SM CARES; A Corporate Social Responsibility Arm of SM Prime

A CSR Report prepared by Joesel F. Armenta

INTRODUCTION

SM Supermalls is the most prominent multilevel merchandising business in the

Philippines together with Ayala Group of Companies and Robinson. Henry Sy, Sr. established

SM in downtown Manila in October 1958 as a shoe business. Mr. Sy, recognized as the visionary

of Philippine retail for his industry breakthroughs, conceived of developing a network of shoe

stores using store layout and marketing techniques never before attempted in the Philippines. The

shoe store's success prompted it to expand into a full-service store, and the first SM Department

Store opened in downtown Manila in 1972. SM has been a part of the life of many Filipinos

because of its interesting item mix, world-class décor, one-stop shopping convenience, and

service. Today, it has 32 strategically situated branches in Metro Manila and major locations

throughout the nation.

SM Supermalls is one of Southeast Asia's largest mall developers, with 72 malls in the

Philippines and 8 in China. With 4.2 million daily foot traffic in the Philippines, 300,000 in

China, and over 20,000 tenant partners, SM Supermalls delivers family fun experiences through

partnering with well-known brands and events.

Given the fact of the high status that the SM Supermalls has reached over decades, it

continues to strive and ventures into different fields and more often takeover the field together

with other large companies; from Merchandising, Manufacturing, Real Estates, Banking,
Infrastructure, Stocks and other Holdings, Foreign Exchange, Digital Currency, Education, and a

major role in the country’s corporate social responsibility status through SM Foundation etc.

SITUATIONAL ANALYSIS

SM Cares is the division of the SM Foundations, a Corporate Social Responsibility arm

of the SM Supermalls. Launched in 2004, SM Cares goal is to progressively organize

sustainability and community support efforts into programs with wide range of activities giving

benefit to the general public. Advocacies of SM Cares includes Five (5) main divisions including

programs for Environment, People with Disabilities, Senior Citizens, Women and Breastfeeding

Mothers, and Children and Youth.

5 MAIN CSR PROGRAMS

1. Environment

Environmental programs lead by the SM CSR arm is focused mainly on the solid waste

management area through gathering and use of valuable information, execution of

educational programs as well as partnership with the community to better promote

environmental care and consciousness. SM Cares partners with various local and national

government agencies, business partners, employees and service providers, and most

importantly, the community by engaging them into a collective environmental care.

Several of the company’s environmental projects are Regular Coastal Cleanups, Internal

Paper Recycling Campaign, Quarterly Screening of the Green Film Festival, and monthly

Trash to Cash Recycling Market. These programs also support and promotes global

celebrations including the Earth Day and Earth Hour. Partners of the company in this

advocacies includes, Department of Environment and Natural Resources (DENR),

Climate Change Commission, Earth Day Network Philippines (EDNP), World Wildlife

Fund Philippines (WWF), United States of America Embassy in the Philippines,

International Coastal Clean Up Group, United States Agency for International

Development (USAID), and SM Cinema and several more. The following are the

highlights of the SM Cares Environmental Division.

Program Highlights

Image 1: Trash to Cash Recycling Market

The goal of the Trash to Cash Recycling Market is to educate the community about the

significance of proper solid waste management. Customers bring their recyclables to the

mall to be redeemed for cash. It is conducted once a month at all SM Malls.

 Image 2: Green Film

Festival

It is an information and

education initiative aimed at

educating youngsters about

key environmental concerns

such as climate change,

biodiversity, and solid waste

recycling, among others. Environmental documentaries are screened at select SM

Cinemas for free to high school students.

Image 3: Regular Bay Cleanup and The International Coastal Cleanup Drive

The bay area of the SM Mall of Asia and SM by the Bay is cleaned up on a quarterly

basis. Mall employees, renters, security, and housekeeping staff are responsible for this.

Similarly, SM by the Bay has been a consistent partner and site for the annual
 International Costal Clean Up Celebration. In 2019, approximately 5,000 volunteers,

including students, employers, renters, community partners, and government partners,

participated. The cleanup campaign collected more than 34 tons of solid trash.

2. People with Disabilities

As the SM considers the vital roles played by people with different abilities, this program

is directly aimed to provide a barrier-free and inclusive environment for the PWD’s on all

its malls. It provided programs to address the customers with special needs leading the

company’s establishments to be known as the most PWD friendly across the country.

Few of the programs includes the Annual Angels Walk for Autism, Happy Walk for

Down Syndrome, Movies for blind and deaf, Emergency Preparedness Forum for PWDs,

a regular Sensitivity Training and Orientation of Mall Front Liners and Tenants, and

other special occasions.

