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1 Annual Report 2018 ANNUAL REPORT 2018 1 Statement of VISION To lead the business sector’s efforts to reduce COMMITMENT poverty in the Philippines MISSION PBSP is committed to poverty reduction by promoting business sector leadership in, and commitment to programs that lead to self- reliance About PBSP Philippine Business for Social Progress is the largest business-led NGO at the forefront of strategic corporate citizenship and business sector leadership, contributing to sustainable development and poverty reduction. Established in 1970, PBSP remains a consultant and partner of choice of companies and donors. PBSP scales up impact by adopting the Collective Impact strategy to solve large, complex, systemic problems. PBSP organizes Platforms for Collective Engagements (PlaCEs) to ensure alignment and sustainability of initiatives by multiple stakeholders. Responding to the changing landscape of CSR, PBSP’s brand of corporate citizenship taps into the core business competencies of companies and promotes inclusive business as a strategy. PBSP also continues to strategically engage companies through social investment, responsible business practices, and philanthropy. PBSP creates sustainable solutions to societal problems in its core program areas which are Health, Education, Environment, and Livelihood and Enterprise Development. It also provides off- the-shelf options for engagement of companies and their employees. With a proven track record, PBSP provides end- to-end services in development consulting which include project and grants management, events and backroom management. www.pbsp.org.ph About the Cover The circles in varying shades, sizes and hues, symbolize the collective initiatives of PBSP, its member-companies, partners and donors in improving the lives of the poor. All these are directed towards contributing to the achievement of the Philippines' target to meet the United Nations Sustainable Development Goals by 2030. 2 UNITED TO END POVERTY Statement of COMMITMENT We believe... 1 2 PRIVATE ENTERPRISE, by THE MOST VALUABLE creatively and efficiently RESOURCE, in any country is utilizing capital, land, and the person. The higher purpose labor, generates employment of private enterprise is to build opportunities, expands the social and economic conditions, economic capabilities of our which shall promote the society, and improves the development of the person quality of our national life. and the well-being of the community. 3 4 5 THE GROWTH AND PRIVATE ENTERPRISE, PRIVATE ENTERPRISE, is VIGOROUS DEVELOPMENT, must discharge its social financially and technologically of private enterprise must be responsibility towards society equipped to participate actively anchored on sound economic in a way which befits its unique in social development. In terms and social conditions. competence. It should involve of scientific technology and itself more and more in social managerial competence, development for the total well- private enterprise can help being of the nation. provide the total approach for social development in our depressed communities. 6 THEREFORE, To better fulfill its PRIVATE ENTERPRISE, social responsibilities, private together with other sectors enterprise must earmark a portion of society, shares obligations of its income for social development. and responsibilities, which it must discharge to the national We hereby declare our commitment community. The ultimate to Philippine Business for Social objective of the private Progress, which shall be private enterprise is to help create and enterprise’s social development maintain in the Philippines a arm dedicated to the empowerment home worthy of the dignity of of the poor and self-reliance of the person. communities. ANNUAL REPORT 2018 3 PBSP MEMBER-COMPANIES 4 UNITED TO END POVERTY ANNUAL REPORT 2018 5 Table of Contents Mission and Vision Year at a Executive Director’s 02 11 Glance 15 Report Statement of Chairman’s Health 03 Commitment 12 Message 18 Program PBSP Member President’s Education 04 Company Logos 13 Message 24 Program Our National Regional Committee Environment 08 Reach 14 Head’s Message 26 Program 6 UNITED TO END POVERTY Treasurer’s 54 Report Audit 55 Committee Report Financial 56 Statements Disaster Risk Reduction The Board of 34 and Management 102 Trustees Livelihood Committee Heads 36 Program 105 & Members Inclusive Your PBSP 37 Business 106 Team Top 20 List of 44 Donors 113 Donors ANNUAL REPORT 2018 7 8 UNITED TO END POVERTY ANNUAL REPORT 2018 9 A FISHERMAN from Daram, Samar takes the lead in growing and nurturing seaweed farms to help ensure a better life for his community. 