The Role of PBSP in Development Four decades of collective business sector leadership in poverty reduction
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1 The Role of PBSP in Development Four decades of collective business sector leadership in poverty reduction Felix Tonog Director, Strategy Management
2 Outline Historical Sketch Development Principles Collective Impact Cases Investing in Collective Solutions 2
3 Historical Sketch Dec. 16, 1970 founded at the Hotel Intercontinental Makati March 8, 1971 registered with the Philippine SEC April 1, 1971 formally opened with operational support from the Economic Development Foundation (EDF). Dividendo Voluntario para la Comunidad PBSP was modeled from; introduced by Luzio Mazzei, a Venezuelan and President of Shell Philippines Washington Sycip developed the organizational framework Jose M. Soriano coined the name PBSP; first PBSP Chairman Sixto K. Roxas III created the first vision and mission statement 3
4 WASHINGTON SYCIP SGV and Company Trustee, "I joined PBSP because I believed that it was the right vehicle through which the business sector can express its social consciousness. It was also an opportunity for businessmen to come into a better understanding of what ails the Filipino masses. It remains my strong belief that our elite must continuously acquaint itself with the larger society. In understanding their plight, our leadership can effectively respond to the problems." 4
5 EMILIO ABELLO Manila Electric Company Chairman, "We have not fully succeeded in promoting the development of man in our society and in advancing more meaningfully the well-being of the community because our efforts have been dispersed and they have taken the form of bits and pieces in uncoordinated, wasteful fashion, giving rise to ill-considered and inadequate measures." 5
6 BIENVENIDO A. TAN, JR. The Bookmark, Inc. Modern Glass Distributors, Inc. President, Executive Director, Trustee, "No rational thinking organization can accept a situation where it stands as an island of material prosperity in a sea of poverty and degradation. Only when a self-sufficient, self-determining community able to cope with changing social and economic conditions emerges can we say that we have achieved an acceptable measure of success." 6
7 ANDRES SORIANO III San Miguel Corp. Andres Soriano Corp. Chairman, PBSP is founded on two deeply held convictions: corporate citizenship is not an option but a responsibility. Helping the poor help themselves hold out the best hope for alleviating poverty, unleashing human potential and achieving social development. The task of development is so great that no one sector can bring it about alone. The key is to establish partnerships among the major sectors of society. Andres Soriano III Address to the 48 th United Nations NGO Conference, New York City,
8 ANDRES SORIANO III San Miguel Corp. Andres Soriano Corp. Chairman, PBSP is a business-led social development foundation. It is a collective effort of corporations committed to a common goal of helping the Filipinos help themselves. We are both business and social development and this duality allows us to understand the concerns of both sectors and help match one s competencies and resources to another s needs. This uniqueness has been a source of strength that sustains our work and an inspiration to aspire for leadership in the sector. 8
9 PBSP s Development Principles PBSP s social development programs are rooted in a core philosophy of self-help and participation. Thus, PBSP is guided by the following development principles:» True development occurs when people participate in the process of deciding and implementing the desired goal changes.» The objective of development is the development of organized self-managing and self-directing communities.» Development should promote the good of man, and of the whole man. Therefore, development must be directed towards all aspects of human life. 9
10 MISSION PBSP is committed to poverty reduction by promoting business sector leadership in, and commitment to programs that lead to self-reliance 10
11 VISION To lead the business sector s efforts to reduce poverty in the Philippines 11
12 CASES OF COLLECTIVE ACTION 12
13 Provincial Development Strategy (PDS) Poverty group-focused and province-specific (15 priority provinces) approach to poverty alleviation Approach: Provincial development study on development opportunities to appraise local conditions Formulation of appropriate institutional strategies of the province Assembly of necessary resources, partners and appropriate technologies Institution building of NGO partners 13
14 PDS Case Study Project Province Beneficiaries Project Interventions Davao Federation of Agricultural Cooperatives (DAFEDACO) Rice Enterprise Program ( ) Davao del Norte 70,000 lowland rice farmers Provision of financial assistance of P5.6 million (72% in financial advances) to fund projects on institution building, rice-based productivity improvement (setting up a rice central and enterprise development of palay/rice marketing), and installation of radio communication system to support trading. Results Rice production went up by 277% due to better credit facilities, improved irrigation system and technology transfer to rice farmers and community. Lending rate of local financiers and traders went down from 7sacks to 4sacks per P1,000 Lower cost of farm inputs brought overall production cost down, raising the effective price of palay from P5 to P10 per bag Local partnership building led to the federation of 22 cooperatives 14
