange for the food,
the beneficiaries were asked to help rehabilitate their immediate environment by planting fruit and forest trees and
shifting from slash-and-burn activities to more environment-friendly farming practices.
In 1999, Bantay Kalikasan started a reforestation program in the 2,700-hectare La Mesa Watershed Area through
its "Save the La Mesa Watershed” campaign. The idea was to get the public involved in saving the watershed by
adopting trees.
Bantay Kalikasan Patrol aired in the early 2000s to encourage compliance to environmental laws as it exposed
individuals, agencies and companies who abuse the environment. It likewise highlights good practices that promote
environmental awareness and conservation. Another project, Bantay Basura promoted awareness and lobbied for an
effective solution to the solid waste problem; Bantay Usok aimed to reduce Metro Manila's vehicular smoke emissions
to acceptable standards. It initiated the Clean Air Act Signature Campaign and was instrumental in the passage of the
Clean Air Act in the country.
Other significant projects of Bantay Kalikasan are the development of the La Mesa Eco-Park, BK Environmental
Hotline, Bantay Baterya, Bantay Langis and H2Hope.
Bantay Kalikasan leads the country in efforts to stop mining in Palawan and other key biodiversity areas
through a 10 million signature campaign. It also operates the BK Eco Academy which promotes environmental
awareness. Today, the thrust of BK is mainly environmental education and one of the main avenues to promote it is
through ecotourism. The goal is to implant in the minds and hearts of Filipinos that taking care of the environment is
the path to quality of life, that livelihood does not have to come from environmentally destructive practice.

To Government
Since the late ’80s or early ’90s ABS-CBN has already been engaged in promoting the welfare and protecting
the rights of the helpless and the weak in our society particularly the children and the women. It launched the Bantay-
Bata program to prevent child abuse, improve their health and assist in their proper upbringing. It has also some on-
going activities and programs providing assistance to neglected women and those who are victims of mental and
physical abuse.
Also very noticeable is the company’s unrelenting and immediate response to natural disasters almost regularly
hitting our country. It has well-organized solicitation and distribution of relief goods to victims of calamities. This
project has indeed provided a more efficient and well-oiled vehicle for the other sectors of our society who also want
to help the victims of natural and even man-made catastrophes regularly occurring in this part of the world.
More remarkable in this regard is that ABS-CBN and its sister corporations have also organized programs to
prevent the frequent and more devastating occurrence of disasters by helping preserve our environment and clean our
ecological surroundings. Thus it has programs for tree planting and cleansing of our waterways. Most notable here is
the improvement and beautification of the Pasig River and its surroundings.

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 At present this admirable media conglomerate has also established continuing assistance program for our less
fortunate through its “Tulong Kapamilya” Foundation. This Foundation has even put up a “Tulong Center” at the
ABS-CBN compound to assist the deprived and the needy regarding their problems in life. Now, the center also
provides legal assistance to those who may have problems involving their rights and obligations under the law.

To Employees
Lopez Holdings treats employees as partners in the success of the Company. Their health and well-being
are of prime importance in sustaining productivity and company growth. Health benefits, including a generous
hospitalization plan, constitute a significant component of the company’s employment package. Regular employees
undergo annual medical examinations and flu vaccinations, as well as seminars on physical, emotional, financial and
spiritual wellness. The Company also enrolled them in an emergency assistance program provided by a third party.
It co-sponsored a Walk-the-Talk activity and encouraged a sustainable lifestyle for employees.
Employee safety is also important to the Company. The Company ensures that employees are regularly
trained in maintaining safety in the workplace and in preparing for and dealing with emergencies. They undergo
building exit drills at least once a year. An ESH committee leads the enforcement of emergency protocols and
provides regular ESH updates. To-date, the company has had no incidents of injuries in the workplace.
It is the policy of the Company to look after the general welfare of its employees. The Company provides a
wide range of benefits to meet employee needs, including life insurance; health care and other medical benefits that
extend to immediate family members; vacation and sick leave entitlement; rest and recreation programs; and
financial assistance in the form of loan facilities. The company completed its Employee Stock Purchase Plan and
Employee Stock Option Plan in 2016.