The division is partnered with different local and international organizations such as

Philippine Foundation for the Rehabilitation of the Disabled (PFRD), Down Syndrome

Association of the Philippines (DSAPI), Autism Society of the Philippines (ASP), Miss

Possibilities Foundation (MPF), Deaf Blind Support Philippines (DBSP), Best Buddies

Philippines, Hard of Hearing Philippines, National Council on Disabilities Affairs

(NCDA), Special Achievers, Alyansa ng may Kapansanang Pinoy (AKAP Pinoy), and

the Philippine Society for Rare Disorders (PSOD); these are just few of the several

organizations collaborating to deliver the most value to the company’s differently abled

customers.
Program Highlights

Image 4: Sensitivity Training and Regular Orientation for Mall Front Liners

All mall security and maintenance staff, as well as tenants, receive monthly orientations

and sensitivity training on how to deal with clients with specific requirements. These are

hosted twice a year across all SM Malls by our PWD partners.

 Image 5: Angels Walk for

Autism

Angels Walk, conducted

every January in conjunction

with Autism Society

Philippines (ASP),

commemorates National

Autism Awareness Week.

The event promotes autism awareness, acceptance, and inclusion for all individuals with

autism.

Image 6: Happy Walk for Down Syndrome

 Angels Walk, conducted in January each year in collaboration with Autism Society

Philippines (ASP), commemorates National Autism Awareness Week. The event

promotes autism awareness, acceptance, and inclusion for all people with autism.

Image 7: Emergency Preparedness

Forum for PWDs and Senior

Citizens

The Philippines ranks third

in terms of vulnerability to

natural catastrophes. It is

our responsibility to ensure

that the segments of society

we serve and who are most

vulnerable are educated and prepared for catastrophes. The Emergency Preparation

Forum is presented yearly in select SM Malls to educate and teach people with

disabilities and senior citizens about emergency preparedness.

3. Senior Citizens

Another sector of customers given focus by SM CSR are the Senior Citizens where the

company states its aim to create a community that promotes an excellent well-being and

active lifestyle for the Senior Citizens in its presence. One of the principles that SM

believes is that the elderly deserves and should always be able to enjoy the liberty of

having same amount of fun and leisure in its establishments while engaging an active
lifestyle promoting their societal productivity. Some of the programs involves quarterly

mall forums on health, lifestyle, fitness, and fashion for elderly, Community Service

Programs for Senior Citizens, Emergency Preparedness Forum and Walk for Life. Some

of their partners includes Department of Social Welfare and Development (DSWD),

Office of the Senior Citizens Affairs (OSCA), Department of Health (DOH), and several

local government units.

Program Highlights

Image 8: Community Service Programs for Senior Citizens

SM Cares, which is held in collaboration with the Office of Senior Citizen Affairs

(OSCA), engages the elderly by giving them with chances to be productive at the mall.

Senior citizens can work at the mall in a variety of capacities, including mall greeters,

food court ushers, toilet attendants, and movie ticket ushers.

 Image 9: Emergency

Preparedness Forum for

PWDs and Senior Citizens

The Philippines ranks third

in terms of vulnerability to

natural catastrophes. It is our

responsibility to ensure that

the segments of society we

serve and who are most vulnerable are educated and prepared for catastrophes. The

Emergency Preparation Forum is presented yearly in select SM Malls to educate and

teach people with disabilities and senior citizens about emergency preparedness.

Image 10: Walk for Life

Walk for Life is the beginning event for the national celebration of Elderly Filipino

Week, which seeks to promote healthy and productive aging. It is organized in

 collaboration with the Departments of Health (DOH) and Social Welfare and

Development (DSWD).

4. Women and Breastfeeding Mothers

Another huge aspect that the mall has considered is the welfare of women and

breastfeeding mothers on every mall’s premises. Giving them enough attention through

the establishment of various Breastfeeding Stations across all Supermalls nationwide.

Partners includes Department of Health (DOH), Philippine Breast Cancer Society,

Department of Social Welfare and Development (DSWD), NATALAC, and

Breastfeeding Pinays.

Program Highlights

Image 11: Breastfeeding Stations in all SM Malls Nationwide

Mothers are allowed to nurse anywhere they choose in the mall, and SM respects their

individual choices for child care and nutrition. All SM Malls feature nursing stations,

generally placed next to the Mall Clinic, for women who want comfort and privacy. Since
its debut Breastfeeding Station at SM Megamall in 2006, the Breastfeeding Stations have

serviced over 1 million moms.