10 UNITED TO END POVERTY Year at a GLANCE 2,044.33 91.53 77 Grants and financial Contributions from PBSP New projects advances disbursed member- companies approved 279 (PhP millions) (PhP millions) Member- Companies 1,891.61 2,061.97 31,582 Grants and financial Grants and contributions from Families reached advances approved donor agencies and non- (PhP millions) member-companies (PhP millions) 192.00 Development loans for MSMEs disbursed (Php millions) APPROVED FINANCIAL ASSISTANCE (PhP millions) BY TYPE ASSISTANCE BY FUND SOURCE BY PROGRAM TYPE 1,588.14 76.28 20.34 192.00 1,888.54 HEALTH EDUCATION ENVIRONMENT Development loans Restricted 1,699.61 3.07 11.78 192.00 3.07 LIVELIHOOD & DEVELOPMENT INSTITUTIONAL Grants Unrestricted ENTERPRISE FINANCE SUPPORT DEVELOPMENT ANNUAL REPORT 2018 11 Chairman's MESSAGE hile poverty levels have gone down in recent Now on our 48th year as an organization, I believe it is an years, there remains to be inequality with opportune time to reflect and define PBSP’s value and about 22 million Filipinos still needing to be relevance amidst changing times: lifted out of their situation. W First, we affirm our goal to help reduce poverty. As the In its 2018 Poverty Assessment Report titled “Making largest business sector-led NGO, we do this by bringing Growth Work for the Poor (The “Report”), the World Bank business and development together as a shared goal. We reported that the annual GDP growth averaged 5.4 percent would not be PBSP if we do not define business sector for the years 2006 to 2015, a significant increase from the 4.1 participation as an integral part of our social work. percent growth realized in 1996 to 2005, and the 3.4 percent growth rate in 1986 to 1995. Second, we have always aligned our initiatives with local, national, and international development frameworks and Despite this good performance, the Report stated that plans to further strengthen our contribution as a sector. poverty remains high, and the pace of poverty reduction Ambisyon 2040 and the SDGs provide the anchor that has been slow, compared with other East Asian countries. support our direction. According to the World Bank, the Philippine poverty rate as measured by the international poverty line (US$1.90/day), Third, while we will still implement programs and projects, declined by 0.9 percentage points per year we shall strive to give more value through our evolving and between 2006 and 2015 compared to expanding role as convenor and influencer. This fiscal year, 2-2.5 points in China, Indonesia, and we shall be going on a deep-dive in executing the Collective Vietnam. Impact Strategy. We will build on our extensive experience in implementing the Area Resource Management programs This is why the business sector and scale it up by influencing stakeholders to invest in an should not stop in carrying out area. This is by consolidating mutually reinforcing initiatives its role as a catalyst in social and working together towards a common agenda. This development. The quality and holistic and needs-based approach will be executed in scale of solutions is critical if we active collaboration with our beneficiaries. are to achieve the Sustainable Development Goals (SDGs) Fourth, we shall ensure that through our Platforms for to end poverty by 2030. Collective Engagements (PlaCEs), we allow opportunities There is no time to to define value for business, not only in the social aspects waste. but also in the business aspects as well. As CSR has evolved, we have seen a difference in how social development To hasten the programs are being discussed in the Boardroom. We believe pace of poverty PBSP is in the optimum position to push the discussion of reduction, delivering social and business bottom lines side by side. we need to have greater These poverty statistics tell us that a lot still needs to be engagement, done. I call on you to join us and work with us in achieving especially our goal. Let us continue to create life-changing impact on in strategic communities. Let us continue to be united to end poverty. initiatives, and to forge On behalf of the Board of Trustees partnerships that will consolidate MANUEL V PANGILINAN interventions Chairman of the Board for a larger, more sustainable impact on communities. This is something PBSP espouses. 12 UNITED TO END POVERTY President’s MESSAGE inety pesos seem to be a simple amount for band together and co-create the future of the country. We some of us. But for more than 15 million Filipinos need to be much more inclusive and sustainable in the who are extremely poor, 90 pesos is what they way we work, in the way we do things, and in the way we Nearn for a day. provide help to marginalized communities. Imagine the plight of the poor who could barely provide PBSP responds to this call through partnership, one meal a day for their families, parents who could not collaboration and ownership. We consolidate multiple send their kids to school and find better jobs enough to initiatives and scale it up with sustainable solutions to properly support their kin, people who could not live in complex problems. To amplify our goal, we launched the decent homes, and those who just bear the excruciating #KasaliAko Campaign which is a movement to promote pain of their diseases because they simply could not afford involvement and inclusion.
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