ABS-CBN Lingkod Kapamilya represents Corporate Social Responsibility (CSR) at its finest. There is no
better proof of the Foundation's sincere devotion to public service and the support community aspirations and see
them through to reality.
Social Initiatives

Bayanijuan (Sustainable Community Development)

One of the initiatives of AFI that can be highly related to sustainable development is the Bayanijuan
project. Throughout the years, many cities in the Philippines particularly in the National Capital Region encountered
development challenges due to the proliferation of informal settlements. To respond to the underlying problems in
the cities, AFI initiated the Bayanijuan project to assist the informal settlers in Metro Manila in relocating their
homes to nearby sub-urban places such as in Calauan, Laguna and Legazpi, Bicol. (ABS-CBN Foundation, 2014)
The project focuses on four main areas of concern namely infrastructure, livelihood, health and education
and youth development. As of now, AFI serves as the leading private sector who implements Public-Private
Partnership (PPP) projects. With regards to the relocation of beneficiaries, AFI taps different government agencies
such as National Housing Authority (NHA), Department of Energy (DOE), Department of Education (DepEd),
TESDA, DOST and concerned Local Government Units (LGUs) (ABS-CBN Foundation, 2014)

Programa Eugenio
The Programa Eugenio project of AFI aims to provide educational opportunities for Filipino children in
Bayanijuan villages. As of now, the foundation also established public school Calauan, Laguna to cater those
students who were relocated to Bayanijuan village.

Sagip Kapamilya (Emergency Humanitarian Assistance)

Sagip Kapamilya is a branch of AFI that is oriented in assisting our Filipino fellowmen who suffered from
natural disasters and calamities. The main purpose of this branch is to provide emergency and humanitarian help
such as relief goods and rehabilitation services. Sagip Kapamilya classifies its assistance into two categories namely
food and non-food. Under the food category is usually the canned goods, cooked foods and rice given to the victims
right after the proliferation of a certain calamity. On the other hand, the non-food category is composed of the
sanitary and hygiene goods, housing facilities, health and educational facilities provided to the victims. Looking at
its historical context, Sagip Kapamilya was established 10 years ago, year 2004, wherein the branch focuses on
Disaster Relief and Rehabilitation Operation (DRRO).

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 According to the information presented in the webpage, Sagip Kapamilya foundation emphasizes relevant
concepts of sustainable CSR. First, it was pointed out that a participative approach in community development is
very essential in ensuring that there is an inclusive growth within the community. Another relevant point raised by
the branch is that it is important to establish a relationship with the community wherein all stakeholders are aware
regarding the “shared responsibility” of the company and the community. (Sagip Kapamilya, 2014)

Environmental Initiatives
Kapit Bisig (River Rehabilitation)
This branch promotes environmental protection through reviving and restoring the life of Pasig River
which used to be polluted. Through environmental protection, the branch believes that communities will be more
safe and conducive to live in

ABS-CBN Bantay Kalikasan (Environment Protection and Conservation)

Bantay Kalikasan serves as an environmental media catalyst to watch out for undesirable actions that affect
the goals of maintaining an environmentally sound place for Filipino people. This branch of the foundation works
hand in hand with different stakeholders in the environment sector. One of the main projects done by this branch is
the “Kapit-Bisig Para sa Ilog Pasig” project.

Bantay Bata 163 (Child Care)

This CSR initiative heavily emphasizes on the benefits for children. IT is designed to help protect and
enrich the children. They currently have 10 programs and services for the
children namely:

 Helpline 1-6-3 which is a 24 hour toll free line where people can immediately report any forms of child
abuse, where respective response teams in their different localities may extend their help towards the
distressed.
 The Children’s Village is another service where children are placed right after they have been saved by the
foundation. They offer Home care Shelter, Education services, Health and wellness, Rehabilitation and
therapy, and placement of children for foster care and adoption.
 Bantay Edukasyon is a multi-year support for children, offering them with scholarships.
 Their food and transportation is also supported by the foundation.
 Bantay Kalusugan is a 6 month program, where parents are taught how to maintain their children’s health
and avoid malnutrition and abuse. It is also known as a feeding program.
 Counseling and Family Services is a program that is designed to be a one-on-one conversation with the
psychologist and the parents of the children. This will help address child abuse and help families move on
from traumatic experiences.
 Community Services reaches out more towards the family units of a community where the foundation
offers Multisectoral convention and Community outreach programs.

The stakeholders of the company revolves around its Shareholders, Employees, Creditors, and Suppliers.

SHAREHOLDERS
According to Lopez Holdings Corp., LPZ welcomes retail and institutional investors who wish to acquire
LPZ shares through the PSE. We shall work with institutional investors with a view towards having at least 5% of
our shares held by them at any given time. We shall facilitate their attendance and participation at stockholders
meetings.
The company encourages its shareholders to attend and participate in stockholders’ meetings either in
person or by proxy. Stockholders meetings are held in venues easily accessible to investors, including institutional
investors. The annual stockholders meeting on June 8, 2017 at 9 a.m. will be held at Cinema 6, Rockwell Power
Plant Mall, Rockwell Center, Makati City.
As reflected in its Code of Conduct, Lopez Holdings considers its employees as its most important
resource. The Company is committed to fostering a work environment in which employees are treated with respect
and dignity.

