CSR and Philippine media

Lala RimandoNewsbreak business editor

CSR ForumKiev, UkraineJuly 12, 2007

Philippine media• most free-wheeling in

Asia • After 20-year Martial

Law • Private media

companies were confiscated

• Press censorship • Journalists critical of

govt were jailed, killed

• Free market orientation – Mushrooming of private

media orgs – More private media org

than government-owned– Market is vibrant,

crowded, sometimes sensationalistic

– takes “watchdog role” seriously

• Never again attitude

www.newsbreak.com.ph

• Independent media Investigative reports, in-depth stories

• Insider stuff that give a ringside view of the workings of people, politics, and power

• Veteran and award winning journalists

Filipino journalists learning about CSR

CSR in the Philippines• Philanthropy/dole-outs have strong roots in

Philippine society• Almost 85% are Catholics

– Strong tradition of benevolence by wealthy families. Donate to gain heavenly blessings

– Poor = 40% of population (85m) – Est 20% unemployment– Political instability– Natural disaster

• BUT dependence rather than empowerment

Evolution

• Businesses decided to get together to share resources

– Philippine Business for Social Progress www.pbsp.org.ph

• Allot 0.2% of after-tax profits for developmental projects

• Strategic philanthropy

– League of Corporate Foundations www.lcf.org.ph

• CSR Expo every year

– Philippine Business for Education

• US$500 million CSR budget for education

Is CSR newsworth

y?

Generally not perceived as newsworthy because

• Not really hard news • Don’t move the markets • Don’t affect prices• Mere feel-good stories • Not sexy topics• Not sensational• Messianic zeal is not

persuasive enough

because…• Cynical• We write mostly about • Corporate IRRESPONSIBILITY • Our watchdog role

So…

• CSR (by default) = PR– Atonement of sins– Cover-up

• Relegated to the PR sectionOR• CSR events of companies

become occasions to ambush CEOs with questions on more controversial issues

CSR Drivers

• Imposed through the value chain

• Sins of the past of industries– garments, mining,

pharmaceuticals, food

• Multinational companies implementing CSR agenda of head office

• Market competitiveness • Major local companies riding

the global fashion

But…

• Companies need to communicate their CSR to realize their goals– reputation that translates to

goodwill– become employer of choice– boost brand

• So how to bridge?

A typical (business) reporter

• Required to have at least two stories a day

• Needs information to be fast and reliable

“Our stories should reflect current business trends. If we see that more CEOs are making the announcements themselves with regards to their CSR activities or issues, then there may be a shift in the coverage of CSR.”

- Roel Landingin, FT

“If people behave normally, that is not news. If companies donate books, that is not news. There is no impact to the community. But if the money or the impact is substantial enough to empower the communities, then that is news.”

-Joe Torres, Gmanews.tv

BUT…

We need GOOD STORIES

“But we don’t want them to be PR stories.”

- Jasmine Romero, RMN

Even good stories have to follow the standards of journalism :

• Timeliness, Accuracy, Impartiality, with public interest, Uniqueness, Scale, etc

“Let us keep a healthy dose of cynicism”

• There is need to see CSR as more than just feel-good stories.

• Journalists need to dig deeper, put CSR activities into context, and report them as part of a bigger story on a company’s activities.

Are businesses ready for this paradigm?

“It’s nice that the media are learning how to analyze CSR projects of companies. But are [the companies] ready for questions that will look at CSR as reflected in their business operations?”

- Josue Claur, British Council

SEE THE BIGGER PICTURE

To the CEOs

• TRANSPARENCY.– Don’t lie. It will haunt you.

• Show us the EVIDENCE– Good use of money.

Make, Take, Give

• Philanthropy – just a subset of CSR

• You make, you take and you give.

• CSR - what you “make” and how you “take” is more essential than what you “give”.

Thank you