Image 12: Hakab Na! (Latch On)

Every August, in honor of Breastfeeding Awareness Month, Hakab Na! is hosted.

Thousands of women and families gather each year to advocate for breastfeeding.

Breastfeeding Pinays, the Department of Health, and UNICEF Philippines are all partners

in this event.
 Image 13: Pink Ribbon Day

for Breast Cancer

Pink Ribbon Day is

observed annually in

October to coincide with

Breast Cancer Awareness

Month. Hundreds of women

receive free clinical breast

examinations each year. The program also includes motivational speeches from breast

cancer survivors. The initiative is being carried out in collaboration with the Philippine

Breast Cancer Society and the Ministry of Health.

5. Children and Youth

SM's Children and Youth Program strives to create every SM Mall a safe and nurturing

environment for children, as well as to provide a channel for youth to participate actively

in community and country building. We support UNICEF Philippines' Project WASH

(Water, Sanitation, and Hygiene), the DSWD's Adoption Awareness Month, Safe Kids

Week, and the Global Youth Summit, among other projects. In this regard, the division is

partner with various organizations including Department of Education (DepEd), UNICEF

Philippines, Department of Social Welfare and Development (DSWD), National Youth

Commission, Global Peace Foundation, Safe Kids Philippines etc.

Program Highlights

Image 14: Adoption Consciousness

SM Cares assists the Department of Social Welfare and Development by offering free

mall space to host the marketing and accept child adoption enquiries. This event is

conducted every February to commemorate Child Adoption Month.

 Image 15: Support for

UNICEF Project Wash

This program generates

considerable amounts of

sales by which part of it is

then donated to the UNICEF

as an act of support to its

organizational project called

W.A.S.H (Water Sanitation and Hygiene).

Image 16: Global Youth Summit

GYS is an annual meeting of students and young leaders to engage them in today's global

issues that most concern them. The 2019 Global Youth Summit, held in the MOA Arena
 and the SM City Cebu Trade Hall, drew over 15,000 people, making it the country's

largest gathering of youth leaders. This program has already benefitted over 50,000

pupils. The initiative is being run in collaboration with the Global Peace Foundation.

CSR EVALUATION

A. Corporate Social Responsibility lessons if will be summarized into a brief explanation is

hitting three birds with one stone. Setting aside all other details, this is the very essence of CSR

as well as good governance which includes: first, promoting the company’s image, second is

creating an environment that favors the company, and third is helping others while helping the

company sustain its finances. On the stated program above, there is no indicated program that

specifically addresses Good Governance; however, these CSR efforts can be concluded as a

result of the company’s excellent way of governance.

All that has been discussed in the class can be found on the CSR efforts of the SM Cares. All of

the three aspects mentioned above are present in the programs exhibited by the organization

since it has started its operation.

B. All the division of the SM Cares plays valuable role in the company’s CSR efforts and

nothing is to be left out when it comes to its benefits to all stakeholders it addresses. On the other

hand, among all the program highlights, the following are the selected for each category.

1. Environment: Regular Coastal Cleanup and International Coastal Clean Up Drive

 One of the focus points discussed in the class is the role of CSR in the preservation of

environment. This program of SM allows unity for its stakeholders as well as different

organizations, not just to promote, but to act to save mother nature. Not only it benefits

natural habitat but also the customers on mall areas near coastline to experience the best

ambiance and site.

2. Persons with Disabilities: Sensitivity Training and Regular Orientation for Mall

Frontliners

Customer treatment will always be one of the centers of CSR efforts. This program is

very beneficial in creating a good character for employees that will benefit both the

company and the customers. Having a sensitive and well-aware employee also promotes

customer loyalty and these employees even if they are not working on the company

anymore, they are equipped with the compassion and skills to handle persons with

disabilities.

3. Senior Citizens: Walk for Life

Discussed in the class that CSR efforts must make the customer feel that they are

involved. Walk for Life promotes community involvement and healthy well-being for the

Senior Citizens. It does not only promote good health but also create a wonderful

environment for our elders to communicate with other people of their age sharing same

life experience; because, there is nothing better than a walk while sharing stories.

4. Womens and Mothers: Breastfeeding Stations in all SM Malls nationwide

CSR efforts must make the customer feel that they are being considered. This is probably

one of the greatest utility programs for SM since it has started. The stations are very
 functional for the breastfeeding mothers giving them the sense of comfort in the middle

of a crowd.