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EMPLOYEES
Lopez Holdings strives to provide its employees opportunities for professional advancement, care for their
professional needs and the enhancement of the quality of life of their families. It is committed to finding effective
ways to foster professionalism, teamwork and employee participation to attain higher levels of productivity and
quality.
The Company hires employees based on merit, qualifications, competencies, and potential. Employees are
motivated and trained to achieve the highest level of efficiency and competence. Responsibility as good corporate
citizens and members of society is impressed upon employees.

CREDITORS
Pursuant to its Code of Conduct, Lopez Holdings treats its creditors as partners. The company fosters
relationships with them based on mutual trust, good faith and professionalism. Lopez Holdings values the
contribution that creditors give to growth and development, and respects their rights.

SUPPLIERS
Pursuant to its Code of Conduct, Lopez Holdings values its suppliers of goods and services as partners in
the pursuit of its businesses. It conducts all business transactions with integrity, and treats suppliers and service
providers with fairness and professionalism. It assists them in improving the quality of their services, and follows
rules concerning the fair and transparent process of selecting them. Lopez Holdings ensures that purchased
products/services conform to specified requirements. The type and extent of control applied to the supplier and the
purchased products/services depend on the effect of the purchased products/services on subsequent service
realization.

ABS CBN is really a competitive corporate that makes them on top. Evidently, they’ve two competitive
strategy. The first one is the Understanding of the 'why' strategies. Having ambidextrous organization committed to
address evolving needs of the customers and the organization's ability to Change while uploading its core business.
Second strategy to survive the companies. They should formulate strategies to attain their goals. Knowing the
reasons behind those strategies gives clear understanding agility and adaptability for the Company.
The Key people of the company are Carlo Katigbak (President and Chief Executive Officerficer), Maria
Socorro Vidadnes (Chief Operating Officer for broadcast), Malou Santos (Chief Operating Officer for star
creatives), Charo Santos - Concio (Chief Content Officer) and Laurenti Dyogi ( Head of Entertainment
Production).
The chosen CSR of the company is Operation Sagip. Operation Sagip is the emergency humanitarian
assistance program of ABS-CBN Lingkod Kapamilya. We provide food and non-food relief to affected communities
of disasters, as well as engage in rehabilitation and disaster risk reduction projects.

Mission

Our mission is to conduct disaster relief and humanitarian assistance in calamity-stricken areas with the aim of
enabling affected families to rebuild their lives and communities to start sustainable rehabilitation programs.

Vision

Operation Sagip envisions a safe, caring and generous community rooted on the values of truth, service and the
common good

Goals

To inculcate a culture of preparedness and disaster risk reduction among Filipino families

To provide immediate, appropriate and timely assistance during emergencies

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To support impact projects for the rehabilitation of disaster-affected communities.

Core Principles

 Operation Sagip believes in participative development of a family-friendly community.

 Sagip fosters strong partnership and shared responsibility with all stakeholders.
 Operation Sagip adheres to an efficient and responsible stewardship of entrusted resources.
 Operation Sagip encourages spirit of volunteerism and sense of community among Filipinos worldwide.
 Operation Sagip promotes conscientious and nurturing attitude towards the environment in all its activities.

Bibiography

https://en.m.wikipedia.org/wiki/ABS-CBN_(TV_network)

ABS-CBN (TV network)

https://corporate.abs-cbn.com/about-us

ABS CBN Corporate

https://www.philstar.com/opinion/2016/02/04/1549858/corporate-social-responsibility

https://corporate.abs-cbn.com/lingkodkapamilya/bantay-kalikasan/about

https://www.pep.ph/guide/tv/2132/advocacy-program-bayanijuan-kicks-off-abs-cbns-55th-
anniversary#aOwmddLDpg59lUx7.99

https://www.ed.ac.uk/careers/your-future/options/occupations/csr/what-is-csr

http://lopez-holdings.ph/investor-relations/financials/annual-reports/1329-2015-corporate-social-responsibility.html

https://news.abs-cbn.com

Alexander Chan Jammaica Mackay

Angie Lynne Berba Janelle Benavidez

Ann Andres Janelle Kia Dela Cruz

Beverly Marquez Jayzhel Costales

Blessie Fernandez Ericka Joy Bueno

Camille Mondala Ashley Ñoquiera

Carmela Taaca Yaoshor Acio

Christine Aguilar Erika Maravilla

Cinderella Salibay Gemma Balangue

Diane Acosta