SCOPE on Stage

The scope of SCOPE is expanding. Not just throughout the Philippines. During the Asian Forum on Corporate Social Responsibility (AFCSR) my SCOPE program faced and convinced an international audience. SCOPE is an approach to embed producer groups into the value chain of Philippine-based companies, thus creating jobs and income opportunities. With more than 35 implemented projects since 2004, SCOPE has become a brand name, and a source of insight.

I felt both, proud and honored, when the Asian Institute of Management (AIM) invited me as a speaker for this year’s AFCSR to share my experiences in a session titled 'Identifying Opportunities to Create Shared Value'.

Already, the discourse about the concept of Creating Shared Value is distorted. Too much emphasis is put on the word “Shared”, instead of the important word “Value”. I therefore opened my presentation with a quote from Michael Porter, a renowned Harvard professor and expert on “Strategic CSR” and now, the concept of “Creating Shared Value”.

He said: “The real opportunity is to figure out how we can create more value and therefore the farmer will actually be rewarded for the reality of participating in creating more value. But not through charity, but by actually expanding the pie. By creating economic value but also creating social value at the same time."

I like that quote because he pinpoints the essence of economic and social development: the need to enable people to become productive members of society. For one reason or the other—lack of market information, lack of access to technology, lack of skills—some people are left out of the loop. Integrating those people into the local economy is what helps them improve their skills and income situation, while at the same time improving the business environment for local companies who are in dire need of raw materials, and skilled labor.

More than 80 people listened to me explaining the heart of SCOPE: the Value Chain. How can we talk about wealth distribution without talking about wealth creation? Nodding heads and approving facial expressions during my presentation proved the SCOPE approach right.

It seems the days of philanthropy and charity often dubbed as 'Corporate Social Responsibility' (CSR) are finally over. People realized that taking from the rich and giving to the poor--which I call the Robin Hood principle—is not a solution to fight poverty or advance a developing country. It creates dependencies among the recipients and an unnatural strain on companies’ competitiveness.

Unfortunately, that is what various groups—NGOs, civil society groups, foreign aid agencies—used to promote. Under the cover of CSR, companies all over the world were 'asked' to invest parts of their profits into social programs, detached from their core-business, and without any bearing to their bottom lines.

Today, the corporate sector is acknowledged for its expertise and competence to expand the pie. At least in Mr. Porter’s and my world. The rest of the world will hopefully soon follow.