5. Youth: Global Youth Summit

A good CSR considers the future. With this program, SM are able to create future leaders

that will benefit the company since it can produce an excellent set of future part of the

company but also create a hoard of great leaders aiding the country to a greater future.

PROPOSED CSR AND GOOD GOVERNANCE PROGRAMS/ACTIVITIES FOR THE

COMPANY

A. NEW & UPCOMING CSR PROJECTS OF SM CARES

1. #PWDeSaSM

SM Cares recently hosted its annual Sensitivity Training for Customers with Different

Needs as part of its ongoing efforts to promote social inclusion in its malls by training
mall frontliners on how to care for people with disabilities. The event was place through

Zoom on July 21 and 28.

Throughout the two-day event, five of SM Cares' long-time PWD advocacy partners

offered their views and best practices on how to handle differently-abled mall attendees,

which were presented in five main subjects. The online event, which was concurrently

hosted at 121 sites around the country, drew a total of 13,796 participants, including

security and maintenance staff, mall receptionists, cashiers, and mall employees.
The first day's resource speakers centered on supporting persons with physical

impairments. Sebastien Saflor, President of Hard of Hearing Philippines, spoke about

caring for the deaf and hard of hearing; Arch. Jaime Silva, Chairman of the Accessibility

Committee of the United Architects of the Philippines, spoke about caring for the blind

and visually impaired; and Ms. Lita Evangelista, EVP and COO of Tahanang Walang

Hagdan, spoke about caring for orthopedically impaired individuals. Ms. Mona Magno-

Veluz, National President of the Autism Society Philippines (ASP), spoke about caring

for individuals with autism on the second day, while Ms. Agnes Lapea, member of the

Down Syndrome Association of the Philippines, Inc. (DSAPI), spoke about caring for

persons with Down Syndrome.

Sensitivity Training for Customers with Special Needs is only one of many programs run

by SM Cares for People with Disabilities. Other initiatives include the annual Angels

Walk, held in January in conjunction with ASP to commemorate National Autism

 Awareness Week; the annual Happy Walk, held in February in conjunction with DSAPI

to commemorate National Down Syndrome Awareness Month; and the annual

Emergency Preparedness Forum, which aims to educate PWDs and senior citizens on

what to do in the event of an emergency. SM Cares supports the United Nations'

Sustainable Development Goals, notably "SDG 10: Reduced Inequalities," through these

activities.

2. Plastic Waste Collection Program

SM Cares and Plastic Credit Exchange (PCX), in collaboration with Nestle Philippines

and PricewaterhouseCoopers, recently launched their Plastic Waste Collection Program

at SM North Edsa and SM City Fairview, bringing the initiative to more communities as

part of efforts to bring it to all SM malls nationwide. The plastic trash collecting program

seeks to encourage the appropriate usage and disposal of plastic garbage. People residing

within the area of Quezon city may now deliver their clean and dry plastic garbages to
Sm Fairview and at the SM City North Edsa from 10:00 AM to 5:00 PM (Located at

Annex Building Driveway). Plastic garbage collection is still continuing at SM Megamall

(RDU area, Building B Supermarket) and SM Mall of Asia (North Parking Building near

SM Hypermarket).

PET (soda bottles, furniture), HDPE (bottles, grocery bags, pouches), LDPE (grocery

bags, containers, dispensing bottles), PP (vehicle components, food containers,

dishware), and PS are all acceptable forms of plastic (cafeteria trays, plastic utensils,

toys). Except for PVC, other plastics are acceptable. SM Megamall and SM Mall of Asia

have gathered almost 1,600 kg of plastic trash since February of this year. According to

PricewaterhouseCoopers, this equates to 1,863.075kg of CO2 emissions, or about

226,629 smartphones charged or 7,534.949 km driven by an average passenger car. This

project supports the United Nations Sustainable Development Goals (SDGs) 12 and 14,

which promote sustainable consumption and production practices, including the usage of

plastics.
3. Global Youth Summit 2021

SM Cares and the Global Peace Foundation (GPF) held the second virtual iteration of the

Global Youth Summit (GYS) in conjunction with the Global Peace Convention, in

collaboration with the CIE British School, Consuelo Zobel Alger Foundation, Rotary

Club of Makati Circle of Friends, Nestle Philippines, Globe Telecom, and Unilever,

which with their great profession discussed many issues involving and affecting the

youth. The event took place on August 13 and 14 through Zoom and On24, and it was

streamed live on Facebook and YouTube.