15 Area Resource Management (ARM) Impact areas contiguous clusters of municipalities with significant poverty population Integrated area development intervention Strategy Development partnerships with local NGOs and POs, organized and strengthened to implement programs Partnerships with LGUs legislation, enforcement of policies and delivery of basic services Corporate sector and donors to invest resources complementing efforts in the area. Scope includes Effective and efficient utilization of natural resource base in the area Balanced use, conservation, preservation and regeneration of resources within ecological system 15
16 ARM Case Study Project Area Beneficiaries Strategic Private Sector Partnerships for Urban Poverty Reduction (STEP-UP) Caloocan, Quezon City, Malabon, Navotas, Marikina, Pasig, Taguig, Muntinlupa Urban poor families Project Interventions Funding from ADB-JFPR PhP183 million; mobilized PhP from corporate and other sources. Financial assistance for housing and livelihood Institution building for HOAs and LGU multi-sectoral groups Results Benefited 13,916 households through 52 HOAs in 12 cities in Metro Manila 1,221 housing units completed (with electrification) PhP4.49M in livelihood loans benefiting 1,668 households Trained informal workers and formed workers cooperatives PhP40.24 M for 59 community infrastructure projects Housing loan repayment rate at 92.7% Transformed communities 16
17 Investing in collective solutions 9 th Strategic Plan Philippine Business for Social Progress PBSP is committed to strengthening the results focus of its development programs within the context of the SDGs. Central to achieving this is our push for the collective impact approach and an intensified promotion of inclusive business models. 17
18 PBSP s Collective Impact Framework Collective Impact is a participatory approach to the delivery and management of development initiatives where a group of important actors from different sectors commit to a common agenda for providing long-term solution to systemic social problem [in specific sites]. Collective impact site selection Collective impact organizing Collective impact backbone management Needs Assessment & Validation; Resource Mapping; Family, Beneficiary Profiling; Entry point project Joint planning and Project Identification; Participatory Project Design; Resource Mobilization & Partnership Building Program Implementation Management; Monitoring, Review, Evaluation & Reporting Collective impact: an operational process 18
19 Our Theory of Change articulates our shared view of the transformational change process and the results that we want to achieve in the next five years and beyond. Self-reliant and resilient communities with improved quality of life REDUCED MORTALITY & MORBIDITY COMPETITIVE K+12 GRADUATES IMPROVED RESILIENCY & REDUCED VULNERABILTY TO CLIMATE CHANGE RISKS IMPROVED INCOME Access to quality medical services Safe and peaceful environment Access to clean water and energy Cultural diversity Better access to quality education Ecologically sustainable Decent jobs and more economic opportunities Resilient and disaster-ready Available infrastructure Democratic, transparent and accountable governance Capable and effective institutions TARGET MUNICIPALITIES PROVIDED WITH MIX OF PROJECT INTERVENTIONS 19
20 Bayanihang Pampaaralan A private sector-led platform for collective action BP supports the implementation of K+12 program by leveraging business sector investments to sustain government action and harmonize development aid assistance for education reform IN PHOTOS: Irah Jane Empuerto, Gr. 12 student of Lapasan National High School in Cagayan de Oro earned NC I on shielded Metal Arc welding through the support of PBSP BP program; BP presentation of Job Market Study results and consultations in Ceby City; BP stakeholders forum in Cagayan de Oro City 20
21 Water Alliance A collective impact initiative created to spur a coordinated response to the water security challenge. 60 member-organizations from corporate, academe, civil society organizations and government. At least PhP137 million mobilized from private sector to support Water Alliance initiatives. 21
22 National TB Program PBSP supports the Philippine National TB Program in partnership with the Department of Health, local government units, and various civil society groups With funding support from The Global Fund to Fight AIDS, Tuberculosis and Malaria and USAID IN PHOTO: DOH and PBSP launched the Dr. Serapio B. Montaner Jr. Al Haj Memorial Hospital PMDP Satellite Treatment Center in Malabang, Lanao del Sur on September 27,
23 Being an effective partner in collective impact requires flexibility, long-term commitment, and a willingness to share power, decision-making, and credit with others. 23
24 24
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