The two-day summit focused on achieving the United Nations Sustainable Development

Goals for 2030 through youth collaboration, addressing the most pressing issues related

to five goals: SDG 3: Good Health and Well-being; SDG 4: Quality Education; SDG 11:
 Sustainable Cities and Communities; SDG 2: Zero Hunger; and SDG 8: Decent Work

and Economic Growth. The themes were chosen by a survey of 1,996 young people, and

they were presented in the form of compelling presentations delivered by some of today's

industry leaders, change-makers, and social media influencers.

This year's summit also honored the second batch of Five Global Youth Summit

Outstanding Alumni "Safe Space Heroes," who earned a total of Php250,000 to support

their continuing efforts and projects that guarantee children and youth have safe places to

congregate, live, learn, and work. Eleazar Danila of the JCI Regatta's Balangaw:

Celebrating the Gift of Life of People with Special Needs, Ambriel Pascual of Karapatan

at Kabataan Paligsahan ng mga Maikling Pelikula, Samuel Madriaga of the Angat

Kalusugan Operations (AKO) Initiative, Yanie Mirabueno of the Grassroots

Development Program, and Atty. Edward Arriba of "Lakbayan" & Safe Spaces Caravan.

4. Plastic Waste Collection System

Starting July 22, SM Cares, SM Supermalls' corporate social responsibility program, in

collaboration with the Plastic Credit Exchange (PCX) and Colgate-Palmolive Philippines,

brings its plastic waste collection program to SM City Marikina and SM City East

Ortigas, making the program more accessible to communities living in the Eastern part of

Metro Manila. The program presently includes six SM malls, including SM Megamall,

SM Mall of Asia, SM City North Edsa, and SM City Fairview, with the inclusion of SM

Marikina and SM East Ortigas. This will be expanded in the coming months as SM Cares

intends to roll out the initiative to additional malls throughout the country.

Residents are encouraged to send their plastic garbage to the driveway behind SM

Marikina or to the parking area at the east entrance to SM East Ortigas. Every day from

10 a.m. to 5 p.m., plastic garbage will be collected. On July 22, anybody who brings their

plastic garbage to either location will receive a free, limited-edition eco bag. Plastic trash

of the following categories is acceptable: PET and HDPE bottles; shampoo, soap,

detergent, and other liquid chemical bottles; tiny tires used in vehicle classes 1, 2, and 3;

plastic bags, food containers, bubble wrap, e-commerce pouches, plastic cups and lids,

straws, eating utensils, snack packages, sachets, and polystyrene foam (Styrofoam).

Empty, clean, and dry plastic trash must be carried to the collecting container. Since its

inception in February of last year, the initiative has collected 3,024 kgs. of plastic

garbage, keeping it from ending up in landfills or bodies of water. This volume of

collected plastic garbage is comparable to charging 1,011,305 cellphones or growing 137

 seedlings for ten years. As of July 2021, the initiative had successfully diverted a total of

8,313,738 kgs of CO2.

B. SUGGESTED IMPROVEMENT

Based on my assessment, all of the programs are carefully planned and is executed with outmost

greatness. The only thing that concerns me and I shall raise as recommendation is the broaden

the scope of the CSR program specifically the Environmental programs. It is evident that most of

the environmental programs including garbage collection projects are focused on the Metro

Manila areas alone. SM has its numerous amounts of Malls nationwide which also needs to be

paid with attention. I recommend that all SM Malls nationwide will have a post for community

garbage collection, the trash to cash stations which will not only benefit the people inside and is

related to the mall but also those unfortunate people nearby the vicinity by giving them

opportunity to earn cash through garbage collection at the same time save the environment.

C. ACTIVITY CHART FOR THE NEXT FIVE (5) YEARS

All existing projects will continue and the following are the proposed programs for the year

2022-2025.

1. Trash to Cash Stations deployment in all SM Malls nationwide which will be held on the

first quarter of the year.

2. National Mall Vicinity Cleanup Drive on second quarter where SM Employees will be

united on a cleanup activity on the nearby areas of all SM Malls nationwide.

3. National Seniors and PWD’s Shopping Day on third quarter where Seniors and PWD’s

will be able to enjoy a 5% shopping discount in all SM Malls nationwide.

 4. Frontliners Appreciation Day on fourth quarter; an event exclusively made for our

frontliners for them to enjoy wonderful entertainment as well as huge rewards.

Note: Gantt Chart File will be Sent Separately Due to its size. Thank You, God Bless and

Always Stay Safe!

Reference

SM Supermalls. (n.d.). Who We Are: Everything’s here at SM Supermalls.

https://www.smsupermalls.com/about-us/
SM Prime. (n.d.). SM Cares. https://www.smprime.com/sm-cares